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).