After weeks of delay, Minnesota Vikings owner Zygmunt “Zygi” Wilf is finally sharing more financial information to prove he has sufficient financing to pay his share of the new Vikings stadium. Or, more precisely, Mr. Wilf is proving that he has enough money available, minus whatever he has to pay in a pending fraud and racketeering judgment against him, plus a boat load of financial help from the National Football League, a forthcoming corporate naming rights deal, and Vikings fans’ personal seat license fees.
That’s progress. Proving ability to pay is a necessary condition of moving forward with the stadium. But while it’s necessary, it’s far from sufficient. Minnesota taxpayers also need assurances that the pledges Wilf makes in the stadium agreement are kept.
Not “One Single Financial Statement That Is True”
If you think that’s too paranoid, populist or punitive, remember what New Jersey Judge Superior Court Judge Deanne Wilson said just a few days ago about Wilf’s behavior in another business partnership (from MPR):
“The bad faith and evil motive were demonstrated in the testimony of Zygi Wilf himself,” Superior Court Judge Deanne Wilson said, adding the Wilfs hadn’t fulfilled the “barest minimum” of their pledges as partners in the deal. “I do not believe I have seen one single financial statement that is true and accurate.”
Officially, she ruled that Zygi Wilf, his brother Mark and cousin Leonard committed fraud, breach of contract and breach of fiduciary duty and violated New Jersey’s civil racketeering law.”
“I do not believe I have seen one single financial statement that is true and accurate.” Gulp. Judge Wilson’s statement should be disconcerting to anyone thinking about entering into a business partnership with the Wilfs, including the Minnesota taxpayers about to sign onto a half billion dollar partnership with them.
Ability To Pay Not The Only Safeguard Needed
The Stadium Authority’s oversight must go beyond ability to pay. It must also look into the veracity of other claims the Vikings owners have made so far, and, just as importantly, set up a tight system for monitoring whether the Wilfs are being honest throughout the life of the contract.
Financial oversight is certainly not my field, but maybe “keeping them honest” means regular audits, with large penalties for financial statement shenanigans. Maybe it means requiring holding large amounts of the Wilf’s money in escrow until major partnership obligations are fulfilled. It surely means plenty of public disclosure of all of any accountability-related reports.
Rush to the Ribbon Cutting
Negotiating such accountability measures may take time, and consequently delay the project. Though the delay has been caused by the Wilf’s own stonewalling, it would be unfortunate if the Vikings had to play some extra games in the University of Minnesota stadium, and if the delay drove up the cost of the project. But a delay would not be as unfortunate as the taxpayers getting stiffed because the stadium authority was in too big of a rush to hold a ribbon cutting ceremony.
The Wilfs and the NFL won’t like the idea of being subject to penalties for bad partnership behavior. They will send spokesman Lester Bagley out to express outrage and hurt feelings. This from the folks who are freshly convicted of fraud and racketeering. This from the folks who regularly penalize their employees for the high crime of having fun with end zone dances.
Minnesota taxpayers should no longer care about Zygi and Lester’s hurt feelings or delayed ribbon cuttings. In the wake of Judge Wilson’s startling findings about the Wilf’s past partnership chicanery, “Wilf has the cash” is no longer a good enough assurance for Minnesota taxpayers. Taxpayers need the Stadium Authority to take their time, and assure taxpayers that “Wilf has the cash, and he’s being regularly monitored and held publicly accountable.”
Loveland
Note: This post was also featured in Politics in Minnesota‘s Best of the Blogs and MinnPost’s Blog Cabin.