June 29, 2009
Yankee repairs at the AAA level
The New York Yankees may have their own set of problems with the new Yankee Stadium, but trouble may also be brewing at the lower tier of the Yankee empire. Calls for renovation of their AAA Scranton, Pennsylvania facility were reported yesterday.
The Scranton Times explains that about $13.3 million in repairs will be needed to revitalize the 20-year-old stadium, including $4.5 million in electrical system replacements.
Lackawanna County is responsible for maintenance of PNC Field (not to be confused with PNC Park in Pittsburgh), but in a situation similar to the old Yankee Stadium, work can be arranged by SWB Yankees, the team owners, and charged against county stadium revenues.
The Yankees minor league franchise deal ends in October, prompting the predictable non-threat to move, something that is pretty standard in opening negotiations, with team president Kristen Rose saying "we're still happy here." If the shakedown model in most cities follows, Scranton officials and/or reporters are likely to highlight the potential for a move to another city, and tax dollars will fund whatever renovations and repairs the team wants.
The amounts are small in the grand scheme of things, but Lackawanna county is likely to have a number of other uses for $13.3 million. No word as to whether Dunder Mifflin paper products were used in the publication of this Scranton Times article or if they currently serve as a sponsor for the local team.
June 27, 2009
I'm off to Chicago for a week of actual vacation, though I probably won't be able to resist sneaking a peek at the site of the proposed collapsible Olympic Stadium ("located just three kilometers from the grave of Jesse Owens"!). I'll be back on duty here on July 6.
In the meantime, the fieldofschemes.com reins will be ably handled by guest correspondent Bob Trumpbour, of "New Cathedrals" fame, along with regular correspondent David Dyte. Please treat them as you would me ... actually, on second thought, maybe try to be a bit nicer.
Red Wings opt out of lease, could go short-term
Detroit Red Wings owner Mike Ilitch didn't wait till Tuesday's deadline for deciding whether to renew his lease on Joe Louis arena, instead announcing yesterday that he was opting out of the lease effective next July 1. Instead, he will likely attempt to negotiate a new short-term lease on the arena, while simultaneously working on a deal to either renovate or replace the building.
From Ilitch's perspective, this makes sense as a way of hedging his bets: He gets to keep working out a deal for a new arena, without being pressured to do so in a dismal economic climate for building arenas. What will be interesting now is whether Ilitch still gets a sweetheart deal for Joe Louis along the lines of what he would have gotten had he re-upped for 20 years, or whether Detroit drives a harder bargain knowing that he has few other options — unless you believe the rumors about moving to Auburn Hills and back again.
June 25, 2009
Nets arena gets land bailout, still needs bond backing
New Jersey Nets owner Bruce Ratner got his sweetheart land deal for a Brooklyn arena yesterday, as the Metropolitan Transportation Authority board approved a plan that would let him defer payments and spend $100 million less on replacing a rail yard on the proposed arena site. In a last-minute twist, arena opponents Develop Don't Destroy tried placing their own competing bid for the land, saying they had just as good a shot at getting financing for their Unity development plan as Ratner did for his arena, but the MTA refused to consider the offer.
And about that arena financing: The New York Times' Charles Bagli reports that it could present Ratner's "most daunting challenge," as he needs to secure $586 million in bonds by the year's end or lose the bonds' tax-exempt status, which would likely raise borrowing costs enough to kill the arena outright. The bonds would be backed by arena revenues like suite and advertising sales, and those aren't exactly selling briskly right now: Sports marketer Matt Yonan tells Bagli, "Finding sponsors at the level they need for the long haul is a difficult proposition."
For much more on this, including warnings from elected officials that it was illegal for the MTA to accept the revised deal without an independent appraisal, and video of the proceedings, see Atlantic Yards Report's long, long report on the day's events.
Red Wings face Tuesday deadline on new arena (no, really this time)
Detroit has barely buried one sports facility controversy, when another is set to rear its head: Detroit Red Wings owner Mike Ilitch (who also owns the Tigers, Little Caesar's Pizza, and a large chunk of what's left of downtown Detroit) has until Tuesday to inform the city whether he's opting out of his lease on Joe Louis Arena, or allowing it to be automatically renewed for another 20 years.
Either way, Ilitch is sitting pretty: If he renews, he loses $1 million a year in tax breaks, but gains millions more in concessions, suite rentals, and ticket taxes that he no longer has to share with the city. If he tries to move or demand renovations to Joe Louis, he gets a shot at a building with more revenue-generating options — though that would likely only make sense if he can get the city and county to help pay for it, since otherwise the construction debt would almost certainly swamp any new revenue streams from a snazzier arena. Of course, given Ilitch's track record with the Tigers and that Wayne County Executive Robert Ficano told the Detroit News regarding financing help for a new arena, "We want to do everything we can to keep the Red Wings here," he has to figure he has a pretty good shot at taxpayer help, even as the local economy collapses around his ears.
By the way, if you're wondering whether we didn't just go through all this two years ago: Apparently everybody was confused that time about when the lease expired.
