Category Archives: News

02.29.12
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News for 2/29/12 (Leap Day)

A good amount of stuff to report today:

  • Oakland’s CEDA Committee approved an action to have the City Council vote on EIR funding for Coliseum City. The City Council will take up the action next Tuesday night. A’s Fan Radio did a stalwart job of covering today’s proceedings. A similar action was taken prior to the City Council voting on Victory Court in December 2010. If the City Council approves the expenditure, two things need to happen: A) The work has to actually happen, unlike Victory Court, and B) A plan must be clearly articulated to show how the teams and venues will be accommodated. That last bit is probably the most important to the leagues, who are the real gatekeepers. Update 12:10 PM: As Bryan Grunwald notes in the comments, the 980 Park concept will be included as an alternative.
  • The Santa Clara City Council approved the 40-year ground lease for the 49ers stadium. This was considered a formality because the Council approved the lease to the Stadium Authority, which is simply the City Council wearing different hats. The interesting note to come out of the session was dissenter Jamie McLeod’s mentioning the ongoing California Supreme Court case over a potential new referendum. The case could be decided in the next week.
  • A new grassroots group trying to keep all three teams in Oakland has been formed. The group is called Save Oakland Sports. Seems a bit late to do something like this, but it can’t hurt. Besides, Baseball Oakland has gone largely dormant since the Victory Court plan was scrapped.
  • Frank McCourt has been unwilling to sell the parking lots surrounding Dodger Stadium, and several bidding groups have dropped out as a result. One of the drop-outs was the group led by Rick Caruso and Joe Torre, considered one of the frontrunners. The parking lot attendant has truly come full circle.
  • The Kings arena deal looks complex. And yes, it does look like the Maloofs will be borrowing to put up their share. The term sheet is due for public release on Thursday.
  • The City of Miami approved funding for rubber wheel trolleys that will run between downtown and the Marlins Ballpark in Little Havana.
  • San Francisco’s America’s Cup will be missing one major venue going forward: Piers 30 & 32. The piers were supposed to be used as a large staging area for teams. Costs may have proved prohibitive. The race will continue as planned, but there will be huge distances between the venues.
  • MLB and the MLBPA are finalizing details of the revised playoff system that will include a fifth team in each league and a wildcard playoff game.

Radio ratings were released last week. The winter results show a sort of stabilization. As baseball season begins, KNBR-680’s ratings should rise. Will The Game’s? As the Warriors end their season early, KNBR-1050 should take a hit.

Arbitron ratings for the last three months

If you’re wondering, former A’s station KTRB finally showed up in the ratings book last month. The rating? 0.0 in the SF market.

02.27.12
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Sacramento, Kings, & NBA announce new arena deal framework

On Saturday I took a drive up to Sacramento. I went to Raley Field and took in part of Sacramento State Hornets baseball game. While I was up in the capitol I dropped by the train station, which is immediately south of the Railyards, the site of the proposed arena entertainment and sports complex. 240 acres of dirt and old buildings will make way for an arena, a new intermodal transit facility to go with the historic rail depot, and future ancillary and related development.

Looking east across Tower Bridge towards downtown Sacramento. The Railyards is off-picture to the left.

So I guess I was fortunate to get a glimpse of things before today’s announcement by the City of Sacramento, NBA, and the Kings about a Railyards arena deal (City press release). The $387 million arena plan has been in the works for the last year, with a complete term sheet to be put up before the City Council by March 6. Details have been coming out in the last week as negotiations between the City, team, league, future arena operator AEG, and Sacramento County have caused the numbers to shift considerably as all parties rushed towards the league’s deadline (originally March 1).

When I wrote about the project two weeks ago, I opined that as usual, the devil would be in those details. Now it appears that the deal is on fairly solid footing because of the Maloofs and AEG providing more money to bridge known funding gaps. Those raised contributions, when taken in conjunction with the selling off of parking rights throughout downtown, should provide enough money to get the plan off the ground. The tenets of the deal are these:

