BLAW Discussion Board Wichita Wind Surge TOPIC: Strategy, Law, and Ethics - Decision Making Earlier in the semester we discussed the -A-Pillay decision making model ag it relates to identi$ing and implementing strategic decisions. In a nutshell, you identi$ a goal, develop strategies to achieve the goal, identi$ and resolve legal issues that may have a becing on your strategy selection, and finally identi$ and analyze the stakeholders and how they might be affected by the competing stategiu FACTS: Please read the following Vchita Eagle article by Chance Swaim and Matthew Kelly posted on Kansaszom on April S, 2022. Buyers beware: Hidden tees at Riverfront Stadium tack an extra 8% on every purchase Wichita baseball fans taking in the first neekerd of action at Riverfront Stadium have been confronted with an extra S'" charge on all purchases. The hidden tacked on by Wind Surge oumers, applies to merchandise, food ard beverages, and tickets. Jordan Koblitz, CEO of the Surge, eaid the fees are I egitimzte and will he used to help the team fund development around the ballpark. The added fee and higher sales tax on purchases at the ballpark add 13.260/0 tothe listed price. Based ona tip from a reader, an Eagle reporter confirmed the fee is hidden by purchasing a T-shirt and baseball hat from the team store Thursday afternoon. The team store does not include any wammg of the added fee, ag of Fridav afternoon. It was not disclosed until after the sale was final, on the receipt There's no way to get your money back. The team store does not give refunds. The hat, a Tumba Vacas promotional trucker hat, had a price tag ofS2S_ The Ehilt, a black Tumba Vacu T-shirt, had a listed sales price of SS2 On top of that 560 price, the Wind Surge added an S", (S4_SO) ballpark development Theu a sales tax was calculated based on the lietedgice and the added fee: bringing the total to 370 96 The fee came as a surprise to city The city paid for the stadium and it, ht all sales within the ballpuk- are managed the Wind Surge "This is the first I 'm heuing of this," Mayor Brandon IVhippIe Zaid Thursday afternoon. "It gourds to me like something Derek Schmidt'e office should be looking into as z consumer protection issue:' A KansasAttomey General Office spokesperson declined to comment on the legality of the hidden fee, saymg the agency "cannot provide counsel, legal advice or research to private citizens, buginesgeg or grcrups." Consumers who think their rights have been violated can file a consumer complaint form iththe Sedglvick Countv district attomev, the epokeepereon noted. "That ie not the agreement 'Ae approved," said Citv Council member Jeff Blubzugh, who representg the Ballpark dietrict. "This s cet_znds z little bit like double taxation. The citv alzeadv paid for the stadium, I don't understand where this money is actually going." 'Tm disappointed as it appears the Wind S urge felt it necessary to pass increased costs off to their fans and make it look like a city mandated fee, which it is not," City Councilmember Bryan Frye said. "The city does not require a 'ballpark development fee' to he collected by the Wind Surge," Frye said. "Those are not our fees." "That is crazy," City Council member Maggie Ballard said. ' 'Thigmakes me really nerns becauze we're doing all of this riverfront development, offices, hotels, et cetera_ I fwe:rethrowing an I S'" tax on everything, that:s who has a young son she to take to Surge games, said the hidden fee is making her reconsider. a lot of money to go the ballpark anywaye," Ballard said so expensive it's getting to the point you might as well go to z Royals game for how much you up sperding_" The Surge have dealt with a series of setback-g since Vchita built a stadium to lure the Triple-A team from New Orleans formerly kno%n as the Baby Cake Its inaugural Eason in 2020 was canceled be cue ofthe COVID-19 pandemic. The team dropped from Triple-A to Double-Azs part of a Minor League Baseball realignment that changed the team's affiliation from the Miami Marlins to the Minnesota Tufns. The team:s general panner, Lou Schwechheimer, died of C OVID in 2020 Kohritz, CEO of the Wind Surge, said all o fthe "Ballpark Development Fee" goes back-to the team to as it fit. It aill apply to all apparel, concessions and individual tickets _ It does not apply to season or group tickets. Kobritz Zaid the team plans to have signs posted at the stadium "There is z signwell, they mzvnot have gotten it applied yet," he said Thuzdzv atemoon. "We haven't really gotten stutedyet: signs that set up for the sales tix, the CID the ballpark development fee "Eyou're telling me the$re not there, that tells me they didn't come back from the sign manufacturer here," Kobritz said. ' 'We've got the 3@but we're not going to just print out a piece of paper and put it up there in Scotch Tape. That's all, so sent it out to get it professionally dezigned on some vinyl." "They will be displaved in every retail locations so in the merch store, in the concession stand and the ticket office," he said The citvhas committednorthward of S IOO million on the ballpark, surrunding development and infrastructure to support the stadium. All gales tax revenue at the stadium goes to pay off S42 million in STAR bonds issued for the stadium. An added 20,6 CID t mx also pays debt on Riverfront Stadium. The Citv C uncil ale o approved a development agreementthat sold 4 _ -S acres o friveront property to the Wind Suge owners for S I an acre in exchange for future commercial development By the team. Kobritz the development fees will offsetthe team's investment in the surrounding area. "We actuallv invested close to SIO so this ballpark development fee ig designed to recoup some of that, obviously over a period oftime," he said "We are in the process ofbeginnmg the development the ballpark, and we will have tens of millions of dollars of expenses associated with that, and that fee help [offset) some of those costs as well " The fee not approved by the city c uncil 01 the state government "It's private. We didn:tneed any approval," Kobritz said. "I think-people are used to paying fees in this environment" This story was originally puhIishedApriI 7, 2022 6:02 PII Read mo.-eat: overnmenVarticte260216915 VALUE GOAL: The Wind Surge '.vants to enhance theil cash flow position so they can recoup part oftheir original investment and so they can be better positioned to invest in planned development projects the ballpark. DISCUSSION BOARD QUESTIONS'TASKS: 1 _ Strategy: Identity several Strategies that might be considered to achieve the Value Goal? (You may include the strategy employed by the Wind Surge, but try to think ot others as well) 2. Law: Make a list ot legal issues that you think might be relevant to the selection ot a strategy trom your proposed list. (Your task is to identify possible issues. You are not required to perform extensive research to verity your legal assumptions.) Ethics: Identity the stakeholders Analyze your strategic options in light ot your legal assumptions/determinations and now each group ot stakeholders will be affected it a particular strategy is chosen. c. Based upon your analysis, make a decision as to which strategy should be selected and support your choice with an explanatiom