49ers vote still up in the air
The city of Santa Clara joined its neighbors in San Jose in punting on a decision on a stadium referendum Tuesday night, saying only that a vote on a San Francisco 49ers stadium would likely take place in March, April, or June. The vote would consist of two ballot questions: One on approving the overall project, the other on allowing the team to forgo competitive-bidding rules in selecting a contractor.
Meanwhile, a recent report by Santa Clara claims that a football stadium would be a boon to the city's money-losing convention center, creating "synergies" (read: more conventions would come to town if they could use the stadium space, too) that would generate hundreds of thousands of dollars a year in new tax revenues. In the memorable words of Heywood Sanders, this theory is "a lot of hooey."
June 23, 2009
If you'd like to revisit why this came to pass despite widespread support for preserving Tiger Stadium (and not spending public money on its replacement), Joanna and I wrote a whole chapter about it.
Revised Nets deal includes reduced payments, subway naming rights
As threatened, New Jersey Nets owner Bruce Ratner and the New York Metropolitan Transportation Authority proposed a revised payment plan yesterday for the land under Ratner's planned Brooklyn arena, one that will allow him to defer some payments until the year 2031. My quick back-of-the-Excel calculation estimates that this would save Ratner between $12 million and $24 million off his $100 million land payment in present value, though it'd be less of a deal for him if you assume the economy is going to continue to tank and interest rates will stay low.
A bigger break for the developer — and one not mentioned by many news outlets, including the New York Times — is that Ratner would also spend $100 million less on replacing the MTA's train yard than he'd previously promised.
Finally, Ratner is offering to pay $200,000 a year to rename the Atlantic Avenue subway station next to his arena after Barclays, the bank that has promised to buy naming rights to the arena. This would presumably mean naming the station "Atlantic Avenue–Barclays Center," along the lines of the "Willets Point/Citi Field" that the Mets balked at paying for earlier this year.
The last-second proposal — the MTA board first heard details at their meeting yesterday, and are expected to vote tomorrow — didn't sit well with some board members, with one, Doreen Frasca, objecting: "It's one month shy of four years since the board accepted the Forest City Ratner proposal, and this committee and this board is being given less than 48 hours to understand the complexities and vote intelligently... I think that's pretty outrageous."
June 21, 2009
San Jose on A's vote: Wait till next year
Surprising absolutely no one, San Jose Mayor Chuck Reed has announced that he won't be seeking a ballot referendum this November on building a stadium for the Oakland A's, as he'd earlier hinted at. Reed's statement was apparently prompted by A's owner Lew Wolff declaring that a November vote was "premature," though you'd have thought that the fact that there's still no financing plan or approval from MLB of an A's move to San Jose might have been enough to tip the mayor off.
A vote could now come in March, or June, or November, depending on when Reed thinks it's best politically (he's up for re-election next fall) and when the Gang of Three issues its territorial rights ruling. Holding your breath is definitely contraindicated on that one.
Coverage of Gate 2 campaign manages to avoid word 'quixotic'
The push to save one wall of the old Yankee Stadium hit the city tabloids today, with the New York Daily News reporting that proponents plan to make an appeal at the next community board hearing and stage a rally June 30 to call for saving Gate 2. (The News also reports they plan to "produce a You Tube [sic] video," which only goes to show that you can always get press coverage if you mention YouTube. Or Facebook. If they planned to go on Twitter about it, they probably could have gotten the front page.)
The question, as always, is whether preserving the gate, which would have to be braced to stand alone alongside the public baseball fields that will replace the House That Ruth Built, can be accomplished without delaying the parkland opening or costing the city a zillion dollars it doesn't have. Not that the city Parks Department will necessarily listen in any case, but without meeting those criteria it's definitely going to be a non-starter.
Meanwhile, in other Yankees stadium-related news, radio station WNYC visited the shopkeepers along 161st Street recently and found that most say they've seen fewer customers since the Yanks' new stadium opened this year. Which could just be the economy, or it could be the fact that the new stadium holds fewer fans and has more places for them to buy food and souvenirs inside the gates instead of down the block — concern over which was why Stan's Sports World and several other local businesses opposed the new stadium, not that anyone listened to them.
June 19, 2009
Paulson: Forget baseball, let's talk soccer
Those protestors in Lents have to be thinking, "That was easy": Portland Beavers owner Merritt Paulson withdrew his plan for a minor-league baseball stadium today, saying he wanted to instead focus on finalizing plans for a soccer stadium for his expansion Timbers team. As for the Beavers, he said he's committed to keeping them "in Portland or the Portland area."
It may or may not have been intentional, but Paulson has now pulled off a series of switches even slicker than his dad managed last fall. Let's recap:
- Two years after buying the Beavers and minor-league Timbers franchises, Paulson wangles an invitation to move up to Major League Soccer in 2011, provided he has a soccer-only stadium.
- Paulson presents Portland with a no-lose proposition: He'll build a new stadium for the Beavers, and renovate their current home park to be soccer-only. And all he'll need is $30 million or so in tax money.
