Post by TheShadow on Jul 23, 2004 15:18:06 GMT -5
www.oaklandtribune.com
Report outlines revenue problems, says team owners would contribute $100M
for stadium in Coliseum lot
By Paul T. Rosynsky, STAFF WRITER
OAKLAND -- Owners of the Oakland Athletics are willing to pony up as much as
$100 million to build a new ballpark, but only at the Oakland Coliseum
parking lot, according to a confidential team report.
And if the site at the recently renamed McAfee Coliseum doesn't work out,
owners appear to have ruled out relocating the team to the South Bay.
Instead, they may sell the A's to others who would move the team out of the
region, the report says.
Prepared by Lew Wolff, the A's vice president for venue development, the
report shows for the first time how much the team is willing to contribute
for a ballpark and what team owners think is the most logical location.
It also provides a glimpse into why the team struggles to generate the kind
of revenue other Major League Baseball teams earn. Those factors range from
having one of the lowest season-ticket sales in baseball to having a smaller
share of the local media market than the San Francisco Giants.
Those issues stem from having to share a facility with the Oakland Raiders,
whose arrival in 1995 drastically changed the ambiance and finances of the
Coliseum for baseball. The A's lost what many cherished as a prime view of
the Oakland hills -- now blocked by the towering "Mt. Davis" concrete
seating section.
"We want to be where there is good transportation, we want to be as urban as
we can, and we don't want to be the first to go to the suburbs," Wolff said.
"The easiest thing for us to do is to stay in the same area that we are at
now."
Wolff, who has an option to buy a portion of the team should he secure a
site, said Thursday he has shared the report with A's owners, particularly
managing partner Steve Schott, who he said approved and agreed with its
conclusions and recommendations.
"They have agreed that I have given them the best recommendations," he said.
"That is my understanding. It is my recommendation, and I expect they will
listen to that."
East Bay officials are optimistic that some kind of deal could be struck,
especially since the team's chosen location has many amenities already in
place.
But they cautioned, as did Wolff, that any talk of a deal remained
premature. Complicated financing plans would be needed, they said, and
corporate partnerships made.
In addition, according to the report, the A's would have to build their
season-ticket sales to about 20,000 from the current 8,000. The
Oakland-Alameda County Coliseum Authority also would have to negotiate with
the Golden State Warriors and the Oakland Raiders, who would stand to lose
parking revenue.
"I have more indication now than ever before that the A's want to stay in
Oakland," said Oakland City Council President Ignacio De La Fuente, who is
also chairman of the Coliseum Authority. "It's not going to be easy. I take
this as a start of discussions."
"Obviously, the financing of this will be the trick because nobody wants to
put any more taxpayer dollars into a stadium," added Alameda County
Supervisor and Coliseum Authority member Gail Steele.
Choosing the Coliseum parking lot could help reduce the governmental
contribution.
Alameda County and Oakland would not have to buy the land because it is
owned by the Authority and already has multiple transportation links.
A 2001 city-sponsored study of possible ballpark sites within the county,
conducted by renowned ballpark architect HOK Sport, ranked the Coliseum site
as second best, just behind one in downtown Oakland. But Mayor Jerry Brown
opposed the downtown location and pushed instead for a housing project,
which won approval from the City Council this week.
The study also found the Coliseum site would cost $399 million, including
the construction of three parking garages at a cost of $43 million. In the
study, the new ballpark would be built just northwest of the Coliseum and
Arena, next to the 66th Avenue entrance to the complex.
Wolff said other sites within the county, especially waterfront or downtown
Oakland locations, would take too long to develop and be too costly. And
sites in Fremont, Pleasanton or Dublin are too suburban, he said.
"Site availability in the East Bay is very limited and almost non-existent,"
Wolff wrote in his report. "Desired sites (waterfront and downtown
locations) are economically and/or politically infeasible."
Wolff also said moving to the South Bay does not look like an option because
of Major League Baseball's sacrosanct territorial rights. Every baseball
team owns an area around its host city within which no other team is allowed
to relocate unless approved by fellow owners.
The San Francisco Giants own Santa Clara, San Mateo and San Francisco
counties. The A's own Alameda and Contra Costa counties.
Speculation that the team wants to move to the South Bay has shadowed every
discussion about its quest for a new home. Schott lives in Santa Clara
County, and his home-building business is based there.
In addition, Wolff, who was hired last year to find a ballpark location, has
considerable ties to San Jose officials, owns part of the San Jose Fairmont
Hotel and built the San Jose Park Center Plaza.
