In the late 1990s the three National Basketball Association franchises in Texas went 3-for-3 in referendums proposing public funding of major portions of the overall cost of new stadiums in San Antonio, Dallas and Houston.
But despite strong offenses led by captains of some of the state's leading corporations, the pro-stadium forces were able to cruise to victory in only one of the three cities. In San Antonio a solid majority of voters approved raising the hotel and car rental taxes to pay for half of the construction costs. But in Dallas and Houston, the sports teams only won support from the voters after much tougher fights.
In Dallas, victory was determined in the final seconds of a closely contested election by approximately 1,600 votes. In Houston, the Rockets won their new facilities in extra periods. It took two elections, one in 1999 and another in 2000, for voters to approve what was essentially the same referendum measure. One key difference in the 2000 referendum was that the financing deal dropped a tax on ticket sales while increasing taxes on hotels and car rentals. Voters may have been swayed by the argument that hotel and car rental taxes were tourist taxes – a view that is disputed, especially by hotel and car rental businesses.
One important factor in the Houston outcomes was election spending. Supporters spent $2.5 million promoting the 2000 referendum, compared to only $700,000 in 1999.* It might also have helped that in the 2000 election, citizens were asked to vote on allowing hotel taxes to be diverted to a trust fund to cover possible losses if Houston were chosen for the 2012 Olympics.
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