Tuesday, May 21, 2013

Business as usual at Orlando City

The worst kept secret in the history of Major League Soccer (MLS) expansion was revealed on Tuesday when officials announced that Premier League club Manchester City had acquired the rights to the league's 20th franchise, New York City Football Club (NYCFC). 

While #NYCFC and #MLS trended worldwide on Twitter for several hours, it was business as usual at the headquarters of Orlando City Soccer Club (OCSC). You see, this Tuesday was like every other Tuesday in the three year history of the club; another day crossed off the calendar as the team moves towards joining MLS.

OCSC President Phil Rawlins sent out a coy message of congratulations to NYCFC and MLS this afternoon:
The league and even OCSC itself have been saying for over a year that a second team in New York would likely happen before Orlando joined MLS, but that the efforts in the two cities were independent of one another. NYCFC has been a pet project of the league since it's inception. MLS Commissioner Don Garber, during today's teleconference, stated that even back in 1996 the original design of the league had two teams in New York. Today represented not just a milestone for MLS and NYCFC, but it was a milestone for Orlando City as well.

No longer will the questions focus on when a second team will be awarded to New York, it's happened. Instead the discussions will shift to the final frontier for the league, the Southeast. MLS will award two franchise to cities in the Southeast, giving the league a total of 22 teams and a possible balanced schedule of 42 matches per season. Orlando City is the front-runner for one of those franchises. 

I asked MLS Vice President of Communications, Dan Courtemanche, to specifically rule out any further expansion franchise announcements in 2013. Although he did not rule out the possibility he did respond with the following:
"Regarding future expansion clubs, it is too premature to discuss our future expansion plans.  MLS could expand beyond 20 teams at some point as the league serves as the top league two large nations, with teams in four different time zones. We have had positive discussions with Orlando City FC about a possible team in that market at some point."
Even with funding setbacks, the stadium financing plan is still expected before the end of June along with new renderings of the proposed downtown stadium. Orlando City officials know this, MLS officials know this, and political officials know this. While supporters took to social media expressing concern and doubt about the MLS effort in Orlando, all the parties "in the know" continued on with business as usual. After all, this Tuesday was like any other Tuesday for Orlando City.

Monday, May 20, 2013

Orlando City Stadium Update

Orlando City team officials confirmed with me today that the principle owners of the club where in New York City on Friday to brief Major League Soccer (MLS) on the team's new funding plan for the stadium. While they would not confirm who specifically from MLS was at the meeting, Commissioner Don Garber, President Mark Abbott, and Senior Vice President of Marketing Dan Courtemanche were all reported to be in attendance.

Following the failure of the Florida House of Representatives to bring the stadium bill to a vote earlier this month, Orlando City made a statement that the club would present a revised funding plan before the end of May. Although the details have not been presented publicly, the new plan is rumored to have a reduction in overall costs and an increase in private funding to cover the state tax rebates that were not voted on in Tallahassee.

Again, though not official, the new total for stadium construction/land costs is rumored to be $95M; down from previous estimates of $105M-$110M. Additionally, the cost breakdown would see an adjustment to the team's contribution as follows:

$50M -  Cash from Orlando City Soccer Club
$20M - Land/Cash from City of Orlando
$25M - Cash from Hotel Taxes from Orange County

The reason the club would be able to raise their initial offering from $30M to $50M is likely tied to the naming rights of the proposed stadium. Recent naming rights deals in MLS have garnered between $1.5M-$2M per year for 10 to 15 years depending on the location. Previous discussions on the stadium have centered around the club retaining the funds from any naming rights deal. While the possibility exists of the club's owners putting up additional cash out of pocket, they are still on the hook for an additional $40M-$50M for the franchise fee which would push the total investment from the club itself to around $100M.

Late today we received word that Orlando City officials had briefed Orange County Mayor Teresa Jacobs on the new funding plan and that she was rumored to be much more receptive, likely due to the increase in private funds from the team.

