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March 17, 2006
A team for Philadelphia?
Hot on the heels of the Red Bull New York deal comes a story from the AP that states that the Philadelphia suburb of Glassboro, New Jersey is about to get its own team.
The deal would put a new stadium on the campus of Rowan University, about 23 miles south of downtown Philadelphia. The story reports that university spokesman Joe Cardona said that details will be made public at a news conference which will be held Monday, but that the "name of the team, its owners and whether it would be an expansion team or a relocated one remain to be worked out." The story adds that the stadium construction would be completed in time for the 2009 season.
The story continues:
Cardona said other development plans would be announced as part of the soccer stadium deal.
"It will be of interest to people across the country because it's a new model for state colleges and how they have to pursue public-private ventures," Cardona said.
The Courier Post Online, which bills itself as "South Jersey's Web Site," adds some more information about the deal:
Cardona said the new stadium will be across from the school's new technology center on Route 322 and will be part of a complex that is "unlike anything on the East Coast."
The stadium also will serve as home to Rowan's soccer program and could host high school events as well as youth soccer tournaments, camps and showcases.
Ironically, with this team likely to take a name featuring Philadelphia, New Jersey could end up with stadiums for two MLS teams and no name recognition for the state. After all the fuss they put up over Red Bull New York, that's probably not going to make state officials very happy.
Posted by Jay at 07:04 AM | Comments (4)
March 15, 2006
Red Bull deal reported to be $100 million
It was just a few months ago that the San Jose Sharks passed up a chance to buy the Earthquakes for $10 million, in addition to being given land and a financing deal from the City of San Jose worth an estimated $80 million. How much of a bargain was that in light of Red Bull's deal for the MetroStars, which is now being reported by the New York Times as a $100 million transaction?
Jack Bell writes the following in the Times:
Red Bull, which also owns a club in Salzburg, paid the Anschutz Entertainment Group in excess of $100 million for the club; a share in a new stadium to be built in Harrison, N.J. (now scheduled to open in 2008); and the stadium's naming rights, according to a person with knowledge of the financial details who was granted anonymity because the person was not authorized to speak publicly about the transaction. The Anschutz group will manage and operate the stadium.
Regardless of our disappointment at the move of our team to Houston, this is amazing news and clearly a great step forward for MLS and the sport in the US.
Posted by Jay at 08:46 AM | Comments (0)
March 14, 2006
Metros renaming causing a stir in Jersey
Seems like you can't rename an American soccer team these days without causing a stir. Houston's first attempt at a name, 1836, came crashing down on their heads when a significant portion of the Latino community there expressed ambivalence, if not outright hostility, at that particular moniker. (We will ignore for the moment the tragic events that led to there being a team in Houston in the first place.) Now Red Bull, owners of the once-proud MetroStars—OK, strike the "proud"—are taking flack from New Jersey politicos of all levels for renaming the team "Red Bull New York."
An AP story notes that New Jersey Governor John Corzine's office has made a statement against the renaming and that U.S. Senator Frank Lautenberg has sent a letter to the team's new owners urging them to include New Jersey in the name. The story adds that George Zoffinger, president and chief executive officer of the New Jersey Sports and Exposition Authority, is threatening to kick the team out of Giants Stadium if they don't have "New Jersey" in their name somewhere, although some soccer fans have differing views on Zoffinger's moral authority to speak on the subject.
And that's just the beginning of the articles dissing the name change:
Pols urge Jersey ID for Red Bull, which notes that two New Jersey assembly members have vowed legislation against the name change
Ramos doesn't get much energy from Red Bull, on former MetroStars midfielder Tab Ramos' reaction to the change
Red Bull's snub of New Jersey is plain bull, by columnist Jeffrey Page
You'd think at least some of these people would be happy that Red Bull introduced new jerseys at the press conference announcing their purchase of the team...
Posted by Jay at 11:37 AM | Comments (2)
March 07, 2006
NY Daily News: Red Bull to buy MetroStars for $30M+
Today's New York Daily News features an article by longtime soccer reporter Michael Lewis that states that Red Bull is set to buy the MetroStars for $30 million.
The story continues:
The deal could reach $50 million or more if the Austrian manufacturer of the sports energy drink of the same name also acquires naming rights to the Harrison, N.J. stadium, league sources said. The stadium is scheduled to open late next year or early 2008.
