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Erie County
Lockout or no lockout, county pays the Bills
Taxes help team maintain stadium
Updated: April 13, 2011, 2:06 PM
NFL owners have declared a lockout, casting doubt on the 2011 season.
But Erie County taxpayers by May 1 will deliver more than $640,000 to the Buffalo Bills for a category of support known as "game-day and operating expenses." That will be followed by a similar payment of more than $1 million Aug. 1, as quarterly checks to the team continue like clockwork.
Season or no season, taxpayers will still help the Bills maintain the county-owned Ralph Wilson Stadium, which the team may use for its sole profit.
It's one facet of the multifaceted contract involving the Buffalo Bills, Erie County and New York State through its Empire State Development Corp.
Now covering just two remaining seasons, the contract was sealed in 1998 by then-County Executive Dennis T. Gorski to keep the Bills viable in a small-market city without expecting taxpayers to build a new stadium.
Here's how the money flows each year: The county gives the Bills about $3 million a year to spend on major stadium improvements. This capital assistance has financed, for example, the scoreboard and the ribbon board ringing the stadium. This year, the Bills and Erie County will install a new playing surface.
Taxpayers also help the Bills pay game-day expenses linked to each home game -- for security personnel, ushers and ticket takers, for example -- and for regular stadium operating and maintenance expenses such as utilities, garbage disposal, pest control, cleaning and assorted repairs that involve painting, caulking, plumbing and wiring.
The Bills are reimbursed for those game-day and operating expenses under an allotment adjusted annually for the consumer price index and forwarded in front-loaded quarterly installments.
For the current lease year, which began last Aug. 1 and covered last season, the Bills are allowed $4.01 million. The final payment, 16 percent of the total, goes out by May 1.
A similar amount will be set for the next lease year that starts Aug. 1 to cover the 2011 season -- even while county government has cut support to libraries and cultural agencies to make ends meet.
"The Bills do well by county government," said Gary Earl Ross, a novelist, playwright and professor at the University at Buffalo's Educational Opportunity Center who has questioned the breadth of taxpayer support flowing to the NFL team.
"But sports has never been a bargain in terms of the cost-benefit analysis on what you get from supporting a sports team," he said, referring to a stadium that sits idle for most of the year. "My belief is we don't get our money's worth in terms of what's put out for the stadium."
"I think what we get from our cultural institutions is much better in the long run for both the city's and the county's intellectual development and for the county's economic development because people do travel to see plays," he said.
If the Bills play no games this year, the team will not charge Erie County for game-day expenses, said the Bills' treasurer, Jeffrey C. Littmann, from his Michigan office.
But the Bills will charge for operating expenses to maintain the stadium, even if it's idled by a lockout. Operating expenses make up the majority of those game-day and operating costs -- about $2.5 million, or 62 percent, of the $4 million, Littmann said.
When the Bills started playing occasional home games in Toronto, the team still had plenty of operating expenses to claim to cover their allotment for both game-day and operating support. "We have a responsibility and a duty to maintain the building, and we will do that," Littmann said.
The Bills take those payments seriously. By late 2007, the Bills had tired of receiving th county's quarterlypayments late because of ongoing budget doldrums. So the team insisted on almost $25,000 in interest allowed under the lease agreement.
"While we appreciate the continuing support of Erie County and New York State and recognize the investment made by the taxpayers in their stadium," Littmann wrote to the Empire State Development Corp. when it expressed surprise at the demand, "it must be viewed in the context of the extraordinary efforts being made by this franchise to remain domiciled in Western New York."
The Bills had fallen to the bottom quarter of the NFL when measuring revenues, and the team months earlier had requested the right to play games in Toronto to expand its reach. Then-County Executive Joel A. Giambra quickly agreed.
The Bills' allotment for game-day and operating expenses for the coming season -- the potential lockout -- will be calculated around Aug. 1 without being adjusted for the potential of an unused stadium.
The county can recover money it advances for game-day expenses for the 2011 season, but only after home games are canceled, said Grant Loomis, a spokesman for County Executive Chris Collins. The county cannot recover operating expenses because those go for the county-owned structure.
Collins has called the Bills "part and parcel of the soul of this community" and says they generate sales taxes, income taxes and other local spending.
Comments
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According to the Center for Working Families analysis of 2005 tax year filings from the NYS Dept of Taxation & Finance - 43% of income tax filers in WNY had an income less than $20,000.
That's nearly half of the people living in Wester New York!
Those are the people who would qualify for MEDICAID - the health care for the poor.
Perhaps if they were able to earn a LIVING WAGE along with some benefits they may not have had to turn to MEDICAID.
I, too, can name other cases of government welfare in WNY - and the biggest cons are business owners - such as Mr. Collins - our esteemed County Executive, who helped increase the number of those who found themselves IN NEED OF MEDICAID.
In 2007 when Collins took over Buffalo China he cut jobs, cut benefits and cut wages to $10/hr - WHILE RECEIVING CORPORATE WELFARE under the guise of SAVING JOBS. He did the same with the Nuttall Division of Westinghouse where he eliminated 100 jobs, cut the remaining workers salaries & bennies and moved the business from Erie to Niagara Co. - while receiving CORPORATE WELFARE to do so.
Tell me Mr. Hagler who is the bigger welfare queen?
The poor who need MEDICAID because the corporate welfare queens refuse to pay workers a living wage?
Or the Corporate Welfare Queens (Collins et al) who enrich themselves while trying to cut healthcare for the hard working poor?