For some perspective, BBVA Compass Stadium in Houston was constructed for a cost of $95M which included the land acquisition and has a seating capacity of around 24,000. While Orlando City's stadium will be revised to fit the new budget the overall capacity is likely to remain between 18,000 and 19,000 and will still be constructed in Parramore on city-owned land.

Wednesday, May 15, 2013

Messi and Friends in Los Angeles

Word came out late today that the "Messi and Friends" summer soccer tour has added a stop in Los Angeles on Wednesday July 3rd. The match will be played at the Los Angeles Coliseum and tickets are on sale now through the event website here.

The tour will also include at stop in Chicago on July 6th along with earlier stops in Lima, Peru and Medellin, Columbia. The list of players included in the matches is still growing, but it already appears to have some of the biggest names from Europe and South America included on the roster.

Last year Lionel Messi hosted the World Soccer Master's Tour which had a stop in Miami as well as several other locations. This summer's tour appears to be similar in format and will feature many of the players who took part in the 2012 tour.

All proceeds from the tour will support the Lionel Messi Foundation, a charity founded by the soccer star to help children with terminal illnesses.

Looking for the most extensive list of summer friendlies coming to North America in 2013? Check out our page here for the latest information on date, locations, and tickets.

Tuesday, May 14, 2013

Orlando City to play at UCF?

Several sources are reporting that Orlando City Soccer Club will spend the 2014 season playing at the University of Central Florida's soccer complex in East Orlando.

As you may already know, the Lions current home, the Citrus Bowl will be under renovations for most of 2014 and the team needs to find a new location to host their USL PRO matches.

While nothing has been finalized yet, temporary seating being added to the UCF facility appears to be the front runner. The team likely will hold off on an official announcement until the end of the 2013 season in case a better option comes to the surface or the Citrus Bowl renovation is delayed another year.

What will take many Orlando City supporters off guard will be the amount of seating; temporary stands will likely only provide roughly 6,000 capacity for the facility. With attendance averaging 7,915 over the team's first four matches in 2013, several thousand fans may find themselves without a seat at the temporary location. The goal is to ensure, at a minimum, that every season ticket holder has a seat and that a supporters section is also available. If an announcement comes this year regarding expansion into Major League Soccer the team could see demand spike with even more fans shut out at the temporary location. The limitation for additional seating at the UCF complex is the ability to still use the track and field portions of the stadium for training purposes during the summer months. Brighthouse Network Stadium on the campus of UCF has been ruled out due to an unwillingness by football officials to allow non-football interests to use the facility.

Ultimately the 2014 playing site has limited options that are cost effective for the team and still make for an enjoyable experience for fans. UCF offers a high-quality field, lighting for night games, press facilities, restrooms, concessions, and plenty of parking. Virtually all of the other locations being considered come up short on at least one or two of these items. Dr. Phillips High School, also rumored to be considered, has roughly 6,000 permanent seats and could accommodate additional temporary stands, but parking and press facilities are limited.

So what do you think of Orlando City spending the 2014 season at UCF? Share your comments below.

Tuesday, May 7, 2013

Mayor Buddy Dyer talks Stadiums

On Tuesday, Orlando Mayor Buddy Dyer made headlines by stating that the new soccer facility being built by the San Jose Earthquakes of Major League Soccer (MLS) was "kind of like a high school stadium". 

That's quite a statement to make considering Orlando City and Dyer left Tallahassee last week with their tails between their legs after their stadium funding bill never made it to the House of Representatives for a vote. 

Is this just another example of "Buddy being Buddy" or does our beloved mayor actually have a point? We decided to find out what a new MLS stadium is going for these days across the league and what you get for that money.