Interestingly, Lewis also reports that former NY Cosmos and Germany star Franz Beckenbauer is also involved in the deal. Beckenbauer, also president of Bayern Munich and the head of the 2006 German World Cup Organizing Committee, lives in Kitzbühel, Austria, and is an adviser to Red Bull owner and Austrian billionaire Dietrich Mateschitz.
Lewis's story continues:
This could be a win-win situation for MLS and the Metros, who have underachieved in the league's first 10 years.
"Red Bull has a history of spending money," a source said. "They do high-profile, aggressive marketing promotion through their brand. This is what this market needs."
According to sources, Beckenbauer met with former Cosmos teammates Giorgio Chinaglia, Werner Roth and Shep Messing during a trip to New York two weeks ago, saying that he wanted them to be involved with the restructured club.
In light of this news, allow us to play a bit of "what if." The price tag, $30 million, is a pretty big chunk of change but it's a pittance compared to what it would take to buy, for example, a team in the English Premier League. Think about it—the old Champion's World tours of top European teams demonstrated that there's a market in this country for soccer played by the biggest names. We also know that AEG has proposed to its fellow MLS owners that there be one or two players on each team that are exempt from the salary cap, an idea which the press has dubbed "The David Beckham Rule."
So, what if MLS has embraced that rule? Imagine a team with, say, Zinedine Zidane and Thierry Henry playing just outside New York City. Would attendance go up? Could you sell TV rights to Europe so the fans there have some footy to watch in the summer when their domestic leagues are on break? Would American TV ratings go up? Yes, yes, and yes. Would owners still be making a much smaller investment than it would take to buy a team in the EPL, La Liga, or Serie A? Yes. With a recognized world star or two on each roster, MLS becomes a very different creature in the eyes of the world soccer community.
The question, of course, is what owners will get in return for their investment. When you consider that the U.S. soccer market is only at the beginning of its growth curve, it's easy to see why an aggressive company with an international market like Red Bull would be eager to jump in. If we ever reach a point where European investors can net as much income in the U.S., where the up-front costs to enter the league are low, as they can in England, Spain, or Italy, watch out, because MLS teams will rocket in value. That's the day that many MLS investors are waiting for and, if Red Bull signs the deal for the Metros, that day is closer than many would think.
Posted by Jay at 11:53 AM | Comments (2)
March 06, 2006
Six KC-area communities interested in stadium for Wizards
Herb Caen used to refer to San Francisco as "The City That Knows How." I'm sure he'd be shocked to hear that Olathe, Kansas and a number of other Kansas City suburbs are getting ready to out-do his old stomping grounds and the rest of the Bay Area—at least where Major League Soccer is concerned.
The Kansas City Star (registration required) reports today that six cities in Johnson County, Kansas, have proposed a total of 16 different sites for a soccer stadium/youth soccer complex to serve as a home for the Kansas City Wizards.
From the article:
Major League Soccer asked for Request For Information (RFI) forms from various communities in the county, and Johnson County commissioner Dave Lindstrom said the response was substantial.
“My understanding is that six cities submitted RFIs and that included, I believe, 16 different locations within those six cities,” Lindstrom said. “That’s very good, and MLS and the Hunt Sports Group, those representatives were very, very pleased and excited about the prospects of those submittals.”
Bobby Davidson, a consultant for Major League Soccer, declined comment, but the cities are believed to be Overland Park, Olathe, Lenexa, Leawood, Gardner and De Soto. Leawood, Gardner and De Soto have jumped in late, as none of the three paid money for a soccer-complex feasibility study that was completed in the fall.
In fact, it appears that the cities in question are falling all over themselves to attract the investment and community benefits that a stadium would bring.
“You could look at De Soto and see we’re not like the size of Lenexa or Olathe, but we have a lot of area out there, and all is suitable,” said De Soto Mayor Dave Anderson. “Ten highway is our backbone, and you know it’s got to have highway access.”
Other than that, I really can’t be specific, but De Soto has a lot to offer.”
The same for Gardner, says Southwest Johnson County Economic Development Council president Greg Kindle.
“Obviously, Gardner has a lot of available space and along an interstate and a growing area, so we’re just one of several sites in Johnson County that would be good fits,” Kindle said.
It's ironic that the Bay Area, known for economic visionaries who invent the future on a daily basis, is being outdone by cities in the meat-and-potatoes Midwest. Perhaps our local politicos could take some inspiration from these cities' fine effort.
Posted by Jay at 03:36 PM | Comments (0)