America’s Most Expensive Stadium

In a move we saw in his previous stops at Space X and Twitter, Elon Musk sent an all-staff e-mail to employees asking them to detail what they had accomplished during the last work week. This request was unique because Mr. Musk is now attempting to utilize his well-documented, cost-cutting tactics with the federal government. His message was simple: “Justify what you did last week. Or else.” It is his quirky way of eliminating waste and ensuring everyone adds value. Now, humor me for a moment; imagine if we applied those same principles of efficiency to the Virgin Islands government. What if every government employee had to justify their work, role, and contribution to the betterment of the Virgin Islands? How many of the approximately 10,000 government positions could withstand that level of scrutiny?  

This reminded me of my conversation with Governor Albert Bryan during Upfront Episode #1. During that show, we discussed whether the government should strive for efficiency or effectiveness. The governor reasoned that government must be effective, not necessarily efficient. This raises three key questions: What is efficiency? What is effectiveness? And how does one measure success?

Efficiency and Effectiveness Explained

Efficiency is about maximizing output with minimal waste—doing more with less. For this discussion, effectiveness can be defined as achieving the desired result, regardless of cost or process. While efficiency is an easily understood term, effectiveness must be further dissected. One of the best ways to understand the difference between effectiveness and efficiency is through the work of a police officer in a high-speed chase.

Imagine a police officer pursuing an armed suspect at a high rate of speed on Veteran’s Drive. In this scenario, the officer’s goal is to stop the suspect as quickly and safely as possible—this is effectiveness.

If efficiency were the primary concern, the officer might be told to conserve fuel, minimize tire wear, or avoid excessive engine strain during the chase. But in that moment, efficiency is irrelevant—the priority is catching the suspect.

In my opinion, a successful government should operate effectively and efficiently but with the right balance. Some functions, like public safety, emergency response, and disaster relief, require effectiveness as the top priority. However, outside of emergencies like this, efficiency must play a role in government. As a project manager for several Fortune 100 companies, I was taught to balance scope, budget, and schedule—religiously. Delivering a project without regard for budget or schedule is not efficient. A project that takes twice as long and costs three times as much as necessary is not a success, even if the final product is great. Hell, even students who turn in papers late get a zero—deadlines matter. If we expect high schoolers to be accountable for meeting deadlines, why shouldn’t we hold government projects to the same standard?

A Master’s Class in Inefficiency

The Paul E. Joseph Stadium project in Frederiksted is nothing short of a case study of inefficiency. Initially constructed in the mid-20th century, the stadium was named in honor of Paul E. Joseph, a distinguished St. Croix legislator, editor, publisher, and civil rights activist who passed away in 1966. In January 2015, demolition of the aging stadium commenced as part of a planned redevelopment project. However, the process was abruptly halted due to political and financial complications, leaving the structure partially demolished. The reconstruction has faced numerous setbacks, including funding issues and bureaucratic delays. Despite these challenges, efforts have persisted to complete the stadium, recognizing its potential impact on the local community and economy. 

Last week, several senators bristled at the prospect of allocating more money to this project.  To put the cost overruns into context, I researched recent stadium projects in the mainland United States with 10,000 seats or less. I also reviewed data from an online stadium construction cost estimator. It should not be surprising that we are building an expensive stadium with a 3,750-seat capacity and a staggering $32 million price tag ($8,533 per seat).  I was surprised to learn that on a per-seat basis, we are building the most expensive amateur stadium in the history of the United States.  Compared to similar projects, Paul E. Joseph Stadium costs nearly four times more per seat. Even Tom Benson Hall of Fame Stadium, the most expensive high school stadium in the country—a 23,000-seat world-class facility in Canton, Ohio, built for NFL-level events—cost 10% less per seat than the stadium in Frederiksted. 

Here is a sampling of stadium projects:

The worst part is that construction at Paul E. Joseph is ongoing, and senators doubt that the remaining budget will be sufficient to finish the project.  Adding insult to injury, every stadium on this list was completed within 2-4 years, except for Lake City High School, which is still under construction. 

The Cost of Inefficiency

Inefficiency in government isn’t just an inconvenience—it’s a direct burden on taxpayers and businesses. When a permit takes months to process, that’s inefficiency. When agencies require five signatures for a simple request, that’s inefficiency. When a department has more employees than necessary but still delivers poor service, that’s inefficiency.

