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18 November 2008

Checking the couch cushions for financing

The Merc has a piece covering the three local stadium projects: Lew Wolff's A's and Quakes stadia, and the 49ers' stadium in Santa Clara. We've discussed at some length the impact of the economic collapse and its impact on Cisco Field. While proceeds from housing sales will have to be pushed back while the market becomes friendly again, Wolff doesn't appear to be appreciably scaling back the vision, as he is with the Quakes' next home. From the article:
In a bid to wait out the real estate markets, he'll tap other sources of cash, including private investors, parking fees and naming rights. On Monday, he hired the William Morris Agency to help identify a naming rights sponsor.
Naming rights to the stadium have already been sold, so that's not under consideration. However, just about every other piece of the stadium can be sponsored, from suite concourses to kids' play areas to the press box and broadcast booths. Every vertical surface that could be picked up on camera could have electronic or rotating signage. It wouldn't surprise me if the concourses had numerous interactive displays for sponsors, or a show car parked beyond the outfield fence somewhere. If you're worried that the ballpark itself was going to go mallpark, you have reason. It's important to keep in mind that things have already been trending in this direction for some time. The sad truth is that these days it will take these kinds of efforts to pay for construction and keep the team from carrying a massive mortgage.

8 comments:

Anonymous said...

Let's see ... cost of ballpark ... $500M or so ... financing options excluding housing:

private investors ... $5M or so
parking fees ... $3M
naming rights to the toilet, etc ... $20

so that leaves, oh say about $491, 999,980 to go!!! this is really encouraging!!!

Marine Layer said...

Anon needs to learn basic arithmetic. Here's a hint: Most deals will be set for 10 years or more.

BTW... VOTE FOR GUS!!!!!

Anonymous said...

hey ... can't wait to buy a townhouse in swampland!!!

Jesse said...

LOL, I love it.

Marine Layer said...

I'll end the discussion with this, anon - You couldn't afford one of these townhomes working at Burger King.

Oh, and VOTE FOR GUS!!!!!

Anonymous said...

I'd like to see Wolff completely ditch the soccer thing and spend that money, time and effort on the A's new stadium. Instead of signing someone up for naming rights for a soccer stadium, he could sign that company up for sponsorship of the bleachers, or bullpens, or a foul pole.

Tony D. said...

anon 4:05,
While I don't see Lew Wolff ditching the soccer stadium, the new version appears to be on the cheap; ie less seating, no luxury suites or other luxury items. Heck, I actually think they'll be at Buck Shaw/SCU for the long haul, with minor improvements made ala the Stanford Stadium upgrade; just my opinion.

Anonymous said...

Tony,

The Stanford upgrade was anything but "minor".

They gutted the interior, leaving the historic exterior and basically rebuilt the inside.