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July 2, 1999

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Baseball in Portland: With Lynn Lashman and the Portland Baseball Group attempting to bring a Major League Baseball team to the northwest city, Portland's city council is close to an agreement with Marshall Glickman, who wants to bring a Triple-A team to Portland. Glickman, a former Portland Trailblazers executive who heads the Portland Family Entertainment group is set to purchase the 73-year-old Portland Civic Stadium from the city, who own the facility. Glickman will have until December 31 to purchase a Triple-A baseball team for the city, or lose his rights. Currently the stadiums baseball tenant is the Portland Rockies, a short season baseball team. Rockies owner Jack Cain, who owns the baseball rights to the stadium, worked out the December 31 deal with Glickman. Where this leaves Lashman and his dream of bringing the major leagues to Portland is anyone's guess.

Sleepless In Seattle: When the Seattle Mariners and the city of Seattle reached an agreement for the funding of Safeco Field, a key clause was that the Mariners agreed to pay any cost overruns. The estimates are that when all is said and done, Safeco Field will cost more than $517 million to build, more than $100 million in cost overruns. Despite agreeing to cover the cost of any cost overruns, the Mariners are asking that taxpayers agree to pay $60 million of the overruns. The Mariners are citing two lines included in their agreement that provided for the possibility of issuing additional bonds to cover costs. The reaction in Seattle has to say the least been poor. Cynthia Sullivan, a member of the Seattle city council referred to Seattle Mariners headquarters as being the centre of all the unmitigated gall on the face of the Earth. In a prepared statement, the teams' owners John Ellis and Howard Lincoln said the team wasn't looking for a gift or a bailout. They want the additional money because in their minds costs have escalated beyond anyone's expectations. The original cost of the ballpark was $320 million. Two years ago, both sides agreed to increase the cost to $417 million. However, the city said enough is enough when the costs grew beyond the $417 million mark.

The Stadium Game -- Minneapolis: The group who run the Metrodome, the Metropolitan Sports Facility Commission, plan to convert the stadium into a one sport facility. Currently, the Metrodome is home to the NFL's Minnesota Vikings and baseball Minnesota Twins. There was and is a strong belief that the Metrodome should become the home to the Vikings. The Vikings reaction, not now and never. The team owned by Red McCombs, wants a taxpayer funded 70,000 seat, $400 million stadium. As they say, the wheels are in motion for the big threat and then the team moves. McCombs a San Antonio native has attempted not once, but twice to get a NFL expansion franchise for San Antonio. The Vikings general manager, Tim Connolly continues to campaign for a new stadium based on the fact that unless the team gets a new stadium they will never be able to economically compete with other National Football League teams. Connolly pointed out that a renovated Metrodome would only produce $8 million in additional revenues for the team, while a new stadium would add between $15 million and $30 million in revenues. In comparing the two possibilities, a new stadium offers the team more advertising, sponsorship, concession and ticket revenues. In other words, increased revenues in all areas.

And now the people react: With both the Minnesota Vikings and Minnesota Twins vying for new stadiums, and a great deal of taxpayer money, the news couldn't be worse. The St. Paul Pioneer Press, Minnesota Public Radio and KARE-TV asked a collection of taxpayers how they would feel about helping to fund new stadiums. In St. Paul were they want to build a new stadium for the Twins better than 2-1 where opposed, while in Minneapolis those opposed outnumbered those in favour by more than 3-1. St. Paul residents will have an opportunity to decide on November 2 if they want to see the cities sales tax rise by a half-percentage point. In Minneapolis, the issue is still in dry-dock. The real question one should be asking is what is the future of the teams in the state of Minnesota? Could both teams be on the move in the next five years?

