Marlins one step closer to ballpark

The soap opera-esque story of the Marlins’ efforts to get a ballpark took a positive turn Tuesday. Well, it was positive for the Marlins, perhaps not so much for the citizens of Miami-Dade County. Judge Jeri Beth Cohen, who was presiding over Norman Braman’s lawsuit regarding the legality of the stadium deal, threw one the last remaining arguments of the case: that the stadium did not serve a public good. That may not sound like much, but that’s important when it comes to securing public financing.

One issue remains, the most important one. Braman wants to see the ballpark put to a referendum. That ruling is expected after September 15. He has also indicated that he will appeal the case all the way to the Florida Supreme Court, although if he loses on this remaining count (he’s lost the other six so far), the Marlins and Miami would be free to proceed unfettered.

Raiders revisited

Chris Thompson of the East Bay Express has a lengthy piece on the Raiders’ past and possible future in (and out) of Oakland. While the article doesn’t draw any specific conclusions on the Raiders’ stay in Oakland, their future there appears to be only slightly above bleak.

Last January I posited an idea that the Coliseum, once the A’s moved out, could be renovated to become a properly updated (new) NFL facility. Considering the cost of a brand new stadium ($800 million or more and rising every year), renovation is not an idea that should be dismissed too quickly.

I mentioned in my previous post on this subject that the EIR process could be shortened thanks to the existing use of the stadium. However, there are challenges for a renovation. Let’s start with a timeline, assuming the A’s move into Cisco Field in 2012.

  • September 2011 – Raiders begin final season in “old” Coliseum
  • October 2011 – A’s play final game
  • December 2011 – Raiders play final game
  • January 2012 – Renovation begins
  • August 2012 – Raiders begin playing in temporary facility
  • August 2013 – Raiders begin playing in completed, renovated Coliseum

The plan would be somewhat like the construction of Mt. Davis, except that everything else around Mt. Davis would be torn down and rebuilt. There may even be a chance that the Raiders could play the 2012 season in a partly finished Coliseum. I’ll explain this later.


Building anything on the current Coliseum footprint is challenging due to the shared nature of the venues. The plaza between the arena and stadium is not particularly wide and underneath it is a vast amount of back-of-the-house facilities. There’s the old Exhibit Hall, part of which is now used as the Raiders’ locker room. VIP and player parking flanks the plaza. Anything new would have to minimize disturbance of the plaza and the arena.

When Mt. Davis was built, the existing plaza’s utility was maintained. The lower deck of Mt. Davis has a handful of risers and seats. Most of it was left blank to accommodate the baseball field. Football seats on portable sections are brought in before games. This situation misses out on a large amount of potentially available space. Thus, the first move would be to place permanent seats in the lower deck and build it out underneath. Locker rooms and supporting facilities could all be stashed underneath.

Next, start tearing down the old Coliseum, sections x01-x10 and x24-x33. The recent trend among football stadia is to minimize the number of end zone seats, so building one deck of new infill seating sections in each end zone should not be difficult. Suites and club sections would not be necessary and would be suboptimal anyway.

That leaves the last part of the original bowl, sections x11-x23. These contain the West Side Club, press box, A’s clubhouse, and additional functions. In this case, pull out all of the lower level seats. They’re too low and not pitched enough for football, so they desperately need replacing. Then start building in permanent lower level seats, like the ones put in to finish Mt. Davis. It’ll take some work to “connect” them to the existing concourse but it can be done. The concrete supports for the upper levels, which are built into the vomitories, would have to be preserved.

This is where the timeline could be split. With the new seating sections in place, the Raiders might be able to play 2012 in the partly upgraded stadium. During the next offseason, the remainder of the renovations could begin. The issue there is the structural work that will be required. If it’s lengthy (cast in situ concrete) then there’s no way 2012 could be played there. If not it the split schedule might work. The upper decks would be removed and replaced with two levels of suites with press box, a full-length club level, and a large upper deck (like Mt. Davis but not as tall).

The cost? Well, the land’s already paid for. There’s demo and some new foundation work, but far less than would be expected for a new stadium. Wild guess is $500 million, far cheaper than a new place, yet with all of the location advantages and volume parking that come with the Coliseum.

