State Audit Finds Clippers Owe Fans for Season Parking

In another development in an ongoing dispute, a state agency has determined that the Clippers overcharged fans who bought season parking in a state-owned lot by a total of $161,098 for the 1984-85 season.

It also has been learned that the Clippers submitted to the state nearly $300,000 worth of additional expenses judged to be unrelated to parking.

Responding to the state audit, the directors of the California Museum of Science and Industry, which runs the state-owned lot adjacent to the Sports Arena, voted that the National Basketball Assn. club must reimburse their season-parking holders. The Clippers’ method of repayment must be approved by the state, a museum spokesman said.

“The (museum) board of directors voted to refer to the attorney general’s office for collection,” said Evan Nossoff, director of public relations for the museum. “They also voted that if the Clippers return the overcharged funds to the fans and do it to the auditor’s requirements, they would consider the matter closed for at least (the 1984-85) year.”

Alan Rothenberg, Clipper president, told a Times reporter early Thursday that he had not yet seen the auditor’s report and would not comment on it until he had. When contacted again late Thursday afternoon, Rothenberg said he still had not seen the report.

The Clippers still do not have a parking contract for the 1986-87 season. But museum sources said that if the money is repaid and the Clippers agree not to charge fans more than the state-regulated price of $2 per space per game, the team will be allowed to use the 1,200-space lot.

The Clippers still are offering fans preferred parking in that lot for next season but are including $120 worth of extra tickets. That, presumably, reduces the value of parking to less than $2 a game.

On Oct. 15, the Los Angeles Memorial Coliseum Commission will replace the Museum of Science and Industry as the caretaker of all parking lots surrounding the Sports Arena and Coliseum, according to Glen Mon, assistant general manager of the Coliseum Commission. Therefore, the Coliseum Commission will take over negotiations with the Clippers for use of the lot in question.

Mon would not comment when asked what effect the state’s report would have on future parking negotiations with the Clippers.

The audit, conducted by the California Consumer Services Agency, does not include any of the Clippers’ parking revenue or expenses from the 1985-86 season. But, as reported last spring in The Times, the Clippers continued to violate their lease agreement with the state by charging season-parking holders $4.76 per space, instead of $2.

The Clippers did not allow the state agency access to any of the team’s financial records from the last two seasons. However, the club did provide a statement that lists what it claims were parking expenses for the 1984-85 season. The report also recommends that the Clippers give the state access to parking expense records from the 1985-86 season.

According the report, the Clippers documented $399,378 in total parking expenses for the 1984-85 season. But the state determined that only $115,711 were legitimate. Thus, the Clippers submitted $283,667 in expenses that the state said was not directly related to parking.

The department of general services conducted the review of the Clippers’ claimed parking expenses after the state auditor general determined last January that the club had overcharged fans and that the museum had allowed them to do so.

The audit was conducted between June 9-26, and results were released Wednesday.

Rothenberg had previously said that the Clippers had additional expenses in running the lot, such as security guards. But the agency disagreed on many of the items the Clippers submitted as parking expenses.

Specifically:

--The Clippers submitted $141,382 in legal costs from the club’s ongoing antitrust suit with the NBA resulting from the 1984 move to Los Angeles from San Diego without league permission. The state report disallowed the expense because the cost “is associated with the move from San Diego and not (from) parking lots.” Another $4,000 in unspecified Clipper legal costs were also disallowed.

--The Clippers claimed $38,065 for advertising. But the state said that team advertisements, which appeared on local television and radio and in newspapers, did not mention the parking lot.

--The Clippers listed $50,000 in administrative costs for the parking lot. Again, the report found no valid reason for the expense.

--The Clippers said it cost $25,668 to employ police officers to guard the lot during home games. But the state agency said the club “overclaimed the number of officers and hours.” They accepted only $3,492 of the Clippers’ claim.

According to the state, the Clippers also claimed that services of security guards from Contemporary Services Corp. and other parking “monitors” cost a total of $12,996. But the state determined that the hours worked and rates claimed for the security guards and monitors totaled only $6,066.

--Only $145 of the $9,429 the Clippers submitted for printing a brochure dealt with parking, the report said. “(Charging) 15% of the cost (of the ticket brochure) is too high, based on the space parking wording takes on the total brochure,” the report said.

--The Clippers claimed $5,949 for insurance coverage, even though the money did not go toward insuring the state-owned lot.

Times staff writer Scott Howard-Cooper contributed to this story.

CLIPPERS-MUSEUM PARKING CONTROVERSY

Study by the State and Consumer Services Agency which was used to establish the validity of Clippers’ parking and expenses for 1984-1985 fiscal year.

Clippers’ What State Expenses Submitted Says Is Not Directly Expenses Related to Related to Parking Parking Parking Staff--Security $10,996 $6,930 $4,066 Parking Staff--Police $25,668 $3,492 $22,176 Parking Staff--Monitors $2,000 $0 $2,000 Printing--VIP passes $2,619 $2,619 $0 Printing--Brochure $9,429 $145 $9,284 Distribution $1,538 $1,538 $0 Advertising $38,065 $0 $38,065 Insurance $5,949 $0 $5,949 Administrative $50,000 $0 $50,000 Credit Card Discounts $7,830 $1,085 $6,745 Legal costs $4,000 $0 $4,000 Legal costs--Antitrust $141,382 $0 $141,382 Total $299,476 $15,809 $283,667 Payments to Museum $99,902 $99,902 $0 Total expenses $399,378 $115,711 $283,667 Gross Revenue $261,000 $261,000 Less: total expenses $399,378 $115,711

Reasons for Disallowances Parking Staff--Security Rates and hours claimed are excessive. Parking Staff--Police Overclaimed number of officers and hours. Parking Staff--Monitors Rates and hours claimed are excessive. Printing--VIP passes Printing--Brochure 15% of cost is too high based on space parking wording takes on total brochure. Distribution Advertising Ads make no mention of parking. Insurance Coverage is not for State parking lots. Administrative These are indirect costs not related to parking lots. Credit Card Discounts Only a portion of ticket sales paid for with charge cards, therefore charged bank fees. Legal costs Have seen no support for claim. Legal costs--Antitrust Cost associated with move from San Diego and not parking lots. Total Payments to Museum Total expenses Gross Revenue Less: total expenses