Maryland treasurer: State’s decision to let Orioles keep Paul McCartney concert revenue doesn’t pass ‘smell test’

Maryland’s treasurer on Wednesday criticized the stadium authority’s current resolution to let the Orioles hold the entire income from the upcoming Paul McCartney live performance, questioning whether or not it’s in the very best curiosity of taxpayers.

The Maryland Stadium Authority’s Board of Administrators unanimously agreed final week to decide out of monetary participation within the McCartney present, scheduled for June 12 at Oriole Park at Camden Yards. The stadium authority, which owns the stadium and leases it to the Orioles, can decide in to non-baseball particular occasions on the venue — receiving 45% of the income whereas the Orioles obtain 55% — or it will possibly decide out.

As a result of there’s threat that such an occasion can function at a loss and since the Orioles advised the authority that participation from the stadium authority was a “disincentive” to bringing extra concert events, the MSA “elected to acquiesce” to a request from the Orioles to decide out.

Because of this, the Orioles don’t should share the income with the state.

Dereck Davis, the state’s treasurer, opened Wednesday’s Board of Public Works assembly by saying he had an issue with the stadium authority’s resolution.

“For apparent causes, the ball membership requested the state to surrender their curiosity on this, and we did,” Davis stated, “and the reason was, nicely, we don’t assume any of the danger and so forth. However my factor was, that didn’t actually cross the odor check.”

Davis questioned why, if the danger of monetary loss was a cause to decide out, the authority didn’t decide out by itself accord, somewhat than ready for the Orioles to ask.

“Why did we want the Orioles to return ask the state to not take part?” the Democrat stated. “We might’ve simply have achieved that ourselves, however we didn’t do this.”

Throughout final week’s assembly of the authority’s board of administrators , Chairman Thomas Kelso highlighted that whereas the authority will tackle “zero threat” by opting out of the live performance, the occasion nonetheless would generate roughly $700,000 or $800,000 in income for the stadium authority due to the amusement tax.

There’s a 10% amusement tax on tickets to the McCartney live performance, 20% of which works to town and 80% goes to the stadium authority — no matter its monetary participation within the live performance.

“It’s a fantastic factor. We take no threat and we make 8% of the full quantity of tickets bought,” Kelso stated.

The Orioles — who’ve solely hosted one main live performance at Camden Yards, Billy Joel in 2019, previous to subsequent month’s McCartney efficiency — stated authority’s participation would disincentivize the workforce to usher in future acts. The stadium authority, which argued that it’s higher to get 8% than nothing, additionally opted out of the Billy Joel occasion.

However Davis stated Wednesday that the Orioles have leaned on their settlement with the state in years previous when it behooves them, and the authority additionally ought to be capable of.

“If they’ll train their contractual proper, why can’t we do the identical?” stated Davis, one in every of three members of the Board of Public Works. “We had a contractual proper that each events agreed to, and what I’m getting at is, the stadium authority has a fiduciary accountability to the residents of the state of Maryland. They’re not a grant program for any of those entities.”

The Maryland Stadium Authority didn’t reply to a request for touch upon Davis’ criticisms.

The Board of Public Works’ different two members are Republican Gov. Larry Hogan and Comptroller Peter Franchot, who’s operating for the Democratic nomination for governor. Franchot thanked Davis for sharing his ideas and stated: “I cherished the feedback by the treasurer.”

When the Board of Public Works accepted a $3.5 million hire credit score for the Orioles to pay for modifications to the left area wall earlier this 12 months, Franchot and Hogan voted in favor of it, however Davis didn’t, suggesting the workforce ought to pay for it.

Like with the Orioles and Camden Yards, the stadium authority can also share within the income and dangers of concert events and particular occasions hosted by the Ravens at M&T Financial institution Stadium. When requested if, going ahead, the Ravens would request that the authority decide out of monetary participation in such occasions, the Ravens didn’t reply straight.

“We’re dedicated to bringing world class occasions to M&T Financial institution Stadium and Baltimore,” the Ravens stated in an announcement. “The live performance enterprise has modified for the reason that Nineteen Nineties when the leases between MSA and the groups have been negotiated. A lot of immediately’s stadium scale occasions do require flexibility and creativity.”

The Orioles’ lease with the stadium authority started in 1992 and would have expired in 2021, however the membership and the authority prolonged the lease by way of Dec. 31, 2023. The Normal Meeting lately accepted the authority borrowing as much as $1.2 billion for enhancements to Oriole Park and M&T Financial institution Stadium, which might require the Orioles and Ravens to signal leases for at the very least so long as it might take to repay the bonds.

Baltimore Solar reporter Bryn Stole contributed to this text.