Category Archives: News

05.02.11
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Kings to stay at least one more year in Sacramento

Here’s the press release from the Maloofs:

MALOOF SPORTS AND ENTERTAINMENT STATEMENT

“Out of respect to Kings fans and the regional business community, we have decided to remain in Sacramento for the 2011-12 season. The fans’ spirit and energy, specifically our season ticket holders, has been remarkable and we are truly thankful for their loyalty. We also are greatly appreciative of the support from our corporate sponsors as well as other local businesses that have come forward in recent weeks.

Additionally, we would like to take this opportunity to send a heartfelt thank you to the loyal and hardworking team members within our organization. From the game night staff to the front office, coaches, and players, we are grateful for their professionalism and devotion.

During this process, Mayor Johnson has strongly indicated to both the community and the NBA that he is capable of getting the support to build a state-of-the-art entertainment and sports facility that the Sacramento Region and the tremendous Kings fans so rightly deserve. We look forward to seeing Mayor Johnson bring his vision to reality. However, if an arena plan cannot be finalized in a timely fashion, the NBA¹s relocation committee has assured Maloof Sports and Entertainment that it will support an application to move the franchise to another market starting in 2012-13.”

A report from the ICON group is due later this month. That information and perhaps another arena proposal from an “anonymous” Nevada businessman will frame the discussions for a new venue going forward. The scary part for Kings fans and Sacramento citizens is that it doesn’t appear as if the Maloofs are on the hook to do anything as part of the effort to stay. Presumably there should be some sort of contribution from the ownership group, but what will that be? If they’re cash poor, what can they provide other than the old arena, which it appears they’d give up anyway if they were to move? Right now this has to feel good for fans, but the task they and Mayor Kevin Johnson is daunting to say the least. Even if Ron Burkle were allowed to buy the team from the Maloofs, it’s not realistic to expect him to spend $400 million out of pocket on an arena. At least they’re getting a year, which is more than you could say for many other teams’ fans.

04.29.11
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San Jose approves Draft Diridon Station Area Plan

As expected, the San Jose City Council approved the Draft Diridon Station Area Plan, which seeks to transform much of the area around the current transit hub into a destination district anchored by HP Pavilion and Cisco Field. Next up is an EIR for the entire 240-acre vision. Projected impacts will probably force a scaling down of the vision, especially because of limited future redevelopment funds.

Full buildout. North of the arena is the industrial/commercial sector. South of the ballpark is residential. Retail/commercial is between the ballpark and arena. Autumn Parkway is completed through the area.

Tracy Seipel’s article makes mention of the potential need for a master developer, as was the case for Mission Bay (Wilson Meany Sullivan) and the Kansas City Power and Light district (Cordish). The same strategy was employed during planning for the Fremont ballpark, with Gensler as the master developer. While such a strategy could properly unify what would probably be disparate elements of the plan, threats to redevelopment make such a broad scope less realistic. As long as the plan sets out proper guidelines for how development should occur (which it does), the spirit of the area plan should be fairly easy to uphold. Just about everything larger than a single family house will require an EIR on its own.

Lew Wolff said in the past few months that he wouldn’t have anything to do with developing the critical Central area framed by the train station, arena, and ballpark. Knowing how the city fathers have failed time and time again in trying to turn the original downtown into a viable retail district, current civic leaders and developers should not have grand designs on proceeding down a similar path with this. There are three key reasons:

  • No free parking. I don’t mean validated parking, I mean unfettered free parking. Valley shoppers are too used to it and won’t react well to not having it, even if it’s a good idea to charge from a multimodal planning standpoint. Even though Valley Fair and Santana Row are logistical nightmares during the holiday shopping season, people deal with it. A big reason for this is free parking.
  • Inflexibility with events at the arena and ballpark. Parking and access will be heavily impact on event days, especially days when events are happening at both venues. It could create an environment in which locals stay away from the area while events are on. Locals want convenience, and events make convenience difficult to achieve.
  • Market conditions. Development could stretch out over a decade after the project begins thanks to the timing of the BART and HSR projects. That could make it difficult for developers and retailers to gamble on moving in as long as the area remains in a seemingly perpetual state of upheaval.

Historically, San Jose has sought to bring in high-end brands to attract the more well-heeled. The Pavilion downtown failed miserably in that regard, and stopped being a mall over a decade ago. Santana Row opened with numerous tony boutiques. Several years later, most of them have been replaced by typical mall stores.

