Tuesday, August 27, 2013

Clap for the Wilfman

In which I must stand in partial defense of Zygi Wilf. The Star Tribune reports on the latest in the Vikings stadium saga, but appears to have buried the lede:
Minnesota Vikings officials have agreed to provide analysts with more financial information on team owners Mark and Zygi Wilf, but fears continue to grow that construction of a new football stadium in downtown Minneapolis is falling behind schedule.

“I’m really concerned right now that 2½ years ahead of the opening, we’re already looking at potentially a one-month delay,” said Michele Kelm-Helgen, chairwoman of the Minnesota Sports Facilities Authority, the public board overseeing development of the $975 million stadium on the site of the Metrodome.
It's worth noting the nature of the additional information that the analysts are requesting:
That data, the lawyer said, was needed to assure the authority that the New Jersey court case, which could cost the Wilfs tens of millions in compensatory and punitive damages, wouldn’t hurt the team’s ability to help finance the stadium.
Yes, at this late hour, it would probably be a good thing to have this information in hand, especially since we're talking about a project that's almost certainly going to be more than $975 million. The better question is this -- why is the "authority" asking for this information now, long after the deal has been made? It's worth remembering that the New Jersey case against the Wilfs dates back over 20 years. It's also worth noting that the time to ask these sorts of due diligence questions is long before the deal is made. Instead, what we're seeing now is a classic example of bureaucratic and political butt-covering for the politicians who were so frightened of Helga Braid Nation that they went ahead with the deal without doing any real vetting. That's not on the Wilfs, kids -- that's on Mark Dayton, Julie Rosen, John Kreisel and all the other politicians who jammed this through the legislature last year. Do you remember this?
With Monday's crucial House vote fast approaching and the stadium bill likely a few votes short of passage, Gov. Mark Dayton engaged Saturday in a weekend lobbying blitz to persuade skeptical legislators to approve a new home for the Minnesota Vikings.

"I don't want them to be the Los Angeles Vikings, or the Tucson Vikings or the Vancouver Vikings," Dayton told a cheering crowd of hundreds at the Mall of America. "I want them to be the Minnesota Vikings the rest of my life."
And do you remember this warning?
For supporters, the stadium is a chance to lock in the Vikings for a generation, generate jobs and create a showcase arena that will be used by Minnesotans year-round. Opponents say the state is being stampeded into spending precious public resources on a sports palace that will increase state debt and displace worthier public projects.

Roseville Sen. John Marty is among a cluster of DFLers who have joined with Republicans in pushing back against funding yet another stadium at taxpayer expense.

"The current stadium deal was never negotiated in the public interest," Marty said. "They weren't negotiating to get a fair deal for taxpayers."
Taxpayers, shmaxpayers -- we had a deal to do. Oh well. Back to the present -- in addition to the acrimony of giving the Wilfs an overdue rectal exam, there's the question of who should pay for the audit:
Tensions between the authority and team surfaced just days after the authority ordered the deeper background check into the Wilfs’ finances.

At the time, Kelm-Helgen told the Vikings that the authority planned to bill them or the Wilfs for the audit, a tab that could easily reach six figures.

Bagley responded by saying simply, “we don’t have a business relationship” with the law firm or forensic accounting firm performing the work.
After a number of years of observation, we can all speak fluent Bagley and the meaning is clear -- you screwed up and we're not paying for your screwups. And, realistically, can you blame the Vikings/Wilfs/Bagley for feeling this way? After all, people who play three card monte on the subway don't typically offer refunds, either.

Meanwhile,we even received a cameo appearance from one our old favorites, NFL button man Eric Grubman:
In a statement Monday, NFL executive vice president Eric Grubman said the league’s commitment to the project — a $200 million loan — is secure and on track.

“The financial commitments are very strong from the Vikings and the NFL,” he said. “The NFL fully intends to proceed with its financial commitment to this project. The project needs the support of all parties to remain on time, and we expect all parties will work diligently toward that goal.”
It's good to know that Grubman is still around, in case additional veiled threats are needed.

3 comments:

First Ringer said...

I don't think even finding a pile of literal skeletons in Wilf's closet will stop the stadium project from going forward at this point. However, I do think the end result of all of this will be Wilf selling the team as soon as the stadium is completed.

Wilf's net worth has been estimated at just over $300 million (I'm assuming that's just his net worth, not the family's), but purchased the team for $600 million in 2005. I seriously doubt he's finished paying off whatever loans were necessary to buy the team, and coupled with being hit with a $50 million loss in his New Jersey legal battle, I'm sure Zgyi's coffers are lighter than he'd want. Forbes has already factored in the value of the stadium into the franchise value and come back with an estimated $975 million. I'm sure that figure will easily rise to $1 billion before everything is done.

If Wilf unloads the team in 2016, even with taxes and paying off any loans, he still stands to probably double his net worth. And I'd wager he'd prefer to pocket his profit and return home than serve several decades more as a disliked owner in Minnesota.

Mr. D said...

I don't think even finding a pile of literal skeletons in Wilf's closet will stop the stadium project from going forward at this point. However, I do think the end result of all of this will be Wilf selling the team as soon as the stadium is completed.

True. Zygi Wilf could unleash a poison gas attack in the Damascus suburbs and it wouldn't stop the deal from going forward. Which is the problem, of course.

If Wilf unloads the team in 2016, even with taxes and paying off any loans, he still stands to probably double his net worth. And I'd wager he'd prefer to pocket his profit and return home than serve several decades more as a disliked owner in Minnesota.

I suspect that's right.

Gino said...

ok, so wilf sells the team. i suggest the Grumpy Old Men lead a team of investors to buy it.

leave D and myself out of it, though, but i'm sure we would appreciate club seats for when our teams show up and beat you.