  • $190-200 million from selling future parking revenues to private operators. To make this work, the City will have to guarantee some $9-10 million per year in revenue, which means the City may have to make up a shortfall if revenues don’t come in as expected. Sacramento County has apparently pledged revenue from three lots it owns for the effort. Existing debt the Maloofs owe to the City would be refinanced. The “cash” the Maloofs are pledging may actually come some kind of loan, though the loan wouldn’t come from the league.
  • $75 million upfront from the Maloofs, plus $75 million from future rent payments and perhaps a revenue sharing deal. Part of the upfront contribution would be $25 million in land in Natomas near ARCO/Power Balance.
  • An unknown amount from AEG. Initially this was speculated to be $50 million, but the fact that AEG will probably split gate and concession money with the Kings makes this more difficult to assess. There was also talk that AEG’s contribution would actually be part of the Kings “cash” share, but I’ve seen nothing to confirm this. AEG’s updated contribution is expected to be $60 million.
  • A 3-5% ticket surcharge being assessed by the City will not be used to pay off the arena. Instead it will go straight to the City’s general fund in order to offset the lost parking revenue. (Back of the napkin math has this at $3-5 million in revenue annually.)
  • ICON/Taylor, the developer planning the arena, is pledging to handle cost overruns.

From what I know of the area, I have to believe that for the project to get through the CEQA process at least one additional exit/interchange on I-5 between J Street and Richards Blvd. will be necessary. 7th St to the east of the Railyards is merely two lanes wide, so it’ll probably have to be widened to handle traffic not just for the arena but also for the other area development. Remember the Cal Expo plan floated in 2010? There were tons of traffic concerns associated with it, with no clear way to deal with it. Fortunately the Railyards arena will be very close to light rail and Amtrak service.

Now that the plan has been hammered out, it’s all process from here on out. The project EIR started in October, which means a draft should come out of it in the next six months. The tricky part of sequencing everything is that if the parties are all still aiming for opening in May 2015, they’ll have to certify the EIR in only 15 months in order to start building in January 2013. If the project goes to a public vote, there’s little chance that vote can happen before the EIR certification. It would seem more prudent to aim for a October 2015 opening to coincide with the start of the NBA season.

Will this get the job done? It’s a lot better looking plan than any I’ve seen for the Kings in the past decade. That’s a major improvement over the sense of impending doom that shadowed the team last April. It’s clear that this is the final shot for Sacramento to get something done for the Kings, and it’s a decent shot at this early juncture. The losers at this point are Seattle and Anaheim, both of whom were looking to poach the team. If there’s a winner, it’s David Stern, who has somehow come off looking magnanimous while not loaning or otherwise spending any league money to get the ball rolling. A year can make a lot of difference, though Kings fans should be cautiously optimistic. The Railyards arena plan is fragile at best, and while Mayor Kevin Johnson characterized today’s news as hitting the front end of a one-and-one (free throws), plenty of players and cities have bricked that second free throw.

02.23.12
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Dead-market team

If you haven’t seen it yet, make sure you read USA Today baseball writer Jorge Ortiz’s team capsule of the A’s. And I mean read all of it. There are some choice quotes from Billy Beane, like this one on trading Cahill/Gio/Bailey:

“We’re not doing it to be mean,” says Beane, aware of the trades’ impact on the team and its shrinking fan base. “It’s not like I come into this office like I just jumped off the stage of Wicked with a green-painted face and go, ‘How can I trade my guys?’ We do it because we have no other choice.”

Cue someone in the RF bleachers pasting a giant, green-tinted, smiling Beane face on Elphaba. Or maybe Brad Pitt’s face? It’s hard to tell them apart these days.

Then there’s ESPN Magazine cover boy Brandon McCarthy, who may have displayed a little too much of his trademark candor when he said this about how the A’s operate:

“It makes team-building and the competitive aspect that much harder here,” says right-hander Brandon McCarthy, the A’s likely opening-day starter. “It’s not even being a small-market team. It’s being a dead-market team.”

Merde.

Later in the article, Wolff provides two crucial pieces of information that I had not known previously.

  • Moving the team to San Jose should increase revenue $80-100 million annually.
  • The TV rights deal with CSN California runs 25 years with an opt-out at 15 (2024).

In last October’s post titled “$230,000,000“, I attempted to estimate what the A’s revenue model could look like if they moved into Cisco Field in 2015. I figured it would be $64 million more than they get currently. Clearly, Lew Wolff is aiming higher, though he may be using a lower 2010-11 revenue estimate of $150 million or thereabouts to make the comparison (which would fall in line with a +80 million target). In any case, he and the rest of the business side seem to have a pretty good idea of where they’re going.

