You Can Have Your Cake and Eat it Too

To wish to have one's cake and eat it too or simply have one's cake and eat it is a popular English idiomatic proverb or figure of speech is to want more than one can handle or deserve, or to try to have two incompatible things. Paul Brians, Professor of English at Washington State University, points out that perhaps a more logical or easier to understand version of this saying is: “You can’t eat your cake and have it too”. Professor Brians writes that a common source of confusion about this idiom stems from the verb to have which in this case indicates that once eaten possession of the cake is no longer possible. Alternatively, the two verbs can be understood to represent a sequence of actions, so one can indeed "have" one's cake and then "eat" it.

According to recent reports, the Dallas Cowboys and the New York Yankees are forming a company to handle concession and merchandise sales at their new stadiums. The partnership brings together two of the most recognizable franchises in all of sports and two of the highest profile owners, Jerry Jones of the Cowboys, and George Steinbrenner of the Yankees. Former Pizza Hut President Michael Rawlings will run the company, which is also backed by Goldman Sachs and Dallas private equity firm CIC Partners LP. According to reports, Legends Hospitality Management will eventually seek to work with other professional and college teams, allowing Jerry Jones and George Steinbrenner to "have their cake and eat it too."

The Cowboys are building a new stadium which is scheduled to open before the 2009 NFL season. The stadium will accommodate 80,000 (from 65,000), with the possibility for expansion to accommodate 100,000. Originally estimated to cost $650 million, the stadium's current construction cost is in excess of $1 billion. To aid Cowboys owner and general manager Jerry Jones in paying the construction costs of the new stadium, City of Arlington voters approved the increase of the city's sales tax by one-half of a percent, the hotel occupancy tax by 2 percent, and car rental tax by 5 percent, making the new stadium the largest publicly-financed sports facility in the United States. The City of Arlington will provide $325 million in funding, and Jones will cover any cost overruns. Also, the NFL will provide the Cowboys with an additional $150 million, as per their policy for giving teams a certain lump sum of money for stadium financing.

Not to be outdone, the new Yankee Stadium is being built on the site of Macombs Dam Park in the Bronx. The projected total cost of $1.6 billion, making it the second most expensive stadium ever built after the new Wembley Stadium in London. New York is providing over $400 million in public financing for the project. Tishman Speyer of New York is developing the stadium, HOK Sport designed it, and Turner Construction was hired as general contractor. Skanska USA will construct structural steel frame and pilings. As part of its commitment to the Bronx Community, and because of over $400 million in public financing for the project, the New York Yankees will establish a comprehensive Bronx Business and Minority Women-Owned and Local Business Enterprises Participation and Labor Force Program. The award of at least 25% of the construction contracts to Bronx Based Businesses, of which at least fifty percent would be qualified minority owned businesses, the employment of Bronx residents for at least 25% of the total job force, and the employment of at least 25% of Bronx residents in post-construction stadium operations. Oklahoma-based Manhattan Construction, the general contractor for the new Texas Stadium. An Arlington Fair Share Agreement encourages participation with Arlington-based minority and women business enterprises in construction of the Cowboys complex.

The minority share of the pie on the Yankee deal will be approximately 12.5% (50% of 25%). Manhattan Construction formed a joint-venture with Rayco Construction and 3i Construction to manage construction of Cowboys Stadium, which should result in about 15% minority participation. Rayco is owned by Raymond Gomez, a Hispanic, and 3i Construction is owned by Michael Williams, a brother, a graduate of Carter High School in Dallas, and a former member of the Detroit Pistons and Minnesota Timberwolves.

The practice of providing taxpayer subsidies to the building of sports stadiums is in effect a transfer of wealth from many taxpayers to the few wealthy owners, and the new Yankee and Cowboys stadiums are no exception to the rule. Studies by economists almost uniformly show that stadium subsidies create no net economic benefit for cities and might even leave cities worse off by diverting valuable land and public funds from more productive uses. Based on nearly $1 billion in public subsidies they will receive in connection with construction of their new stadiums, Jerry Jones and George Steinbrenner will be able to have their cake, eat it, and share the cake.

If you have questions or require additional information on how you can participate in FAIR, FraserNet's Athlete Initiative for Reform, please feel free to contact George Fraser at gfraser@frasernet.com or contact the writer, Everett Glenn, at eglenn@espsportslawpro.com or 562.619.8460.