MLS Expansion Update: Leiweke highlights Miami issues as other markets wait
As the efforts to build a soccer-specific stadium in Miami continued to sputter, David Beckham turned to a familiar face to spur them forward.
The introduction of outgoing MLSE president and CEO Tim Leiweke injected fresh impetus and pragmatism into Miami Beckham United's efforts to secure a stadium deal near Marlins Park. Leiweke is no stranger to completing deals -- he managed to bring Beckham to the Galaxy in 2007 during his tenure as president and CEO with AEG -- and working through particularly difficult thickets.
This protracted quest certainly falls into that category. Leiweke sounded a note of caution about the project in his first public comments on Thursday and underscored the work still ahead to bring MLS back to South Florida.
Leiweke continued a busy week in the MLS expansion landscape as he delved into the Miami mire. Atlanta United FC is already confirmed for 2017, but the landscape continues to evolve from there. Los Angeles FC, Minnesota and Miami (pending a stadium deal) are ticketed for the next three spots, while Sacramento and San Antonio trying to build their own cases down the line. The latest updates from each of those five markets reflect the work carried already and the strides still required:
Los Angeles FC
Club officials received approval from the California Science Center and Park Exposition on Wednesday for their plans to build a $250-million, 22,000-seat stadium on the site of the former Los Angeles Sports Arena, according to a club release.
The next step for the project: A date before the City of Los Angeles planning commission next month. If LAFC lands the proper approvals there, then their plans can progress toward the City Council next year. It is unknown how those efforts might affect LAFC's targeted start date of 2018 at this juncture.
Miami
The addition of Leiweke bolstered Miami Beckham United's sputtering efforts to secure a stadium deal in South Florida. The David Beckham-led group faltered in its attempts to build in two downtown Miami sites before setting its sights on a parcel near Marlins Park in July.
Leiweke detailed the potential hurdles in this complex pursuit -- this plan involves the purchase of land by the Miami-Dade School Board and the acquisition of several privately owned parcels -- and reinforced his trepidation about the current state of the project.
"They know what we're doing and unfortunately they've let that create an absolutely unrealistic conversation. They can absolutely blow this deal up, and they probably will blow this deal up," Leiweke told the Miami Herald editorial board on Thursday. "We're willing to overpay. We just don't want to be the stupidest guys on the face of the earth."
This evident display of public posturing and Leiweke's remarkably successful track record ensure no one can apply that moniker in this case. Despite Leiweke's protestations, there is a deal to be made here with both sides trying to either manage their expenditures (Miami Beckham United) or wring the most value out of current holdings (property owners). It is the best bet for everyone involved, barring some sort of insurmountable valuation issues.
If Leiweke and Miami Beckham United can wrangle the necessary land together, then they face the rather unenviable task of muddling through the political process required to secure further approval. The decision to partner with the Miami-Dade School Board rankled Miami-Dade mayor Carlos Gimenez -- Miami-Dade school board member Raquel Regalado, the daughter of Miami mayor Tomas Regalado, is challenging Gimenez in the mayoral race next year -- and threw more complications into the mix.
The big question for Miami Beckham United at this point: How does Leiweke's arrival alter the calculus with the MLS Board of Governors? MLS remains publicly committed to placing a team in Miami if Miami Beckham United can complete a stadium deal. Miami is an enticing market for MLS given its global cachet and its shifting dynamics. Those strengths -- plus the allure of staying in business with Beckham long-term -- kept these efforts alive. Leiweke's arrival serves as an important boost to the process, but it remains to be seen whether the patience -- or the willingness to delay Beckham's option -- endures for the long haul with more stable options in play.
Minnesota
The decision to eschew Minneapolis and shift course to St. Paul yielded benefits for Minnesota United last month. City and club officials announced their intention to build a soccer-specific stadium at a former bus depot adjacent to Interstate 94 last month. The west-side location is expected to serve as a hub for redevelopment between the two cities, though it is located five miles outside downtown St. Paul and 7.5 miles away from downtown Minneapolis.
St. Paul mayor Chris Coleman is expected to guide the estimated $120 million, 19,000-seat ground through the necessary approval processes in the coming months. There are fewer roadblocks to construction here than the original site in downtown Minneapolis, but the club and the city must keep the project on track to ensure Minnesota United is ready to open the stadium by its projected completion date in 2018.
Sacramento
Sacramento Republic executives continue to build their case brick-by-brick and stand out as a ready alternative if the Miami bid continues to falter. The release of a team-commissioned report on Wednesday reinforced those efforts by comparing Sacramento to other MLS cities and highlighting its potential as a MLS market.
It remains to be seen whether those efforts will persuade the Board of Governors to consider Sacramento as more than a safety valve or a secondary option. Sacramento has a stadium plan in place (pending the award of a franchise) and a diverse, well-funded group of investors capable of backing the bid. Those strengths have not proven enough to displace Miami as the 24th team or prompt MLS to figure out a way to squeeze the Republic into the plans just yet.
San Antonio
City and county officials announced an agreement to purchase Toyota Field from San Antonio Scorpions owner Gordon Hartman for $18 million on Wednesday. Spurs Sports and Entertainment are expected to kick in a further $3 million and sign a 20-year lease to operate the stadium once the San Antonio City Council and the Bexar County Commissioners Court approve the deal. Both bodies are expected to approve the deal in the coming weeks.
The fate of the Scorpions remains decidedly unclear at this point. The stadium deal offered no assurances about the NASL club's future. Hartman cited confidentiality concerns as he declined to address the future of the club in a statement released on Thursday afternoon.
"Since yesterday's announcement that the City of San Antonio and Bexar County plan to acquire Toyota Field as part of a bid for a Major League Soccer franchise, some follow-up questions have been asked about the proposed agreement," Hartman said in a statement. "Because of a confidentiality agreement, I'm not at liberty to discuss the specifics concerning the San Antonio Scorpions or Toyota Field."
Spurs Sports and Entertainment -- owners of the NBA's San Antonio Spurs -- could purchase the Scorpions outright or start their own club to play at Toyota Field next year. Spurs officials may choose to align themselves with USL -- a league with a partnership agreement already in place with MLS -- instead of pursuing the NASL path, though several teams have relied on NASL to place them in position to make a viable bid for MLS.
Those pressing issues do not obscure the need for further investment to expand the 8,500-seat stadium in the coming years. It remains to be seen how the city, the county and the Spurs plan to pursue those objectives. Spurs Sports and Entertainment is bound by a $5 million penalty clause -- split evenly between San Antonio and Bexar County -- if it does not bring a MLS team to Toyota Field in the next 10 years.