The A’s TV rights deal with Comcast, which unlike most other recently negotiated team TV deals, did not have its numbers or length revealed, is of similar length to others negotiated by the Rangers, Angels, Astros, and Mariners. I hope the deal isn’t a flat, non-escalating deal, because if it is the A’s will surely be forgoing revenue during what should be considered their competitive window from 2015 through 2020 and beyond. The flipside of that is that at least it’s comforting to know that the A’s are locked in somewhere for at least 15 years. That’s a lot of time to build brand equity, and it’s a damn sight better than the broadcast musical chairs the A’s had to deal with during the pre-cable days.

Comparison of current and future AL West TV rights contracts

I had theorized that the A’s were getting $15 million per year via their cable deal, though I’ve been too lazy to actually verify this. Based on the actual revenue the A’s report or the Forbes reported figures, I can’t see how it’d be much higher than $20 million. Either number is a pittance compared to what the division foes are getting, and will be even less competitive once the M’s negotiate a new deal in the near future. While the A’s can’t control what other teams get and appear to be locked in with CSNCA, they should at the very least have the opportunity to get the $80-100 million Wolff claims he can get via a new ballpark. Because if he can’t, Brandon McCarthy will be more correct than anyone would’ve had the temerity to suggest. For all intents and purposes, the A’s will be in a dead market. Or as he said towards the end of the article:

“It’s a major issue,” says McCarthy, who also has pitched for the Rangers and Chicago White Sox. “I think it’s one of those things that’s crippling this franchise. I’ve never seen anything like this where something like that could just become the rolling avalanche of things not being the way they should. A decision has to come.”

No fan wants to hear this type of thing, whether they’re in Oakland, San Jose, or Springfield. It belies the optimism that spring should bring. But whether you believe McCarthy is simply regurgitating the team line or he’s a blunt, independent thinker as he’s repeatedly shown, he’s right. Something needs to happen. Hopefully McCarthy will stay healthy enough to get a nice payday next year, even if it isn’t with the A’s.

…

P.S. – McCarthy and Dallas Braden were interviewed by The Rise Guys this morning. Good audio.

02.22.12
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San Jose 2/22/12 Planning Commission Meeting Liveblog

9:15 PM – Appeal denied, Planning Commission approves permit 6-0, Chair Hope Cahan not present. Vice Chair Bit-Badai urges Earthquakes to continue working with residents.

9:07 PM – In a follow-up to an issue brought up earlier, City staff indicates that FAA audit will likely not be successful, and would have little financial impact. Commissioner Kamkar wants to approve project. 

9:03 PM – Commissioners have been speaking, trying to define scope of what they are discussing. Commissioner Platten emphasizes that the soccer stadium is not a harbinger of what will happen for the ballpark. The issues are: 1) Adequacy of noise study, 2) Proper communication with other governing bodies, 3) Proper communication with community. Platten urges permit to be passed and appeal denied.

8:52 PM – Newhall resident asks for SoundPLAN study in order to be thorough. Asks for the gap between the rim of the seating bowl and the roof to be closed. Re-emphasizes that residents are not against Quakes or stadium in general.

8:48 PM – Lew Wolff implores commission to make a decision and not delay things any further. Planning commissioner Kamkar asks about a 31-foot sound wall that was in the original EIR that is not in the new stadium concept, and the use of aluminum risers. Keith Wolff says that the design of the stadium blocks the noise so the sound wall won’t be needed, and that as long as the aluminum risers are constructed without gaps they should not leak noise.

8:44 PM – Keith Wolff is taking his five minutes, Lew Wolff at his side. Keith Wolff mentions that the City came to the Quakes with the site, not the other way around. Talks about concessions made (no concerts, distributed sound, meetings with residents four times a year).

8:43 PM – Last two speakers are in favor, after Marc Morris (S/HNPA) also implores more study. Planning commissions should have questions for the applicant next, followed by the vote.

8:29 PM – Quick point – SJC Airport noise contours are set to expand for 2017 and 2027. The Newhall neighborhood would fall within the 60 dB noise contour. That’s a good deal greater than the “comfortable” 55 dB ambient noise, though not double (+10 dB = double). 

