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Price for a Portland MLS team going up
Major League Soccer fees climb to $40 million, increasing the pressure to secure an agreement
Wednesday, April 30, 2008
BOAZ HERZOG
The Oregonian

The cost to land a Major League Soccer expansion team in Portland is quickly climbing.

The new entry fee: at least $40 million. That's up from the $30 million MLS is charging ownership groups in Seattle and Philadelphia to bring their cities franchises in the next two years.

The league's increased buy-in price is putting pressure on potential franchise owner Merritt Paulson to secure a deal before costs escalate further. The owner of the Portland Timbers and Portland Beavers sports teams plans to present his full proposal for MLS to city leaders as early as June.

"We still think it would be a big positive here," Paulson said. "But it quickly might not make sense if we're not able to get something done."

Buoyed by interest that "remains at an all-time high," MLS has identified Portland, Atlanta, Miami, Montreal, San Diego, St. Louis and Vancouver, B.C., as candidates to become its 17th and 18th teams by as early as 2011, said Dan Courtemanche, a league senior vice president. A second MLS team in New York is another possibility.

Portland's bid hinges on Paulson and the city agreeing to a public-private partnership. Paulson said he is willing to absorb the league's $40 million expansion fee. The city would be on the hook for the rest, Paulson said, which probably would amount to more than $55 million.

Paulson gauged the level of City Hall enthusiasm for the project in a meeting with Commissioner Randy Leonard two weeks ago. After a one-hour discussion with Paulson and his consultants, including former Portland Development Commission director Don Mazziotti and Greg Peden, a former Portland Business Alliance lobbyist, Leonard said he was "very much" supportive of MLS coming to Portland. The addition, he said, would be "a huge economic shot in the arm."

Leonard said he can envision the venture ultimately paying for itself with increased ticket revenue. He added that he is not necessarily opposed to dipping into the city's pool of general funds to pay for part of the city's bill, if need be. But he will wait to pledge his support until he reviews Paulson's proposal detailing costs, financing options and revenue projections.

Part of the project's advantages, Paulson said, is that the city would not need to cough up its share of the expenses all at once. The capital outlay would be staggered over three to five years.

Up first: bringing the city-owned PGE Park to MLS standards. Adding grandstand seating on the stadium's vacant east side, plus more restrooms and concessions, among other changes, could easily add up to more than $20 million, an amount MLS commissioner Don Garber said during his last official visit to Portland in October "might be optimistic."

The larger expense would be building a new ballpark for the Beavers, a Triple A baseball team. MLS wants its teams to play in stadiums designed for soccer. So the Beavers would need to vacate PGE Park within five years of an MLS team starting play there, Paulson said. After narrowing his shortlist of potential sites to three within city limits, he said a 9,000-seat Beavers stadium probably would run north of $35 million.

Paulson declined to identify his shortlist sites. The Rose Quarter and the U.S. Postal Service's district office building in Old Town are not among them, he said.

"It's probably a good bet," Paulson said, that one of them is Southeast Portland's 38-acre Lents Park, a locale Leonard proposed during their last meeting. A new Beavers ballpark could be erected, Leonard said, in the same Lents Park spot where an aging baseball stadium now sits, near Southeast 92nd Avenue and Holgate Boulevard.

A new baseball stadium in Lents, near the coming MAX light rail line extension, could jumpstart economic revitalization in an urban renewal area that badly needs it, said Leonard, who lives in nearby Mount Scott.

Limited parking as well an increase in light and noise caused by a new Lents baseball stadium are legitimate concerns that would need further analysis, he said.

The last time the city entered into a stadium agreement, it was left with unpaid debts by Portland Family Entertainment. A subsequent owner of the Timbers and Beavers agreed to pay the city $667,000 to cover those debts.

The Portland Family Entertainment fiasco resulted from "decisions that were based on a lot of faulty assumptions that weren't carefully vetted," Leonard said. "And I heard a lot of angst because the questions I'm asking now weren't asked then. So if we become timid in our leadership at the city because at some point someone made a mistake, we quit growing, we quit becoming the city Portland is and could be."

Leonard also said not being a rabid sports fan "helps me be objective about what the pitfalls and bends might be."

Paulson said he wouldn't expect to complete an agreement with MLS until after the November election.

There's no assurance, however, the league won't bump its expansion fee again. Ownership of the San Jose Earthquakes, who began play this season, paid a $20 million expansion fee. The owners of Toronto FC, which launched last year, paid $10 million. Paulson said he doesn't know his threshold for investing in an MLS franchise, "but it's not a big cushion anymore."

Boaz Herzog: 503-412-7072; boherzog@gmail.com


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This article is kind of a kick to the groin as far as MLB2PDX goes (not to mention, baseball in general). Lents??? Let me guess, the other two sites are, what, Delta Park and Hillsboro? How about the Clark County Fairgrounds, looks like they have plenty of cheap land there.

