A Home Run for Arizona?

The Diamondbacks are staying in the Valley. For now.

A note to our readers: As I’m sure you’ve noticed, the Western Tribune–and 1912, our latest project–has not been publishing at our usual pace. We have no big news to announce at this time, but the gears have been turning behind the scenes. In the coming year we hope to unveil some exciting new developments that will prime us for our next stage of growth. We encourage you to stay along for the ride.

We truly believe that Arizona’s best days are far ahead of her. We are committed to supporting this wonderful state’s development in the decades to come. It’s time to take a bet on the Copper State–not simply as one good state among many, but as a great state, with the potential to build great things; transform our burgeoning metropoli–Phoenix, Tucson, and beyond–into great American cities on par with those in Florida, California, Texas, and New York; and build an economy and political system that empower people to govern themselves. Our contribution will be larger than just another news outlet carving out a small slice of the pie in a declining industry. We’re here for the long haul.

Today, we are excited to share an in-depth analysis of the latest chapter in Arizona’s sports industry saga. J.J. Cichoke, the Tribune’s manager for policy and research, dove deep to figure out why the Diamondbacks have chosen to remain in the Valley for at least the foreseeable future, and how private- and public-sector forces joined together to prevent their departure.

We believe this story is important to share because decline is a choice–and we can learn how to successfully navigate a culture of managed decline by looking at examples of how it’s been done in the past… even the very recent past.

We hope you enjoy.

– Joe Pitts, Chairman of the Board, Western Tribune

As the 2025 Major League Baseball (MLB) season approaches the All Star break, the Arizona Diamondbacks are preoccupied not only with a competitive National League (NL) West race, but also with a campaign to maintain Chase Field as the team’s home for the next several decades. The Diamondbacks and public stakeholders have been involved in negotiations for over a year, and just recently gained substantial traction in their efforts to: (i) renovate Chase Field; and (ii) extend their expiring 2027 lease agreement.

In late January, State Representative Jeff Weninger (R-Chandler)–who serves as Chairman of the House Commerce Committee–introduced H.B. 2704 to address lingering concerns regarding a potential move by the Diamondbacks out of Chase Field, and maybe even out of Arizona entirely. The legislation, recently signed by Governor Katie Hobbs (D-AZ), aims to prolong the now 27-year-old relationship between the Diamondbacks franchise and the stadium it has called home since its inaugural ball game in 1998.

What’s in the bill?

The legislation, sponsored by Rep. Weninger, would assist in making significant repairs to a stadium that is consistently ranked near the bottom of MLB playing venues. As explained in a House Commerce Committee memo, the legislation creates a “funding mechanism for reconstructing, equipping, repairing, maintaining or improving” Chase Field. A Senate Fact Sheet subsequently details provisions surrounding: (i) Income Tax Distributions; (ii) County Excise Tax Distributions; (iii) City, Town, and State transaction privilege tax (TPT) Distributions; and (iv) Notice and Penalty for Leaving the MLB Facility.

While the bill stops short of establishing a new tax, it redirects sales tax revenue generated at Chase Field and “adjacent facilities” to the Maricopa County Stadium District Fund. This funding mechanism, which is similar to that used by the Arizona Cardinals in improving State Farm Stadium, will be capped at $500 million in public expenditures over the course of 30 years. The bill also requires the Diamondbacks to contribute at least $250 million of their own money toward ballpark improvements. Notably, the legislation would implement a $10 million fine should the team leave Arizona prior to 2035.

The introduction of Weninger’s legislation came after a year of stalled talks between the Diamondbacks and Maricopa County leaders on a lease renegotiation at Chase Field. Given that the Diamondbacks’ current lease with Maricopa County expires following the 2027 season, there exists a certain level of urgency. Most recently, in September of 2024, the Maricopa County Stadium District (MCSD) proposed a 50-year lease that would grant the Diamondbacks both: (i) early termination options; as well as (ii) opportunities for mixed-used development. While the County wants the team to “make meaningful near-term investment to fund critical maintenance and capital expenditures for which they are responsible under the MOU,” the Diamondbacks requested substantial amounts of public funding in order to do so.