8:15 PM – A group of Newhall Neighborhood Association residents have put together a presentation about the neighborhood. They appear to be sequenced to complete the preso. Apparently soccer has impacted quality of life in their “quiet” neighborhood. Planning commissioner asks what “quiet” means, considering the location near trains and planes. Speaker says he is referring to loud bursts of noise (crowd cheer, drums). Another speaker says that ambient noise is <50 dbA, 90% of the time. Noise with stadium would go up 862% (disturbing peak events of >58 dbA) with stadium. Use of aluminum risers as opposed to concrete (at Home Depot Center) may increase noise. Newhall residents are arguing that the stadium approved via the EIR are not what the Quakes are presenting, and that time should be taken to reflect that change.

8:09 PM – Someone from MLS in New York flew out to speak. Big surprise there. Mentions that this is the first time he’s spoken for a stadium project in which he wasn’t asking for public money.

8:08 PM – Supporter quote of the night: “I’m married to a Brazilian and I would appreciate it if you could work to keep our marriage together.” 

7:54 PM – More supporters have spoken. Balandra is part of the Shasta Hanchett Park Neighborhood Association, as are Jonathan Martinez and Helen Chapman. Sounds like at least a few individuals are practicing their arguments for the next round. As Chapman speaks, several fans hold up “BUILD IT NOW” signs. S/HNPA’s argument is that the neighborhoods and the process should be respected, and that their arguments are not against soccer or the Quakes in general. I get the feeling that the fans don’t want to hear anymore about process.

7:40 PM – Terri Balandra, citing her own question of Lew Wolff at the Rotary Club luncheon, asks Wolff to “go overboard” to mitigate light and noise. Also mentions an FAA audit which may show that the City misused federal funds on Airport West in that the funds were supposed to go towards potential airport expansion and eventually did not. Those funds may have to be returned, and if that’s the case Balandra asks if the land deal could fall through. My instant response to that is that the City did evaluate using the land for expansion, but the project was too costly and not cost-effective. Because of this they’ve chosen to sell the land to Wolff. If someone wants to extract blood from that turnip, they might as well try to build a time machine to send everyone back to 2007, before the economic crash. Then they’d might get something out of it. 

7:36 PM – Chris Wondolowski‘s aunt is speaking in favor. How often do you get a player’s relative speaking in favor of a stadium? I haven’t seen it before.

7:35 PM – I’m not keeping a tally of for vs. against speakers, but so far it is only two against, everyone else for.

7:29 PM – Jonathan Martinez asks the question(s) of the night: “Noise? In that neighborhood? Are you kidding me?”

7:25 PM – Belated stream link.

7:16 PM – At least two sponsors of the team have spoken in support, as well as a youth soccer coach and a worker for a community-based nonprofit.

7:14 PM – A speaker from Tracy mentions his brother, who recently passed away. He said that having the Quakes here helped him get through the tough times.

7:11 PM – The team’s official Twitter feed is livetweeting the event.

7:02 PM – A speaker says he is opposed to the sites for both the Quakes and A’s stadia. Would prefer the A’s to move to Airport West, while Quakes go to 237/Zanker.

6:59 PM – Soccer Silicon Valley’s Don Gagliardi is speaking. Asks fans to stand up. My guess is 95% of the crowd is Quakes fans. Claims that in 10 years the Quakes will be more important to San Jose than the A’s (if the A’s move).

Earthquakes fans standing in support

6:56 PM – 1906 Ultras (supporters club) are holding up scarves in unison as Kaval speaks.

Kaval notes design of stadium (turned towards airport) and lack of concerts as a form of noise mitigation. Mentions that Quakes have not gotten a noise complaint in last two years at Buck Shaw Stadium.

6:53 PM – Lew Wolff is speaking in support and thanks. Considers soccer a “community asset”. Claims that even if the number of games were doubled, the actual impact on the area would be only 170 hours per year. Introduces David Kaval. Applause from crowd. Crowd admonished for applause.

6:48 PM – A representative for the appellant (who is not present?) is at the podium. Notes a petition that has been signed by 210 people. Asks to uphold appeal, deny the application, and reopen the EIR on the grounds that the noise analysis is flawed. 

  • No computer simulation noise analysis for conceptual stadium design or proposed stadium design
  • Diridon Analysis with SoundPLAN would should noise would be 3-5 dbA higher for baseball games and 5-7 dbA higher for concerts – than in the approved EIR noise study.

This could be important for a future ballpark fight, as we can expect the same issue to be brought up.

6:45 PM – City staff is going over new/amended noise analysis, the idea that the stadium’s design and use should mitigate noise, and the restrictions on noisemakers that should further make the stadium “a good neighbor”.