None of this is to say that the Central area can’t be successful. There is one brand that could conceivably defy San Jose’s jinx and make things work in the end: Apple. Apple could open a store in a toxic waste dump and it’d be successful. They’ve looked at opening stores at or inside highly trafficked transit hubs, including Grand Central Terminal. So if there’s one tenant that the developers and landlords should pursue, it’s the Cupertino tech company. But wouldn’t it be ironic if this district, which at 900-feet long is less than a block shorter than Santana Row, stole business from the San Pedro and SoFA neighborhoods? I could see it.

04.28.11
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San Rafael group looks to get NAL franchise

A group of investors is venturing to bring independent league ball back to the North Bay, in the form of a North American League franchise. The investor group, Centerfield Capital Partners, will make a public presentation tonight at the San Rafael Community Center. The details:

Please be aware that the city is considering a proposal to host Minor League baseball at Albert Park/Albert Field.

The plan includes seating for up to 1500 people. A total of 45 games would be played on Friday and Saturday nights, until 11pm, and some Sundays, May through September. A copy of the plan is available at the address listed below.

Beer and wine concessions will established.

A presentation will be given on April 28th at the San Rafael Community Center at 618 B Street at 7 pm by the developer CenterFieldPartners

Please attend and and share your thoughts on this project: Good for the area? Too much noise? Security/Police? Alcohol related issues?

City of San Rafael Contact is Carlene McCart, Director of Community Services, 618 B Street, 485-3333.

An article in last week’s Marin IJ has quotes from Brian Clark, the head of the investor group. The target ballfield at Albert Park is an old downtown charmer with a covered grandstand. Some area residents have responded by hiring an attorney, who may push for an environmental impact report.

The North American League came about as merger of three other independent leagues: Northern League, United Baseball League, and Golden Baseball League. You’ll remember the GBL had a prolific expansion last decade and attracted several past-their-prime stars, including Rickey Henderson (San Diego Surf Dawgs). The GBL’s head, David Kaval, left the league and joined the San Jose Earthquakes.

Centerfield Capital Partners has territorial rights over the entire Bay Area. The only other franchise in Northern California is the Chico Outlaws, a former GBL team. These efforts shouldn’t affect Chris Lee’s interest in getting a California League team in Windsor. San Rafael and Windsor are far enough apart that there shouldn’t be any encroachment of fanbases. For Lee, the gating mechanism continues to be the SF Giants, whose protection of its various territories continues to frustrate others all over the Bay.

04.28.11
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News for 4/28/11

It would appear that new Coliseum naming rights holder Overstock.com is the snake to current signage/broadcast sponsor and hedge fund Kingsford Capital’s mongoose. Or vice-versa. Weird.

The 49ers made two big announcements yesterday. They brought in mega-agency CAA to handle its naming rights search. That comes after Santa Clara authorized the team to start selling said naming rights. The 49ers also hired former Facebook and YouTube CFO Gideon Yu to become its Chief Strategy Officer. Yu may have been bored working at venture capital firm Khosla Ventures. You know how in the past I wrote wondering how the 49ers were going to finance the Santa Clara stadium? Well, this hiring proves that there’s some truth to it, and Tim Kawakami agrees. The Yorks are having to search far and wide, looking into perhaps novel or unexplored revenue streams to pay for the stadium. For Santa Clara taxpayers’ sakes, I hope they hit a vein of gold (preferably not on their uniforms).

It’s a bad time for online security. Sony’s PlayStation Network was severely breached last week and is still down for rebuilding. Now according to Deadspin, the New York Yankees accidentally leaked a file containing the names of 20,000 season ticket and plan holders. No credit card info was in the file, but plenty of personal information was. It didn’t get everyone, though. The suiteholders and high rollers in the really expensive (and often empty) club seats were not affected. It’s good to be the king. Also, the number of tickets sold (2.1 million) and revenue pulled in just for the non-premium sections ($131 million) are absolutely staggering.

Speaking of staggering, Frank McCourt visited New York to lobby Bud Selig to approve his own personal TARP bailout by Fox. The plan, which would have included $300 million upfront that would have gone straight into team equity, was not approved by the commissioner. That prompted McCourt to hold a 30-minute press conference in which he railed on Selig, calling his actions “un-American.” Listen to the audio. There are some serious theatre of the absurd elements. I thought it was all quite entertaining until I realized that the slow legal process that will tie up MLB and the Dodgers for the next two years will cause Selig to extend his term yet again, probably through 2013-14. I was instantly depressed.