- Everyone freaks out about where to put the baseball stadium. Paulson freaks out about the freaking out.
- Mayor Sam Adams says, "We don't need to worry about baseball to get soccer done."
- Paulson: "What is this 'baseball' of which you speak?"
While nobody knows what the soccer stadium deal will look like now — it was only presented previously as a package deal — Paulson is potentially sitting pretty, as the city has already identified a whole pile of different public revenue streams, any of which could cover the soccer costs if the baseball stadium is scrapped. Meanwhile, Paulson now gets to play "Who Wants To Build Me a Baseball Stadium?" with the Portland suburbs — both Hillsboro and Vancouver, Washington have been mentioned as possibilities — and at worst, he's traded in two minor-league teams for one big-league one and a AAA baseball franchise that he can move or sell or whatever, which is a good swap however you want to count it. "Hey, how about you build me a new soccer stadium and make my baseball team a free agent?" isn't a deal he likely could have gotten if he'd proposed it back in March, but what's important is how you get there, or something.
Portland: We'll do MLS stadium with or without baseball
Hours before more than 100 people rallied in protest of a Portland Beavers minor-league baseball stadium in their neighborhood of Lents, Mayor Sam Adams and city commissioner Randy Leonard threw the project under the bus, declaring that they'll back converting PGE Park for soccer for the expansion Timbers regardless of whether the Beavers get a new home. This likely means the Timbers deal will get done — commissioner Dan Saltzman, the swing vote on the city council, has opposed the soccer stadium because of concerns about the baseball plans — but also could mean the Beavers would have to move if the Lents stadium plan falls through: "I don't see another option," said Mayor Adams.
Of course, there's always the much-discussed option of having the Timbers and Beavers share digs at PGE, saving millions of dollars on building duplicate facilities. MLS Commissioner Don Garber has said he doesn't want to do that, but he's going to say that, obviously — he has no incentive to shack up with a baseball team if he doesn't want to. The only way to test whether he'd actually rescind the Timbers franchise rather than share space is to make the demand and see what happens. Not that Mayor Adams is likely to do that, but you don't get if you don't ask...
June 18, 2009
Giants sell naming rights to left shoulder
The ever-evolving naming-rights market took a new turn yesterday with the announcement that the New York Giants have struck a $35 million, 15-year deal to rename their new practice facility the Timex Performance Center — as part of which the team will wear a Timex patch on the left shoulder of their practice jerseys. The NFL recently okayed corporate logos on practice uniforms only, though you have to wonder if it's a slippery slope that's inevitably headed toward this.
June 16, 2009
Judge blocks "unapproved" Coyotes move to Hamilton
So much for a knock-down, drag-out fight over the NHL and antitrust law: Phoenix bankruptcy court judge Judge Redfield Baum rejected BlackBerry billionaire Jim Balsillie's $212 million bid for the Phoenix Coyotes, essentially on technical grounds, saying there wasn't enough time before Balsillie's June 29 deadline to evaluate if it was the best deal for creditors.
Baum did, though, appear to uphold the NHL's assertion that it has the right to control franchise movement (something current Coyotes owner Jerry Moyes claimed violates U.S. and Canadian antitrust law), writing in his opinion, "From the outside looking in, it appears that each of the leagues has not suffered or been materially damaged when one of its members made a quick and unapproved move as the then Baltimore Colts and San Diego Clippers did in 1984 and the Seattle Pilots did in 1970," and saying that for Moyes to try to use bankruptcy to break his contract with the NHL that the Coyotes will play in Phoenix would be "akin to a purchaser of a bankrupt franchise in a remote location asserting that it can be relocated far from its original agreed site to a highly valuable location, for example New York City’s Times Square."
Since an "unapproved" move is what Baum objected to, and the only people who've expressed any interest in buying the team and keeping it in place for the time being include three out-of-towners and a guy who won't even give his name, you have to wonder if this means an approved move could be in the cards. As Stephen Brunt writes in today's Globe and Mail:
There's a deal to be made — it's a buyer's market — though it's hard to imagine who would step forward to assume the long-term arena lease, and the inevitable, massive annual losses that would seem to entail.
All of which would suggest that one way or another, the NHL is going to have to work out a deal with someone: who will buy the team, pay lip service to the idea of making hockey work in Phoenix, and then relocate somewhere more palatable to the league's current interests.
Of course, it's also conceivable that Balsillie will file another lawsuit, or readjust his purchase offer, or
June 12, 2009
Unanswered questions in Santa Clara 49ers deal
Yesterday's San Francisco Chronicle had an unusually perceptive editorial on the proposed 49ers stadium in Santa Clara, noting that there are still many unanswered questions about the deal:
One team or two? The 49ers insist they can make a stadium deal work without partnering with the Raiders - though they list it as a possibility.
How much public money? The 49ers claim that Santa Clara's contribution is $79 million. But that does not include $35 million from a proposed hotel tax or the full cost of a $42 million parking garage. Are there other hidden costs?
