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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Friday, February 22, 2008

MLS Expansion - St. Louis not giving up on MLS dream

Jeff Cooper, the lead figure in St. Louis's bid to land a MLS side, has conceded defeat to Philadelphia for the 16th spot in the league and is now focused on winning the 17th.

"'2010 is what we're targeting,' Cooper said."

Since it looks like 2010 will be the year Philadelphia will enter the league, it appears Cooper sees little difference between spots 16 and 17.

His goal now is the same it has been for the last six months, find more investors. He says there has been lots of interest, but not enough have signed on.

For their part, it appears the city of Collinsville is stick with this project meaning that if Cooper brings a team home, the bulldozers will start digging right away on the 400-acre site.

Even without a team, Cooper will be involved with MLS via their marketing arm SUM as he is the owner of on of the new teams in the Women's Soccer League.

I've said it before, had Cooper come along with this bid three years ago, St. Louis would have a team by now. It is only due to the growth of the sport in the US that they do not. Kind of ironic that the city that can very easily argue itself as the cradle of soccer in America is hurt by the growth of the game, but that is the way it is.

My guess on this is Cooper will find some investors in the next few months and the league will go with them as number 17. However, the longer it takes, the more time places like Miami, Montreal, Las Vegas, Portland, etc. have to put together their bids, so Cooper better act fast.

If you are a fan in the St. Louis area, maybe you should follow the Sons of Ben model and get a supporters group together now. You could road trip to Chicago and KC games and make your presence know. I'm sure the folks at St. Louis Soccer United would love it.

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Thursday, February 21, 2008

MLS Expansion - Philadelphia to officially get team next Thursday - What to call them (with poll)?

After the Delaware River Port Authority signed off on the final piece of the Philadelphia puzzle yesterday, MLS appears ready to make it official, Philadelphia will be the 17th team in the league. The announcement is expect next Thursday (28 Feb) in Chester.

The new Philadelphia team will begin play in their 18,500-seat stadium in 2010. This stadium will be part of a $500 million complex of stores, restaurants and housing in Chester.

The decision is no surprise to anyone paying attention, but as with all things, nothing is official until it is official. This move means St. Louis is now focused on winning the 16th spot. It is not known at this time if the stadium deal the St. Louis group had worked out with the city of Collinsville is still on (it was dependent on MLS awarding the group a team).

As for Philadelphia, it looks like the Sons of Ben finally will have a team to call their own, now we just need to know what to call said team.

According to this MLS video (opens Windows Media Player), the names the SOBs want are either the Philadelphia Athletics and Philadelphia Independence. Which one do you prefer?

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Wednesday, February 13, 2008

MLS Expansion - "It's definitely Philly"

"'It's definitely Philly," said a Major League Soccer source, declining to be quoted by name in advance of an official announcement. 'It's the market size, the ownership group. These are wealthy people. They're going to be strong owners.'"

Failing some sort of 'impossible-to-foresee cataclysm', Philadelphia is set to become the 16th MLS team. League officials and the new team's ownership group have spent the last two days finalizing the draft version of the expansion agreement, while the ownership group has also been talking with Pennsylvania officials concerning how exactly they can use the $47 million in state funding.

This move is in no way unexpected, as the league has wanted to be in Philadelphia since it began in 1996, they just could not find a way to make it work.

St. Louis is the big loser in all this, but lead investor Jeff Cooper is not giving up on the dream as he is now focused on the 17th spot. It is not clear if the city of Collinsville will change their level of support, as most of it was based on landing a team.

No official date has been set for such an announcement, but my guess is right around the start of the MLS season at the end of March.

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Wednesday, January 30, 2008

MLS Expansion - No Miami team means no Miami stadium

Miami Mayor Manny Diaz is trying to brunt a lawsuit that would force a public vote on his $3 billion city/county project that includes baseball and soccer stadiums at the current site of the Orange Bowl. Although the $100 million for the soccer stadium is not getting much notice (compared to the $525 million baseball stadium), Diaz wanted made a definitive statement designed to defend the plan.

He says that the city will not build the stadium unless MLS assures him that they will get an expansion team. He added that it has not happened yet, "but they're very interested."

This should come as no surprise since building a stadium for a team that might not come would be a very stupid move and it will be very interesting to see how this plays out.

With Philadelphia all but there in terms of getting a team, it appears the race now turns to St. Louis vs. Miami for spot 17. Both offer really promising opportunities for the league, but is MLS ready to make a choice on the next expansion side so soon?

In the past league reps have said they would pause a little while after expanding to 16 teams, but it appears that if they want either of these deals, they will need to change their stance on this issue. In addition, they have also said they want to hold the league to 18 teams, so with a number of options out there for additional teams (Las Vegas, Portland, Vancouver, Montreal, New York, Atlanta, etc.), landing one of those last two spots might be even harder then getting a stadium deal.

