Never-ending Tax Benefits Billionaires
On December 12th, voters will be asked to continue the MAPS 1% sales tax for another six-years to fund 95% of the construction of a $900M+ arena. This is a direct wealth transfer from the many sales taxpaying residents of OKC to the billionaire owners of the Thunder who are putting in 5%. We are asking voters to vote NO!
This is the worst NBA arena deal in more than a decade. Increasingly, the trend is for billionaire sports franchise owners, who keep all the profits, equity and most of the revenue from these buildings, to build and pay for more and more of their own arenas. Several recent arenas (the Warriors, Clippers and 76ers) have been built entirely with private funds.
Ending this tax would amount to a 24% reduction in OKC’s sales tax rate (4.125% to 3.125%). Calling this a temporary tax when it has lasted longer than many of our residents have been alive is not accurate. This version of the tax goes far outside the financial structure MAPS traditionally uses.
First, we will be borrowing, during a period of high interest rates, to build an arena as quickly as possible. MAPS has always been pay as you go, meaning we collect the money first, then build. This version will cost us an additional $27-45M in interest payments. The total bill will amount to more than $1,200 per OKC resident. It is also worth noting, there is no maximum amount the arena can cost, only a minimum.
Additionally, it is a single project with no real public benefit. The building is privately managed, hosts private events and most of the revenue (advertising, naming rights, food and beverage profits), go to private entities and owners. Nearly all the cost of construction is on the public.
There has been a lack of public input. We’ve submitted an open records request to find out how such a poorly negotiated deal was determined on our behalf. The City is working on its response and has committed to replying soon. All we have gotten so far are public statements or private events where the Mayor talks to allies at the Chamber of Commerce.
While this is being treated as a forgone conclusion and something that simply must happen, the evidence doesn’t support that. Public polling has shown deep skepticism amongst the electorate. Voters, overwhelmingly, do not support giving their money to billionaires.
Additionally, the Thunder owners have never said they will sell or move the team. All eight families have deep personal ties to Oklahoma, many businesses based here and they have generations of family living here. It is very unlikely they will sell or move the coolest thing they own because voters will not give up their hard earned tax dollars. With a collective net worth of more than $25B the Thunder owners are the third wealthiest ownership group in the NBA. They have the ability to build many arenas and barely affect their net worth.
On December 12th, OKC voters have a chance to send this back to the drawing board. You can share our website, find us on Twitter or on Instagram. We are a grassroots campaign and every dollar helps us get the word out. Please donate here!
Find your polling location here and make your plan to vote NO on December 12th!