Is the financing plan realistic? Even though the 49ers are liable if revenues fall short, the city is a partner in this deal and expecting a return on its investment. Voters deserve to know whether the revenue assumptions (ticket licenses, naming rights, concession rights, etc.) are plausible.
Of course, it's not like the Chronicle editors are asking the hard questions about a stadium deal in their own city. Because that would be wrong.
In other Niners news, an online poll of readers of the San Jose Business Journal showed almost 2-to-1 support for the stadium plan, though there's no way of knowing how many of those people are actually registered to vote in Santa Clara — nor, as one blogger notes, "safeguards in place to keep Carmen Policy from voting 500 times from different IP addresses." Great America amusement park owners Cedar Fair, meanwhile, are still grumbling over being cut out of negotiations around the stadium that would rise in their parking lot — which, given that Cedar Fair's lease needs to be reworked as part of the deal, has to be a headache that the 49ers would rather not have.
Portland study: New ballpark site blows
Another city-backed study of the proposed Portland Beavers minor-league baseball stadium is out, and it looks just as promising as the last one: A stadium in Lents Park, according to consultants HVS International, would have lower attendance and revenue and provide less visitor spending in the immediate neighborhood than the previously considered downtown site, thanks to being way out in the boonies and surrounded by a residential neighborhood. City Commissioner Dan Saltzman, who has opposed the downtown site and holds the swing vote on approving the baseball stadium — which is being sought by Beavers owner Merritt Paulson so their current stadium can be converted for his expansion Timbers soccer franchise — told The Oregonian that he planned to make the report "my weekend reading."
June 11, 2009
Gothamist notes today in an article on how the New Jersey Nets' Brooklyn Atlantic Yards project is still up in air:
Flashback to the February 2, 2004 issue of the New Yorker, where in a Talk of the Town piece by Ben McGrath, FieldofSchemes.com's Neil deMause predicted, "I'd guess it's probably fifty-fifty the arena gets built entirely...I wouldn't be shocked if five years from now we're still arguing the logistics."
If you want to play the home game version of this, just repeat after me: When someone announces a new sports stadium or arena, it's only the beginning of what's typically a five- to ten-year debate. Corollary: How much it will end up costing, who'll end up paying for it, and what it will ultimately look like will bear almost no resemblance to the original plans.
In other words, pay no attention to the funny shapes.
June 10, 2009
And you thought U-Haul was expensive
The NHL expects up to $100 million as a relocation fee for the bankrupt Phoenix Coyotes, according to Susan Freeman, a lawyer representing Blackberry billionaire Jim Balsillie. As the franchise bankruptcy case drags on, Judge Redfield T. Baum agreed that the league has a right to demand such a fee, and warned its representatives, against their protestations, that a definite figure should be set before June 22, when the NHL may be forced to auction the team off and allow it to move.
The NHL, for its part, wants a September 10 auction for a franchise that would remain in Phoenix.
While Judge Baum sifts through all manner of legal issues, one theme remains constant throughout the proceedings: Everyone wants a slice of the pie. More than 40 lawyers are present, representing the NHL, the City of Glendale, present owner Jerry Moyes, and a host of creditors and other interested parties.
At one point the judge quipped, "We're not selling a used car here."
He's right. Over the last 13 years, a used car would have been a better deal.
A quick programming note: I'm scheduled to appear on Rob Breakenridge's show on CHQR radio in Calgary tonight, starting at 8:05 pm Mountain (10:05 Eastern); listeners elsewhere should be able to tune in via the web stream. Not sure what we'll be talking about, but this is a pretty good bet, as is the ongoing Phoenix Coyotes imbroglio.
Marlins set groundbreaking, delay bond sale
The Florida Marlins have announced July 18 as the date of the ceremonial groundbreaking for their new stadium, but as for paying for the actual building once the ground is broken, the team hasn't quite finalized that yet. Miami-Dade County was supposed to start selling stadium bonds yesterday, but instead shifted the bond sale to next Wednesday.
"The ratings were positive," Marlins president David Samson reassured the South Florida Sun-Sentinel's Sarah Talalay. "We're confident there will be individual and institutional buyers for these bonds." Eventually.
Headlines we didn't read today: "Magic arena forces arts cuts"
Hotel tax revenues in Orange County, Florida are expected to plummet by a record 18% this year, but don't worry about the new arena for your NBA Easten Conference Champion Orlando Magic, notes the Orlando Sentinel:
Despite the slump, the new arena for the Orlando Magic — already under construction just west of downtown — is safe, Orlando officials say. Bonds were sold for the $480 million project last year, and it is scheduled to open in the fall of 2010.
Of course, since the county is already locked into paying off the Magic arena bonds, that means the tax shortfall must be made up out of other projects. A planned Orlando performing arts center, as well as renovation of the Orange Citrus Bowl, could now be delayed or scrapped, while local theaters and museums are expected to lose up to half of their county grant money. What was that about a no-lose proposition again?