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MLS Expansion - St. Louis stadium gets additional city funding

The Collinsville City Council has approved a TIF plan to help pay for the proposed 400-acre stadium site. The hope is this will help the St. Louis soccer group find the additional investors needed to bring a MLS team to the area. For those wondering, a TIF plan is basically a loan to oneself against the projected increased tax income from a public project.

This is yet another sign of the desire for Collinsville to land a team, but with recent news out of Pennsylvania, it might be a little too late.

The irony of all this is if St. Louis put a bid like this as recently as three years ago, they would probably already be fielding a team. The league has progressed to a point where they can be more selective (or down right demanding) about where they land teams, and this is a good thing. Although I would love to see a team in St. Louis, if it is true that the group does not have the investments needed to make it a success, I can fully understand why the league would not expand there at this time.

That said, Jeff Cooper seems like that exact type of person the league needs to move into the next level. He has the energy and local ties plus is a smart businessman, now he just needs a little extra money to make it happen.

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MLS Expansion - Philadelphia gets stadium deal, team to follow?

It looks like Philadelphia has won the race for the 16th MLS spot as the state is set to announce an agreement to use $45 million to partially fund construction of a soccer stadium in Chester. A formal announcement from the state is expected tomorrow.

Since this was the final piece MLS said was needed, it does appear that Philadelphia is about to become the 16th MLS team. No word yet on when the league will announce, however MLS spokesman Dan Courtemanche said, “We’ll be here, should the government officials decide to make any type of announcement that pertains to a soccer stadium in Chester" adding, “We continue to have positive discussions with the potential ownership group and look forward to hearing positive details.”

If this is the case, then the Sons of Ben now have an actual team to support while St. Louis continues on in their hope of landing a team.

The new Philadelphia franchise is expected to begin play in the 2010 season.

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Monday, January 28, 2008

MLS Expansion - State 'undetermined' on Philadelphia soccer stadium

Even as time moves on, Pennsylvania officials appear to be no closer to reaching an agreement on funding part of the soccer stadium needed to land Philadelphia a MLS franchise.

When asked if the state would provide the needed $45m to make the stadium a reality, State Sen. Dominic Pileggi, the Republican Senate majority leader, said 'undetermined.' He then went on to note that 'GOP legislators have pledged to avoid new spending, and it's unclear whether they will want to provide millions of dollars for a sports stadium when roads, bridges and schools need help.'

However, he made sure to point out that since the proposal is not just about building a stadium, but revitalizing a large portion of the Chester waterfront, he thinks Republicans would be willing to back the plan, especially since 'an award of state money would be contingent on assurances that the housing, restaurants, and other facilities would be built, and that job-creation projections would be met.'

So here we are at the end of January, and the original MLS deadline, and we appear to be no closer to a resolution to this issue. Philadelphia still needs the state money and St. Louis still needs richer investors to get the nod. The league moved their deadline back 30-45 days, but Pileggi doesn't seem overly concerned with the new date saying, "I don't think they're going to set up any artificial deadlines as long as there continues to be positive discussion."

That's all fine and good, but if MLS really wants this team to start playing in 2010 and to do so in their permanent home, a decision needs to be reached soon. Other soccer stadiums have taken 18-24 months to build, meaning that if a stadium is to be ready by April 2010, they need to start building in the next 2-6 months (interestingly, the article says that the 2010 deadline allows for 'two and a half years for construction', however, that would place opening date in July or three months later then MLS currently opens their season).

To me it seems obvious that the league prefers Philadelphia to St. Louis, but at some point, they either need to scrap the 2010 expansion idea or make a choice. Although the St. Louis ownership group apparently isn't as loaded as Philadelphia, if they have a stadium deal, it is hard to argue against them.

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Monday, January 21, 2008

MLS Expansion - Philadelphia a step ahead of St. Louis

MLS Commissioner Don Garber didn't say a lot about expansion but what he did say was very telling.

First, he said that the race to land the next expansion team was indeed a two city event between Philadelphia and St. Louis, meaning that even if Miami moves ahead on their stadium idea or if Montreal pulls together their group, they are non-factors. Second, he said "If Philadelphia is able to finalize their plan, they have been leading the charge and have a step ahead of St. Louis." So if both team are equal, Philadelphia will get the nod.

The idea that Philadelphia is the more desired of the two cities should not come as a big surprise as they are a bigger market and is the last major city along the Northern East Coast without a team.

Something else the Garber mentioned was expanding the deadline (huge shock). He has been saying for months that 31 Jan was the latest date MLS was willing to consider but that has now moved. Although they would prefer to announce by the end of the month, they are now willing to wait 30-45 days, which could push it back to the end of February. It looks to me that this is yet another example of the league wanting to give the Philadelphia big every opportunity to be successful.