IMHO, here is what is needed in Portland in the near (5-7 years) term for facilities:

1. Convert PGE Park into a soccer/football only facility;
2. UPGRADEABLE AAA baseball facility at or near downtown;
3. A smaller (5-7k) downtown arena for PSU basketball, junior hockey, etc. to replace MC.

My greatest fear in all of this is that the city commits itself to an overpriced, nonupgradeable, poorly located AAA facility with zero fan appeal that we can't utilize once MLB comes knocking.

Please, Merritt... give us a baseball stadium like they have in Memphis... build it, and people will come...



quote:
Link to Memphis Redbirds website

Located in the heart of Downtown Memphis, AutoZone Park is quickly being termed the finest ballpark ever built below the major league level. Thanks to the innovative structure of the Foundation it is also financed primarily with private dollars. By combining the feel of such parks as Wrigley Field, Fenway Park, and Camden Yards, AutoZone Park is a state-of-the-art facility with classic, neo-traditional style.

With all the comforts and innovations of a ballpark for the future it still reminds fans of America's pastime and its rich history. Redbirds fans enjoy:

An Open Concourse allowing them to never lose sight of the game
The Wolfchase Toyota Picnic Pavilion hosting as many as 500 fans
Lawn seating on the Bluff (Please Note: No Chairs Allowed)
Two Upper Club levels with 48 Club Suites
Club Seats with access to an air conditioned concourse and specialty foods
A state-of-the-art Press box and Super LED Video Board
Two open-air Party Decks seating up to 175 fans each
Three pre-game balconies
The Boardwalk - A family-oriented games and amusement area
Major league lighting
P.D. Parrot's Playhouse Perch, sponsored by Baptist Pediatric Care (a playground and fun zone located next to the Bluff)
Located within the ballpark complex is the Toyota Center featuring:

The Backstop Baseball Emporium - your headquarters for Redbirds gear and more.
The Memphis Redbirds team offices
Connections to the AutoZone Park concourse during games
A bridge connecting to AutoZone Park's Club Level.


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OK, I'll stop now.


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One other thing - Nick Fish, who is running for city council against Jim Middaugh (for the seat vacated by Eric Sten), has come out in favor of committing city funds towards stadium upgrades needed to bring MLS into town. Not sure where others are at on the issue.


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I just became a huge Nick Fish fan! Big Grin--Randy Leonard has also been a friend to PDX's MLB/MLS aspirations...hmm, someone who can think long term, big picture, (someone who gets it) to the benefit of PDX's citizenry? What a concept!
 
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Agree with you, James and Oil Can. I'd take an MLS team over the PCL any day of the week. But having said that, The Beavs have a 100 plus year history of playing close in on the Westside. That's where they should stay, especially with the public trans, etc. The Portland Auto-phobes at city hall would likely never authorize any public funds or addl help to build a ballpark that far outside of the city. With any luck, we will have MLS at a properly renovated PGE Park, and a minor league team in close as well. Then again, Portland never misses an opportunity to miss an opportunity, so who knows.

Hey Paul, I never said the team should move to Washington County. My position is that baseball belongs within the city grid and close to all the obvious amenities. As far as Washington County goes----it's by far the fastest growing and the wealthiest County in the state of Oregon. Why then would someone want to move the Beavs much farther away? Confused
 
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Hey Cactus, that ballpark in Memphis Rocks. That's what I'm talkin 'bout. Love that Pseudo Camden Yards feel. Cool
 
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Here are two more good examples:

1. Indianapolis (see the adjacent stadium in right field, and imagine how much better a AAA facility would fit, and draw fans, in the Rose Quarter):



2. Toledo (for that "ballpark by the river" feel):




Either of these setups would simply blow away PGE Park for baseball, IMHO.


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Still prefer the USPS site to the Rose Quarter. Would love to see the Train Station tower rising beyond the left field wall. More likely, the site will give way to more Pearl District high rises. Man, I can't take it anymore. How many neo-Beverly Hills types, walking their sweater covered poodles can we take? Big Grin
 
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I know what you mean, Cedar Hills; the Union Station tower rising beyond left field would be absolutely awesome, and all things being equal, I'd take the USPS site over the Rose Quarter site...my only thing is: MAX runs right by the Rose Quarter, but I'm not sure if MAX or the Streetcar runs next to, or sufficiently close to, the USPS site...
 
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James - how about those Penguins? Smile Crosby and (former Winterhawk) Hossa look primed for a Stanley Cup.

