Thursday, June 19, 2008

MLS Expansion - Ottawa enters the running

The line for a MLS expansion team just got a little longer as Eugene Melnyk, owner of the NHL's Ottawa Senators, has meet with league officials to discuss a move to Canada's capital.

The report says Melnyk and MLS met last Thursday. Although no specifics are known, Melnyk does bring with him a $1.4 billion fortune to back up any bid. Also, Frank Clair Stadium, which was used during last summer's U-20 World Cup and seats just under 27,000, is all ready built, however it is in need of some renovation.

Ottawa currently has an USL-PDL side, the Ottawa Fury, but Melnyk is not involved in the ownership of the team.

I would place Ottawa towards the back of the pack at the moment since other cities seem to be further along on talks. Still, with some big money possibly behind this bid, it could easily move up if Vancouver can't figure out their stadium situation or St. Louis fails to find more investors.

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Tuesday, May 20, 2008

MLS Expansion - Garber hints at more then 18 teams for MLS

MLS commissioner Don Garber thinks the league could grow beyond the 18 teams saying, "our sense is that we could have quite a few more than that." This is the most direct indication yet as to the future expansion plans for the league.

Originally it appeared like MLS would hold off on expanded past 16 teams in order to allow the local (US & Canada) talent pool to grow. However, with the relaxing of rules on foreign-born players and the ever increasing interest in investing in the league, Garber seems to be heading in a new direction.

This is good news for soccer fans in St. Louis, Portland, Vancouver, Las Vegas, Montreal, New York City, Atlanta and Miami as it looks like they will not have to fight it out for the final two spots. However, it could be bad for the overall quality of the league unless this increased expansion also corresponds to a large increase in player salaries. Simple put, there are not enough solid players out there willing to earn less then $100,000 to make a league of 22+ teams worth watching.

By the way, it is worth noting that Garber made these comments in Montreal at the inaugural game of Saputo Stadium, the new home of the Montreal Impact.

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Wednesday, April 30, 2008

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.

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Monday, October 29, 2007

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.

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Tuesday, October 23, 2007

MLS Expansion - Don't expect any news soon

MLS released a statement today concerning expansion and to sum it up, don't expect any announcements anytime soon. That said they still plan on expanding to 16 teams by 2010.

"MLS does not have a set deadline to make that announcement," said the statement released by MLS spokesman Dan Courtemanche. "Thus, it may be early 2008 before both teams are announced."

The main issue with waiting concerns stadium construction. If any of the expansion teams is to start their first season in a new stadium, they will need 16-24 months to build the site, making spring '08 the latest possible date for such an arrangement.

Still, this bit of news seems to push the idea of a MLS Cup announcement out of the way, which will give fans in Seattle, Philadelphia, St. Louis and Portland a little more time to argue about which is the best home for a top team.

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Thursday, October 18, 2007

MLS Expansion - Garber says Seattle and an East Coast city next

MLS commissioner Don Garber was impressed with what he experienced in Portland yesterday, but it looks like Seattle will be the city to earn one of the next expansion teams.

"The league probably will name Seattle and an East Coast city as sites for the newest franchises, to begin play in 2009, Garber said. Portland is vying for one of two more expansion teams that would begin play in 2010 or 2011, he said. The competition includes Atlanta, Montreal, San Diego, St. Louis and Vancouver, B.C."

This is the most definitive statement I have seen from Garber concerning the next two expansion teams. Now he did say 'probably' to allow some wiggle room, but it looks like Seattle is indeed on. But what about the East Coast city? If you're in Philadelphia, you got to like the sound of that. The other possible cities are New York or Miami but neither of those cities seems to be as close to a deal as the city of brotherly love.

Which makes me wonder about St. Louis as things have been looking really good there. The City of Collinsville is taking a lot of steps to get the land annexed and rezoned for stadium use and the bond package doesn't seem to be hitting major roadblocks, but then again, maybe more is happening behind the scenes in Pennsylvania.

But back to the article, it seems that PGE Park is a good option for MLS but a few things are needed such as 'grandstand seating on the stadium's vacant east side, a new playing surface and more restrooms and concessions.' If this happens, it means the baseball team needs to move, which would require a new facility to be built, costing around $30 million.

On the plus side, it appears that those in city government are interested in making it happen, however not at the cost of basic services.

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Wednesday, October 17, 2007

MLS Expansion - Portland gets a second visit

MLS Commissioner Don Garber and league president Mark Abbott will be in Portland today to revisit PGE Park. The two are interested in seeing the park in full 'game condition' ahead of tonight's US Women's match against Mexico.

