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The WORST Stadium Deal in U.S. HISTORY (And What Investors Can Learn))
Description
Key Takeaways:
Public-Private Deal Risks
The public took all the financial downside while the private owner (Jeffrey Loria) gained all the upside
No accountability or performance clauses in the deal
Lack of transparency and no public vote
Financial Structural Problems
Revenue bonds backed by volatile tourism taxes
High-interest, long-term debt ($1.9 million bond projected to cost over $1 billion)
Principal payments don't start until 2026, extending debt to 2048
Real Estate Investment Lessons
Demand drives everything - the Marlins had a small fan base
Verbal promises aren't enough; development commitments must be in writing
Always conduct independent financial reviews
Architectural beauty can't compensate for poor financial fundamentals
Consequences
Stadium surrounded by empty lots
Neighborhood saw minimal economic development
Loria sold team for $1.2 billion, making hundreds of millions in profit
Attendance dropped from 2 million to 800,000
Political backlash, including mayor's recall