NASL club Minnesota United FC has "hired sports investment bank Galatioto Sports Partners" to raise between $100-150M in equity to "fund the new stadium that the team needs when it moves up to MLS," according to Kaplan & Thomas of SPORTSBUSINESS JOURNAL. GSP "is not yet in the market seeking investors because the team has not reached an accord with local political leaders in St. Paul for a stadium site." The amount GSP expects to raise "underscores the emerging business of MLS, which has enjoyed soaring franchise values and the development of soccer-specific stadiums." GSP Founder & President Sal Galatioto said that the assignment "is his first significant one" in soccer. He previously "described the sport as minor league," but now has "changed his tune." Galatioto: "I am falling on my sword. I am a lot more bullish now. With the new New York franchise, the Orlando franchise and the Pacific Northwest ones, and the Toronto franchise going well, it is a much more interesting business model" (SPORTSBUSINESS JOURNAL, 9/21 issue).
LOOKING FOR A HOME: In Minneapolis, Frederick Melo noted, “While MLS game attendance is breaking records, the league is eyeing urban, millennial-friendly markets such as St. Paul and Minneapolis for a good reason: Suburban stadiums are struggling.” Urban stadiums “allow younger fans -- the league's core audience -- to emulate European counterparts and take light rail into a game or grab a beer next door afterward.” To “clinch a stadium deal with the league,” city and team officials “will have to prove that St. Paul's Midway area offers the same amenities as a typical downtown, from pubs, skyline and sidewalks to public transit.” St. Paul Area Chamber of Commerce President Matt Kramer said that he understands why MLS Commissioner Don Garber “might need some convincing about St. Paul's Midway.” Kramer said, “It's not downtown. But it's not the suburbs.” He added, “Will fans come to a Major League Soccer stadium in Midway? I'm convinced they will. Major League Soccer just needs to wrap their heads around (it). The local ownership structure is sold on this. The only ones who aren't sold are Major League Soccer” (Minneapolis STAR TRIBUNE, 9/20).