6:42 PM – Planning commission is going over rules and consent items. Item 3F, the Quakes stadium proposal, has been moved to go first.

6:24 PM – Council Chambers is filling up quickly. Lew and Keith Wolff, and David Kaval are present, doing brief interviews with local media.

Quakes fans message for the night

Read the KQED interview with Earthquakes president David Kaval that Nina Thorsen posted. About any linkage between the Quakes’ project and a future A’s ballpark, Kaval says this:

We’re really run as our own entity.  This process is really a stand-alone process.  Since our ownership is basically the same as the A’s, any learning from this, best practices, and how to work with communities, can be helpful to them.  But they’re not linked in the way that some people might assume.  The financing is completely separate, and obviously it’s a different sport, different league, different location.

Coincidentally, 95.7 The Game is doing one of their Lucky Break radio gig auditions tonight at 4th Street Pizza, which happens to be across the street from San Jose City Hall. Lucky Break will happen at the same time as the planning commission meeting, so you’ll have to choose which one to attend.

02.19.12
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Quakes stadium faces final Planning Commission vote

On Wednesday I’ll be at the San Jose Planning Commission hearing at City Hall at 6:30. From all indications, so will numerous Earthquakes fans who have been patiently waiting for a final “yes” vote for construction to begin on the 18,000-seat, soccer-specific stadium near Mineta Airport.

Low profile stadium with roof, lights, and "controversial" gap

At the end of 2011, a resident from the nearby Newhall neighborhood appealed the granting of a building permit on the grounds that environmental issues such as noise and light pollution were not adequately addressed. That forced the project to go under another (hopefully final) review to determine if the design of the stadium, including the shape of the bowl and roof, would properly protect the residents of Newhall.

Newhall is actually split in two by Caltrain. The bulk of it lies southwest of the tracks and extends to The Alameda and Park Avenue, close to Santa Clara University. The resident who filed the appeal appears to be from the area across the tracks, where multiple high density developments have been built in the last decade or so. The smaller part of Newhall is hemmed in by the heavily used railroad tracks to the west, I-880 to the east, and the airport to the north, That area is an odd place for any kind of neighborhood. It’s right next to the landing approach to the airport. It’s zoned Heavy Industrial and for decades was right next to the FMC plant, which was closed and bought by the City before it was resold (an option at least) to Lew Wolff and partners for a stadium/commercial development. The neighborhood is so small that when looking at it from an aerial photo, it appears that it could fit inside the Lowe’s store that opened nearby a couple years ago.

Getting back to the appeal, here’s what City staff wrote was the gist (warning – 9 MB PDF):

The Appellant states “The applicant has not met the burden of proof that the design complies with the EIR, because the noise and light impacts of the proposed stadium have not been properly simulated” and requests additional analysis. The Appellant specifically identifies a “large open-air gap between the top of the stands and the roof structure” as a change to the stadium design that was not adequately analyzed and requests that the stadium design be changed to enclose this area. The Appellant also requests that the Permit prohibit artificial noisemakers, such as vuvuzelas and other horns, within the stadium and in stadium parking areas, and also prohibit distribution of such devices by the operator. An updated Noise Report (attached) has been provided in response to the issues raised in the Appeal.

And the response:

The updated Noise Report clarifies that the currently proposed stadium design would not generate noise levels greater than those studied and disclosed in the project EIR because: 1) the current proposal has an amount of open area comparable to the stadium which was used as the basis for analysis in the EIR (the Home Depot Center in Los Angeles); 2) minor proposed changes to the stadium design are either comparable or beneficial in terms of the stadium’s overall potential for noise generation; and 3) the proposed stadium would only have 2/3 of the seating capacity of the analyzed stadium, thereby reducing the potential for noise generated by people attending the soccer games. As part of this discussion, the Report clarifies that changes to the stadium design include the overall reduction in size and height, due to the decreased capacity, reorientation of the open end of the stadium away from the residential neighborhood, and the addition of a small roof structure above the stadium seating area. The updated Report concludes that as a result of these changes the current stadium design would have the potential to generate noise impacts consistent with or less than those analyzed in the project EIR.

