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July 9, 1999

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Wild in the Streets: The dream city of St. Paul has for a Major League Baseball team may be gathering steam. St. Paul Mayor Norm Coleman, facing a great deal of public opposition has enlisted the president of the Minnesota Wild, Jay Sperling, the cities NHL expansion team, as a key strategist in the hunt for new Twins owners. Sperling is said to have spoken to a number the Wild's investors about joining the Twins ownership group. Vance Opperman, a member of the Wild's ownership consortium has said he wants to be a part of baseball coming to St. Paul. If St. Paul is going to be successful in getting the Twins to move from Minneapolis, the city has too put together a group of investors to purchase 49% of the team from Carl Pohlad. Putting the owners of the Wild and the Twins together followings a developing trend in sports. Tom Hicks owns both the Texas Rangers and the Dallas Stars. The Disney Corporation owns the Anaheim Angels baseball team and the Mighty Ducks of Anaheim hockey team. Paul Allen owner of the Portland Trailblazers is interested in bringing a NHL team to the city and may be interested in supporting a Major League Baseball team for Portland.

Striking Out: To no one's surprise, Portland's City Council has approved an agreement to Portland Family Group regarding the operation of Portland's Civic Stadium. Marshall Glickman, a former Portland Trailblazers executive, heads the group. Glickman's goal is to bring Triple-A baseball back to a city, where Triple-A baseball has failed already. It seems as if Portland's politicians do not understand or appreciate that while the city may not embrace Triple-A baseball, they may be a lot closer to the possibility of a Major League Baseball team then they would think. Is Portland dropping the ball, or afraid of what a Major League team may mean to the city?

A Rome Tour Stop: The Fan, KFXX, in Portland is preparing for a Jim Rome Tour Stop. The Tour Stop on August 28 will have a military-theme. Stolichnaya Vodka is the main sponsor of the event, which is being held in an airplane hanger of an Air National Guard Base. It will include a display of F-15s, two MIGs, one of which will fly Rome into the event, and Humvees; plenty of firepower. "This is an event where our listeners will have a great time and we can wine and dine our important clients at the same time," said Michelle Sepanski, Promotion Director at The Fan. Activate Cellular and two other companies will be co-sponsors.

Red Sox fans love the new Fenway: A poll conducted by the Boston Red Sox indicates that baseball fans (again selected by the Red Sox) support a new Fenway Park. Let's stop right here. Does anyone honestly believe the Red Sox didn't pick and choose who would be included in the survey? Let's ask everyone, not just Red Sox fans.

Charlotte and Baseball: As SBN has reported several times over the last week, now is the time for those who want to see a Major League Baseball team in Charlotte supporting the effort, not working against the dream of bringing a team to Charlotte. Tom Sorensen, a columnist for the Charlotte Observer through another dart at his own city. Basing his comments on prior Charlotte efforts, Sorensen, is advising the citizens of Charlotte to stop hoping the Montreal Expos be on their way to Charlotte. Charlotte has been too the Major League wishboard, before, most recently with the Minnesota Twins, and lost every time. If you're Sorensen, you're giving up before you even try. To Sorensen, the glass is half empty, never half full.

Portland and Baseball: The city of Portland is set to complete an agreement with Portland Family Entertainment for the Portland Civic Stadium. Marshall Glickman, a former Portland Trailblazers executive, heads up the group. According to the Oregonian, over the life of the agreement if the city's revenue projections are correct, the group could earn an annual return of 18 percent. The city hopes to recover its investment in 11 years. The contract with PFE is for 20-years. The deal calls for PFE to cover all operating losses. PFE has agreed to cover any cost overruns (ask people in Seattle how they feel about cost overruns). As to how it may, or may not effect Portland's chances of getting a Major League Baseball team, Glickman believes that major league owners need to see impressive Triple-A crowds if Major League Baseball will ever make it to the Northwest city. One comment, a city making a major commitment to Triple-A baseball is a city telling Major League Baseball owners that it is a Triple-A town, not a major league city. However, the biggest challenge the Portland Baseball Group, the people who want to bring Major League Baseball to Portland, faces isn't necessarily the PFE, but the lack of anyone with money to come forward to join the group.