June 08, 2009
Judge okays Tiger Stadium demolition
Friday's Tiger Stadium drama, it turns out, was just a temporary stay of execution: Wayne County Judge Prentis Edwards ruled today that the destruction of Tiger Stadium can proceed, effective immediately. While there's still a faint possibility of a court appeal or intervention by the mayor, it seems likely that the backhoes will resume tearing down the Navin Field portion of Tiger Stadium as soon as this afternoon.
Readers of this site are probably already aware of what's being lost here, but in case you're not, I posted a reminder this morning on Baseball Prospectus Unfiltered.
Coyotes filing reveals secret NHL constitution
As expected, the Phoenix Coyotes bankruptcy lawsuit is turning into great entertainment, if not exactly the kind the NHL wants as competition during the Stanley Cup finals. Already we've seen the release of the heretofore super-secret NHL constitution (bylaws here and here) as part of Coyotes owner Jerry Moyes' evidence filings over the weekend; Moyes claims the clause allowing the Toronto Maple Leafs veto power over another team moving into Ontario violates Canadian competition laws, which is like metric for antitrust laws.
Meanwhile, in an attempt to head off the purchase of the Coyotes by his arch-nemesis Jim Balsillie, NHL commissioner Gary Bettman filed an affidavit listing Toronto Argonauts owners David Cynamon and Howard Sokolowski as interested in buying the team and keeping it in Phoenix — except that Toronto Star sportswriter Damien Cox insists the pair is really only interested in getting dibs on a second Ontario franchise themselves. And that's not even counting the guy who wants to build a 30,000-seat arena in the Toronto suburbs and get an NHL expansion team. At this rate, it's only a matter of time before Rick Horrow shows up.
June 06, 2009
Tiger Stadium demo halted by man busting through fence with restraining order
Demolition of the remaining portion of Tiger Stadium was halted today a couple of hours after it began after a judge issued a restraining order and called for a hearing on the matter on Monday — but not immediately after. The Associated Press has the story of how it went down:
But when attorney Michael Myckowiak and others arrived at the corner of Michigan and Trumbull to serve the order on the demolition contractor, they found they couldn't get inside the covered fence surrounding the site.
That's when stadium supporter Chip Owen took the order, got inside the fence and "ran toward the mound with the papers," said Rick Ruffner, a conservancy board member. "He gave the papers to the construction company and demolition stopped immediately."
Owen, 48, of Grosse Pointe Park, was given a warning by police.
You can see video of this scene (and of demolition machines taking some bites out of the Tiger Stadium upper deck) here.
UPDATE: Photo, courtesy of buildingsofdetroit.com, showing the damage done to the upper deck before Owen arrived with the court order:
June 05, 2009
Tiger Stadium demolition is underway
Rod Nelson of the Old Tiger Stadium Conservancy reports that Peter Comstock Riley, who's been pushing for reuse of Tiger Stadium for a decade, is on-site at the stadium and says that demolition began shortly after 3 pm, with the wrecking machines "nibbling on 3b side, lower corner." The Conservancy is seeking an emergency injunction.
I called Mayor Dave Bing's office right at 3, and was told by a spokeswoman that "the decision on Tiger Stadium was made two administrations ago, and we've only been here three weeks." When I noted that Bing was in office now, and asked if he was planning to take any action on the demolition — only the mayor can overrule the Detroit Economic Growth Corporation — she said, "Not to my knowledge," and gave the general impression of really, really wanting to duck the issue. You can ask Bing's office yourself at 313-224-3400.
UPDATE: Nelson reported around 6 pm that the Conservancy had obtained a court order to stop the demolition, but the DEGC was refusing to accept it and was directing the demolition crews to start in on the upper deck.
Just turned on Olbermann to see if he's downgraded George Jackson to "World's Worst" again... [FURTHER UPDATE: Keith's off tonight.]
FINAL UPDATE: Demolition has finally stopped, with a court hearing set for Monday.
Detroit development chief: We'll raze Tiger Stadium tonight, if possible
Detroit Economic Growth Corporation VP Waymon Guillebeaux told Crain's Detroit Business today that demolition of Tiger Stadium could begin tonight if all the paperwork has been completed.
In the meantime, proponents of preserving the home-plate section of the ballpark continue to appeal to Mayor Dave Bing (yes, that Dave Bing) to step in and stop the wrecking crews. (Mayor Bing is apparently the only person who can overrule the EGC; to register your opinion on this, call his office at 313-224-3400.) U.S. Sen. Carl Levin says he appealed to EGC president George Jackson, who's been agitating for demolition for years, but couldn't get him to meet with him; a spokesperson for Jackson says he went to D.C. to meet with Levin, but the senator was unavailable. For lots more accusations and counter-accusations, see the Crain's article.
The National Trust for Historic Preservation, meanwhile, has a nice report on Wednesday's protest, and itself notes:
[T]he DEGC and the city have no alternative plan for the site with any real viability, and certainly no developer or use that is at all shovel-ready. So why the sudden rush to spend significant money to tear it all down? Complete demolition at this time will result only in another empty parcel in a city filled with vacant land awaiting new construction.
We believe the city should extend deadlines for the Old Tiger Stadium Conservancy and encourage continued progress toward a significant redevelopment of an iconic historic resource that will cost the taxpayers of Detroit little and provide a much needed shot in the arm the cash-strapped city desperately needs in these trying times.