A’s begin to address traffic concerns

An article in today’s Fremont Bulletin (Wes Bowers) notes that on Wednesday, Wolff Urban Development Sr. VP Paul Menaker spoke at length at the Fremont Rotary Club about the state of the Cisco Field and ballpark village project. Most of the news relates to traffic and parking management. There’s nothing to report on public transit, other than the A’s are in talks with every transit district that services Fremont and the surrounding area. Menaker noted that BART service to the Warm Springs station is scheduled to begin in 2015. Construction of the Warm Springs extension is slated to begin next year, with the Santa Clara County extension to follow pending approval of a countywide sales tax hike in November.

Menaker’s discussion appears to have centered around infrastructure. While area freeway interchanges are plenty beefy, the A’s propose additional lanes and even another on-ramp to accommodate the projected 10,862 auto trips for each game. I’ll go point-by-point on several of the new developments:

To accommodate autos, Menaker said parking would be sited in various designated areas on the east side of I-880. He added parking had originally been slated to be in the Fountains Business Park.

That’s a major departure from the original development plan. The area east of 880 is far more developed than the project area, which makes me wonder if the A’s have acquired even more properties in Fremont. They’d also have to get the fans across the freeway safely, which would require either a long pedestrian bridge over the Nimitz or more shuttles. It’s a bit of a headscratcher until there are more details. It’s not stated how much parking would go in that area. 10%? 20%? 50%?

Saying the A’s also know this will increase congestion in Fremont, Menaker said the team will make a number of improvements to existing roadways, including adding a second westbound turn lane from Stevenson Boulevard to Boyce Road.

A third westbound lane will be installed on Auto Mall Parkway from Cushing Parkway to Noble Way, and an additional offramp from I-880 to Auto Mall Parkway will be built.

A second right turn lane from Fremont Boulevard to Cushing Parkway will be installed, but only used on game days, he said.

He added various traffic light improvements will also be made, and also only apply on game days.

I believe that’s Nobel Way, not Noble Way. The combined effect of these changes will be to make the additional traffic run more smoothly – though it may be as much aimed at the new residential and commercial traffic as it is the ballpark. The onramp is an intriguing proposition, though I have no idea where it would go.

As motorists near the stadium, there will be permanent signage directing where they can and cannot park. He said the team would pay for all aspects of traffic management, including traffic and security officers.

“Everything we do in parking management will be to keep people from parking in Costco’s lot and Pacific Commons,” Menaker said, adding the team will pay for security personnel, monitors, and enforcement which he called security zones.

As for parking, the A’s are proposing a validation scheme for shoppers and employees. Previously I expressed skepticism about validation and remain so, simply from the notion that the big box retailers generally frown upon validation in general.

While I am impressed with the expansive nature of Menaker’s traffic discussion, there remain questions about how to placate all of the various constituent groups in the area. The additional infrastructure, which the A’s say they will pay for, will be expensive. I’m curious to find out how they will pay for it, as well as further traffic and parking plan details. The role of technology may be important as well, since RFID could help streamline parking management.

At this point I’m only certain of one thing: the traffic and parking study will be a bit larger than a fold-up pamphlet.

Inelastic demand

In Part II of the AN/Wolff interview, out popped the most curious exchange (emphasis mine):

Blez: I’m going to get to the tarp and the Coliseum a little later, but how do you sell a team that is in rebuilding mode to a market that at times can be ambivalent? The Coliseum wasn’t even selling out when the A’s were the class of the AL a few seasons back. Does it take a World Series victory or even two to motivate these fans again? Or is this just a dead market?

Wolff: I do think that the proximity between us and the Giants hurts. They’ve actually moved closer to us. The six years prior to the year 2000, the Giants outdrew us by around a half a million on average per year. In 2000 they opened the new ballpark and the attendance has jumped and pretty much has stayed there. The difference is now about a million and a half although I haven’t checked it this year. That (the new venue) has something to do with it. Maybe not 100 percent. Secondly, Barry Bonds was a big attraction there and we didn’t have Barry Bonds. The other side of it is the demographic. Both the Giants and ourselves have a lot of water in front of us so there isn’t anyone else living there. A couple of other owners tease us that we may be the only inelastic demand team in baseball. That means that if you won the World Series, the next year would you have two and half or three million out there? In other words, our band of attendance has been approximately 1.7-2.1 million, win or lose that’s where we’ve been.

