May ___, 2011

VIA UNITED STATES & ELECTRONIC MAIL

[Add address if appropriate]

Re: Municipal Alliance for Taxpayer Equity in Sports

Dear Mayor [add individual name if appropriate]:

At the upcoming 79th Annual Conference of Mayors in Baltimore, June 17-21, I have
arranged time for the mayors from cities with major league sports franchises (MLB, NFL, NBA,
NHL) to meet to discuss a proposal I am making to create a Municipal Alliance for Taxpayer
Equity in Sports. An initial working lunch meeting will take place on Sunday, June 19th at 1:00
pm at the Baltimore Hilton Hotel. I hope you will be able to participate.

My objective is to create an alliance of cities with professional sports franchises –

particularly in the four major sports (NFL, NBA, MLB and NHL). Via the Alliance, member
cities could work cooperatively to (1) protect capital investments and income interests associated
with the teams and (2) retain teams on economic terms that equitably balance contributions from
municipal taxpayers, player compensation and returns to team owners.

I. Membership, Governance and Organizational Details.

The Alliance would operate as a IRC Code § 501(C)(4) membership organization, with
membership open to all interested cities. The membership would elect an initial Board of
Directors to govern the Alliance and to further the Alliance’s and its members’ interests relating
to their professional-sports related interests. Members would remit dues to cover the Alliance’s
operating costs and facilitate the hiring of necessary personnel.

II. General Considerations.

A municipality’s relationship with its professional sports franchises can be of great

financial and emotive importance. Professional sports franchises can lead to urban development,
financial opportunities and city pride. They can also attract and retain potential employers and
employees. Conversely, however, there may be opportunity costs associated with public
spending on sports-franchises, especially in environments where a city’s investment in a stadium
or other infrastructure can become unbalanced over time or be threatened by unanticipated
events (e.g. labor disputes, litigation between leagues and their players; threatened franchise
relocation; etc.).
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Ultimately, the potential contribution of the Alliance is underscored by the investment

made by cities relating to sports franchises in the major leagues. Since 1992, for instance,
twenty-nine of the NFL’s thirty-two teams’ stadiums have been newly constructed or
significantly refurbished at a cost of approximately $10 billion. Municipalities have contributed
over 60% of these costs. Sports franchises are sometimes provided favorable lease agreements,
and tax treatment.

The investments have been justified by the economic and social benefits derived from the
sports franchises. The United States Conference of Mayors and its members can work
cooperatively through the Alliance to maximize these benefits, while ensuring that the associated
costs are allocated reasonably and fairly on an ongoing basis.

III. Short-Term Action Items.

Several action items can be proposed to illustrate potential contributions by the Alliance
in 2011:

1. The assimilation of financial information on teams collected by each member city

and the establishment of annual reporting mechanism and repository.

2. An analysis of economic contributions and receipts of taxpayers, owners and

players and publish results of study (based on members’ data and data otherwise
collected).

3. Evaluating and recommending federal legislative initiatives that can be pursued to

protect interests of municipalities and municipal taxpayers.

4. Monitoring and reporting on the collective bargaining negotiations and related

proceedings of the NBA and NFL.

5. Monitoring and reporting on the litigation involving NFL players and NBA
players (if any) and their leagues.

6. Making recommendations to membership on intervention in litigation or

collective bargaining proceedings to facilitate revenue allocation from any
negotiation or resolution which compensates and protects municipalities
appropriately in any new financial arrangement and for any “lock out” that may
result.

7. Reporting to the members on the nature and scope of legal rights of the
membership to collect lease payments, etc. as a result of any NFL or NBA “lock
out.”
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8. Developing and reporting recommendations to the members on how to preserve

and protect municipal investments against loss from league or team actions (team
insolvency; team movement, etc.).

While this list is by no means comprehensive, it provides a window into how the Alliance
could compile information, monitor situations and develop strategies to protect and maximize its
members’ investment and interest in their local sports franchises.

IV. Next Steps.

Thank you for your support of the Alliance and your agreement to allow me to present at
our upcoming annual conference. It is our hope that, by providing information to certain mayors
in the period leading up to the conference, by presenting at the conference and by encouraging
dialogue thereafter, we can move forward with the Alliance on an expedited basis. Your
thoughts as to how best to engage other Mayors in this important initiative prior to and at our
conference would be much appreciated.

Accordingly, we would be happy to answer any questions you might have or to hear your
thoughts regarding the Alliance or any potential opportunities relating thereto. To facilitate this
process, please feel free to contact Mr. Deron Kintner at the City of Indianapolis or Mr. Tom
McClimon at the United States Conference of Mayors. Mr. Kintner can be reached at
Deron.Kintner@indy.gov or at (317) 327-4277, and Mr. McClimon can be reached at
mcclimon@usmayors.org or at (202) 861-6729.

Finally, please RSVP for our June 19th working lunch by contacting Ms. Jocelyn Bogen
at jbogen@usmayors.org or at (202) 861-6726.

Very truly yours,

The Honorable Gregory A. Ballard

Mayor, City of Indianapolis

INDS02 1161933