The Bosox and their new home (July 1, 1999): When you produce your own study regarding a project that will cost $550 million, with probably half of that coming from taxpayers, you might tend to write the report from your own perspective. That's probably how Massachusetts House Speaker Thomas Finneran regards a report that has been prepared on the economic impact a new Fenway Park would have on the area. The report was prepared by Chicago-based Johnson Consulting. The cost of the report was $30,000 and was funded by the Greater Boston Convention & Visitors Bureau and Chamber of Commerce. The two groups had the report prepared based on the $350 million cost of the ballpark and not the additional $200 million the adjacent parking lots, road improvements, a public park and other amenities will cost. Earlier this week, the Fenway Action Coalition went before a committee of legislators appointed by Finneran to examine the issues associated with a new Fenway Park. The group was quick to point out that in there minds, the only person acting like an adult was Finneran (you know that's what a politician wanted to hear). One of the groups suggestions was that an impartial group determine where a new Fenway Park should be located in order that it have the greatest economic impact on the city of Boston.

Turning it Up: With rumors continuing to grow in Portland, Oregon that billionaire and Microsoft co-founder Paul Allen may be interested in helping to bring Major League Baseball to the city, the Portland Baseball Group has decided to turn up the heat in the Northwest city. Lynn Lashbrook the head of the group told SBN that, "We are prepared to keep the pressure on the Mayor to bring Major League Baseball, not Triple AAA, to the city! She has promised a "bump clause" in any agreement with Portland Family Entertainment, who is pursuing a Triple AAA franchise for the city. For three years we have been hoping that either Paul Allen or Phil Knight would step up to the plate for Portland. The window of opportunity is now to attract a MLB team, not five years from now." Lashbrook and his group are very interested in the Montreal Expos, as are groups in Charlotte and Washington.

Baseball and Charlotte: As SBN has reported over the last few days, the Montreal Expos next destination may be Charlotte. However, according to the Charlotte Observer if the owners of the Expos manage to part the Red Sea and save the team in Montreal, the Minnesota Twins may be on their way to the Carolina's. Interest appears to be increasing dramatically in Charlotte. In what is a sure sign that they are interested, the Bank of America are declining comment on speculation that they are the driving force (financially) behind bringing a Major League team to Charlotte. The bank's headquarters are in Charlotte. As for the Twins, SBN believes that the Twins will end in either in Minneapolis or in St. Paul. One of those cities will build a new stadium for the team. However, if a new stadium for the Twins isn't forthcoming, the Twins will be moved. Don Beaver thought he had an agreement in place that would have seen the Twins move to Charlotte last year. That deal fell through at the 11th hour.

Charlotte and Basketball: After spending a year working on a plan for a new arena for the Charlotte Hornets, owned by George Shinn, and after Shinn not being able to reach an agreement with Michael Jordan, Shinn and the Hornets appear no closer to an agreement today, then they were a year ago when the process began. In fact, according to sources in Charlotte, the process may take another year to decide. City officials, including Charlotte's Mayor Pat McCrory have concerns regarding everything from the stability of the ownership, to how an arena would be funded. After bringing hailed a hero for bring the NBA to the Carolina's George Shinn's recent ownership of the Hornets has been met with a series of trials and tribulations. A former employee has accused Shinn of sexual discrimination. With civic elections slated for November, the Charlotte's political landscape will change once again. Over the last two years the Hornets have lost $4.3 million. The team averaged 12,640 fans per game this year, a drop of 41% since the 1992-93 season. Even if city council agrees on an arena plan, the next step may be toughest convincing the public to support a taxpayer built facility for George Shinn. And then there's the baseball factor. What happens if in fact the Montreal Expos are put up for sale and Charlotte becomes a major player in the Expos sweepstakes? Given that the Charlotte area taxpayers will be asked to pay a major share of a new baseball stadium, and that the Hornets play in an arena that seats 24,000 that is less then 10 years old, does it make sense to build a new arena for the basketball team?

Back to Minneapolis: With St. Paul taxpayers now having the opportunity to decide on November 2 whether or not they want to fund a new ballpark for the Minnesota Twins, one has to be wondering what those in Minneapolis must be thinking. In 1997, the cites Mayor Sharon Sayles Belton and city leaders announced that they wanted to build a new stadium for the Twins. They never gauged public support, or in this case, the lack thereof, and the plan died. A formal stadium plan for Minneapolis was to be announced this week is still on the drawing board (in other words it's dead). Will this prompt action, only time will tell.