The comments thread had a nice exchange regarding inelastic demand. What does inelastic demand mean? Simply put, it’s a lack of demand change for a product relative to price change. The formula for demand elasticity looks like this:

When the value (absolute value) of this coefficient is between 0 and 1, demand is considered inelastic. You’re probably wondering what how the A’s demand has looked recently. To that end I compiled a table showing the FCI average ticket price and annual attendance (2008 attendance projected):

You can see that from 2001 forward, the demand ratio (coefficient) has been less than 1 or less, hence inelastic. This is despite a 102% hike in ticket prices in that timeframe. The rich teams have unique market positions. The Yanks, Mets, Red Sox, and Cubs are effectively monopolies. That’s how they can continuously raise ticket prices with zero effect on demand. They are the antithesis of the A’s. As long as the A’s are in the Bay Area, they will always be in a competitive position, not a monopoly position.

So why has this happened? We’ve gone over most of the reasons in great detail. The Coliseum is long-in-the-tooth, disaffection from long-time fans, the Giants moving closer and poaching casual fans, on-field performance, susbtitute entertainment options, etc. ad infinitum. Is it a reason to abandon the market? Of course not. This market is plenty big enough for six or seven major sports franchises as long as they have good venues and are located properly. In light of this, I don’t expect the current business model at the Coliseum to change much in the remaining years of the lease – no untarping the third deck, no cheaper beer or concessions, no ticket price freezes. There’s little impact to project from such moves, and thus little reason to make any moves.

Parsing the AN interview: Television

Let’s get started.

First, on the television situation. The possible move to Comcast SportsNet West is definitely positive, but not without its downsides. The main issues here are the number of games and on which tier CSNW will be carried in the Bay Area. To illustrate the first issue, I’ve dragged out the table from the May post on RSN’s:

The obvious inequity is that CSNW is carried on the extended basic tier in the Central Valley, while it’s on the digital channel 400 in the Bay Area. It really comes down to the number of televisions that can view the channel. Not every household uses the digital converter box offered by Comcast, and for those that do, not every television will be mated to a box. So if you want to watch a game while working on a car in the garage (where there’s likely no box), you won’t catch the game. Or if you’re a kid that wants to watch the game in his/her room but your parents don’t feel you need a box, you’ll have to watch elsewhere in the house. For some it will be inconvenient. For some it won’t.

Then there’s the matter of CSNW being on 400. 400 has always been a placeholder as there’s little content to put onto the channel at this point other than second-tier college sports. However, there’s a unique feature to 400 that many aren’t aware of: it’s not encrypted. That means even though it’s digital, a converter box isn’t needed as long as you have a digital TV. The rate of adoption isn’t high and there’s a level of frustration regarding digital TV tuners, but at least for now the box isn’t needed for a digital TV. That said, once the A’s are on CSNW could easily become encrypted. The bottom line is that CSNW could be encrypted or not, or it could be moved around the channel lineup.

With the MLB Network launching next year, one fewer channel slot will be available on the analog tier. The Hallmark Channel is typically one of the first to get bumped to digital. In your area this may have already occurred. There are also a number of shopping-oriented channels. QVC is considered untouchable. Jewelry Television, which is typically on Comcast systems on a leased basis, is probably the next candidate. This channel is usually on channel 410 (CSNBA+) when a game isn’t being broadcast. Complicating matters are a number of community access stations on a given city’s analog tier, which could vary from city to city. Comcast could even end up competing against itself, as it has equity stakes in several other channels, such as Versus and The Golf Channel. (If you want to get an idea how inconsistent the systems are in the channel lineups, go to this Comcast form and put in some valid addresses around the Bay Area. You might be surprised.)

In the end, I think Comcast will figure out a way to put CSNW on the analog tier. They might have to put it high up, say in the upper-70’s along with Versus and Golf. It’s not in the “sports pocket” with the ESPN’s and CSNBA, but at least it would be available. The motivating factor is Comcast’s stake. They want to make as much from the network as possible, and that would be an order of magnitude more difficult to do from a digital-only slot.