Throughout the legislative process, opponents of the funding bill–including Mayor Kate Gallego (D-Phoenix)–raised concerns that the city would miss out on key public funding typically used for fire, police, and other services. After Gallego explained that she had spent “months of scrutinizing the financial numbers and leading the fight to protect city taxpayers,” the Mayor added that “Phoenix taxpayers will come out ahead financially.” In her AZ Republic op-ed, Mayor Gallego touted her advocacy for bill provisions establishing “clear rules so that sports teams cannot use taxpayer dollars to build and upgrade suites and club seating sections.” Gallego added that these “broader changes” would ensure that “[t]hose types of luxury amenities should be paid for by sports teams, not taxpayers.”

Stadium bill passes despite hurdles

Within just over a week’s time, H.B. 2704 was able to clear three key hurdles in the legislative process. Despite some bipartisan pushback, the bill passed both legislative chambers with relative ease–following months of stalled negotiations. Diamondbacks CEO Derick Hall called these negotiations “a long, yet collaborative and productive process,” before adding that “signs are pointing towards a positive solution.”

On June 19, H.B. 2704 passed through the Arizona Senate with a 19-11 final tally. While the bill passed handily, concerns came from both parties, with Republicans and Democrats calling for a decreased public tax burden. For example, Senator Lauren Kuby (D-Tempe) argued that “[s]tudy after study has found that stadiums do not catalyze economic development.” Fellow Senate Democrat Analise Ortiz (D-Phoenix) echoed similar concerns, arguing that Arizona taxpayers “are tired of being asked for their tax dollars to be spent on private corporations.” In a more unorthodox form of dissent, Senators Mitzi Epstein (D-Chandler) and Jake Hoffman (R-Queen Creek) each shared poems regarding their dissatisfaction with the bill and their desire for increased private funding from billionaire owner Ken Kendrick.

On June 23, H.B. 2704 the House passed a revised Senate version 35-20. The House vote was the second time H.B. 2704 passed through the chamber, with a previous version securing a 35-25 vote in late February. After nearly four months of Senate deliberations, the House received a version with several key amendments addressing concerns from the upper chamber. In an interview, Senate President Warren Peterson (R-Gilbert) explained that the amended bill “is something that the governor’s on board with, it got enough Senate members on it and it has enough House members on it.”

On June 27, Governor Hobbs signed H.B. 2704 as part of a slate of legislative actions. In a private signing ceremony held alongside Diamondbacks CEO Derick Hall and Diamondback players Corbin Carroll and Corbin Burnes (among others), the governor applauded the “bipartisan deal” that would “creat[e] good-paying jobs and mak[e] sure families can enjoy baseball for generations”. Mr. Hall joined Hobbs’ in lauding the product of months of negotiations, calling the bill a “homerun for Arizona.”

Need for renovations

As it stands, Chase Field ranks as the second largest stadium in Major League Baseball (MLB) with a total capacity of 48,330. So far this year, average attendance at Chase Field sits around the middle of the pack among MLB stadiums (30,215 fans per game). The attendance situation appears far from dire, so why the urgent need for stadium upgrades?

Beyond the importance of an extended mutual lease commitment between Maricopa County and the team, it has become apparent that Chase Field is behind the curve when compared to other major sporting venues. As explained by Mr. Hall in a recent interview with Arizona’s 12 News, Chase Field is the “fourth oldest building in the league” despite only being built in 1998. Mr. Hall subsequently emphasized his desire to make Chase Field “one of the best facilities again like it was nearly 30 years ago.”

What should fans expect?

Regarding the changes set to be made to the longtime-Diamondback home, Mr. Hall has urged fans not to expect the most glamorous updates (at least initially). Mr. Hall explained that much of the renovations will “be done over phases over years” due to the relatively short MLB offseason window. The first series of changes will likely address infrastructure and “what fans don't even see,” explained Mr. Hall. Mr. Hall added that the team will prioritize improving the current HVAC system, as well as “fixing concrete and piping and plumbing.” Mr. Hall has emphasized that the bill’s allocated funds are “not going to [the team],” but rather “into a building that is a public asset.”

In terms of more long-term cosmetic updates, Mr. Hall explained that the stadium “will look new” and “brand new, state of the art.” Mr. Hall added that the team will install new video boards and sound systems “pretty soon,” potentially during the upcoming offseason. Mr. Hall also signaled the team’s desire to implement more gathering spaces at Chase Field, citing what “you're seeing at so many new ballparks.” Mr. Hall explained that recently-constructed stadiums tend to include “new bars, new gathering areas, new social areas,” before adding that “[y]ou're going to see a lot of that now at [Chase Field].” Mr. Hall further emphasized that “there's going to be some changes around the park,” noting that “you'll start to see it come to life.”

