FORD

From Page 1

But the issue is at what cost? at’s $1.7 billion of bene ts they received, totaling $725,000 a job, which is way out of whack with what we paid” for other agreements, said House Minority Leader Matt Hall, a Republican from Kalamazoo County’s Richland Township and a critic of the deal.

Legislators and Whitmer recently enacted a law setting aside $630 million for the Michigan Department of Transportation and the Marshall Area Economic Development Alliance to prepare the megasite for Ford’s factory. An additional $120 million is expected to be sought in the future.

State o cials defend the Ford project subsidies, pointing to especially tough competition from other states as the federal government provides incentives for domestic battery production. ey say Michigan is playing catch-up to o er build-ready sites. ey also say the Marshall site will create spin-o jobs and is big enough to host other businesses, not just Ford.

Michigan Economic Development Corp. CEO Quentin Messer Jr. said $525 million of the $750 million in site-readiness spending “would need to be done for this site to be competitive for any project, whether it was going to Ford or company A, B, C, Y or Z. It’s important to note that other states and provinces have been doing this and deliver to companies, especially companies in the mobility space, semiconductor and clean energy, sites — lock, stock and barrel, to bondholders. Diamond Sports also reportedly this month defaulted on a $31 million payment to the Arizona Diamondbacks and a payment to the San Diego Padres. e Texas Rangers have said they would terminate their rights deal with Diamond Sports if Bally goes bankrupt. e Rangers annually receive $111 million in rights fees from Diamond. e team is slated to receive a quarterly sum this month.

Diamond Sports upon missing the payments gets a 30-day grace period to make its partners whole. e grace period with the Diamondbacks expired March 16.

It’s unclear when the Tigers are due to receive a rights payment or how much, but those payments usually come near the beginning of the season.

Diamond Sports CEO David Preschlack, who was hired in December, said in a news release following the March 14 Chapter 11 bankruptcy protection ling that it would be business as usual, with the regional sports networks broadcasting games as normal. Diamond Sports planned to seek court support to continue operating as usual during the bankruptcy proceedings, it said in the statement.

A March 17 Bloomberg report, though, found that Diamond Sports Group had not said whether it will televise games for the 14 MLB teams with which it has contracts, MLB attorney James Bromley told the judge overseeing Diamond’s bankruptcy case. rough its Bally Sports brand, Diamond is obligated to broadcast an average of 150 games for each of those teams, Bromley said during a court hearing held via video March 16.

Following the Diamond Sports bankruptcy ling, the MLB said in a statement that the league itself is prepared to produce and distribute games to fans in those 14 markets,

$242,000 per new job.

 $715 million for China-based Gotion Inc. to build a $2.4 billion factory near Big Rapids and create at least 2,350 jobs. e deal includes a $125 million Critical Industry Program grant to Gotion — one of the world’s biggest battery manufacturers — a Renaissance Zone break worth $540 million over 30 years and a $50 million SSRP grant to support the purchase of land and infrastructure improvements. at is around $304,000 per job.

 $222 million for Novi-based startup most likely through streaming service MLB.TV, if Diamond or any other RSN is unable to broadcast the games as part of its agreement with the teams.

Our Next Energy Inc. to open a $1.6 billion plant at an existing facility in Van Buren Township and create 2,112 jobs. e agreement includes a $200 million Critical Industry Program grant to ONE and a tax exemption valued at $21.7 million. at is about $105,000 per job.

MLB has faced challenges growing the game, especially among younger viewers. Any loss of major video outlets could make those challenges more di cult. Baseball needs as many eyes on its product as it can get.

A 2022 survey found that 44 percent of “avid” MLB fans were at least 45 years old, versus 17 percent for people 18-34. Common complaints: Games are too long, as is the 162 games regular season. Unwritten rules take some of the fun and personality out of the game, some say.

Disruption from the bankruptcy, however, could also present an opportunity.

Disengaging from the Bally RSNs could provide MLB a springboard to the end of antiquated blackout rules that keep games from being streamed locally through the league’s own MLB.TV platform. e Tigers this season have no nationally televised games scheduled, and six between streaming services ESPN+ and Peacock.

Blackout restrictions are in place to protect local TV partners so fans will watch that broadcast (Bally Sports in this case) instead of streaming the game. Lifting blackout rules would make Tigers games scheduled to be streamed on ESPN+ and Peacock available in Detroit and the metro area. Lifting the blackout restrictions would also give fans access through MLB.TV. ose blackout rules are a consistent complaint among the biggest fans.

Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981 development o cials have said ve businesses will spend at least $187 million and add up to 145 jobs. at is $414,000 per job. water, wastewater, you name it — as part of the package.” e aid to buy and prep land, expand roads and upgrade water infrastructure is substantial. It is 11 times what is being spent to upgrade the site of an EV battery plant in Lansing that is considered more pad-ready partly because it is adjacent to a General Motors Co. assembly factory.

 $27 million to upgrade wastewater treatment infrastructure near Hemlock Semiconductor, a move o cials have said will help the company spend up to $375 million and add up to 170 jobs. at is $159,000 per job.

Sen. omas Albert, a Lowell Republican, said the $1.7 billion price tag for Ford’s expansion is too much. Many workers, he said, will make $20 an hour, or $41,600 a year.

Here is what the state has committed toward di erent business expansions since early 2022: at includes a $210 million Critical Industry Program grant to Ford, a Renaissance Zone tax exemption worth $772 million over 15 years, $630 million for MDOT and the Marshall Area Economic Development Alliance, and $120 million for other site prep work.

 $1.7 billion for the Ford project.

 $824 million for Detroit-based GM to spend up to $4 billion converting its Orion assembly plant to build full-size EV pickups and for Ultium Cells LLC, a joint venture of GM and LG Energy Solution, to construct the $1.5 billion to $2.5 billion battery plant in Lansing. e agreement includes a $600 million Critical Industry Program grant to GM, a Renewable Energy Renaissance Zone exemption worth $158 million over 18 years and $66 million from the Strategic Site Readiness Program for electric, water and sewer upgrades. e projects will add between 3,200 and 4,000 jobs and retain 1,000 jobs. at comes to roughly $206,000 to

 $200 million for Billerud U.S. Production Holding LLC, a subsidiary of a Swedish company, to spend $1 billion and transform its Escanaba plant to make a more technologically advanced paper product known as paperboard or cartonboard, retaining at least 1,240 jobs in the Upper Peninsula. at is $161,000 per retained job.

 $135 million for Ford to add 3,260 jobs and spend $2 billion across 10 facilities. at deal includes a nearly $101 million Critical Industry Program grant and a $34 million State Essential Services Assessment exemption. at is $41,000 per job.

 $60 million for Muskegon County to help redirect wastewater, increase capacity and bolster growth in the local food and dairy industry. e agreement includes Strategic Site Readiness Program funds. Economic

“I for one would like to see the math showing how Michigan taxpayers would ever receive a positive return on investment with this scale of commitment,” he said. “Over the next 20 years, the investment is expected to return less in the state’s personal income and sales tax revenue than the state’s overall investment. is simply does not make good economic sense.”

But House Speaker Joe Tate, a Detroit Democrat, said such an analysis does not tell the “whole story.” Michigan must continue to secure auto investment amid the industry’s electri cation, he said

“You see the spin-o of other jobs. You see the co-location of the supply chain around the areas where there is this manufacturing,” Tate said. “When you look at the technology that’s going to be manufactured here, this is only the start of those opportunities. I think it’s going to be de nitely a value add not only for what’s being built there but also the supply chain that’s going to go along with it.”

Contact: david.eggert@crain.com; (313) 446-1654; @DavidEggert00