Miami, Beckham $207m apart on value of stadium land

I’ve been wondering for a while now how much of a bargain Miami was going to have to give David Beckham’s MLS ownership group as part of a deal for a new waterfront stadium in a public park, and the answer is: Nobody can agree on it, so they’re shutting down talks for a while.

For months, David Beckham’s Major League Soccer venture has said it will pay some sort of annual rent — “fair,” “market” or “reasonable” — to build a stadium on prime public land.

Yet the number Beckham’s representatives have floated in early talks with the city of Miami is so low that the city manager has called for the two sides to “take a breather.”

That figure: $500,000 a year, according to the city.

Miami says it has not countered with a figure of its own, but it’s far higher than $500,000 — as high as $12 million to $14 million, City Manager Daniel Alfonso said Monday.

“We’re just too far apart,” he told the Miami Herald.

That’s pretty far apart, yeah. How far? In present value (5% discount rate), over the term of a 30-year lease, $500,000 a year is worth about $7.7 million total. $14 million a year would be worth $215.2 million. So Beckham and the city of Miami are only $207.5 million apart on how to split the costs of a new arena. Yeah, this could take a while.

Meanwhile, the University of Miami’s football team has said it’s not interested in moving to an MLS stadium at the new boat-slip site, both because it has 18 years left on its lease at Sun Life Stadium, and because the new soccer site likely isn’t big enough to fit a football stadium anyway. Anyone for Plan C?

4 comments on “Miami, Beckham $207m apart on value of stadium land

  1. And now he’s hinting a comeback…I bet to sucker taxpayers to build his stadium.

  2. Real Estate experts claim the site coveted by Beckham and his backers is worth at least $400 Million. City of Miami executives lack experience re appraisals. Residents claim the site is priceless and NOT for sale or lease.

  3. Yeah. Don’t take the precious Miami waterfront park for a stadium. Period. The public has sought to open the park as a park for years and now a 200 ft tall two block long stadium would block the last open space in the downtown?. As so many people are saying-that land and the FEC slip are priceless. It’s not at all about splitting the difference if any such deal is in the works. Stop the negotiations over the waterfront space with Beckhams handlers. Look for inland sites where you might actually have to buy the land like other capitalist businesses. The stadium scams should be grinding to a halt and hopefully Miami residents can help send such a message.