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?