The Appeal raises the concern that a “gap” between the stadium seating and roof structure, which did not existing in the prior design, would result in potential light impacts upon the residential neighborhood. As noted above, the stadium design analyzed in the EIR did not include a roof structure. The addition of this roof and the reduction of the overall stadium height should help to reduce potential noise and light levels emanating form the stadium. All of the proposed stadium lights would be oriented downward toward the playing field and located either underneath the roof structure, or, at the open end of the field furthest from the residential neighborhood, on a free-standing pole that would not be taller than the stadium structure. Therefore, given for the proposed stadium design the distance of separation to the residential neighborhood, the height of the stadium lights, and the shielding of those lights by the stadium structure, the stadium lights would not have an impact upon the residential neighborhood. Other structures to be built on the adjoining and intervening properties, including facilities related to the BART (and possibly the high-speed rail) projects, would further screen the stadium from the residential neighborhood.

In short, the City is arguing that noise pollution would be the same as or less than those studied at Home Depot Center, especially because the planned stadium is smaller. In doing so, noise levels would be deemed acceptable, allowing the project to move forward. The Appellant argued that the gap between the roof would cause noise to leak out of the stadium and into the surrounding neighborhood. The stadium’s horseshoe shape was designed to channel crowd and PA noise out of the open end, the northeast side closest to the airport. The roof, which is tight to the rim of the stadium, is supposed to assist with this. The lights are tucked under the roof, which should limit light leakage.

All things considered, I think the Earthquakes and 360 architecture have made great pains to conceive a stadium that would have minimal impact on area residents (though it should be mentioned that the CEQA process is about much more than impacting residents). The project should be approved. The issues identified by the appeal aren’t unique to the situation. Measures being taken to restrict noisemaking devices such as horns or vuvuzelas will help a ton. Beyond that there isn’t much more the team can do. If noise really does leak out of the gap, the team could easily wrap the gap in long vinyl panels. I’d prefer they didn’t do this as the gap helps airflow during the summer. The time has come to stop studying and start building. Let’s get the Quakes the home they’ve deserved for so long.

P.S. – If you read the staff report, including the chronology of events, you’ll notice that the process looks somewhat similar to how the Diridon ballpark EIR was approved. When a complete San Jose ballpark concept is submitted by the A’s, you can expect similar treatment, except in the A’s case the stakes are far higher and the impacts potentially greater.

02.16.12
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Sacramento, Seattle prep arena proposals

The March 1 deadline for the City of Sacramento to present a complete new arena proposal for the Kings and the NBA to consider has pushed at least one city to react in anticipation. Last year it was Anaheim, this year it’s Seattle. Seattle has been rumored for the last few weeks to have a big-money white knight getting ready to lure a team to the Emerald City. That white knight’s name is Chris Hansen, a Seattle native and SF hedge fund manager.

Seattle and King County held a joint press conference today to give details on the plan. Mayor Mike McGinn’s website has the presser and some backing info. The arena would cost up to $500 million, with $290 million by Hansen and his team(s). The big key to the plan is that unlike KeyArena on the other side of downtown, the new arena would be designed to house both NBA and NHL franchises. While there aren’t specifics about the financing, it’s clear that the arena deal would only work if teams from both leagues relocated there so that revenues would be high enough to cover debt service. Naturally, ensuring 82 regular season games, 3-4 preseason games, plus a good likelihood of at least one playoff series every year, would go a long way towards covering the loans that will be necessary. KeyArena would serve as a temporary home while the new arena was under construction.

Seattle and King County would partner up for $200 million in public financing, which would be backed by ticket and sales taxes. While they didn’t get specific, both City/County and Hansen and public financing as it relates to I-91, the 2006 ballot initiative that only allowed for such financing if the City could get a reasonable ROI (3.1% currently).

Hansen and associates have bought a three acre property south of Safeco Field in the city’s SoDo district. Three acres isn’t large enough for a new arena, so additional land will have to be acquired. The unacquired land includes Showbox SoDo, a warehouse concert venue. It would appear that Showbox SoDo, which was purchased by Showbox in 2007, would have to make way for the new arena.

Comparison of Seattle and Sacramento arena proposals

For its part, the City of Sacramento has put out some basics from its new arena term sheet, which is still in the works and to be presented to the City Council on February 28. The upshot from the $387 million proposal is that the Kings owners, Joe and Gavin Maloof, will have to put up $60 million in cash and donate $25 million in land to make the deal work. It’s unclear if the Maloofs, who already have sold off numerous assets and remain in debt to the City, have the resources to pull this off. The total cost of $387 million also feels rather low, at least by California standards. $200 million in public financing would come from the advance sale of downtown parking revenues.

