The proposed stadium at the downtown railyard will have an adjacent entertainment district REPUBLIC FC
MLS execs indicated that Penguins co-Owner Ron Burkle's involvement in Sacramento Republic FC's attempt to join the league "helps Sacramento's chances of securing an expansion team," according to Dale Kasler of the SACRAMENTO BEE. Sacramento Mayor Darrell Steinberg yesterday said that Burkle would replace Republic FC Chair & CEO Kevin Nagle as the "lead investor" in the USL club's effort to "make the leap to MLS." Burkle also "tentatively agreed to buy the site of the team's proposed MLS stadium at the downtown railyard, plus 14 adjacent acres." Burkle "plans to turn the 14 acres into an entertainment district." Kasler notes Sacramento's chances of getting a team "seemed to be fading" when MLS officials in '17 said that the city "needed a billionaire lead investor to gain admission to the league." Burkle's net worth of $2.2B and "experience in the sports world" seem to "fit the bill." Steinberg said that he and Burkle "plan to visit MLS Commissioner Don Garber in February to discuss the expansion bid" (SACRAMENTO BEE, 1/23). Steinberg added that Republic FC and the city have been "searching for a billionaire lead investor for about a year and met with at least a half-a-dozen serious potential investors." Neither Nagle nor Steinberg said how much Burkle will invest in the club to "gain a controlling stake in the team" (BIZJOURNALS.com, 1/22).
GAME-CHANGING INVESTMENT: In Sacramento, Kasler, Bizjak & Breton in a front-page piece report Nagle and city officials had been "recruiting Burkle for months, since MLS officials made clear that having a billionaire lead investor was required." Nagle said, "It's game-changing to bring Ron Burkle on board. You're talking about a first-class businessman and sports owner. I think the rest of the country is going to be really impressed by who we brought in as lead investor." Republic FC indicated that Burkle is "investing with the goal of landing an MLS franchise, not owning a team" in USL. His involvement with the club "turns around an effort that once seemed to be a sure thing, but grew increasingly dim in the past year as other cities secured MLS expansion teams." Nagle has "poured tens of millions into Republic FC since becoming lead investor" in '14. Nagle said that he will stay with the franchise and "take on the role of a 'senior executive.'" He also will remain the "lead local investor" in the club. Team officials said that L.A. businessman Matt Alvarez also will be "joining the ownership team," after having "done previous deals with Burkle." Republic FC President & COO Ben Gumpert said that even with Burkle "breathing new life" into the MLS bid, the '20 timetable is "now probably unrealistic." Gumpert added coming to an agreement with an investor took months because "we wanted to find the right person, someone who has an appreciation for Sacramento and for soccer" (SACRAMENTO BEE, 1/23).
TOO LITTLE, TOO LATE? SI.com's Avi Creditor wrote the "question that remains is if Sacramento took too long in finding" its lead investor. The "unexpected addition of Austin" as an expansion franchise "shrunk the number of available slots to one, and progress in other cities, namely St. Louis and Phoenix, could give MLS something to ponder as it mulls over the identity of its 28th franchise" (SI.com, 1/22).