A Method to the Madness: The Cleveland Indians are one of baseball's most successful franchises. At least in recent years. The team has sold out their entire home schedule before the season has even begun for three years running. The Indians have made the playoffs for five consecutive years, and look to make it a sixth this year. They are the template for what you want if you own a Major League Baseball team. So why does Richard Jacobs want to sell his team? Well, in looking at what it takes to build a winner, it takes money, a great deal of money. Jacobs in a far ranging interview with the Akron Beacon Journal acknowledged that yes it does take money to win, but that if baseball has any hope there has to be a better working relationship between the players union and the owners. Jacobs pointed out that what everyone who loves and follows baseball already knows. The differences between the have and the have-nots are going to cripple the game sooner than later. Many believe that when the next collective bargaining agreement expires after the 2001 season, a lockout or a strike is inevitable. Looking back at the 1994 strike/lockout that whipped out the last third of the season and the World Series, Jacobs feels that another work stoppage would be devastating. Among the changes Jacobs would like to see, the elimination of arbitration. Jacobs who like any good business man believes in cost controls, feels that arbitration, offered to players who haven't qualified for free agency, but have more than two years of Major League service, is killing the game. When you begin to think about the issues Jacobs is raising, it's easy to understand why he wants out of the game.

On the Ballot: As SBN has reported over the last few weeks the City of St. Paul has gone about collecting signatures on a petition that item be included in the November elections on the ballot that would increase the local sales tax by a
half-percentage point. If the measure were to pass, the city fathers would be a position to provide $200 million of the necessary $300 million needed to build a brand spanking new stadium for the Minnesota Twins. With only 5,000 signatures needed, organizers have surpassed the 10,000 mark, ensuring that voters will have an opportunity to decide the issue. Before everyone living in St. Paul gets too excited, signing your name to have the right to decide an issue is the easy step. The real challenge will be in convincing a majority to taxpayers that they should pay two-thirds of the cost of a stadium for a professional sports team.

Trouble in the land of the Padres: A year ago they were the toast of the National League. The San Diego Padres won their second National League pennant, losing the World Series to the New York Yankees. Padres' management turned the teams' success on the field into winning a motion on a November 1998 ballot that provided the team with $411 million in funding for a new downtown ballpark. Then those same owners decided to divest themselves of many of the teams' star players including Kevin Brown and Greg Vaughn. And now the teams' new ballpark appears to be in trouble. Earlier this month, the National Trust for Historic Preservation named the city's downtown warehouse district, where the team wants to build their new stadium, as one of the 11 most endangered historical areas. That has fed fuel to opponents of the stadium plan. Then last week, a San Diego Superior Court judge ruled that the team had violated a state law by proceeding with land condemnations and utility work before an environmental impact study had been completed. If and when the ballpark ever gets built, the stadium will be financed through $225 million in city bonds, repaid from a tourism tax generated by hotels; $115 million from the Padres; a $50 million loan from the city's land development agency; and $21 million from the Port District. The stadium had been targeted to be completed in time for the 2001 season, but it now appears as if it will be delayed until the 2002 season.

Baseball in Charlotte: ESPN's and the Boston Globe's Peter Gammons considered one of the most influential media members who cover baseball, told a Charlotte radio station that he believes the Montreal Expos will move to Charlotte next year. Gammons, whose sources are second to none believes that there are to many obstacles if the team where to move to Washington, including everything Peter Angelos the owner of the Baltimore Orioles will put in the path of Major League Baseball. Gammons' believes that the Expos move is imminent, given that the organization's dream of a new stadium has headed nowhere. Interesting either Gammons isn't aware, or doesn't take the bid emerging from Portland, Oregon seriously. Thanks to Darren Stout for this item.

Read this entire article on the Sports Business News website.