$67M, New Earthquakes Stadium: At 18,000 seats, the new stadium in San Jose will be the smallest in the league when it opens in 2014. With 12 suites and roughly 1,000 club seats it also has the smallest luxury sections in MLS. While the stadium is an improvement over the current 10,000 seat college stadium the team uses, it is bare-bones with basic materials. The primary reason behind the low cost is because construction and maintenance are being paid for by the team owner entirely. Of course there is a catch to this privately funded stadium, not everything is as it seems. As part of the stadium land deal the team owner struck an agreement with the city to purchase 65 acres of industrial land adjacent to San Jose International Airport and close to downtown that would be re-zoned for mixed-use. With the change in zoning the value of the land value increased from $80M to $130M on paper. Ultimately the team owner paid $89M for the 15 acres where the stadium is being built and plans to develop the remaining 40 acres into mixed-use space that could mean more of a profit off-the-field than on in the future. In the end the stadium is a pre-fabricated, single level concrete design with bleachers and fixed seats, nothing more than a basic stadium.

$95M, BBVA Compass Stadium: When Orlando City planned their stadium they took several trips to Houston to visit the Dynamo's new facility which opened last spring. At 22,039 seats it is the third largest soccer-specific stadium in MLS behind Red Bull Arena and the Home Depot Center. With 34 suites and 1,100 club seats, the facility offers revenue opportunities for the high-spending clientele from the oil and tech-rich Houston area. In addition, the Dynamo went with a modern, space-frame, perforated steel panel exterior to make it look less like a stadium and more like a landmark. The interior is not much more than concrete and steel with high-end finishes and wall art strategically placed to ensure the biggest bang for the back. Ultimately the funding was $60M from the team, $10M from the City in land, and $25M from the County in tax breaks and cash. Also another consideration was the BBVA Compass paid $20M for a 10-year naming rights deal on the stadium or $2M per year to the team. The stadium has hosted several international friendlies, World Cup qualifiers, and a surprise host to several rugby matches.

$105M, Orlando City Stadium: We won't get into great detail here as we have already published an inside look at the new stadium as well as a cost breakdown prior to Friday's news from Tallahassee. When it comes to cost, Orlando City's proposed stadium would be the second most cost-effective facility in MLS behind Houston's. With total seating around 19,000 the stadium would have luxury upgrades and high-end video boards to allow the city to market the venue to other events besides soccer and potentially draw more money from seat licenses and naming rights. 

$110M, Rio Tinto Stadium: Opened in 2008, the home of Real Salt Lake located in Sandy, Utah is considered to be one of the better stadiums in the league. 32 luxury seats, 1,000 club seats, and a total of 20,000 seats combine with some unique architectural features to blend in with the beautiful mountain backdrops. Roughly $10M in land costs were donated by a local contractor, $20M in local hotel taxes were diverted towards the stadium, and the team owner paid the remaining costs while also retaining full ownership of the facility. Mining company Rio Tinto paid between $20M-$30M for a fifteen year naming rights deal for the facility with the money going back to the team. The stadium has hosted the MLS All-Star game in 2009, international friendlies, and World Cup qualifiers.
From there the prices continue upward from $120M for PPL Park just outside of Philadelphia to the "crown-jewel" of the league, Sporting Park outside of Kansas City which was completed at a cost of $200M.

One theme that holds true for all of the stadiums mentioned besides Orlando is that the teams paid more than the Lion's ownership group is proposing. The teams paid between $60M-$80M to fund their stadiums. With the exception of Rio Tinto, the city or county maintained ownership of the each of those facilities upon completion, thus increasing future revenue potential. 

Orlando City is proposing to pay $30M towards their stadium which would be owned by the City of Orlando upon completion. Why is that a reasonable contribution compared to that provided by the other teams mentioned above? San Jose, Houston, and Salt Lake were all existing MLS franchises before they built their new stadiums. They each paid a franchise fee of between $10M-$15M when they joined the league; Orlando City is expected to pay between $40M-$50M to join the league. In the end the franchise fee can only be paid by the owners so the team's contribution of $70M-$80M out of the total $150M-$160M to bring MLS to Orlando is right in line with other franchise costs and stadium efforts.

Come to think of it, Buddy might have a point after all.
UPDATE: After speaking with Robert Jonas of CenterlineSoccer.com Ihave adjusted the figures associated with the new Earthquakes Stadium in San Jose. My apologies if there was any confusion previously.

Photo Credit: Courtesy of Orlando City Soccer Club

 
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