And Justice for All: Richard Justice the well respected baseball writer for the Washington Post in a far ranging discussion on the Post's web site, discussed many of baseball's major issues, including the future, or lack thereof of the Montreal Expos. Justice believes that baseball owners favor a move to Charlotte to avoid a legal battle with Peter Angelos, the Baltimore Orioles owner. Justice also acknowledged that Portland (Lynn Lashbrook) and Las Vegas are definitely in the mix if the Expos are on the move. Justice pointed out that most associated with baseball including commissioner Bud "B.S." Selig believe that a National League team in Washington would hurt the success the Orioles have, and baseball wouldn't let that happen. Justice feels that the only hope a Washington based group would have in getting the Expos is an aggressive campaign, making it next to impossible for baseball to turn down Washington. Justice believes the Expos will stay in Montreal or move to a virgin market.

And Why Not Portland: In the same online chat, Justice points out that major league baseball will take a very serious look at Portland, Oregon. If you believe in Justice's logic, then Portland may be a more viable choice then most people think. Support in Charlotte seems shaky at best. The challenge in Portland is that they're so late coming out of the gate, and while intentions are great, as Jerry McGwire would say, "Show me the Money." The Portland Baseball Group, a group of committed citizens led by Lynn Lashbrook have the right idea, just not the money. The group will be at today's Portland City Council meeting when Portland Family Entertainment (PFE) are expected to be offered an opportunity to bring a Triple-A team to the city. While the agreement with PFE includes a clause that would bump a Triple-A team out of Portland if Lashbrook were to be successful in bringing a Major League Baseball team to the Northwest city, Lashbrook feels that the wrong message would be sent out to Major League Baseball. SBN's advice to those who dream the big dream of a MLB team in Portland, find a major investor and if you dream it, it might just come.

The Funding Game – Charlotte: The Charlotte Hornets want to move into a new arena primarily built with taxpayer money. The big idea local politicians have is to increase the tax associated with car rentals. In other words stick it to tourists visiting the Queen City. However, there is a belief that this may backfire. The tax on car rentals in Charlotte currently stands at 8%. Statistics show that more than rent half of all cars rented in Charlotte are rented by local people. The New Arena Committee wants to raise the tax to 11 percent, raising what they believe will be $2.5 million a year. Over 25-years it would mean $31 million for the arena fund, a significant portion of the taxpayers expected total of $80 million to $100 million. The committee believes the Hornets should be expected to pay between $115 million and $135 million. (That's a great deal more than the Hornets have any intention of paying, but that's another item for another day). Now an even bigger question. If approximately 30% of the cost will be covered by an increase in car rental tax, where will the balance be found? Thanks to Darren Stout for this item.

Portland and the NHL: The Portland Trailblazers admitted last week what everyone already knew. The Blazers owned by Microsoft co-founder Paul Allen had indeed placed $80 million in an escrow account to purchase the Pittsburgh Penguins, Allen's dream of owning a NHL isn't deal yet. Allen recently purchased TCI Cable, making Allen a major cable player in the Northwest. Owning a NHL team makes perfect sense if you want to build a television network based on sports teams. Allen's name has also been linked with both Portland's bid for a Major League Baseball team and Allen's interest in purchasing the Seattle Mariners. As far as the NHL goes, Allen wants an existing team, rather than an expansion franchise. Watch for Allen to make a play for either the Ottawa Senators or the Calgary Flames should they go on the for sale market.