Escondido’s AAA ballpark plan for the Padres may turn into a tech business park if Mayor Sam Abed has his way. Now that was quick.

Doctors are trying to reduce medication to Bryan Stow so that he can emerge out of his coma. #rootingforhim

Two different visions for old deflated domes:

  • The H.H.H. Metrodome is quickly getting its roof repaired. The new roof by Birdair won’t end Zygi Wilf’s quest for a new Vikings Stadium. It will be there in time for the Vikings’ 2011 season, assuming that the league starts on time. The replacement is being paid for by the stadium’s insurance, so there’s no new public cost.
  • B.C. Place in Vancouver is getting a unique cable-supported retractable roof built on top of the existing stadium, replacing the original roof. Construction of the roof and related improvements started shortly after last year’s Winter Olympics, with the price tag rising from $350 million to $458 million and now $563 million. The remodeled, reroofed venue will be home to both the B.C. Lions CFL team and the Vancouver Whitecaps MLS team.

Google Earth rendering of the new B.C. Place. Next to it is Rogers Arena.

More news today as it gets reported.

Added 11:40 AM – BART is workshopping different types of seats for its trains. The agency was prompted in response to rising cleaning costs for the fabric covers on the existing seats. They’re also playing around with narrower seats with less legroom, which I’m sure is a crowd pleaser. This change follows a switch from carpeted floors to rubberized floors, which is ongoing. Personally, I think wide and tall vinyl seats, such as those used on Caltrain’s Baby Bullet cars, would work well.

04.26.11
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See you at the “O”

Sports Business Daily is reporting that internet retailer Overstock.com is getting naming rights at the Coliseum for six years, at $2 million per. Overstock has gone through many different ad campaigns over the years. The new one includes a new actress spokesperson, Caitlin Keats. Now I haven’t bought anything from Overstock in years, and I always found them more geared towards housewares and with a feminine edge. Buying naming rights to the home of the Black Hole is certainly a move away from that. I personally have nothing to say about the name change other than this:

Knowing that Overstock is pushing its O.co domain hard, Ken Arneson is trying out a bunch of new names. My favorite is the “O.co Liseum.” Squint hard enough and you might think it’s not commercial at all. Maybe not.

04.25.11
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Nuggets from the Boxer and Reed interviews

I recorded the two interviews using TuneIn Radio (really worth getting on your smartphone platform of choice), so I had a chance to listen to them again. I picked up on a few things that I thought would be interesting to discuss. First, the Boxer portion.

  • Boxer mentioned that the suite requirement for Victory Court was 32-33 boxes, not 40 (which is what Wolff is aiming for). Perhaps this would explain why the capacity is greater (39,000), to make up for the reduced suite requirement. Maybe this is a realization of how difficult it is to sell suites in the East Bay with the corporate environment.
  • Since Boxer left Oakland’s Planning Commission in February, he hasn’t been as plugged in regarding the EIR process. That’s a shame when you consider that there’s such a vacuum when it comes to real information right now.
  • Townsend was bit miffed when he tried to get Oakland Mayor Jean Quan on for the segment. Her office referred him to Boxer instead. That’s not to say that Boxer wasn’t good – he was, especially because he talked for an hour – but it shows there’s a disconnect. They want to say that they’re operating within a gag order, but that gag order should be extended to San Jose Mayor Chuck Reed, so why was he available while Quan wasn’t?
  • People jumped on Boxer for misstating attendance and Townsend for naming the wrong company for the ballpark, to which I say, “STOP.” None of that matters. You’re getting distracted by the most insignificant details.
  • The Coliseum has been effectively deepsixed as any kind of ballpark site by MLB.
  • Boxer admitted that if redevelopment goes away, getting the plan going would be very challenging. He notes that some development powers should be enshrined in a successor agency, though it’s unclear how far-reaching those powers would be. What’s going for Oakland is that CEDA/ORA has bonding capacity for further land acquisitions and infrastructure improvements.
  • Boxer also mentioned that the EIR process takes the better part of a year to complete. While he was probably referring to the entire process (it usually takes longer), a draft shouldn’t take anywhere near that long.
  • Boxer alleges that Schott/Hofmann didn’t pursue the Uptown site because if they committed to it, they feared that the franchise’s value would drop. Curious. Update: The franchise value would have dropped because the team would have been less attractive if it were locked into a new stadium.
  • Boxer mentions in passing that Wolff may have violated the contract with the Coliseum Authority by talking to San Jose in the past. That again? If that’s a problem, then just sue already, stop talking about it and do it. Before John Russo escapes to Alameda.