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Thursday, January 17, 2008

MLS Expansion - Governor's $50m letter might not be enough to land a team for Philadelphia

A year ago, former Philadelphia Mayor and current Pennsylvania Governor Ed Rendell sent the leader of the Philadelphia MLS group a letter pledging $50 million in state money to help build a stadium, but with no official action yet to happen on any of the points, MLS is not overly impressed.

In the letter, Rendell said the state will give:
"$20 million in savings achieved through low-interest, long-term loans from the Pennsylvania Economic Development Funding Authority.

$15 million from the state capital budget, contingent upon approval by the legislature.

$10 million in a grant from the Delaware River Port Authority."

The other $5m will go to small loans and other grants.

I'm sure it is good to have the support of the governor, however without anything official, this letter is just ink on paper. MLS said previously that they would make a decision on the 16th expansion team by the end of January. If they hold true to this deadline, which is not something MLS is really known for, then the state is pretty much in do or die time. If nothing happens in the next few days, it would appear that the Philadelphia bid is DOA for now.

Which turns the spot light back to St. Louis with a spill over to Montreal and Miami.

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Monday, January 14, 2008

MLS Expansion - St. Louis needs investors

The days left in January are becoming fewer and fewer, meaning that a decision on the 16th MLS club will soon be known. The main figures in this race are Philadelphia and St. Louis, with each having something the other does not. Philadelphia has the big investors (money) and a large market, but unlike St. Louis, does not have a stadium deal in place.

Which brings us to Jeff Cooper's (the man in charge of the St. Louis bid) keynote speaker at the annual Hermann Awards banquet Friday night. In it he talked about the rich history of the game in St. Louis and his belief that a professional team would flourish in the area. However, he also spoke to the need for others to up out to make this true.

Cooper is a millionaire with great local ties, but that is not really enough for MLS anymore, so he is looking for some partners.

"We're confident that we'll find the right partners very soon," Cooper said. "You have to remember that it's easier to find money than great partners, and that's our mission. This community deserves a first-class MLS ownership group. We won't quit until we put that group together."

So there you have it, St. Louis needs more money to land their bid, just as Philadelphia needs the state to put up $45 million. To the winner of this race probably goes the expansion team. Then again, maybe Montreal will steal it away from them both.

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Thursday, January 10, 2008

MLS Expansion - Could Montreal be the sleeper pick?

With no news coming out of Pennsylvania concerning the state putting up the money needed to secure a MLS team and MLS's lack of excitement in the depth of the St. Louis group's pockets, could Montreal shock everyone and get the next franchise?

How could such a move happen? Well unlike St. Louis or Philadelphia, Montreal will already have a stadium as the Impact are just about finished building a 13,500-seat, natural grass home (they will need to expand it 18,000, which they are already planning on doing). Plus, the Impact are already averaging over 11,000 for USL-1 games, so they have a strong base on which to build. Finally, Impact owner Joey Saputo is very good friends with billionaire George Gillett, who happens to own NHL's Montreal Canadiens and co-own EPL's Liverpool. Although there has been no formal joining of the two, both have very deep pockets and that might just turn a few MLS heads.

There is still the issue of Toronto FC having an exclusive right to the Canadian market through 2010, but it would appear the two sides are already talking about a deal. I'm sure TFC loves their hold on Canada but I'm guessing they see the benefit of have a rivalry as well.

I still think the US based bids have a better shot at this, but with so much already in place for Montreal, they might just pull off an upset.

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Wednesday, December 19, 2007

MLS Expansion – $500 million for $45 million, the Philadelphia agrument

With MLS just weeks away from announcing which city will be their 16th, the Philadelphia idea has come down to a simple question, will the state invest $45 million of public money in a soccer stadium to move forward a $500 million waterfront development project?

It really is that simple as those involved say that without the stadium, the full waterfront development idea in Chester is pretty much off the table and MLS will turn to St. Louis as their newest team.

The state has a history of investing in sports stadiums (Lincoln Financial Field, Citizens Bank Park, Heinz Field and PNC Park), so it is not without precedent, however soccer is a bit of a tougher sell, even if it will lead to a larger retail, residential and office development. However, the state legislative session ended last week without funding, so it is up to Governor Rendell to find a way to make this happen.

Meanwhile, St. Louis is waiting quietly with everything lined up to go. Well everything except the final vote by MLS.

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Friday, December 14, 2007

MLS Expansion - Philadelphia still without state money for stadium

The Pennsylvania state Senate has adjourned for the year without approving the funding for a soccer stadium in the Philadelphia area. With a decision on the next MLS expansion team expected no later then the end of January, time is running short for any sort of deal to take place, however the Senate Majority Leader said that an agreement might be reaching over the break or they might be able to find money elsewhere in the budget.