Garber first looked at PGE Park in March but at the time, it was not setup for a full soccer experience. The two will talk with Portland Timbers owner Merritt Paulson about the requirements needed to make PGE MLS ready.

"I'm sure they want to talk about the stadium and what it might take to bring it up to MLS standards," said Dan Courtemanche, a league senior vice president.

So if you are in the area and want to show Garber what Portland soccer fans are like, here is your chance.

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Wednesday, October 10, 2007

MLS Expansion - Seattle and Portland could both get teams

MLS senior vice president Dan Courtemanche has made it clear that just if one of the Northwest cities get a MLS club, that doesn't mean the other will not get one soon after.

"If by chance we do finalize an agreement to bring a team to Seattle, that would not preclude us from bringing a team to Portland."

This should not be much of a surprise to anyone, however I do think it again shows the league leaning towards a Seattle franchise since Courtemanche specifically says Seattle. However, Portland still makes a good case and could beat out Seattle if MLS decides playing at Qwest Field is not the way they want to go.

With PGE Park needing around $20 million of changes to make it suitable for the league, it work not be that difficult to make this happen. In addition, if a team came to town, Merritt Paulson, who owns both the Portland Timbers and the Portland Beavers (baseball), says that he would be open to building the Beavers an 8-9,000-seat stadium elsewhere in the city if he was given a MLS franchise. That would mean that for most of the soccer season, PGE would be soccer only.

Seattle seems to still have the inside track, but Portland is making it hard for MLS to ignore them.

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Friday, September 28, 2007

Billionaire new co-owner of Seattle Sounders

The Seattle Sounders have some big pockets in their new ownership group, as Microsoft billionaire Paul Allen is indeed part of it, however Q is the senior partner. I'm guessing the $18 billion bank account was one of the big reasons MLS officials went with this group over that of Atletico Seattle Management.

With Allen in the picture, it is pretty clear that the team will continue to play their matches at Qwest Field. However, with the league pushing to move all clubs to soccer specific stadiums, it will be interesting to see how long this lasts (side bet on which team gets a sss first, Seattle or New England).

Current owner Adrian Hanauer will stay involved with the club, and that is a very good thing.

So there are most of the big pieces of the story, but still I wonder, what does it mean for MLS in the Northwest over all?

First off, the idea that people from Portland or Vancouver might become Sounders fans just because they are a MLS club seems a little off to me. I could see those folks showing up for some of the bigger games but my guess is it would be to cheer on the opposition.

Then there is the figure of Allen. It is great that he has a lot of money and is already involved in the Northwest sports scene, however I wonder if, much like the Kraft family and the Revolution, the soccer team will always be a secondary to their NFL team? The one element that seems to point away from that is Roth being the main investor, but still, it is a concern.

Finally, now that the Seattle option has been awarded, what would stop the two (or was it three) other groups that wanted the team to look down south a little bit at Portland? Just a few months ago it appeared the Northwest franchise would go to the Keston family who were interested in either Seattle or Portland, but obviously they lost out for whatever reason. With Portland having a great fan base and a stadium that, with some upgrades, could be MLS ready within a year, it would seem like a smart bet. Are there any billionaires in Oregon that are interested?

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Thursday, September 20, 2007

MLS Expansion - The Vegas odds

The Las Vegas Sun offers up their odds for the 13 cities often mentioned in MLS expansion talks. They are looking at things in a 'how does Vegas' fit in kind of way, but they don't seem to let the homer symptom overly influence their thought process. Anyway, here are their odds:

Atlanta: 100-1
Cleveland: 60-1
Las Vegas: 10-1
Miami: 35-1
Milwaukee: 75-1
New York: 8-1
Philadelphia: 6-1
Phoenix: 20-1
Portland, Ore.: 40-1
San Diego: 100-1
Seattle: 3-2
St. Louis: 4-1
Vancouver: 70-1

They have a lot more information on the reasons behind these odds, so if you have a moment, you really should read the article.

As far as my thoughts on the odds, they look pretty much like they should, however I think St. Louis has better odds then Seattle. That said, it really doesn't matter much because both those cities would be my top 2 as well.

The New York odds seem a little high, but that might have to do with the article speculating not just on the 15th and 16th MLS clubs but also on the 17th and 18th. Fred Wilpon, an owner of baseball's New York Mets, is interested, but since the plan that seems to be out there calls for a soccer stadium to be built on the current site of Shea Stadium, they will need to wait till 2009 before they could even begin building such a project (that is when the new baseball stadium will open). That said, MLS wants a derby in New York and if there is a chance to have a stadium in the city, they will hold out for it.