Now for the Reed segment, which was much shorter.

  • Reed hasn’t had any direct contact with Bud Selig. He and his team have been working solely through Selig’s committee. Reed thinks the work is finished, though it’s hard to tell at this point.
  • As in recent print interviews, Reed is palpably frustrated.
  • Reed’s not giving up on the ballpark as long as Wolff is optimistic.
  • No word on whether Reed would try for this November’s election. I’m guess no unless word comes down from on high.
  • Reed referred to the new joint powers authority (San Jose Diridon Development Authority) as carrying on the ballpark development work as SJRA shrinks or disappears.

What did we learn today? Not much. There will be some pro-Oakland folks who are happy that Boxer was on for an hour, which was good. However, the fact that no new information came out was highly disappointing. Hope can’t live on words alone.

P.S. Really great work by Chris Townsend today. There’s been more stadium talk in the last week than in the last five years on all of the sports and talk radio stations combined.

04.21.11
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A’s and Dodgers could be tangled up after all

The McCourt-Dodgers meltdown could have an unusual and for-now unmeasurable impact on the A’s depending on one decision: Who will be brought in to oversee the team now that MLB has seized it? According to ESPNLA’s Tony Jackson, the shortlist has three candidates:

  • Stan Kasten, former Nats president
  • John McHale, Jr., executive VP within MLB
  • Corey Busch, frequent MLB committee member and former team exec

Yes, that’s the same Corey Busch who’s on the A’s stadium panel with Irwin Raij and Bob Starkey. Busch has been all over the West Coast with his baseball involvement, including a key role in the ownership transition between Fox and the McCourts. Supposedly Busch was to stay on after the transition to become the Dodgers’ team president, but the job was offered to then-Red Sox front office man Mike Dee. Dee declined the position, got a raise, and eventually moved on to the Miami Dolphins in 2009. In 2005, Jamie McCourt became team president and executive VP. I wouldn’t be surprised if that was around the time the downward debt spiral began in earnest.

The commissioner’s appointee will have the tough task of sorting out the huge mess the McCourts made. Unlike Oakland, there will be no stadium study. Instead, it’ll be an effort to determine what abuses were made and what the team’s real fiscal health is. That’s important, because MLB will want to get as high a price as possible for the team once it finalizes its seizure. It wouldn’t be surprising to see Raij (law) and Starkey (accounting) brought in soon.

Problem is that the whole rigamarole would take at least a year, probably two. The McCourts’ divorce proceedings are in recess and aren’t scheduled to begin again until next year. Meanwhile, Frank McCourt is considering a lawsuit or injunction against MLB. That would be interesting since as we all know that teams (and owners) are prevented from suing each other or MLB thanks to the covenant known as the ML Constitution. If McCourt sues and a judge decides to allow his lawsuit to move forward instead of dismissing it early, the action would effectively challenge both the commissioner and baseball’s antitrust exemption together in one fell swoop. Which would be, well, is it 2012 yet?

The best thing for Frank McCourt would be to see the writing on the wall, take his lumps, and give up the Dodgers. That would speed everything else up.

Short term, what does this mean for the A’s? It could be interpreted as two possibilities. Either the panel is done with its work, or Selig has seen fit to put the A’s on the backburner while the Dodgers mess is cleaned up. Or both. The crazy thing about this is that the whole strategy about keeping the A’s and Rays in limbo for the upcoming CBA talks has been pretty much blown out of the water thanks to the much scarier impact of the Mets’ and Dodgers’ woes. Neither of those will get fixed before the next CBA is ratified. So, Bud, how about getting the “easy” stuff out of the way first?

More good reading: Dodger Divorce, Biz of Baseball, Forbes

04.21.11
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Isaac and Suke talk Dodgers-A’s-Wolff

Cue the conspiracy theories. Unsubstantiated reports have Bud Selig giving Lew Wolff right of first refusal on bidding for the Dodgers when it comes up for sale. Strange. Apparently this is all because Wolff lives there. Guess what? Brewers owner Mark Attanasio lives in LA, why not him? Discuss.