MLS has made it clear that without stadium funding, Philadelphia will not get a team, so the state doesn't have that much longer to make something happen. That said, panic is not in order as just about every stadium deal so far has looked dead up to the last moment when suddenly everything comes together.

Still, with the St. Louis bid just waiting on MLS approval to move forward, this lack of action has got to make people in the city with the arch happy.

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Thursday, December 13, 2007

MLS Expansion - Is a team in Miami just a few votes away?

The idea of moving back into Florida might make a few MLS fans a bit squeamish as it didn't go so well the first time around, but if a few votes workout, it might just happen.

The City of Miami is looking into funding a new soccer and baseball stadium on the current sight of the historic Orange Bowl (which will be torn down) as part of a multibillion-dollar proposal put forth by Mayor Manny Diaz.

As far as the soccer stadium, it would cost $100 million and seat 25,000. The proposal calls for the cost to be divided between the city and MLS (or whomever owns a new Miami team). However, the main reason the city is interested in building the soccer stadium is to provide an additional funding source for a 6,000-car parking garage they will need to build for a baseball stadium as Diaz said they need 25 additional events annually for the garage to break even.

This whole proposal, which includes many, many things not related to these stadiums, faces its first vote today as the Miami commissioners decide whether to move the multilayered plan forward. If they do, they will begin to review major pieces of the plan next Tuesday. As part of the funding plan, the city will not float bonds to pay for any of this, so it will not face voter approval (how happy is Don Garber to hear that?).

If this does happen and the city votes for a soccer stadium, it is pretty safe to say MLS will show up soon after and that might not be a frightening as it sounds.

Back when the Miami Fusion were in the league (1998-2001) they had some weak attendance numbers, but was in large part due to them playing at Lockhart Stadium in Fort Lauderdale, some 26-miles away. If a new team went into the Orange Bowl site, they would be in the heart of the city, about a mile from downtown. This does not mean they will be a success, but it does provide them with a better chance then playing in Ft. Lauderdale.

As with any proposal that involves public money, who knows what might happen, but it does seem like the mayor is pushing hard for this. I don't have a clue if this is a good thing in the long run for the people of Miami, but if you are a soccer fan in the area, you are probably happy to see this taking place.

But how does this influence the possible expansion of the league into St. Louis or Philadelphia? I don't think it has any affect on the league in the next couple months as no ownership group has officially stepped forward and a final decision on the funding might not be known for some time. However, Miami would provide a very temping pick for the next round of expansion, especailly if the league put in $50 million towards building the facility, which makes the competition for the 17th and 18th teams that much more intense.

One final thing, some people have suggested calling the new soccer stadium the Orange Bowl, which seems like a fantastic idea to me.

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Wednesday, November 14, 2007

MLS Expansion: Milwaukee's dream looks to be dead

In a major blow to Milwaukee's hope of landing a MLS expansion squad, Peter Wilt has left his post as chief executive officer of Milwaukee Professional Soccer LLC.

Wilt, who was the former general manager for the Chicago Fire, had hoped to work with local financiers and politicians to bring top level soccer to Wisconsin, however, there just was not enough of a push to make it happen.
"Despite having a broad base of support, 8,000 season-ticket equivalents and what I feel is the best pro team/amateur youth sports association partnership in history, we haven't been able to secure the necessary governmental support or the development rights for appropriate land in the desired time frame," said Wilt in a statement.

"There is no doubt in my mind that Wisconsin would be a successful Major League Soccer market and that Milwaukee and its citizens would benefit from a team and stadium as part of a major mixed-use development."
Wilt had been working on the project since 2005, but his efforts to land a stadium location proved to be extremely elusive. Perhaps he is best known for his idea to use the Milwaukee Mile racetrack as a soccer pitch.

With Seattle landing a team this week and Philadelphia or St. Louis on the cusp of getting a club (not to mention the Portland, Las Vegas, Phoenix and New York City options), the idea of the league expanding to a city where the team would play at a race track must have finally seemed to far fetched for Wilt.

Thankfully he will still be involved in soccer, as he will work with the Chicago team in the new professional women's league.

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Thursday, November 08, 2007

MLS Expansion - Seattle announcement on Monday

It looks like next Monday might be the day Seattle gets a MLS club. Goal Seattle is reporting that a local footy pub is hosting a 'special "local professional soccer" announcement next Monday, November 12th, from Noon to 2:00 PM.'

He also adds that after talking with the pub, they confirmed the announcement involves MLS in Seattle and that this will be a 'pre-announcement of the official announcement of the team at The Colombia Tower on Tuesday.

The timing makes perfect sense, as the league normally likes to use MLS and All-Star weeks for such major news.

If you are in the area and want to attend the Monday event, it is at:
George and the Dragon Pub
Located in the Fremont area of Seattle
206 North 36th Street, Seattle WA 98103
Tel: (206) 545-6864

No word on any plans in Philadelphia or St. Louis.

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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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