The consequences are clear:

• Businesses struggle with long approval times and excessive red tape. In turn, businesses generate less revenue and pay fewer taxes, resulting in the government having less money to provide government services.
• Residents wait indefinitely for essential government services, resulting in a diminished quality of life.
• Government spending spirals out of control without delivering better results.
• Political hires fill positions that should go to qualified professionals, resulting in higher costs and botched projects.

Financial resources are limited. We must realize that our lack of is because of. In the preceding sentence, you can insert anything we bemoan in our beloved Virgin Islands, and it will make sense. For example, the lack of quality roads directly results from spending too much on other road projects. If we can reduce waste, we can accomplish so much more.

An Efficient and Effective Virgin Islands

Government efficiency is possible but requires tough leadership decisions and structural reform. Here’s what needs to happen:

1. Adopt a ‘Justify Your Role’ Mentality –Elon Musk may have rubbed many people wrong with his brash approach, but he is not 100% wrong. Every organization, public or private, should routinely self-assess its mission and its headcount. Managers, employees, and business partners must demonstrate clear, measurable contributions for the organization to achieve its mission. By its nature, the government is not as quick to evolve as private organizations, so maybe a weekly review is unrealistic. However, there is a timeframe in which one’s contributions to a government organization are relevant. If one has not accomplished anything in six months, maybe it is time for a change.
2. Embrace Technology—Too often, we must notarize hard copies of documents or visit government offices in person. Outdated, paper-based processes must go. A comprehensive digital transformation will improve transparency, reduce delays, and cut costs. 
3. Reduce Bureaucracy – Eliminate redundant agencies, streamline operations, and remove unnecessary layers of management. Last week, Julio Rhymer, Director of OMB, underscored this point. “We can’t continue going down a road where two separate hospitals don’t procure together. The lack of a shared procurement system means that costs may be distributed unevenly. One might be paying $10, or one might be paying $12, but if they combine the efforts, they might be paying $8,” Mr. Rhymer said. By reducing bureaucracy and buying in bulk, we can save significant money.
4. Privatize—There are many opportunities to privatize government assets. The Virgin Islands government owns a power company, prison, internet company, horse racing track, and more. Privatization has proven to improve efficiency, reduce costs, and enhance service delivery. Governments at all levels, from municipalities to national administrations, have privatized various assets, from utilities to transportation, with measurable benefits.  

Separate from the consolidation of the hospitals, the hospitals could also benefit from privatization.  The Schneider Regional Medical Center and Juan Luis Hospital have long struggled with financial mismanagement, staffing shortages, and poor patient outcomes. These issues aren’t new—they’ve been festering for decades despite billions of federal funding.  

Would a public-private partnership lead to better healthcare outcomes? There’s evidence to suggest that it could. Many U.S. cities have successfully privatized hospital administration, leading to lower costs, better patient care, and more efficient management. Using national data, a new paper from the National Bureau of Economic Research examines the impact of 258 hospital privatizations between 2000 and 2018. Given that there were just over 1,000 public hospitals in 1999, this means that nearly one-fourth of all U.S. public hospitals transitioned to private ownership during this period.

The study found that privatized hospitals became significantly more profitable. Under government control, these hospitals lost an average of $335 per patient. However, after privatization, they generated an average profit of $740 per patient, highlighting a substantial financial turnaround.

If a private company were to run our hospitals while still ensuring accessibility for all residents, the quality of care could dramatically improve.  For example, mainland hospitals routinely advertise the short wait times in their emergency rooms.  Unfortunately, last month, a man was found dead outside of JLH after waiting for service for more than 5 hours.  This is not just an academic discussion.  Sometimes inefficiency has grave consequences.

The Bottom Line

Governor Bryan is right that government should be effective. However, delivering billions of dollars in services without efficiency leads to significant waste, which we can ill afford.  We deserve both. The solution isn’t just to push for efficiency at all costs—it’s about ensuring that government is effective when it matters and efficient where it can be.  

Effectively, let’s strive for an efficient future.

The Fine Print

The claim that Paul E. Joseph Stadium is the most expensive amateur stadium in America is based on an internet search of publicly available construction costs for stadium projects. Stadium construction costs vary widely due to location, materials, labor, and specific design choices. No two stadium projects are identical, and many variables influence final costs, including site conditions, regulatory requirements, and unforeseen delays. While this comparison is based on the cost-per-seat metric using publicly reported data, it is possible that other stadiums with higher costs exist but have not been publicly disclosed or easily accessible through online sources.