Score 1 against Team San Jose

Team San Jose logo

My comments on a recent post of Joann’s might lead you to believe that the marketing of Team San Jose’s recent website re-launch really set off my BS detector. And you’d be right. The main reason was, they sent me two or three emails to invite me to the gala grand launch party, without ever saying what they were launching. It sure looked like someone spending a big pile of money to hype the launch of something they themselves weren’t really sure was worth the excitement.

Now it looks like the smoke and mirrors at Team San Jose might not be confined to their website launch party. The Mercury News and the Silicon Valley Business Journal are both reporting that Team San Jose is in some financial hot water with the city. The organization appears to have gone over its budget by $750,000. They couldn’t have picked a worse year for it, with the city trying to scrape together every nickel it can find, and making cuts left and right.

A week ago, the city sent Team San Jose a sternly worded letter (linked from the Business Journal’s article), formally notifying them they’re in default of their contract with the city. Team San Jose’s books will be audited, and until the audit is completed, they’ll have to take extra steps to obtain payments from the city for their expenses. This week, downtown city councilman Sam Liccardo called for the audit to be expanded not only into the most recent $750,000 shortfall, but also losses between 2005 and 2009 amounting more than double the $9.8 million the city had agreed to subsidise, and liabilities the group may have taken on to promote certain other recent events like the Tech’s Genghis Khan exhibit.

Scott Herhold in the Mercury called the audit a “nuclear option”, in comparison to the slap on the wrist the organization might have gotten if city finances were stronger. For myself, I think it’s about the least that could have been done. The city is making too many cuts to vital services and staff pay and benefits to let anyone spend three quarters of a million dollars of its money without accountability.

1 Comment so far

  1. Daily Fetch 8.25.10: Two Punts. One Day… « The Daily Fetch (pingback) on August 25th, 2010 @ 10:02 am

    […] should allow about 20 more stories to pop up about how messed up Team San Jose really is… (Even MetBlogs San Jose chimes in… so if you’ve never read MetBlogs, perhaps you should head […]

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