June 04, 2009
Nets ditch Gehry for cheaper option; can this save Atlantic Yards?
In a development that surprised exactly one guy who was living under a rock, the New York Times revealed today that New Jersey Nets owner Bruce Ratner has ditched Frank Gehry's design for a Brooklyn basketball arena, and will instead attempt to move ahead with a cheaper design by Ellerbe Becket, architect of several other NBA arenas. The revelation comes six months after Gehry quit the project, and a week after Sports Business Journal predicted that Ellerbe Becket would be taking over.
So what does this mean, other than that future Nets arena renderings will look more like a basketball arena and less like a game of Jenga? The Ellerbe design is expected to come in at $800 million as opposed to Gehry's final price tag of $1 billion, which is indeed cheaper, but still crazy expensive in the post-bubble sports economy. Just yesterday, Forbes gave the arena only a 50-50 chance of getting done, citing specifically the changed economic and credit climate: "I don't know of a single venue that has been financed since last summer," says sports law expert Gary Roberts told the magazine. "In normal times, I'd see it as very likely to get done, but there are enough variables that you can't bet the ranch."
Vigil, film shoot at Tiger Stadium
With demolition machinery on the scene, about 100 people gathered at Tiger Stadium late last night to protest the ballpark's imminent destruction. Crews are reportedly in the stadium prepping it for demolition.
They apparently won't start today, though: A film crew is on the scene for a one-day shoot, using what remains of the stadium as the backdrop for a Val Kilmer movie. Tiger Stadium, some of you may recall, also stood in for old Yankee Stadium during filming of the HBO movie 61*; somehow I doubt that the site will prove as alluring to filmmakers once it's a vacant lot.
June 03, 2009
Cablevision rebooted its $500 million renovation plans for Madison Square Garden today, saying they'll now be completed by summer 2012, instead of summer 2011 as was announced last year. Of course, given that the renovations were originally supposed to start this summer and the New York Liberty have their season opener at MSG this Sunday, this shouldn't come as any surprise; in fact, given that the MSG reno needs to happen entirely during the summers to avoid inconveniencing the Knicks and Rangers, 2012 might be ambitious as well. If and when it happens, the reno job would add floor-level suites (suiteholders would have to emerge into regular seats to actually see the game) and expanded concessions areas, accomplished by both moving current team offices to adjacent buildings and moving the upper part of the seating bowl forward.
Still no details, meanwhile, about how the renovation would be financed, though MSG exec Hank Ratner promised it would involve no public money, quipping, "We all know how anomalous that is today." Except, presumably, for the tax break that won't die.
Wrecking ball arrives for Tiger Stadium
Okay, not exactly a wrecking ball, but close enough. Apparently the Detroit Economic Development Growth Corporation didn't waste much time finding a demolition contractor, as two large wrecking machines showed up at what's left of Tiger Stadium this afternoon. More information as it becomes available.
Blue Jackets ditch sin-tax bailout plan
The Columbus Blue Jackets have thrown in the towel on their previously reported plan for a county bailout of their losses by buying their privately owned arena and cutting their rent. The reason, according to Business First of Columbus: Everybody thought it was a terrible idea:
Lobbyists for the beer and tobacco industries had feared the excise tax authorization would be slipped into the budget bill with no public discussion. But the issue became public May 28 when media outlets, including Business First, began reporting on the Blue Jackets' proposal.
Many of the stories have included citizen comments against a county buyout of a privately owned arena during a recession and raising alcohol and tobacco taxes to pay for it.
The team will now go back to the drawing board seeking other ways of stemming their losses, presumably through a bailout that looks less like, you know, a bailout. Business First further adds that Blue Jackets officials "have said the team wants to avoid talking about what will happen if the Blue Jackets can't get a more favorable arena deal, including the threat of the team being sold or moved." Paraleipsis is an owner's best friend...
Santa Clara okays 2010 vote on 49ers stadium
At 1:30 this morning, the Santa Clara city council voted 5-2 to approve the city's deal with the San Francisco 49ers for a $937 million stadium, which would cost taxpayers $79 million — or $114 million, or $444 million, depending on how you're counting. The plan will now go to a public referendum, likely next April.
One interesting last-second twist: Cedar Fair, owners of the Great America amusement park whose parking lot would be the site of the stadium, asked for the vote to be delayed so they could complete negotiations with the 49ers, but were turned down. So it's still conceivable that Cedar Fair could go back to holding up the deal if they feel like they're not getting a fair cut.
Last-ditch effort to save Tiger Stadium
Following yesterday's surprise decision by Detroit's Economic Development Growth Corporation to demolish the remaining section of Tiger Stadium, the Old Tiger Stadium Conservancy sent out this email:
The Old Tiger Stadium Conservancy is shocked and dismayed that a decision was made by the Economic Development Corporation to demolish the Navin Field portion of Tiger Stadium without consulting the Conservancy. The Old Tiger Stadium Conservancy has made considerable progress to move the redevelopment of this property forward by securing millions of dollars in earmarks, grants and tax credits, as well as state approval of historic designation.