But those connections don't appear to be helping the South Bay.
"As far as going south, we are not going to violate any rules that are in
place," Wolff said.
When asked whether the team would seek to change those rules, Wolff said,
"No."
While Wolff recommended also seeking other investors to buy the team, he
said Schott was adamant that he wants to stay in the East Bay. And the
report said if the team moved, "A's current ownership is not interested in
owning a MLB franchise outside the Bay Area."
In addition, the report says a sale to investors willing to keep the team in
the East Bay is "not logical, given current venue."
According to the report, the A's financial problems stem from competition
with other baseball teams that have built new ballparks and specifically
from the San Francisco Giants and SBC Park.
Since Camden Yards opened in Baltimore in 1992, 16 baseball stadiums have
been built, nine within the last five years, according to the report.
The A's are one of three baseball teams to still share a facility with a
National Football League team, limiting the team's revenue opportunities,
the report says. For example, the Giants earn more than $60 million a year
from concessions, parking, stadium advertising and luxury seating. The A's
earn about $15 million, Wolff's report states.
When looking at attendance, Wolff found the A's have one of the lowest
season-ticket bases, which results in attendance being dependent on team
performance on the field.
And since SBC Park opened in 2000, the Giants have had 1.5 million more fans
in its ballpark each year than the A's have had in the Coliseum, even though
the two have had comparable win-loss records.
The Bay Area's media market also hurts the A's, Wolff concluded. The teams
compete in the smallest two-team market in the country. And in that market,
the Giants have a much larger population base in its territorial rights
area, the report says.
For example, in 2001, the Giants earned $17 million in media revenue, while
the A's earned $10 million.
A new venue could change those figures by giving the A's a better
opportunity to generate revenue and secure season-ticket purchases.
Although the A's have finally given local leaders a plan on how they would
help build a new ballpark, Wolff cautioned there is much work to be
accomplished.
"There is still a lot of issues," he said. "This doesn't mean this one is
going to be easy."
Steele agreed.
"What I felt he was saying is, 'This is our first choice. Can we make it
happen?'" she said. "I think it is a good idea, but beyond that, there is a
whole lot of discussions that need to take place."
Staff Writer Robert Gammon contributed to this report.
Report outlines revenue problems, says team owners would contribute $100M
for stadium in Coliseum lot
By Paul T. Rosynsky, STAFF WRITER
OAKLAND -- Owners of the Oakland Athletics are willing to pony up as much as
$100 million to build a new ballpark, but only at the Oakland Coliseum
parking lot, according to a confidential team report.
And if the site at the recently renamed McAfee Coliseum doesn't work out,
owners appear to have ruled out relocating the team to the South Bay.
Instead, they may sell the A's to others who would move the team out of the
region, the report says.
Prepared by Lew Wolff, the A's vice president for venue development, the
report shows for the first time how much the team is willing to contribute
for a ballpark and what team owners think is the most logical location.
It also provides a glimpse into why the team struggles to generate the kind
of revenue other Major League Baseball teams earn. Those factors range from
having one of the lowest season-ticket sales in baseball to having a smaller
share of the local media market than the San Francisco Giants.
Those issues stem from having to share a facility with the Oakland Raiders,
whose arrival in 1995 drastically changed the ambiance and finances of the
Coliseum for baseball. The A's lost what many cherished as a prime view of
the Oakland hills -- now blocked by the towering "Mt. Davis" concrete
seating section.
"We want to be where there is good transportation, we want to be as urban as
we can, and we don't want to be the first to go to the suburbs," Wolff said.
"The easiest thing for us to do is to stay in the same area that we are at
now."
Wolff, who has an option to buy a portion of the team should he secure a
site, said Thursday he has shared the report with A's owners, particularly
managing partner Steve Schott, who he said approved and agreed with its
conclusions and recommendations.
"They have agreed that I have given them the best recommendations," he said.
"That is my understanding. It is my recommendation, and I expect they will
listen to that."
East Bay officials are optimistic that some kind of deal could be struck,
especially since the team's chosen location has many amenities already in
place.
But they cautioned, as did Wolff, that any talk of a deal remained
premature. Complicated financing plans would be needed, they said, and
corporate partnerships made.
In addition, according to the report, the A's would have to build their
season-ticket sales to about 20,000 from the current 8,000. The
Oakland-Alameda County Coliseum Authority also would have to negotiate with
the Golden State Warriors and the Oakland Raiders, who would stand to lose
parking revenue.
