Hollywood-Style Accounting Masks NBA Miami Heat's Bonanza

American Airlines Arena, Miami

Today's online edition of the Miami Herald includes a fascinating story about the NBA franchise Miami Heat's money trail. One intriguing angle is how the Heat's revenue sharing, rent, and other financial configurations has managed to leave Miami-Dade holding an empty money bag.

The Herald article noted how fan spending dramatically increased at the Heat's home arena once LeBron James and Chris Bosh joined superstar guard Dwayne Wade to form "The Three Kings." However, that increased revenue did not reach the Heat arena's landlord, the Miami-Dade municipal authorities. Instead, the Herald noted, "the surge in revenues during the Three Kings era has not yet offset the losses recorded in the first years of the waterfront arena...As a result, Miami-Dade has yet to collect rent on the county-owned facility, which is governed by a 1997 profit-sharing arrangement."

The entire story goes into detail about the financial maneuvering, and strongly suggests that Heat owner Micky Arison is raking in the cash on this deal. It's also a cautionary tale about pro sports in general, and how following the money almost always leads to some very interesting, and occasionally dark, areas that ownership and municipalities alike would prefer kept out of the light.

Florida's Political Tremors

Submerged in the bleak news from around the world was a very noteworthy domestic political event. A recall election was held earlier this week in South Florida which produced a massive "no" vote against the Miami-Dade mayor and the Miami-Dade county commissioner. They're gone, the result of the largest successful recall vote since California governor Gray Davis got the electoral guillotine in 1993.

The most startling aspect of the Florida recall was that 88% of the voters turned thumbs down on the targeted pair of elected officials. According to a Miami Herald story, the percentages were 4:1 across just about every significant demographic group that voted. Even convicted criminals, such as the late US senator from Alaska, Frank Murkowski, got a higher percentage of votes in his post-conviction re-election effort than the Florida pair did combined.

The Miami-Dade decision, with its overtones of impatience and mob psychology, suggests that the stability of the American electoral system is increasingly in play. An edgy population, disinclined to listen to alternate points of view, demands immediate action. This perspective is magnified by our ardent, largely blind embrace of speed as the greatest possible good. The resulting scenario diminishes reflection as a useful, highly desirable quality. What does this say about the rational basis of government which America's founders found essential?

The institutions currently shaken by recall elections, whether it is a right-wing putsch in California or a left-wing lotta in Wisconsin, were not designed for this style of political action. Social volatility can swiftly take on a life of its own, beyond the management of professional "risk managers," and become "black swan" events.

Careful what you wish for.