There is a lot of cool stuff on Trimet's website regarding rail and streetcar expansion, both of which will reach the USPS site. That being said, I think we're going to lose the USPS site soon. That's a shame, but I still have high hopes for something in the Rose Quarter, particularly when you consider the following:

1. Between the existing highways, light rail lines, and a parking structure that sits empty all summer, the Rose Quarter is still a prime spot; and
1. Streetcar expansion is coming through the Rose Quarter and the Central Eastside which will fuel (complementary, "Pearl-esque") development nearby.


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One more pic, just for fun... Buffalo's Dunn Tire Park, specifically built such that it can be expanded for MLB (but probably never will, given Buffalo's growth projections, but nonetheless is a popular downtown destination in football & hockey-crazed Buffalo):



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He's a little harsh on the soccer crowd, but thank God we have at least one sportswriter in town who "gets it" when it comes to baseball... -TCL

Link to Portland Tribune article (please use this link! Thx.)

Kick up soccer to next level, with care
By Dwight Jaynes
The Portland Tribune, May 2, 2008

Merritt Paulson, the owner of the Portland Beavers and Timbers, has some big dreams, and I applaud him for that.

In order to pursue a Major League Soccer franchise, Paulson wants to convert PGE Park to a baseball-free venue and build a ballpark for the Beavers somewhere else. Soccer fans, who automatically assume I hate them and the horses they rode in on, will be surprised to hear that I'm not against chasing an MLS franchise for Portland.

I think it's a fine idea.

But my advice to both Paulson and the city – which is going to have to partner in this venture – is to proceed with caution. Hopefully, they have learned from history. I could support this effort if it is done in a responsible manner, but there must be an understanding of some basic realities.

And those realities are:

"¢ The last time the city got into the ballpark business, things didn't turn out so well. PGE Park was a fiasco.

I don't think that means we can't go there again – because it's hard to find a major city anywhere in the world that doesn't believe its residents deserve a sports gathering place. And, heck, we got off real easy with the Rose Garden.

Whatever deals we make must protect the city from financial harm.

So I'm not saying the city shouldn't get involved. My goodness, enough high-rise condos, trolleys and trams get subsidized around here that a stadium – a place where all Portlanders can go with their families to have a good time – isn't totally out of line.

"¢ Building a "minor league ballpark" for the Beavers is fine, as long as it is built with footings that could handle expansion to big league status. Build something with a future – something that won't be out of date in 10 years.

It makes no sense to fund something that will accommodate only Triple-A baseball. Portland is increasingly showing that it has no real taste at this point for minor league sports.

That's not uncommon, by the way. Cities reach a collective limit – and Portland has just about reached the breaking point when it comes to indoor football, junior hockey, indoor lacrosse, minor league baseball, low-level soccer and all the other things constantly reminding us that we're a second-class sports city.


At some point, all the little entertainment sideshows, the goofy promotions, flashy music and fluff that accompanies the minor league experience grows old.

"¢ Please, let's not oversell MLS. Let's not, in fact, overestimate all this "Soccer City, USA" stuff. That term, you remember, came to be in Portland's early tenure in the North American Soccer League.

The Timbers, Portland's entry in that league, averaged 20,515 fans in 1976. But by 1982, that average, in then-35,000-seat Civic Stadium, was down to 8,786, and the franchise dropped out of the league.

Recently, there has been interest in the new Timber franchise that Paulson owns – and certainly the success of the University of Portland women has increased interest.

Yes, millions of youngsters play soccer in this country, but in spite of that, soccer hasn't shown great promise as a spectator sport. An entire generation has grown up playing soccer in this country since the NASL's heyday in 1970s –when all the smart guys told us that as soon as those kids grew up, soccer would be America's dominant spectator sport.

That hasn't happened. In fact, I'm tempted to say that soccer is still the sport of the future – and that it always will be. But I'm going to be nice. Portlanders want big league soccer, and I say go get it. Just don't overestimate the economic impact.

According to The Kansas City Star, MLS' average attendance was up to 16,770 last season – the highest since its inaugural season of 1996. That figure probably was impacted by the arrival of David Beckham, though, which cost the league plenty and brings back memories of the implosion of the NASL. The NASL drew well in many cities but was eaten alive from the inside because of high player salaries when teams engaged in an arms race to lure big names from around the world.

Only five of the 13 MLS teams finished at 75 percent of capacity last season.

In spite of its reputation, soccer does not – outside of the World Cup – draw enormous crowds worldwide that compare to American football. The English Premier League, for example, averages 34,459 fans per game, the top league in Italy averages 19,711 and the Campeonato in Brazil averages 17,461.

Still, let's proceed with this idea of a new baseball stadium and MLS at PGE Park. I'm happy that Paulson is here and even more excited that city Commissioner Randy Leonard is interested in lending him an ear. Portland is a big league city and needs to act like one. But let's not get carried away.