When is enough, enough: The saga of the Seattle Mariners and Safeco Field is getting uglier and uglier each today. The Seattle Times in a far ranging story told everyone what those who have followed the story already know. When Ken Griffey Jr. and Alex Rodriguez become free agents at the end of the 2001 season, the team will not financially be able to sign both players. As SBN has reported repeatedly, when the Mariners and local politicians reached an agreement to fund Safeco Field, the Mariners agreed to pay an initial $45 million, and any and all cost overruns. With overruns running in excess of $100 million, the team is doing an about-face. The Times are reporting that as early as February, team officials began looking for additional taxpayer dollars. The paper included a letter Mariners chairman John Ellis sent to the Public Facilities District (PFD), on February 19. In the letter, Ellis states, "If the owners had to bear the entirety of enormous costs...it would have an obvious impact on the club's flexibility in struggling to field a highly competitive team in the difficult baseball environment." A member of the PFD, Sue Takoa remembers an even bolder statement from Ellis. Takoka says that Ellis told her that, "Ask your kids what they'll think when we couldn't afford Griffey or Rodriguez." The situation has become truly insane. Yes, baseball is a sport run amok, but Seattle taxpayers have already paid more than $300 million towards the cost of the stadium. When Ellis signs a contract with a player, he expects that player to live up to the agreement. Should Seattle taxpayers not have the same relationship with Ellis? Is it their fault that Ellis can't sign his star players? As strange as it may seem, the only option Ellis has left is to sell the team and get out of town with his tail between his legs.

Quote du Jour: Noted agent Leigh Steinberg, in an article in the Orange County Business Journal, said that baseball has "the toughest union and least progressive owners in sports" and that the new Dodger ownership is the worst. "They have no concept of what they're doing," Steinberg said.

One Expensive Stadium: Minor league baseball is set to return to Newark, New Jersey when the Newark Bears will host the Lehigh Valley Black Diamonds on July 16, in a Northern League game. The cost of the stadium, $34 million, at least 50 percent more than the projected cost. At $34 million, the stadium is the most expensive in minor league history. The cost of the stadium is only one of the challenges facing local officials. While seats will cost $6 to $8, parking will likely cost between $6 and $7. One thing you never want to do is to charge more for parking than you do for tickets in the minor leagues. One of the biggest reasons the ballpark will cost as much as it is, is the cost of the land the stadium will be on. Purchasing the land alone cost $7 million. Labor, $3 million. The cost of moving and cleaning 15 underground oil storage tanks $1 million. What will the city receive in return? A 10-year contract, that includes 25 percent of revenues from advertising and concessions, 75 percent of revenues from luxury box seats and $1 from every ticket sold.

Minnesota's Stadium Mess: As SBN reported last week, the Minnesota Vikings have no interest in considering the Metrodome's proposal for the facility to converted into a football only stadium. The Minnesota Twins on Friday committed to the city of St. Paul that they are only interested in working with St. Paul in terms of a new stadium for the team. This despite polls indicating that when the local residents are offered the opportunity to vote on the issue on November 2, they will reject the team. The Minnesota Wild haven't played a game and their new arena has yet to be completed. However, that hasn't stopped the teams' owner Jac Sperling, for announcing that his yet to be opened facility is already outdated and that the arena need to undergo a $150 million expansion to catch up to what arena's are offering. For Minnesota sports fans, these aren't the best of days. Thanks to Darren Stout for this item.

The naming game: Last week, we witnessed two great examples of stadiums and their 1990's corporate sponsorship names. The Cleveland Browns decided not to attach a corporate name to their new stadium, while the Tennessee Titans sold their naming rights to a local company for $30 million over 15 years. And now the case of the Oregon State Beavers. When Mitch Barhart arrived 18 months ago, the school's athletic department was $9 million in debt. Since then he hired former Seattle Seahawks and Miami Hurricanes coach Dennis Erickson as the schools head football coach, has tripled donations and set a record for football season-ticket sales. Impressive results to say the very least. With the debt down to $6 million, Barnhart has set his sights on a great way to cut down the debt even more. Sell the naming rights to the teams' stadium. That has yet to be accomplished, but given Barnhart's determination to succeed, it likely will.

