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D.C. Short on Baseball Revenue
Fans take advantage of price cuts on merchandise at the Nationals' last home game of the season. Sales tax revenue at the stadium was lower than projected.
(By Preston Keres -- The Washington Post)
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For now, some city leaders and activists have questioned why first-season profits for the team and Major League Baseball exceeded projections while the city might not reach its revenue goal. In response, city officials stressed that their preseason projections were made with little knowledge of how the team would perform and how fans would respond.
D.C. Council member Adrian M. Fenty (D-Ward 4), who voted against public funding for a stadium, said Major League Baseball should chip in more because the deal to build a stadium was struck when no one knew how profitable the franchise would be.
"There's no question that for a lot of D.C. residents, the team brought a lot of civic pride to the city," Fenty said. "I also do not think there's any question that the deal as was negotiated is an unfair deal. . . . Given how much this team is now going for, I think it's more than fair that the owners who reap the profit from the sale of the team contribute back to the cost of the stadium."
Nationals President Tony Tavares said the stadium financing deal is closed.
"A deal is a deal," he said, adding that the Nationals might not always be profitable. "People lose sight [of] what it takes to be a successful operation. You shouldn't take a snapshot of one year and say this is a panacea."
Some city and team officials said two factors could help stem a potential drop in ticket sales and attendance next year.
For one thing, the team's cable television exposure was severely limited this season because of a legal dispute between Comcast and Orioles owner Peter G. Angelos, who are fighting over broadcast rights to the D.C. area. When the team gets a more expansive cable deal, some officials said, more people will learn about the club and attend games.
And when Major League Baseball sells the team, a new owner will spend more on marketing or even make improvements at RFK, they said.
"No-shows were excessively high here," Tavares said. "Hopefully, with a new owner coming on board here, we'll be able to do some things we haven't been able to do in the past as far as marketing and sales."
The city will try to improve food service at RFK in hopes of shortening lines and getting fans to spend more money, said Allen Y. Lew, chief executive of the D.C. Sports and Entertainment Commission.
Lew said the problem is hard to fix: The 44-year-old facility has just two kitchens and one service elevator, archaic compared with modern stadiums. Spending a lot of money would be foolish because the team is scheduled to play there just two more seasons, he said.
The District's tax revenue from parking also was compromised because more fans than expected rode Metro. About 45 percent of the crowd took the trains, compared with the preseason projection of 40 percent.
City officials had a chance to make some extra revenue -- about $2 million -- by selling naming rights at RFK. But a deal with the National Guard fell through shortly after the season began after federal officials objected.
Some city leaders said they hope the District's biggest gains will come when the Nationals are sold by Major League Baseball to an ownership group, probably next month.
"We should put all our energy into getting local ownership," said council member Vincent B. Orange Sr. (D-Ward 5), "someone with a stake in the outcome who is sensitive to sharing the profit."
Staff writer Barry Svrluga contributed to this report.