To paraphrase your slant REPUBLICANS AND NEOCONS love to spend other peoples money on corporate welfare with no end in sight!
SIMONE PHILLIPS, BUFFALO, NY on Fri Apr 15, 2011 at 11:54 AM
The NFL is a disgusting monopoly with complete disregard and disrespect for its consumer. They believe the fans are nothing more than loyal dogs. If you want to compare the NFL to a anything compare it to the oil/gasoline trades. Crying poor raising prices because people have limited choices and a strong dependency. After they cry poor they declare record breaking profits.
They only solicit tax dollars because they can. They know and we know that some other city would put up the money, so we are extorted and have to comply to keep the team. Eventually we will not be able to justify it.
JEFFREY GIANCARLO, LANCASTER, NY on Thu Apr 14, 2011 at 09:31 AM
Maybe you should get someone to EXPLAIN to you that MOST of the people ON Medicaid are WORKING, but they get no insurance from their employer. Or they cannot afford the insurance that is offered.
The second point is why are you still in NY? Rest assured that they have Wonder Bread and Ragu all over the country.
JEREMY LEWIS, BUFFALO, NY on Wed Apr 13, 2011 at 05:21 PM
Corporate welfare in my opinion is a bigger problem than Medicare and such. Companies that can actually afford to do business are granted major breaks while small businesses get the short end as always. No wonder why our economy is in such bad shape when businesses like the Bills and the NFL can get better benefits for doing business in the community than those who provide more essential services.
The only reason why sports are essential is so that the govt and corp america can keep our attention away from how we are all being robbed, and our rights are being taken away. No wonder entertainment is given huge tax breaks!
RICK GRASER, CHEEKTOWAGA, NY on Wed Apr 13, 2011 at 05:15 PM
I dont know how Medicaid got involved in these comments but as long as you brought it up...........- in large part its the fault of the State govt that so many people are in the program - I dont know how this State could be any MORE - business unfriendly. Between high taxes , smothering regulations, high utilities , local with govts that are killing property owners with high propertyand SCHOOL taxes.... and are proud to be known to be - "hard on contractors" is it really any wonder WHY so many people have fallen on hard enough times to qualify for medicaid?.....Medicaid keeps people healthy - people need to be healthy to EVER recover from hard times - it just boggles my mind as to HOW anyone could be jealous of someone less fortunate - who qualifies for these safety net programs...
those fortunate enough to NOT be in a position to qualify should kneel down every night and thank God
Wilson and the Bills are leaches who have been taking blood from a bleeding economy - because our so called leaders have allowed them to.
allowing the Bills to play games in Toronto - is the same mentality of the abused wife allowing the husband to have affairs - because she is afraid of loosing him...football is a business - the county doesnt subsidize any other business with free rent,free utilities and free building maintenance and PAY them to be here.......what exactly is so special about the Bills to have them receive this special treatment?
ROBERT WENDT, BUFFALO, NY on Wed Apr 13, 2011 at 05:05 PM
Medicade has grown because the need has grown, and it's not just in this area. It seems medicade has become a thorn in the side of most states. Health care costs have risen dramatically for everyone because the availability of services and cures and drugs has expanded. Should people on medicade be denied the miracle of modern medicine?
How does one interperate people seeking relief from disease and illness entrapment? Not all people on medicade are on public assistance. Medicade helps many working families. And lets not forget the dollars from medicade go into the health care community, public and private, paying salaries and supporting businesses.
I have many liberal friends who are successful and downright wealthy. They would love to minipulate the system to help them pay for their endevours. They feel blessed with their station in life and want everyone to succeed.
One rich guy gets 3 million dollars and thats ok. The trouble is there are thousands of those guys getting millions, and that adds to many billions. But thats ok I guess, it's those "poor", they're always in the way.
LOUIS MARINACCIO, BUFFALO, NY on Wed Apr 13, 2011 at 03:48 PM
if we Do get to use it for anything but football just make sure the Sheriffs leave the horses in the barn so we dont have another fiasco like the Tim McGraw issue - which basically black balled the stadium for concerts and sent them to Darian Lake in another county.......a big thank you to then Sheriff (now senator) Patrick Gallivan for making a huge mountain out of a mole hill....the "Peter Principle " of being promoted beyond ones level of competence - being demonstrated once again - to the detriment of us taxpayers .
ROBERT WENDT, BUFFALO, NY on Wed Apr 13, 2011 at 03:22 PM
Now Ralph Wilson receives 3 million per season for the Buffalo Bills. Hmmm....201 million for medicaid in 2010 and 211 million in 2011. The poor need help. They don't need a welfare society and culture that entraps them offering no future opportunities to get out of that false delusion.
I can name other cases of government welfare in this county and the biggest con artists are the public employee unions and the bureaucrats running these so-called agencies and safety nets for the "poor."
The private sector is the key and not the government! Unfortunately we have too much government and not enough private sector businesses that are thriving here in WNY.
To the lunatic left and all illogical liberals the envy and hate must stop for those who are successful. You are all green with envy!!!!
J. CHRISTOPHER HAGLER, AMHERST, NY on Wed Apr 13, 2011 at 02:47 PM
Spending on education, yeah there is a real waste of money.
JEREMY LEWIS, BUFFALO, NY on Wed Apr 13, 2011 at 02:41 PM
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MICHAEL SANTORO, BUFFALO, NY on Sat Apr 16, 2011 at 03:55 PM