Both plans have major questions attached. Besides the Maloofs’ outlay, there is a question of whether or not the NBA would sign off on such a deal, especially if the Kings’ low revenue position coupled with debt keeps the team at a competitive disadvantage. The Seattle plan’s dependence on having both NBA and NHL teams in-house sounds looks like a major potential stumbling block due to the complexity of catering to both. Both leagues currently have teams up for sale (NBA’s New Orleans Hornets, NHL’s Phoenix Coyotes), but both would prefer to keep them local if at all possible. Seattle’s plan makes the most sense if there’s only a single ownership group for both teams, as that would prevent competition between two ownership groups from derailing negotiations.

Chances are good that among the Hornets, Coyotes, and NBA Kings, at least one of them will move in the next few years, perhaps two or all three. When that happens it’ll be a tragic day for the adversely affected fans. The cycle of heartbreak continues.

02.14.12
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Ground broken on Pac-12 Network headquarters

A ceremony was held today at the San Francisco site where the Pac-12 Network studios are expected to be constructed. Officials called it a groundbreaking, but it was more of a wallbreaking, since the studios will be in the same building as the Comcast Sportsnet studios on Third and Harrison.

The new network, which will be the third conference-specific network after the Big Ten Network and the mtn., is expected to be the first to be wholly owned by a conference. Despite the Pac-12’s insistence on owning the network solo, it will have no shortage of partners, starting with housemates Comcast. College football will always be a considerable draw, and while college basketball throughout the conference may be in a bit of a slump, there should be plenty of interest in many of the non-marquee sports (baseball, softball, soccer, volleyball, etc.) to provide plenty of programming. When the network launches in August, it’s scheduled to show 850 sporting events every year.

One operational difference between P12N and other conference networks is that they’re setting up to provide up to six regional feeds along with its national feed. That should allow every market and cable operator to show games specific to those markets if multiple events are happening simultaneously. I’m not sure how this would work with satellite providers like DirecTV and Dish, other than for them to pick up a package of all seven channels. Will all seven be available on both cable and satellite? The Merc’s Jon Wilner has some info from last week’s pre-launch announcement.

With just the cable providers, the network will be available to 40-45 million households. At $0.50 per month per household, that’s potentially $270 million per year in subscriber revenue alone, or $22.5 million per school before costs are deducted (not accounting for ad revenue). That figure could reach nearly half a billion annually if the satellite providers are included, perhaps more if the cost for the channel were more than $1 per month. The University of Texas’s Longhorn Network charges $0.40 per month/subscriber, the Big Ten Network charges $0.36. The Longhorn Network experienced problems getting cable systems to partner up, a problem Pac-12 commissioner Larry Scott is looking to avoid. The network, or at least the national and specific regional channels, will appear on lower tier cable packages, so Joe Customer will be paying for it.

It’ll be interesting to see what happens to the various RSNs now that a significant amount of Pac-12 programming will be going elsewhere. The other western college conferences have little general fan interest compared to the Pac-12. On one hand, carrying Pac-12 games and shows is a cost. On the other hand, it’s good filler and has a fairly good fanbase to draw upon. The alternatives are to focus more on a market’s pro teams, high school sports, or the aforementioned non-glamour conferences. Heck, the only FBS schools in California besides the Pac-12 members are San Diego State, Fresno State, and San Jose State. Not exactly a ratings bonanza waiting there.

Personally, I don’t look forward to my DirecTV bill going up because the Pac-12 wants a little more coin. However, I wouldn’t mind seeing more college baseball, soccer, even women’s sports. That might make it worth it.

02.13.12
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Cespedes and a new ballpark

For Billy Beane, 30 is apparently the magic number.

Jason Giambi left the A’s for the Yankees after his 30th birthday as a highly prized free agent.

Miguel Tejada was not offered a potentially “insulting” deal when his arbitration years were up, allowing him to switch coasts to Baltimore. When he took the field in an Orioles uniform for the first time, he was a month shy of 30.

Assuming that Yoenis Cespedes stays with the A’s for all four years of his newly inked $36 million deal, he will be 30 years old when he becomes a free agent after the 2015 season.

With Lew Wolff’s admission that a 2016 Cisco Field opening is more likely than 2015 given the delays and necessary steps remaining, that puts Cespedes quite possibly gone from the A’s when the time comes. Or does it?