What’s next?

While the enactment of H.B. 2704 serves as a major milestone on the road to keeping the Diamondbacks in the Valley, much more work remains to be done. Most notably, the Diamondbacks and the Maricopa County Board of Supervisors must agree on a Chase Field lease extension given the impending 2027 expiration date. Mr. Hall touted the importance of securing a deal with the County given that the team now has the “funding mechanism in place to make [Chase Field] as state of the art as possible.” Despite the influx of optimism stemming from H.B. 2704’s enactment, Mr. Hall commented that past negotiations with Maricopa County “ha[ven’t] been easy in the past.”

In a September letter sent to the Diamondbacks, Maricopa County Board of Supervisors Chairman Jack Sellers (R-Chandler) discussed the County’s position regarding several “items that need to be addressed” before reaching a lease agreement. As specified in an accompanying term sheet, the County “propose[d] a 50-year lease that provides the Team with early termination options and opportunities for mixed-use development that would generate additional revenue for the Team.” The proposal subsequently requires the Diamondbacks to “make meaningful near-term investment to fund critical maintenance and capital expenditures for which they are responsible under” a binding 2018 Memorandum of Understanding (MOU).

What people are saying:

• Phoenix Mayor Kate Gallego: “What we crafted is a good deal for Phoenix. The law redirects sales taxes from purchases at Chase Field into an infrastructure fund, but I pushed for caps that cut Phoenix’s portion almost in half from the original proposal — limiting the city’s contribution for stadium repairs at $3.5 million per year. Another change: Should the Diamondbacks move, the land’s ownership will transfer to the city of Phoenix — and it will carry a value of more than double our total contribution, according to the city’s Economic Development Department. Put simply, Phoenix taxpayers will come out ahead financially.”

• Governor Katie Hobbs: “Really enjoyed teaming up with the Diamondbacks to keep them right here in downtown Phoenix. Grateful for their partnership and excited for many seasons to come.”

• House Commerce Committee Chairman Jeff Weninger (R-Chandler): “This is a smart, responsible solution that keeps the Diamondbacks where they belong—at Chase Field in the heart of our capital city. The costs will be covered by revenue generated through team activity, not by pulling from the pockets of Arizonans who never set foot in the stadium. We’re protecting jobs, preserving economic impact, and keeping our beloved World Champion Major League Baseball team in Phoenix—all without new taxes.”

• Dbacks CEO and General Partner Derick Hall: “I want to thank Representative Weninger, all of the supportive lawmakers, and Governor Hobbs for the leadership with HB2704. The voting results and bipartisan enthusiasm clearly showed the need for funding for this economically generating public asset.”

• Arizona Chamber of Commerce & Industry: “It’s official: Diamondbacks are safe at home! Thanks to Governor Hobbs and the Arizona Legislature, smart policy is now in place to enable overdue renovations to Chase Field—preserving a key public asset and keeping the team in Phoenix for the long haul. Great news for the local businesses, jobs, and community supported by having the Dbacks downtown.”

• Maricopa County Stadium District (MCSD) Board: “MCSD believes it’s important to provide flexibility to the Team as they consider their long-term business needs, so long as that flexibility is also fair to taxpayers. To that end, MCSD needs the Team to commit to short- and long-term maintenance to extend the life of the stadium, which was built primarily using taxpayer dollars. MCSD also sees the value in working with the Team to provide land development rights so that an entertainment district can be built in the area, again, provided the taxpayer’s investment (Chase Field itself) is protected and prioritized.”

• MCSD Board Chairman Jack Sellers: “We agree with [the Diamondbacks] that the path to an improved, state of the art stadium, may need to include a partnership of all the stakeholders in downtown, including business leaders, the City of Phoenix, and the State. We also believe the first step in that process must be a long-term extension of the lease between the Team and the County. This surety will assist in facilitating the long-term funding solutions the Team is seeking. We also believe it is fair to give the Team flexibility as [it] contemplate[s] [its] future. This flexibility should be reflected in [the] agreement, but it must be fair to both sides...Our latest proposal includes the ability for the Team to obtain development opportunities on County property. If done properly, this would generate revenues that would allow for investments in the stadium and the Team.”

J.J. Cichoke is the manager for policy and research at the Western Tribune.