Plans are well underway to redevelop this property into a viable and self-sustaining commercial property, a much-needed venue for supporting local youth and amateur sports, and a usable and attractive community green space as exemplified by similar preservation efforts by the Detroit Riverfront Conservancy. The Old Tiger Stadium Conservancy project will be a major contributor to the economic development of the City of Detroit, connecting southeast Michigan to the state and the entire region.
With a new administration in place, we demand that the City not be shortsighted in its vision for the future. We ask that development officials stop demolishing our heritage and instead, develop mixed-use opportunities that promote economic vitality, cultural tourism and healthy green spaces that interlink and sustain neighborhoods. By demolishing, the City loses $22 million in credits and earmarks and adds another vacant lot in the City of Detroit. Apparently, the policy is to save the City by demolishing it.
We encourage citizens to contact the Mayor's office as well as Detroit City Council to voice their concerns.
The Honorable Dave Bing, Mayor, City of Detroit, Executive Office, Coleman A. Young Municipal Center, 2 Woodward Avenue, Detroit, Michigan 48226, 313-224-3400
Thomas W. Linn, President, Old Tiger Stadium Conservancy, http://www.savetigerstadium.org
According to local news reports, demolition is set to begin as soon as a contractor can be found. Though the EDGC may consent to marking the site with a small plaque.
June 02, 2009
Tiger Stadium could be torn down in next two weeks
The long fight to save Tiger Stadium, or at least the sliver that remains, appears to be over, as Detroit's Economic Development Growth Corporation voted yesterday to demolish the last piece of the 1912 ballpark, effective as soon as possible, likely in the next two weeks. Said Detroit EDGC VP Waymon Guillebeaux of the preservationists' efforts, which were still in the works as of three months ago: "We simply can't afford to keep waiting when it is clear that the Conservancy's concept is not financially viable, nor will it be in the immediate future."
There's still presumably a chance that the Detroit city council could step in with a last-second reprieve, as it did last summer after the last time the EDGC called for complete demolition; Old Tiger Stadium Conservancy board member Gary Gillette said the group would "do everything we can -- including calling on all of our friends and supporters -- to try to get this decision reversed." But it sure sounds like this is the end.
I'll have more to write about Tiger Stadium, which to my mind was the finest of the 26 major-league ballparks I've been to, when I have more time to digest this. In the meantime, I'll let former Tigers employee David Gratt's reminiscence stand for itself.
Rams for sale, could seek to break lease?
St. Louis Post-Dispatch columnist Bernie Miklasz has ignited a firestorm of media chatter with his column Sunday indicating that the Rams are for sale, and could be headed out of town:
The owners will ask Goldman Sachs to help facilitate the sale of the Rams by evaluating bids and soliciting potential buyers.
The sale price is unknown, but Forbes magazine's most recent estimate listed the Rams' value at $929 million.
And if you are a St. Louis Rams fan, here's the reason to be concerned: I'm told there will be no preconditions attached to the sale of the Rams. This means the Rams could be scooped up by out-of-town buyers.
The Rams, you'll recall, have a 30-year lease on the Edward Jones Dome, but were clever enough to include a provision that lets them break the deal if the building isn't among the 25% most "state of the art" in the NFL, something Miklasz says ain't gonna happen:
It's virtually impossible for the CVC to meet that top-eight standard. By 2010, 23 NFL stadiums will have been built or thoroughly renovated since the Edward Jones Dome opened in 1995.
Even with a $30 million upgrade that's being done now, the Edward Jones Dome will be one of the oldest stadiums in the NFL by 2015.
If all this sounds familiar, it's because it comes exactly one year and one day after a similar Post-Dispatch article asserting that St. Louis needs to replace the dome or else see the Rams leave town. It looks increasingly like St. Louis is headed for another major football stadium showdown, just 14 years after their last one.
Sports bubble watch: Giants waiting list has evaporated
In a Newsday column mostly about the lagging naming-rights market — both the Dallas Cowboys stadium opening this year and the New York Giants and Jets stadium opening in 2010 still haven't found buyers for their stadium names — sports business writer Neil Best reveals this tidbit as well:
The Giants are further along in their sales process but still have personal-seat licenses available at club levels for $20,000, $12,500 and $7,500 &mdash ones that come with game tickets at $700, $500 and $400.
Johnson and Mara expressed confidence that they will be sold out before the 2010 openers. But Mara confirmed that the Giants have moved through their notoriously long waiting list and that tickets now are available to the public.
What this means is that at least 60,000 Giants fans have been offered the chance to buy season tickets at the new place, and replied, "Not at those prices." See why I'm concerned for Santa Clara?
Yanks to Brodsky: Stadium documents will cost you $5m
The New York Yankees have a new defense against state assemblymember Richard Brodsky's pursuit of documents related to their stadium deal with the city: a $5 million invoice. "If he wants the documents, the standard rule is he pays for them," team lawyer George Carpinello told state Supreme Court Justice John Egan Jr. yesterday. "That's the law in New York. That's the case law." Brodsky disagreed, and said the Mets managed to provide the requested documents without referring matters to the billing department.