Two other factors have real impact. A switch like this usually carries with it a massive schedule change. The Giants inked a deal with NBC 11 to broadcast 20 games, whereas 140 went to CSNBA. It’s likely a similar split would happen with the A’s on CSNW. They might even go to the extreme like the Florida Marlins, eschewing over-the-air broadcasts completely. High definition also will become paramount in the coming years. KICU doesn’t do HD broadcasts. I’m pretty sure the other affiliates don’t either. Blame that on either the A’s or the affliates, it’s still pretty costly. By moving over to CSNW, broadcasting expenses become more of a sunk cost as the partners become more interested in promoting the brand. There will be some figuring of what digital space is available to carry CSNW-HD, but that’s only an issue in the Bay Area and can be easily accomplished with compression techniques and additional channel movement from analog to digital.

Behind the scenes, there will be an issue of talent and staffing. CSNBA hired a bunch more people and embarked on building a local studio. Would personnel and facilities be shared among the teams despite the split?

Who loses? Well, if this were five years ago, I’d say over-the-air-only viewers. Unfortunately for them, the digital switch is already going to make their experience difficult. Many people in the Bay Area will come out of the switch getting only 6-8 channels, and KICU probably won’t be one of them.

5:16 p.m.: A couple more thoughts. There shouldn’t be more than a handful of scheduling conflicts each year between the A’s and the Kings because the MLB and NBA regular seasons only overlap during the first two weeks of April. That translates to 6-7 possible date conflicts per year. Those games could be easily accommodated by either team’s affiliate networks. Also, weekday afternoon games should be available once the deal goes through. I’m guessing that the existing broadcast deal with CSNBA, which runs through the end of the decade, would be torn up and replaced by a long term deal. The Giants supposedly were paid $100 million over 25 years in addition to their equity stake in the channel.

Later today, I’ll talk about the ballpark situation.

Wolff/AN Part III – Funding matter debunked?

Part III is the meaty part of the interview, with a lot more insight into the process than had been previously available anywhere. Read it.

One of the items covered is a question about the credit crunch and whether or not it affects financing of the ballpark:

Blez: I’ve read where people have said that this project is becoming a bit more of a nightmare because of the downturn in the real estate market. Because so much of this project was dependent on the real estate built around it, and I know that you were planning on having commercial and residential around it to fund things. Is that an accurate statement to make?

Wolff: No, for a couple of reasons. We are not foolish enough to go into any long-term project with only one option in terms of how we finance it. Somebody thinks we are, then they’re wrong. So the housing element was critical and interesting, and we don’t know that if by the time we get going again that it won’t be booming again. We’ve got some other options which I’d prefer not to discuss but they’re logical business options. And we have our own resources. So we’re not without capital if we need to do something. Listen 3,000 townhomes don’t sell in 20 minutes even in a good market. So it’s a matter of how you flow funds. The best part about us is that we can say if it takes an extra five years to sell these homes, we’ll bridge it now and you can take us out when that happens. You know, things like that.

I can’t tell you how happy I am to be wrong on this point. It’s something that I opined about many moons ago, followed by the mainstream press picking it up. It’s easy to get caught up in looking at the market as a problem since frequent doom-and-gloom coverage makes it convenient to do so.

There’s plenty of additional grist in the interview, whether you want to talk about the A’s leaving, territorial rights, why it didn’t work in Oakland, etc. Comment away.

Fantastic work, Blez.

Part 2 of Wolff-AN Interview

Wolff addressed the generally underreported fact that in building AT&T Park, the Giants moved closer to the A’s and into a more accessible location.

Blez: I’m going to get to the tarp and the Coliseum a little later, but how do you sell a team that is in rebuilding mode to a market that at times can be ambivalent? The Coliseum wasn’t even selling out when the A’s were the class of the AL a few seasons back. Does it take a World Series victory or even two to motivate these fans again? Or is this just a dead market?

Wolff: I do think that the proximity between us and the Giants hurts. They’ve actually moved closer to us. The six years prior to the year 2000, the Giants outdrew us by around a half a million on average per year. In 2000 they opened the new ballpark and the attendance has jumped and pretty much has stayed there. The difference is now about a million and a half although I haven’t checked it this year. That (the new venue) has something to do with it. Maybe not 100 percent.

