Since the 49ers and NBA Kings owners recently announced their investments in USL club Sacramento Republic FC, they have given the city's MLS expansion push "a good deal more credibility," according to Kasler & Lillis of the SACRAMENTO BEE. Republic FC Lead Investor Kevin Nagle said that MLS officials "had suggested to him that they're more comfortable with bidders that have ownership ties to other major-league sports." Nagle said, "It positions us better." Eight of the 22 existing MLS franchises "are controlled by current or former owners of teams from other sports." The Kings’ investment "capped a somewhat complicated courtship." The team in August "considered becoming majority investors" before Nagle, a Kings minority owner, "wound up buying a controlling interest in September." Eleven other Kings minority partners "made smaller investments." It took "an intervention" by Sacramento Mayor Kevin Johnson "to get the Kings as an organization to buy in." Johnson convinced Kings Managing Partner Vivek Ranadive that an investment "would boost Sacramento’s chances -- and would be good for the Kings, too, offering cross-marketing opportunities." The Kings "denied any suggestion that they viewed Republic FC as a threat." Kings President Chris Granger said, "We’ve been fans of the Republic since the beginning. We’ve been supportive of the Republic." Nagle and Republic FC President & co-Founder Warren Smith "also denied there was ever any resistance from Ranadive." Johnson "brought the 49ers owners to the table by introducing Nagle" to 49ers CEO Jed York. Nagle said that the 49ers owners "won’t be passive investors; they will work with Republic FC on stadium construction, food and beverage issues, and so on." Besides credibility and expertise, the 49ers bring "the ability to help smooth over any possible friction" with the Earthquakes. Although Republic FC "was the Earthquakes’ minor-league affiliate this year, and could perform that role again this year, Nagle said the San Jose team holds 'territorial rights' over the Sacramento market." That means the Earthquakes "could demand some form of compensation from Republic FC or become an obstacle to Sacramento’s bid for MLS status." The 49ers, meanwhile, "have business ties to the Earthquakes, including a five-year agreement to host an Earthquakes game once a year at Levi’s Stadium." The 49ers owners’ investment in Republic FC "doesn’t automatically resolve the territorial rights issue, but it can’t hurt." Nagle said he has had “some informal discussions” with the Earthquakes about resolving the rights question (SACRAMENTO BEE, 2/14).
