MLS Expansion - If Portland doesn't act fast, owner might be priced out of MLS

Portland Timbers owner Merritt Paulson would love to bring Major League Soccer to town, but he is concerned that the ever increasing expansion fee (now sitting at $40 million +) might price him out of consideration.

Still the dream of top-level soccer in the city is moving forward as Paulson plans on presenting his full proposal for a MLS team to the city as early as June. It is very much expected that he will ask for a public-private partnership that could cost the city more then $55 million.

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.

A breakdown of the city's cost sees at least $20m going to the renovation of the Timbers current home PGE Park, which needs 'grandstand seating on the stadium's vacant east side, plus more restrooms and concessions.' The other $35m would go to the construction of a new, 9,000-seat baseball stadium for the Portland Beavers. The Beavers currently play at PGE Park but with the improvements mentioned above, would no longer be able to call it home. Paulson also owns the Beavers.

I guess the biggest question I have about the Portland situation has to do with the ownership group. Paulson is not a poor man but he is not the billionaire type the league has been looking for of late. This makes the Portland situation seem a lot like the St. Louis situation. If the city approves the funding request, both cities will have rich but not mega-rich owners with solid public backing.

One big difference, unlike Paulson, St. Louis owner Jeff Cooper is not the son of the current US Secretary of the Treasury.

Anyway, the question I have for Paulson is how much he is willing to invest in a future team beyond the roughly $40m expansion fee and does he have other owners setup to take part in the project (his pop is partial owner in the sports teams)?

If Paulson is not ready to invest the big money needed to make Portland a success, I find it hard to see the league moving in.

MLS Expansion - The problem with Portland is the stadium

It would seem that the only thing holding MLS back from giving Portland a team is PGE Park. MLS commissioner Don Garber likes the stadium but says that major changes need to happen to make it work for the league.

"It's hard to accept that you would not be in an optimum facility," Garber said, explaining that Philadelphia is close to approving a $125 million soccer stadium, and other cities have expressed interest. "Years ago, we needed to play wherever we could. Now we're in a position where we can play where we want to play. ... That's a very positive development for the sport."

To make the park an 'optimum facility' Garber says they need to, among other things, install seats along the east side of the stadium, upgraded locker rooms and improve the rest rooms. The problem of course is who is going to pay for such upgrades?

Timbers owner Merritt Paulson is willing to pay the $30 million expansion fee to get a team but does not want to pay for the stadium. PGE Park is owned by the City of Portland, so people will look in their direction, but publicly funded stadium deals are always a sticky situation.

Add what would a stadium situation be without a bit of a time crunch as Paulson says that he does not want to pay more then $30 million for the franchise, meaning that if MLS increases the fee, he says he will walk.