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MLS Receives 12 Applications For Expansion; League Embarks On Long Vetting Process

MLS received formal expansion applications from 12 markets -- Charlotte, Cincinnati, Detroit, Indianapolis, Nashville, Phoenix, Raleigh, Sacramento, St. Louis, San Antonio, San Diego and Tampa -- for the "four spots in the league that will grow it to 28 teams," according to Paul Kennedy of SOCCER AMERICA. The bid groups "include owners with interests in the NFL, NBA and MLB," while eight "have had interests in teams" in NASL and the USL (SOCCERAMERICA.com, 1/31). In San Antonio, Terrance Thomas notes applicants had to "submit documentation focusing on three areas: Ownership; stadium details; and financial projections, corporate and soccer support." An MLS expansion committee, led by Revolution Investor/Operator Jonathan Kraft, will "begin reviewing applications this month." After meetings and site visits, the league will "announce its two newest franchises" which are "targeted to begin playing" in '20 (SAN ANTONIO EXPRESS-NEWS, 2/1). MLS Commissioner Don Garber, reflecting those three criteria, tweeted, of the 12 applications: "All great cities, support of proven leaders, and passionate fans" (TWITTER.com, 1/31).

Whitman and her husband will be major investors in Sacramento's MLS bid
CALIFORNIA PUSH: In Sacramento, Lillis & Kasler report Hewlett Packard President & CEO Meg Whitman was a "last-minute addition" to the city's bid group. USL club Sacramento Republic FC officials said that the addition of Whitman will "strengthen" the city's expansion effort in a "larger-than-expected competition against 11 other cities." The first two expansion choices "could be announced this year," and Sacramento has been "considered a leading contender if not an outright favorite for one of the spots." Garber in a visit to Sacramento last April all but "promised the city an expansion team." At the time he said that he thought Republic FC would be "playing" in MLS by '20. Republic FC’s ownership group already includes investors in the NBA Kings and 49ers CEO Jed York. Whitman "adds another deep pocket to the group" (SACRAMENTO BEE, 2/1). Sac Soccer & Entertainment Holdings CEO Kevin Nagle said Whitman and her husband, Stanford Medical Center professor Dr. Griff Harsh, will be “major investors” in the club. Nagle "wouldn’t describe the magnitude of the investment, but he said it was 'significant'" (BIZJOURNALS.com, 1/31).

JAIL BAIT: Palace Sports & Entertainment Vice Chair Arn Tellem said that the bid to bring an expansion MLS club to Detroit "included just one potential site for a stadium location -- the stalled Wayne County Jail project." Tellem added that the plan "calls for a 23,000-seat stadium with room to grow." In Detroit, George Sipple notes Detroit’s bid is a "joint venture" between Pistons Owner Tom Gores and Cavaliers Owner Dan Gilbert, who last April announced a plan for a $1B development at the downtown Wayne County Jail site that "would include a soccer-specific stadium." Rock Ventures, Gilbert's investment portfolio company, has been "working with architectural firm HOK and construction firm Barton Malow over several months to develop an offer for the jail site." Tellem would "not discuss how the stadium would be paid for." He said that the next step is to "wait for MLS officials to reach out and continue a dialogue, which will include a presentation for the expansion committee sometime in late spring" (DETROIT FREE PRESS, 2/1).

PASSION PIT: ESPN FC's Jeff Carlisle wrote San Diego, of all expansion candidates, has the "closest proximity to an existing club," as Liga MX club Tijuana and its home stadium Estadio Caliente are "located just over 20 miles away." California-based FS Investors Partner Nick Stone, whose group is part of San Diego's MLS bid, "estimates that 6,000 fans go across the border from Southern California for every Tijuana home game." He said of San Diegans attending Xolos games, "If there was ever an independent verification that this market is screaming for soccer, that's it." He added, "This is a huge market for soccer. I don't think there's only 6,000 tickets demand in San Diego at all. I think it's much bigger than that" (ESPNFC.us, 1/31).

The following are some other highlights from the bid packages:

  • USL club FC Cincinnati President & GM Jeff Berding said that the city's bid "includes a soccer-specific stadium proposal, should the club be told one is necessary." FC Cincinnati officials were "expected to provide MLS with a list of Greater Cincinnati sites where a new soccer stadium and related facilities could be built." Berding has "maintained confidence in Nippert Stadium," the club's current home at the Univ. of Cincinnati into which ownership is pouring more than $2M for soccer-specific upgrades this offseason (CINCINNATI ENQUIRER, 2/1).
  • Nashville Mayor Megan Barry said that she hopes this week "to have a stadium financing proposal" for a soccer-specific venue finalized "by this summer." Barry has "identified the city-owned Fairgrounds Nashville as the site she wants to build a stadium and has said she wants a 'private-public partnership' to pay for it." However, details are "unclear" (Nashville TENNESSEAN, 2/1).
  • Charlotte Mayor Jennifer Roberts "all but slammed the door on city government participating" in the city's MLS bid. Roberts said that the "possibility of city government taking a second look at helping pay" for an MLS stadium "isn't going to happen under 'this structure and deal'" (BIZJOURNALS.com, 1/31).
  • A St. Louis ballot measure that "would go to voters April 4 to help finance a 20,000-seat stadium downtown could be approved by the Board of Aldermen on Friday." The Aldermanic Ways & Means Committee will meet tonight and will discuss the "financing agreement" between the city and SC STL investors. That agreement "must also pass for the stadium to be built" (ST. LOUIS POST-DISPATCH, 2/1).
  • NASL club Indy Eleven's bid "includes a proposed 20,000-seat Downtown stadium that will cost in excess" of $100M (INDIANAPOLIS STAR, 2/1).

NOT NOW
: USL club Louisville City FC Dir of Media Relations Jonathan Lintner confirmed that the club "declined to submit a bid to the MLS for expansion." In Louisville, Daniel Karell notes that means that the club will "have to continue to wait before filing an expansion bid with the MLS," which could delay entry past '20. Louisville City's "pursuit of a soccer-specific stadium is still in the design phases and has not been approved by the Louisville Metro Council." A new stadium and MLS expansion push have been "supported in the past by Louisville Mayor Greg Fischer" (Louisville COURIER-JOURNAL, 2/1). In Las Vegas, Betsy Helfand reports the city was "not one of the 12" to apply for MLS expansion. The City Council last month had "voted in favor of hiring a consulting firm for $80,000 to help win a bid for an expansion team." A '15 bid for an MLS franchise, which was paired with a proposed $200M stadium, "failed after the City Council was divided over the facility" (LAS VEGAS REVIEW-JOURNAL, 2/1).

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