There’s more in the interview. It’s pretty clear that the Giants have been successfully siphoning away A’s fans from all over the Bay Area since their new digs opened. They’ve also made it possible for say, a Giant fan who moved from SF to the East Bay, to maintain his allegiance without making it difficult to attend games. Had the Giants stayed at the ‘Stick, that fan may have either stayed home more often or chosen the A’s as a local alternative. Now there’s less reason to do so.

Now the A’s are looking to an area that’s less accessible for most of the Bay Area. I’m still curious as to what the transportation and parking will look like, given that they still feel that 15-20% of the fanbase will arrive via ways other than driving.

Wolff interview on AN, possible new TV deal?

Blez posted the first part of a lengthy interview with Lew Wolff on AN today. Check it out. Nothing on the baseball village itself. Wolff said the team is working on an improved TV deal that could be done in the next six months.

p.s. Thanks for the rep, Blez!

p.p.s. Thanks to Zonis for finding the Bizjournal article about the A’s talks with Comcast. The A’s may be looking moving to Comcast Sportsnet West, which is currently home to the Kings. In doing so, the A’s could pick up an equity share of the channel, just as the Giants have with CSN Bay Area. If the idea has some vague familiarity to frequent readers of this blog, it should since I wrote about it in May. The circumstances are slightly different, but they’re still quite favorable to the A’s.

p.p.p.s. I’m not an architect, though I play one on TV.

Mayor Dellums sounds like a nice man

I am not an Oakland resident. I also don’t claim to have any real inside knowledge of Oakland politics, so I’ll leave criticism of the Dellums mayoral tenure to other corners of the interwebs. That said, Dellums’ comments regarding his hope to keep the A’s in Oakland read like typical rhetoric from someone who has spent way too long in Washington.

“With a deal that is as big as the deal is in Fremont, anything could go wrong,” Dellums said, adding, “I want to continue to keep the door open so that we can keep the A’s. The best-case scenario would be that they stay in Oakland. I would like to try to help them stay in Oakland.”

That’s a lot of well, nothing. Not that I blame him. Every city is playing the waiting game as the EIR and financial markets shake themselves out. Dellums is keen to keep some visibility on Oakland even if his comments are entirely non-committal.

What’s not being told is that by the time the Fremont plan enters its crucial stage, Dellums will be entering big-time lame duck territory. I can only imagine what that would mean, given the cruise control nature of his first nearly two years at the helm.

The council hasn’t exactly stepped up either, not even Ignacio de la Fuente. Given Oakland’s difficult state, is any kind of stadium talk – whether A’s or Raiders – the local political third rail?

A new twist in Miami

From the 11th hour department:

The owner of the now-defunct Miami Arena, Glenn Straub, has proposed a land swap in which he would exchange his downtown Arena site for the Orange Bowl site in Little Havana. The Marlins would then build a ballpark on the Arena site and Straub could start planning for other development. The land exchange would not be a straight swap due to the sizes and relative values of the parcels. To kick up the intrigue, Straub has said he and his partners would build the ballpark and finance it themselves. There is a question as to who would own the stadium in the end, probably the city.

According to both MLB COO/President Bob DuPuy, such a solution would be impractical for numerous reasons:

“It is our view that the careful negotiations for the stadium were the product of literally years of work, among Baseball, Dade County and the City of Miami,” DuPuy said. “We looked very hard at that [arena] site when we were looking at downtown sites. More land would have to be acquired. The general obligation bond of $50 million wouldn’t be available, so even if the costs were exactly the same, we’d be short $50 million.

“There’s difficulty there with utility buildings and power lines that would have to be relocated. There’s a railroad line cutting through there that would also have to be relocated. And finally, the community is committed to developing Little Havana and the Orange Bowl site, and we want to be part of that development.”

While it’s true that additional land would have to be acquired, it’s not a significant amount. An active railroad right-of-way runs through the block and sits immediately to the south of the arena. It would have to be rerouted around the resized ballpark site. A street that runs through the site would also have to be rerouted as well.

The big advantage of the site is that unlike the Orange Bowl, the site is right next to Miami’s Metrorail service, which is like a limited version of BART. Since not much is known about the financial scope of this, it’s impossible to say if it passes the smell test. Still, should Norman Braman’s lawsuit against the city/county result in striking down the OB plan (via referendum), this is certainly a Plan B worth considering.