Simon Says Pacers Are Losing Money, Cannot Afford Arena Costs
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Pacers Exec Says Herb Simon Has Lost $200M
Since He Bought The Team For $11M In '83 |
Pacers co-Owner Herb Simon "stressed Tuesday that he wants to keep his team in Indianapolis but was equally adamant that he can no longer afford the operating expenses at Conseco Fieldhouse or the team's year-after-year financial losses," according to a front-page piece by Alesia & O'Shaughnessy of the INDIANAPOLIS STAR. Simon said that the Pacers "have lost money nine of the past 10 years," and Pacers Sports & Entertainment President Jim Morris said that the team has lost $200M "total since Simon bought" the Pacers in '83. Morris: "The accumulated losses are close to the value of the franchise. There is not some golden egg out there somewhere." Simon said, "There comes a point where you have to say, 'Maybe I can't do this anymore.' Certainly my family, if I'm not here, is not going to be able to do it. So, let's straighten this thing out. Maybe we can't. But let us try. Sure, I would have picked a better time than the world's greatest economic crisis. The timing sucks, but that's what it is." Under the team's contract with the city's Capital Improvement Board (CIB), the Pacers "agreed to operate the fieldhouse, which is costing the team about" $15M a year. Neither the Pacers nor the CIB "thinks the team can continue to pay that much." But the CIB is "facing its own $20[M] shortfall." If the CIB "were to absorb the cost of operating the fieldhouse, it almost certainly would need help from taxpayers." Simon "avoided making threats to leave town and said he has not spoken to other cities that might be interested in the team." However, Simon said it is "very important we resolve this in the near future. Very important." Meanwhile, Simon said that he is committed to the WNBA Fever "for just one more year." Simon said the Fever have lost "several million dollars," and the team "must double corporate sponsorships and attendance if it is to survive" (INDIANAPOLIS STAR, 3/11).
JUST SAY NO: In Indianapolis, Matthew Tully writes the "people and leaders of Indianapolis need to say no" to the Pacers. Tully: "I'm sorry, Brothers Simon, but we can't afford to further subsidize your sports enterprise -- at least not to the levels being discussed. We sincerely appreciate the upstanding corporate citizens you have been. We're sorry you're losing money on your NBA franchise. We regret that you feel you can't continue to suffer your team's financial burden. But, ultimately, that's your problem. Not ours" (INDIANAPOLIS STAR, 3/11).
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