Update 2:30 PM – Right on cue, here’s a response from Wolff via Joe “Quicktweet” Stiglich (thanks Different James):

Lew Wolff, on being mentioned as potential buyer if Dodgers go for sale: “I’m only interested in the A’s — and getting above .500.”

More from Bill Shaikin:

Although Bud Selig’s takeover of the Dodgers on Wednesday could lead to a sale, Oakland Athletics owner Lew Wolff said Thursday he would not be a buyer.

“I’m not interested in the Dodgers,” Wolff said.

…

“My focus is deep into getting us a new venue for the A’s,” Wolff said. “That’s where my long term is.”

04.20.11
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Dodgers now under MLB control

Brief, terse press release from Commissioner Selig today regarding the Dodgers.

“Pursuant to my authority as Commissioner, I informed Los Angeles Dodgers owner Frank McCourt today that I will appoint a representative to oversee all aspects of the business and the day-to-day operations of the Club. I have taken this action because of my deep concerns regarding the finances and operations of the Dodgers and to protect the best interests of the Club, its great fans and all of Major League Baseball. My office will continue its thorough investigation into the operations and finances of the Dodgers and related entities during the period of Mr. McCourt’s ownership. I will announce the name of my representative in the next several days.

“The Dodgers have been one of the most prestigious franchises in all of sports, and we owe it to their legion of loyal fans to ensure that this club is being operated properly now and will be guided appropriately in the future.”

The big clue that this was happening was that Selig rejected a $200 million loan and a new TV deal between Fox and the Dodgers. Fox sent McCourt a smaller $30 million loan last week just to cover payroll, which may have been the last straw. The last thing Selig and the other owners want to see is for the Dodgers to hit such a debt level that it negatively affects bidding on the team. This didn’t hurt the Rangers when Tom Hicks put the team in a similar position, but still, at some point enough is enough. Apart from the messy process of legally extricating the Dodgers from the McCourts, the team is still one of the most valuable in baseball and should attract numerous bidders, none of whom are likely to be Lew Wolff.

04.20.11
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A’s, City of Phoenix agree to extend Spring Training lease, improvements

The Arizona Republic is reporting that the City of Phoenix City Council is set to improvement a lease extension for the A’s at Phoenix Municipal Stadium and Papago Park. The lease will run $425,000 per year to the A’s through 2025. They’ll also pay $50,000 per year into a capital improvements account. Most of the improvements would be at the Papago Park training facility, not Muni.

(A’s director of minor league operations Ted) Polakowski said the improvements are needed not so much at the stadium, which will require ongoing maintenance, but at the training facility. The team is outgrowing the current indoor space, he said, and the parking lot is getting tight. The A’s would like additional clubhouse space for its minor-league operations.

Maybe they’ll build Rich Harden a shed where he can stay during his eternal rehab, amirite?

Total cost of the improvements is slated to be in the $8-10 million range. That’s a far cry from the $30 million that Lew Wolff was looking for, and much, much less than the $100 million spent for the Salt River Fields project. From the sound of things, both Wolff and Phoenix were driven by new fiscal realities. Phoenix was willing to help, but it wasn’t going to make major sacrifices to do it. Wolff probably saw how Salt River’s opening sucked the life out of the competing complexes in the Cactus League, and figured that any really expensive improvements to Muni short of a brand new complex would’ve been futile. At least they don’t have to share.

The piece ends on this note:

Robert Johnson, a political consultant who helped in the campaign for the Cubs facility, said Phoenix should jump on the A’s offer.

“It makes a lot of sense,” he said.

The interim agreement contains language allowing either party to pull out of the agreement with two years’ notice, but Harman does not anticipate that becoming an issue.

“The A’s have been a great partner for us,” he said, “and they are committed to staying in Phoenix.”

In Oakland, someone’s ears are burning. BTW, it would cost $10 million just to fix all of the plumbing problems at the Coliseum.

The great news is that just like before, you’ll be able to fly into PHX in the morning, take the free shuttle and then light rail ($3.50 round trip) to Priest Drive and walk right in. It’s so convenient, one reader and frequent commenter here was able to do this and catch a game during a layover a month ago. How’s that for convenient?