Carpinello declined to say whether the Yanks need the money to pay for a giant wind machine.
Noll: Santa Clara 49ers deal is tops
Stanford economist Roger Noll has analyzed Santa Clara's proposed deal with the San Francisco 49ers for the San Jose Mercury News and concluded that while some of the revenue projections may be overly optimistic, "you're still going to end up with a better deal than just about any other city has received." While that's admittedly not a very high bar to set, it still should ease qualms about the deal somewhat, given that Noll has been doing this since we were knee-high to David Samson.
In the same article, Santa Clara assistant city manager Ron Garratt responds to my concern that the stadium authority could face revenue shortfalls and require an Indianapolis-style bailout, saying that in either cases of cost overruns or revenue shortfalls, "the city isn't going to pay those expenses." If so, that's great — but it's not what it says in the term sheet. There is a provision stating that "the Stadium Authority will be liable for development costs of the Stadium only to the extent of Stadium Authority Construction Sources actually available," but given that it doesn't say who'll pay these costs otherwise — not to mention that construction would need to begin before things like naming rights and certainly PSLs are sold — this hardly looks like an iron-clad guarantee.
Meanwhile, two community activist groups, Santa Clara Plays Fair and Not With My Money, have begun organizing to defeat the plan if it goes to referendum next spring, saying any government subsidies for a football stadium would be too much. What, like there's something else they could be doing with the money?
June 01, 2009
Could 49ers deal blow up on Santa Clara?
Late Friday night, the city of Santa Clara released its term sheet with the San Francisco 49ers for a new $937 million stadium, a 38-page tome with more moving parts than a Dubai skyscraper. Without going into too much detail about leases and sub-leases (and with a bit of help from the San Jose Mercury News analysis) here's the big picture:
- The city will put in $42 million directly, with another $20 million estimate for moving an electrical substation. The city will also give Great America $17 million worth of parking spaces to compensate it for the stadium being built on one of its parking lots.
- If local hotels vote to approve it, a new hotel tax will supply $35 million.
- A newly created public stadium authority will sell $330 million worth of construction bonds, to be repaid by the sale of naming rights, personal seat licenses (here called "Stadium Builders Licenses"), and a ticket surcharge. The authority will also pay for operating costs on the stadium, but will be reimbursed by the team via annual rent payments.
- The 49ers and the NFL will be on the hook for the remaining $493 million, plus any and all cost overruns.
On the face of it, this sounds great: As 49ers CFO Larry MacNeil put it, "The city's contribution at $79 million is fixed. Ours is not." But there's a big if: While the term sheet guarantees that the team pays for cost overruns, it doesn't say anything about revenue shortfalls. What happens, in particular, if when the stadium authority goes to sell naming rights, PSLs, and so on, it ends up with too little money to pay off those $330 million in bonds? That wouldn't have been a concern a year ago, when stadium names were expected to fetch upwards of $20 million a year, but the naming-rights market has slumped since then — witness both the Dallas Cowboys and New York Jets and Giants stadiums going as yet un-corporate-monikered for lack of a deep-pocketed buyer — and the local history of stadium authorities selling PSLs isn't exactly a glorious one. All of which means there should be at least some concern that the authority could end up short of cash and headed for the Indianapolis scenario, with a choice between raising city subsidies or having the stadium go bankrupt.
There are other questions that don't appear to be answered by the term sheet as well: Will there be additional public infrastructure costs? Will the team get any tax breaks? What penalties will the team be subject to if it tries to break its lease early and move, to avoid the kind of mid-lease shakedowns we've seen in other cities?
Further confusing things is a report from the Santa Clara school district that projects $141 million in new revenues for local schools if the stadium is built — something that came as a bit of a surprise to city officials, who had calculated the school tax benefit would total only $20 million. "I will tell you that this thing is hideously complex," school board VP Andrew Ratermann told the Merc News. Good thing there's plenty of time to look it over before the city council vote — oh wait...
Nets crystal ball says: Reply cloudy, ask again in December
The New York Times' Richard Sandomir took a look yesterday at whether the New Jersey Nets' move to Brooklyn will ever happen, and concluded: "The question is impossible to answer nearly six years since Bruce C. Ratner hatched the idea." The biggest uncertainty: Can Ratner clear up the remaining lawsuits and figure out what he's building and how to pay for it by December 31, the deadline to get in under the IRS' tax-exempt bond loophole?
The New York state senate held a hearing on Ratner's Atlantic Yards project on Friday, but that didn't shed much light on things, unless you had a burning desire to find out what it sounds like for a roomful of construction workers to blow whistles at the same time. The most interesting piece of testimony: Independent Budget Office deputy director George Sweeting testified that the city's projected costs for the project have risen by more than $100 million, which would "eclipse the $25 million net positive benefit to the city that we previously estimated for the arena." That somehow didn't make it into Sandomir's article.
