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.

15 comments :

  1. Come on you Lions!!!

    ReplyDelete
  2. Ideally, the team would front the entire cost of building this new ground, but this is probably the most taxpayer-friendly offer we'll see from OCSC.

    I'm also interested in seeing how they arrived at a lower construction cost too, since the final tally often ends up being higher than the original cost (see Scamway Center).

    ReplyDelete
    Replies
    1. OC has repeatedly stated that they will pay for cost overruns.

      Delete
  3. people dont realize that the money Orlando is asking for goes back into the community. Appt homes restaurants and bars also create jobs in the area not to mention it being another reason for tourists to come. I would make the drive every week from jacksonville.

    ReplyDelete
    Replies
    1. Really dubious about this. New stadiums, especially ones paid for by taxpayers, are an "investment" to the community in the same way that buying a new car is an "investment." Scamway Center cost nearly $500 million, and we're still seeing boarded up shops and restaurants on Church Street (not to mention very few lights on during the night at 55 West).

      Delete
    2. 55 West runs at over 90% occupancy and recently had to finish the top 2 floors to meet increased demand for certain types of units.

      Delete
    3. I'm a resident of southern California and a LA Galaxy season ticket holder. I just returned from NY to watch our away game. I assure you, with a two year old son- Orlando would be an away game destination for my family every other year. Galaxy away game and Disney World for a few days = $$$ for the city.

      Delete
  4. Have you heard if the release of the stadium renderings have been pushed back? Instead of the May-June estimate?

    ReplyDelete
  5. There has been much talk about changes to the original stadium plan. Yet, except for an artist's conception, no preliminary nor recent designs and specifications have been published beyond a "Lexus"tower, 18K seats, a narrow field, and a look "somewhat like" Houston's BBVA Field. The Houston stadium does not look like the artist's modernistic impression published earlier in the year.

    In short, what will this stadium look like? What will be the physical setting for the actual fans: padded or plastic seats or bleachers and a roof over all spectator sections? Will the seats be a purple color?

    Finally, when will the renderings be published? It would be helpful if these and other questions can be addressed as part of a community's progress and not as pablum for the papers and TV.

    ReplyDelete
    Replies
    1. I think we might be able to answer some of those questions in a new article on Friday or next Tuesday. Can't talk specifics right now, but hope to have more information by then. From what I can gather the supporter section will likely be uncovered and bleachers, the rest of the stadium will be fixed seats with plastic or padding varying depending on section. Ignore the rendering released in January by the club it has nothing to do with the new design.

      Delete
  6. ESPN just posted that the NY Yankess and Manchester City have joined to start the new New York franchise for the MLS...

    ReplyDelete
    Replies
    1. Not that big of news since we reported that would happen this week as early as February... http://www.scoringthird.com/2013/02/mls-ny2-announcement-in-may.html

      Delete
  7. If they got Beckham to be part of their ownership group, they could reduce their franchise fee from $50 million down to $25 million. They would have an extra $25 million to spend on the stadium. However, that depends on Beckham's ownership clause works and whether it applies if he is a minority owner.

    ReplyDelete
  8. just an fyi the capacity of BBVA Compass Stadium is 22,039.

    good work. let's hope this astroturf expansion in NYC doesn't hinder or delay the very earned expasnion into MLS of OCSC!

    ReplyDelete
  9. I wonder if anyone has thought of a possible way of building a stadium on a smaller budget if the MLS franchise is not awarded? Maybe something with approx half the capacity and without the tower and/or the crowd roof? Then down the road it can "upgraded" with the full capacity and the tower/roof added?

    I am sure that if the MLS franchise is not awarded, the County would probably withdraw their funding, but the City has already purchased the land and I would assume that the club would love to be out of the Citrus Bowl.

    Just a thought...

    ReplyDelete

 
Copyright © The Scoring Third
Design by FThemes | Blogger Theme by Lasantha - PBT | NewBloggerThemes.com