USL club Sacramento Republic lead investor and CEO Kevin Nagle wrote in a letter to fans on Thursday that while the franchise is “still in the running" for the second MLS expansion slot, it needs to “bolster our overall capital structure.” Nagle noted that since the investor group formed in ’14, the combined costs of the MLS expansion fee and its proposed stadium have risen by nearly $150M. In a press conference on Thursday, Nagle also noted HP Enterprise President & CEO Meg Whitman is not currently an investor. The club announced on Dec. 6 that Whitman and her husband would be joining the ownership group. In the letter, Nagle said the club is aiming to add “another major investor or investors,” noting that he will continue to drive the progress as the lead investor in the club and that he has invested nearly $30M in the club. Nagle also said the club will seek additional limited partners. 49ers CEO Jed York and the NBA Kings are still members of the ownership group. He also called for an increased mobilization of community support (Ian Thomas, Staff Writer).
SHOW ME THE MONEY: In Sacramento, Ryan Lillis in a front-page piece notes it is "unclear how much more time MLS will give cities to strengthen their bids." Sacramento Mayor Darrell Steinberg at Thursday's presser said, "We have a funding gap, that’s no secret, but it’s one that can be fixed." Lillis notes Sacramento is "not the only city facing questions," as both Cincinnati and Detroit have "unresolved stadium issues, although their investors have far more wealth than the group leading the Sacramento effort." Nagle at the press conference said he would be "open and flexible" with his leadership role to "attract the right partners." Neither Steinberg nor Nagle "would specify the amount of the funding gap, but indicated it is significant." Steinberg said that the process of "finding a major investor may take several months" (SACRAMENTO BEE, 12/22). Also in Sacramento, Ailene Voisin writes, "This is all about the money." Sacramento's "fan support and stadium plan" have "long been checked." But as has been made "abundantly clear in the past few weeks, the financial stakes have gotten higher." MLS Commissioner Don Garber and his owners have "legitimate concerns about the fiscal viability of Nagle’s ownership group, certainly as it compares with the billionaire bidders in Cincinnati and Detroit" (SACRAMENTO BEE, 12/22).