As we chase our dreams, we must remember our realities.

dwightjaynes@portlandtribune.com


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Link to "The Offside" blog

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Swaying City Council in an election year is just one of the challenges facing Paulson. Finding a suitable place for a minor league stadium is also a big one. The article mentions Lents Park in Southeast Portland as a possible location. I know people who are intimately involved with the redevelopment of Lents. When I asked if they had heard about any of this a few weeks ago they told me they hadn't heard anything since the talk of bringing a major league baseball team to Portland died a few years back. If Lents is the area that Paulson chooses to pursue, I can tell you that he will have a lot of work to do to convince the neighborhood that this is a good opportunity for them "” a questionable case in my opinion, stadiums are not the greatest redevelopment tools. He will also have to go through a pretty intensive public process, something that people from outside of Portland can't appreciate until they experience it. I am a little worried that people who should be in the know about this type of project are just learning about it from the paper today.


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CL: Yep, I check out Tri-Met's website all the time, and am fascinated by all things light rail and streetcar. Somehow, I didn't know if MAX/streetcar access ran sufficiently close to the USPS site (shows you how often I'm in that particular area of PDX--when in PDX, I'm usually downtown, near the Rose Qtr., or at Powell's/central Pearl District, or in the So. Waterfront area)...another interesting article by Dewey Jaynes; did you know the Tribune is going to be published only 1X/week soon? Wish Jaynes wrote for the Oregonian again...didn't know the Pens were a)in the playoffs b)doing well, and upon being informed about it, still don't give a darn Big Grin...just kidding--I'm glad for you and the Pens! I can name exactly one player in the NHL off the top of my head--Sidney Crosby...too bad Allen owns the Gahden again, instead of the Philly-based co. that previously owned it--with them as owners, there was still a tiny glimmer of a chance that NHL would come to the Rose Qtr.
 
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Philly never owned it. In fact, Allen still retains Global Spectrum as facility manager... at least for now. They're certainly an improvement over the old "in-house" management.

I won't speculate on the long term of that relationship.

The ballpark is going to go where MP doesn't have to pay for the land. Bottom line. This would be a very good time to lean on the city to be more generous in its offerings.


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Paul: You're right, Global Spectrum never owned it, and have done a marvelous job operating the Garden...my point was just that during the time Allen didn't own the Garden, there was still some sliver of a chance the NHL would come calling to PDX...now, not so much...unless someone is planning on building a new NHL arena, maybe in the USPS site, to compete w/the Rose Garden! Wink...heck, we now have 2 all-sports stations in town, why not 2 world class arenas?! Big Grin (like the Minny/St.Paul market, w/their NHL arena and the Wolves' arena, though the Target Center was a lot more impressive/lucrative in the early 90s than now)...on the all sports radio station front, 95.5 FM has the obvious advantages of carrying the beloved Ducks, the beloved Blazers, as well as the very good John Canzano show during afternoon rush hour...OTOH, 1080 AM has ESPN, incl. the best sports radio talk show host in the history of Earth, Colin Cowherd--he's funny, smart, and refreshingly delves into non-sports topics with ease and humor, and without the 7th grade humor of so many other hosts (about 99.8% of the rest of 'em), not that there's anything wrong w/that necessarily.
 
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I will never ever ever ever listen to John Canzano's radio show. Ever.


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Boy, a lot of people are irked by Canzano--do you mind if I ask why you don't care for him, CL? I find him interesting, perceptive, and smart, but like I said, seemingly tons of people just can't stand him...his piece on UO/Phil Knight a couple of days ago, I thought, was worthwile and well-written. He's had offers from places like Seattle to write there, but has chosen to stay in PDX, so it's not like the guy's a hack...I totally respect it, though, when you and others more or less say they can't stand the guy...on the Ducks/Knight thing, I love the Ducks, can't get enough of 'em, but recognize it's a double edged sword w/Knight--I for one, am appreciative of Knight and his donations--I just don't know we'd be able to attract guys like Jonathan Stewart w/o a guy like Knight and all he brings to UO's table...and, Canzano says, UO and OSU tread water, or have basically achieved the same amount over the years--I disagree; I think UO has accomplished more (who cares if they lose the Civil War--UO, unlike possibly OSU, sometimes has bigger fish to fry), and more than that, UO, w/Knight and his resources, has the ability to challenge for a national title 1-2 years in a decade--while I like OSU (not as much as UO obviously!) and respect them, it is very hard for me to picture them ever being in the national title hunt--to me, it's sort of like baseball--the Red Sox may lose to the D-Rays from time to time, but really, who'd you rather be, certainly in the long run: the Red Sox/Ducks (w/their financial wherewithal), or the D-Rays/Beavers (w/their relative lack of $)
 
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