The City of San Antonio has confirmed that Mayor Gina Ortiz Jones could use $5 million that Spurs Sports & Entertainment (SS&E) owes the city over the NBA franchise’s failure to lure a Major League Soccer (MLS) team here to plug holes in the budget deficit.
That confirmation from city spokesperson Brian Chasnoff comes after questions arose whether Jones could direct staff to access money related to a financing deal struck between the city, county and SS&E to purchase Toyota Field in 2015.
During a town hall last week, Jones told residents she had instructed City Manager Erik Walsh to track down corporate entities that owe the City of San Antonio more than $1 million and are more than six months behind on payments. She added that SS&E is on the list because it still owes the city and Bexar County $5 million for falling short on a bid to bring MLS to the Alamo City.
“As you can see, we don’t have a [MLS] team here, so that money then should have been coming in, and we haven’t been getting that,” Jones told the Express-News.
Even so, the city’s Chasnoff told the Current that the Toyota Field deal is a bit more complicated than the mayor indicates.
In 2015, the city and county paid $18 million to purchase Northwest San Antonio sports complex Toyota Field, while SS&E chipped in a meager $3 million with the intention of bringing an MLS team to play in the facility. As a result of that transaction, the city and county jointly own Toyota Field through a public entity called the San Antonio-Bexar County Soccer Public Facilities Corporation (PFC).
Under the agreement, if SS&E failed to secure an MLS franchise by 2021, the company would owe the PFC $5 million, payable over time.
Chasnoff initially told the Current that the money belonged to the PFC, not the city or county. However, he later clarified that money from the PFC could be transferred to city coffers.
“Under the lease agreement, funds received by the PFC from this reimbursement provision remain the property of the PFC and could be used for improvements to Toyota Field or may be transferred to the sponsors, which are the city and county,” Chasnoff said.
SS&E made an initial $250,000 payment to the PFC in 2021, but hasn’t paid a dime more since then, Chasnoff also confirmed.
Although an MLS team never came to town, Toyota Field is currently home to San Antonio FC, a minor-league soccer team owned by SS&E.
“We have had discussions with the city and the Public Facilities Corporation to ensure all agreements related to Toyota Field support the long-term success of soccer in San Antonio,” Senior Director of Toyota Field Jose Lizardo told the Current. “These discussions are part of an ongoing process, and we remain aligned with our partners on delivering a community-focused path forward for the venue.”
In 2022, Bexar County Commissioners Court unanimously voted to scrap the $5 million fine in exchange for SS&E leasing Toyota Field for one additional year at a cost of $100,000.
Even so, City Council has yet to vote on whether to write off the $5 million fine — and it now appears Jones is preparing to force one so the money can flow into San Antonio’s coffers.
“The city is reviewing the reimbursement provision, related information and the county’s action on this provision,” Chasnoff said. “In the near future, city staff will be making a recommendation related to this provision.”
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