It does seem like the Vegas odds are also a bit kind, but maybe they have some inside information (or maybe they are just hearing more about it and thinking it might come true). I would put their odds more at 20-1 with Miami and Portland a little bit behind them. The Miami bid really depends on Boca Juniors. If the club fully gets behind a bid, chances are good for them. As far as Portland, Seattle has very much climbed over them in the current race, but there is a good group of fans in the area and a Northwest derby would be a solid outing. Also, they already have a stadium that, with some improvements, could host games for the first few years.

The Phoenix option is very interesting and I'm guessing the reason heat was not listed in the piece is due to the talk of a stadium with a retractable-roof. There are two good groups going after this bid and both have good pedigrees. It might not have the glitz of a Vegas or the history of St. Louis, but they do draw some good crowds for big games. The problem is, most of those games involve Mexico and as has been proven in many other locations, international match draws don't always mean good local match draws. Still, I agree that they are the city most likely to surprise.

As far as the rest, I think Milwaukee has a slightly better chance then suggested while Cleveland has a little worse. Atlanta should be doing better but no local money seems interested, so their bid looks to be stalled. Philadelphia is probably the city MLS most wants to get into so if the stadium deal moves forward, it should happen. Vancouver seems like a natural fit, however with all the development issues that have been kicked up ahead of the 2010 Olympics, getting a stadium might be a little difficult. San Diego to me seems to be the longest shot due to stadium situations.

What do you think?

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Friday, June 01, 2007

Portland MLS stadium search goes to the suburbs

Yesterday the Keston family was talking about sites in Seattle for a MLS side, now they are talking about Portland.

When the idea of a MLS team in the northwest owned by the Kestons first surfaced, it seemed like Portland had a bit of an edge due to PGE Park. PGE holds just about 20,000, is located in the city and only needs a few renovations to make it MLS ready. However, it is owned by the city, which would limit the amount of profit a team could see from it.

With that in mind, James Keston has pointed to the suburb of Hillsboro as a site that could host a "first-class soccer-specific" stadium. This stadium would be similar to FC Dallas's and Colorado's in that it would have a 17-24,000 seat stadium surrounded by soccer fields. Hillsboro is about 20-miles West of Portland.

So why Hillsboro, well it is easy to build a big site in a suburb, but there is also a stadium currently there, thus they would not be starting from nothing. Also, with a new owner of the soccer and baseball teams currently in PGE Park, which have temporarily stalled discussions.

The current stadium in Hillsboro seats 4,000, so a major upgrade would be needed. However, James Keston believes this upgrade would be less then the $120 million to start from scratch.

The Keston family is suppose to decide on a city for their club soon. However, it looks very likely that no matter if they go with Seattle or Portland, they will not actually be playing in that city.

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Thursday, May 31, 2007

MLS in Seattle could be death for the Sounders

If potential owners Michael and James Keston decide to bring a MLS team to Seattle, Sounders owner Adrian Hanauer says he will either have to fold his team or move.

“I’m a pretty rational businessperson, and it’s unlikely that two professional teams in the Puget Sound region are going to work,” he said. “I’ll cross the bridge when I come to it, but I wouldn’t think it’s likely that two franchises would coexist.”

If Hanauer decided to move, chances are the team would end up 30-miles south in Tacoma where the team played seven games in 1994. Tacoma is already home to the Premier Development League's Tides, but the two clubs think they could work something out if the move happens.

However, Hanauer has not ruled out folding the team and joining up with the new organization, which James Keston thinks is a wonderful idea.

“We get along great and if we could find a way to integrate him and the existing Sounders organization into what we’re doing we would love to make that happen,” James Keston said. “So far, we have a very good relationship with them …”

Talking about the Kestons, if they picked Seattle, Qwest Field would be their home for a little while till they built their own, smaller stadium. Possible sites include Renton or Tukwila, both of which are about 15-miles south of Seattle, near the international airport. Also, they would like some public funding for a new home.

“Renton is a very interesting site because of the demographics and the growth that I have seen around that area and the land that is available,” James Keston said. “And based on what has happened with the Sonics, they’ve already gone through the first stages of this: the making sure that the community and the city at least have an interest in a potential stadium there.”

The Sonics issue is their failure to gain public money for a new home even with the threat of relocation.

Interestingly enough, Keston thinks MLS's low salary numbers might make it an easier sell when it comes to public subsidies.

“These guys get to play soccer every day, but they’re certainly not going out and buying multimillion-dollar houses on Mercer Island as soon as they sign their contracts,” Keston said. “It gives you the opportunity, when you go out and talk to sports fans and the people of the state, to say these are not necessarily a bunch of multimillionaires coming in here.”