It’s really all a matter of value. If Cespedes really is the “Willie Mays of Cuba” then two things are possible. Either he’ll be too expensive to keep and he’ll be signed by a big market team to a huge deal (Pujols, Fielder), or he’ll be a strategic signing by Beane to have a marquee talent on hand for a new ballpark opening. Keep in mind that the San Jose ballpark is practically guaranteed to be more hitter-friendly than the Coliseum.

I figure that if the A’s can sign Cespedes and keep payroll below $100 million in 2016, they’ll do it if he’s performing. By that point Michael Choice should be in his arb years, as will Grant Green and most of the new young pitching talent the team has waiting in the wings. For a guide to how this might play out, look at how the Twins’ and Marlins’ payroll decisions are progressing. Both teams have committed well above $90 million before the low service time guys are signed. As cheap as many fans think the Wolff/Fisher ownership has been, ask yourself this: Are they cheaper than Jeff Loria or the late Carl Pohlad? Or Mike Ilitch during the Tiger Stadium years?

Right now 2015-16 seems so far away that’s it feels silly to project in this manner, especially the way Beane can trade guys at the drop of a hat. But we know that’s what the front office has to do, whether Cisco Field opens in 2015, 2016, or not at all. As long as we’ve stolen a slugger with real potential out from under many far richer teams, I’m taking the little victories whatever way I can get them.

02.11.12
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49ers incentivize Turner-Devcon to finish stadium by 2014

The Merc’s Mike Rosenberg has the reason why the 49ers and City of Santa Clara are working so hard to get the stadium legally decided: 2014 is the plan. Aiming for a preseason 2014 opening, the team is incentivizing contractors Turner-Devcon to finish by that point by offering a multimillion dollar bonus. They’re also flipping the script a bit by penalizing the contractors for every regular season game missed.

The contract requires Turner-Devcon to start building by July 1 and finish the stadium so it can open by the end of August 2014. If not, the firms would be penalized $6 million for each 49ers game missed, plus daily fines that could hit $20 million.

The penalties are harsh enough that the firms could actually lose money on the deal if they don’t finish the project on time. On the other hand, if they complete the stadium in time for the 2014 preseason, the 49ers will reward the firms with a $5 million bonus.

It’s a highly aggressive schedule, one that the stakeholders will be hard-pressed to achieve. Assuming that the Superior Court strikes down a possible referendum push, the 49ers are aiming for a July start to construction (groundbreaking would occur well before then). That puts the bulk of construction time at 25 months, though it’s likely that they’ll still be buttoning the place down for the two months prior to the 2014 regular season start.

These kinds of incentives are fairly commonplace. Road construction firm C.C. Myers earned a sterling reputation from finishing rebuilds way ahead of schedule of the 10 freeway after the Northridge quake and after the 2007 MacArthur Maze collapse when an overturned tanker caught fire and melted an overhead ramp.

Turner-Devcon is expected to be pretty busy over the next few years as they’re contracted to do the Santa Clara stadium. It’s also likely that they’ll be called upon to work on the Earthquakes stadium and Cisco Field. It’s just too bad that, knowing that the NFL wants the 49ers’ home built ASAP, they’re facilitating it to the best of their ability, approving the G-4 loan and arranging for the additional financing with multiple financial partners. What kind of help are the A’s getting from MLB? They’re on the “front burner”. Supposedly.

02.10.12
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SJSU to build Bill Walsh Center

In keeping with its efforts to maintain relevance in the high stakes world of college football, San Jose State University will build Bill Walsh Center, a $9-13 million football training complex on the north end of Spartan Stadium. The Merc’s Jon Wilner has the details.

Bill Walsh Center overlooking the north end zone. Credit: SJSU

The Bill Walsh Center is expected to house the football program, while the existing Simpkins Center will be repurposed for academic support. The project has been in the works for over a year, while donations have been gathered. The BWC is expected to be completed in time for the 2013 football season. $9-13 million is a drop in the bucket compared to the $321 million Cal spent on Memorial Stadium or even the $100 million John Arrillaga used to rebuild Stanford Stadium. Despite that disparity, it’s enough for San Jose State to continue its program in the WAC, and in light of the outlandish amounts spent at other FBS schools, is a refreshing show of restraint. And in honor of a coach whose genius was largely predicated on dinkin’ and dunkin’ down the field, I suppose the expenditure’s size is appropriate.