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Facilities Venues

ANALYSTS CONCERNED WITH RED SOX' BALLPARK FINANCING DEAL

          Red Sox CEO John Harrington said the $665M financing
     package reached between the team, Boston and MA politicians
     for a new Fenway Park (see THE DAILY, 7/26) "is going to be
     one of the most aggressive financing packages" that the
     team's financial backers have "ever seen," according to Van
     Voorhis & Convey of the BOSTON HERALD.  One element that
     "will make the team's job" of financing the facility "tough
     is its commitment to forego millions of dollars" that will
     be raised through planned surcharges on tickets and luxury
     suites.  Game Plan Inc. Chair Bob Caporale said city and
     state leaders "are tapping into the team's revenue." 
     Another "business source" said, "I am still not quite
     convinced how these numbers work for the Red Sox" (BOSTON
     HERALD, 7/27).  Also in Boston, Beth Healy writes that the
     ballpark plan "could collapse if the Red Sox fail to pull
     together a large and complex financing package" to pay for
     the facility.  Boston financiers said that it was "too soon
     to predict" how loans to the team might be structured, but
     "people familiar with sports finance and the Red Sox said
     the biggest concern is that the team will end up financially
     strapped under its debt load."  Healy: "It's widely believed
     that FleetBoston Financial ... will lead the financing"
     (BOSTON GLOBE, 7/27).  Meanwhile, Richard Kindleberger
     reports if the $90M "budgeted for land acquisition proves
     insufficient -- as many critics assert it will --- the team
     rather than Boston taxpayers will have to cover the excess." 
     It remains to be seen whether an average $8.6M per acre is
     enough to acquire the 10.5 acres of private property needed
     for the park (BOSTON GLOBE, 7/27).  
          LEFT OUT? The BOSTON GLOBE's Wilmsen & Ebbert report
     that nine of the 13 Boston City Council members "are
     preparing to block" the ballpark plan because they are
     "angered that they have been shut out" of negotiations with
     the Red Sox and are "feeling disrespected."  But Boston
     Mayor Thomas Menino's Chief of Staff James Rooney said that
     he was "confident the mayor can win the council's approval
     when a final vote is taken, which may be weeks or months
     from now."  Rooney: "Ultimately, there will be enough to do
     the project" (BOSTON GLOBE, 7/27).  A BOSTON GLOBE editorial
     states that the MA Legislature "should approve the plan"
     this weekend, recognizing that the proposal "represents a
     balance between the twin needs to keep the team in the city
     and minimize cost to taxpayers" (BOSTON GLOBE, 7/27).
          END OF THE WORLD AS WE KNOW IT? GLOBE columnist Michael
     Holley writes that the deal was "sad because it
     simultaneously emphasized that sports fans are not respected
     and that there are no breaks for New England-bred owners who
     go to lawmakers looking for help.  For some reason,
     lawmakers thought it would be better for the Sox to build in
     the [Fenway section of Boston], even though that's not the
     team's first choice."  Holley, noting the Patriots and Red
     Sox deals: "This is the second time in three years that the
     city and state have made silly decisions regarding a
     professional sports team. ... I wouldn't be surprised if the
     Sox took the $100 million infrastructure payout from the
     state, sold the land where Fenway now stands, and used those
     funds as equity for a new park elsewhere. ... It's going to
     be too costly for them to build there.  It's also going to
     be too costly for you to watch there" (BOSTON GLOBE, 7/27). 
     

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