"I have more indication now than ever before that the A's want to stay in
Oakland," said Oakland City Council President Ignacio De La Fuente, who is
also chairman of the Coliseum Authority. "It's not going to be easy. I take
this as a start of discussions."
"Obviously, the financing of this will be the trick because nobody wants to
put any more taxpayer dollars into a stadium," added Alameda County
Supervisor and Coliseum Authority member Gail Steele.
Choosing the Coliseum parking lot could help reduce the governmental
contribution.
Alameda County and Oakland would not have to buy the land because it is
owned by the Authority and already has multiple transportation links.
A 2001 city-sponsored study of possible ballpark sites within the county,
conducted by renowned ballpark architect HOK Sport, ranked the Coliseum site
as second best, just behind one in downtown Oakland. But Mayor Jerry Brown
opposed the downtown location and pushed instead for a housing project,
which won approval from the City Council this week.
The study also found the Coliseum site would cost $399 million, including
the construction of three parking garages at a cost of $43 million. In the
study, the new ballpark would be built just northwest of the Coliseum and
Arena, next to the 66th Avenue entrance to the complex.
Wolff said other sites within the county, especially waterfront or downtown
Oakland locations, would take too long to develop and be too costly. And
sites in Fremont, Pleasanton or Dublin are too suburban, he said.
"Site availability in the East Bay is very limited and almost non-existent,"
Wolff wrote in his report. "Desired sites (waterfront and downtown
locations) are economically and/or politically infeasible."
Wolff also said moving to the South Bay does not look like an option because
of Major League Baseball's sacrosanct territorial rights. Every baseball
team owns an area around its host city within which no other team is allowed
to relocate unless approved by fellow owners.
The San Francisco Giants own Santa Clara, San Mateo and San Francisco
counties. The A's own Alameda and Contra Costa counties.
Speculation that the team wants to move to the South Bay has shadowed every
discussion about its quest for a new home. Schott lives in Santa Clara
County, and his home-building business is based there.
In addition, Wolff, who was hired last year to find a ballpark location, has
considerable ties to San Jose officials, owns part of the San Jose Fairmont
Hotel and built the San Jose Park Center Plaza.
But those connections don't appear to be helping the South Bay.
"As far as going south, we are not going to violate any rules that are in
place," Wolff said.
When asked whether the team would seek to change those rules, Wolff said,
"No."
While Wolff recommended also seeking other investors to buy the team, he
said Schott was adamant that he wants to stay in the East Bay. And the
report said if the team moved, "A's current ownership is not interested in
owning a MLB franchise outside the Bay Area."
In addition, the report says a sale to investors willing to keep the team in
the East Bay is "not logical, given current venue."
According to the report, the A's financial problems stem from competition
with other baseball teams that have built new ballparks and specifically
from the San Francisco Giants and SBC Park.
Since Camden Yards opened in Baltimore in 1992, 16 baseball stadiums have
been built, nine within the last five years, according to the report.
The A's are one of three baseball teams to still share a facility with a
National Football League team, limiting the team's revenue opportunities,
the report says. For example, the Giants earn more than $60 million a year
from concessions, parking, stadium advertising and luxury seating. The A's
earn about $15 million, Wolff's report states.
When looking at attendance, Wolff found the A's have one of the lowest
season-ticket bases, which results in attendance being dependent on team
performance on the field.
And since SBC Park opened in 2000, the Giants have had 1.5 million more fans
in its ballpark each year than the A's have had in the Coliseum, even though
the two have had comparable win-loss records.
The Bay Area's media market also hurts the A's, Wolff concluded. The teams
compete in the smallest two-team market in the country. And in that market,
the Giants have a much larger population base in its territorial rights
area, the report says.
For example, in 2001, the Giants earned $17 million in media revenue, while
the A's earned $10 million.
A new venue could change those figures by giving the A's a better
opportunity to generate revenue and secure season-ticket purchases.
Although the A's have finally given local leaders a plan on how they would
help build a new ballpark, Wolff cautioned there is much work to be
accomplished.
"There is still a lot of issues," he said. "This doesn't mean this one is
going to be easy."
Steele agreed.
"What I felt he was saying is, 'This is our first choice. Can we make it
happen?'" she said. "I think it is a good idea, but beyond that, there is a
whole lot of discussions that need to take place."
Staff Writer Robert Gammon contributed to this report.
