The chairman of the Rhode Island Senate Finance Committee said the committee will no longer consider the PawSox’ quest for a new stadium in Pawtucket unless the team provides details about its profits and revenues.
“Normally, the Commerce Corporation conducts a financial review and assessment of a company’s financial viability prior to moving forward with an agreement,” Finance Chairman William Conley (D-East Providence) said in a statement Thursday, referring to the state economic development agency. “Because this protocol was not followed, our committee has been working with the team since August to gather and vet this information, while recognizing the proprietary nature of the disclosure.”
“Several weeks ago we offered an arrangement by which the team would disclose necessary financial information to the Office of the Auditor General, which would assess the financial stability of the team as a partner to the proposed ballpark, subject to a non-disclosure agreement,” Conley continued. “Discussions are ongoing, however, the committee will not move forward without this necessary information.”
In a document posted Wednesday, the PawSox declined to make available the requested information.
“The Team has endeavored to provide the Committee with as much financial information possible without disclosing sensitive proprietary information,” the PawSox said in response to a requested profit and loss statement. “The materials submitted accurately paint a picture of the Team’s financially stable but somewhat stagnant and challenging current business model at McCoy Stadium, and the Team most recently shared a consolidated balance sheet that we think adds specificity to this picture. In thinking about possible returns in a new ballpark, the Committee is encouraged to refer to the sustained success seen by teams in new ballparks across the league.”
There was no immediate response to a request for comment from the PawSox or the Commerce Corporation, which negotiated the terms of the stadium proposal on behalf of Governor Gina Raimondo.
The Senate’s move to stop, at least temporarily, consideration of the stadium is noteworthy since the Senate has been more supportive of the concept than the House. Senate President Dominick Ruggerio said in August that he hoped for a November vote on the stadium.
Raimondo initially supported the agreement, describing the stadium proposal as something that would pay for itself through additional revenue.
But critics have remained vocal in their criticism of plans to use tens of millions of public borrowing as part of the stadium plan. Opponents have knocked on doors in the Cranston district of House Speaker Nicholas Mattiello, who narrowly won re-election in 2016.
In a statement Wednesday, Raimondo said through her spokesman, David Ortiz, that she still supports the stadium.”
“The governor believes the PawSox proposal is a good deal that protects Rhode Island’s taxpayers and helps to revitalize Pawtucket,” Ortiz said. “She has also said the proposal needs a full public vetting. She believes it’s appropriate for the legislative committees conducting the hearings to request as much financial disclosure as they need to vet the proposal, and the team should comply, at least privately.”