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Thursday, May 03, 2007

MLS Expansion - 49ers offer Earthquakes some stadium help, Philly idea not dead yet

Lew Wolff, the man hoping to bring a MLS club back to the bay area, got a bit of a gift yesterday as the owners of American football's San Francisco 49ers said they are open to the idea of having the San Jose Earthquakes play at their new stadium in Santa Clara.

The good news, Santa Clara is located right next to San Jose, the bad news, the stadium will hold around 70,000 fans and it might not be ready till 2012.

Wolff said he is still working on a site in San Jose, however he said of the 49ers idea:
"We have some things we'd like to share with the city when we're ready, and see if it works out. And if it doesn't, so be it," said Wolff, adding that he would prefer his soccer franchise to play in a soccer-only stadium with a capacity of about 20,000.
But he said if San Jose stadium sites don't work out, the 49ers "would be a very logical group to talk to. Plus, I like them a lot."
Although this is a way to get soccer back to San Jose, I don't think MLS would be overwhelmed with it as it goes against everything they've been preaching for the last 6 years or so. Smaller stadiums owned by the team has been their idea. Unless some great deal could be reached between the Earthquakes and 49ers, it would be difficult for MLS Commissioner Don Garber to say yes to all this.

Talking about Garber, yesterday he said the idea of bringing a MLS side to Philadelphia is not dead, however something needs to happen soon. Since a deal that would have brought a team to play at Rowan University just outside Philadelphia in New Jersey fell threw, the league has been trying to find another location as well as people ready to pay the $30 million franchise fee. It is obvious Garber would love a team in the area, however it seems that San Jose, St. Louis and Portland/Seattle are further along in the expansion process.

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Wednesday, May 02, 2007

MLS to Portland or Seattle via California

Back in March MLS Commissioner Don Garber made headlines when he visited Portland and Seattle to explore the possibility of granting one of them an expansion team. At the time Garber was silent on the names of possible investors. However, the lead investor has finally stepped forward.

Michael Keston, a California real estate developer has announced that he has the exclusive rights to discuss with MLS the possibility of bringing an expansion team to one of the two cities.

Keston has yet to decide which city he will put forward, however it does seem that Portland is where he would prefer to be.

"We very much would like to be in Portland," he said. "We think the people and atmosphere are great and it's a place we could very happily be."

The problem is MLS wants the team to be ready to play within two years and a stadium solution might not be ready within that time.

If a team moved to Portland, they would probably play at PGE Park, which is currently the home of USL first division side the Portland Timbers and Triple A baseball club the Portland Beavers. Although the city would love to have a MLS side, they don't want to hurt their relationship with these two teams to make it happen.

A possible solution to this problem might happen by itself, as the Portland Timbers might not continue if a bigger squad moves into town.

The city, for their part, is willing to make improvements to the stadium (new field, more seating, better locker rooms...), but Keston is also looking at other stadiums in the area.

If Seattle gets the nod, the team would probably head to Qwest Field, home of the Seattle Seahawks (NFL) and Sounders (USL). The idea of playing in a 67,000-seat stadium is a good short-term solution, but at some point they will need to find their own venue.

Keston is working on these issues and hopes to announce which of the two Northwestern cities he has picked within a month. Once he has a city, he will present his plans to MLS headquarters in order to get their final approval.

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Wednesday, March 28, 2007

MLS looking at Portland

MLS Commissioner Don Garber was in Portland yesterday to explore the possibility of granting the city an expansion team.

During a tour of PGE Park, home of the USL First Division Portland Timbers, Garber said it was "pretty cool" however added "But I haven't even gone so far as to see if it's the best option or only option." He specifically pointed to the stadiums NeXturf surface as a problem.

Garber says MLS is committed to bringing a team to the Northwest by 2010, however it has not come close to deciding a location (ie, Seattle or Portland).

The league has quietly been discussing that possibility for at least six months with an investment group Garber declined to identify. The investors first envisioned Seattle as the locale for an expansion franchise, then in the past three to four months added Portland as another viable option, he said.


Portland has a great history of supporting soccer and would find an instant fan base, I just wonder how this affect the Timbers. It would be a shame to see them hit by this (since it sounds like the investment group is looking at either Seattle or Portland, it doesn't seem like the team would be promoted to top flight action). Then again, perhaps this could be the beginning of a strong working relationship between MLS and USL clubs.

I still think St. Louis and San Jose need teams first, but Portland would be a great third spot.

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