The seating game: When Safeco Field opens on July 15, fans who paid between $12,000 and $23,000 for their Personal Seat Licenses, and as a result will have the best seats in the new $517 million ballpark believe they have a great deal to look forward to. Or at least they thought they did. There are a total of 900 Charter Club seats in Safeco Field. Seats that came with a PSL attached to them. These seats are located in the first seven rows behind the dugouts, the first three to five row near the bases and just the first row to the foul pole. The Mariners embarrassing problem, 362 of the tickets remain unsold (with PSL's), and will available on a game-by-game basis. How would you feel if you paid on average thousands of additional dollars per seat for the next 20 years, only to discover that the person sitting beside you paid $28 for that game, and didn't pay for a PSL? While you might be happy to see the seat filled, you might question why you paid a PSL to begin with. The stadium has 68 luxury suites. 10 percent will be available on a game-by-game basis.

A Taxing Challenge: As SBN has reported over the last few weeks, the Seattle Mariners may have committed a public relations disaster when the team asked for $60 million in additional public support to help pay the $100 million cost overruns associated with the teams' new stadium Safeco Field. The Mariners are proposing that the bonds used to pay the taxpayers portion of the stadium be refinanced to raise the $60 million. While there may be grounds for the Mariners pleas, the team had agreed to pay both in writing and stated publicly that they would pay all cost overruns. The fans reaction? Well typical of the late 90's, several sites are on the web are denouncing the team and their planned move.

Baseball in Charlotte: The opportunity to purchase an existing Major League Baseball team and transfer that team to your city has never been stronger then it is today. Both the Montreal Expos and Minnesota Twins face uncertain futures in their current cities. The two front runners are Washington and Charlotte, with Portland a late entry in the derby. Tom Sorenson, a columnist with the Charlotte Observer doesn't believe the major leagues are in Charlotte's future. Sorenson doesn't believe that the area can support a major league baseball team. Sorenson cited the major league attendance average of 27,893, believing that while that may be achievable during the 'honeymoon' period, in the long run the area doesn't have enough baseball fans to support a team. As Sorenson also pointed out both the Milwaukee Brewers and then the Minnesota Twins talked about moving to Charlotte and didn't make the move. Only time will tell, but this is certain. The next few months will be critical to whoever gets the Expos. The team is done in Montreal. If Charlotte wants a team, then its time to step up to the plate and hit a home run. Thanks to Darren Stout for this item.

Baseball in Portland: Marshall Glickman is very close to closing an agreement with the city of Portland to take over control of Portland's Civic Stadium and be in a position to bring a Triple-A baseball team to the city. The details of the lease include Glickman paying $908,000 a year with 4 percent annual increases. A $200,000 contribution to the stadiums capital improvement fund. Give the city 10 percent on all tickets sold (one of those infamous user fees). Agree to cover any cost overruns above the projected cost of $37 million. The stadiums capacity will be increased to 20,000 and 32 luxury boxes will be added.

Dog Day Afternoon: The Minnesota Twins have followed the direction the Montreal Expos provided for what was a successful promotion for the Expos. Last year, the Expos hosted a game that included a pre-game dog parade. The Expos sold 21,804 tickets that day, well above their average. They also had 757 dogs. The Twins version, set for tomorrow at the Metrodome, has attracted 200 dogs (the maximum), and hopefully their owners as well.

Lashbrook reacts: Lynn Lashbrook, the man who heads the Portland Baseball Group and has a dream to bring Major League Baseball to the Oregon city, has come out with both barrels shooting in reaction to the news that the Portland City Council is close a deal to sell the Portland Civic Stadium to Marshall Glickman. Lashbrook is encouraging those who support the dream of bringing big league ball to Portland to attend next week's city council meeting and voice their concerns. Meanwhile, Dwight Jaynes a columnist with the Oregonian, came out in his column yesterday, questioning how and why Glickman was being provided with the opportunity he has been provided with. Jaynes, took a hard-hitting look at Glickman's tenure as an executive with the Portland Trailblazers. Jaynes recalls that what Glickman left the NBA team, it seemed to him, as everyone was pleased at the time. It does appear as if Lashbrook has accomplished one of his goals, to have a bump clause included in Glickman's agreement that should Lashbrook be successful in bringing Major League Baseball to Portland Glickman will be shown the door (after he is course paid off).

Read this entire article on the Sports Business News website.