News: AEG looking to sell share of Dynamo

Re: AEG to looking to sell share of Dynamo

Let's turn this into green bay.

i'll buy .001%

I'm broke at the moment.




If we are lucky, BBVA will buy us

 

Re: AEG to looking to sell share of Dynamo

Me and MadMatt . lulz

but seriously, i hope we get a nicer owner. Bigger and better than AEG

 

Re: AEG to looking to sell share of Dynamo

Didn't we bring up the fact that if somebody buys AEG's side we may actually become a tenant in our new stadium? The situation would be the same as it was in Robertson with the only difference being we get a new stadium.

 

Ok, here's what is worrying a lot of people about this.....
No way is AEG going to sell the stadium, just the team. So we are back to square one, playing in somebody else's stadium. Probably the scheduling won't be a problem like at UH (ok, hopefully). But who can promise AEG will keep the field right? Or that they won't schedule a tractor pull the night before a playoff game? And what about all the income we were supposed to be reaping by playing in our own stadium? And here's the worst case scenario.... we would be playing in a stadium owned by the people that own our rival. That would really suck, man. I'm not happy about this.

 

I figure they would be a contract already set up with the "houston dynamo" for # of years at a low rate... so it wouldnt affect us for like a good amount of years..

right?

 

The agreement with the Sports Authority is between HCHSA and Dynamo Stadium LLC. It mentions a lease agreement between Dynamo Stadium LLC and the team.

It's going to be interesting to see how this whole thing plays out. I bank with BBVA - wonder if they'll give me a loan.

 

blue n houston is about to jizz his pants when he logs on.



Now if Brenner and Fishnet boxer sell, i'll be happy.


EDIt: crap crap about the tenant thing. i'll be highly, highly amazed if AEG sells the venue.

 

I have a hard time believing that a buyer would be interested in buying the team without securing the rights for the stadium. It doesn't make business sense for the buyer to not secure the stadium's revenue streams.

 

I agree with this. But then again, I have trouble seeing AEG wanting to get rid of the stadium they've worked hard to have built.

 

Maybe I'm confused but I thought that the stadium was to be owned by the city and the county sports authority with very generous lease terms for the team. It is my understanding that AEG does/will not own it.

From http://www.dynamotheory.com/2011/2/5/1977283/dynamo-break-ground-on-new-downtown-stadium

"The stadium will be operated by the Dynamo and leased from the Harris County-Houston Sports Authority. It is located closer to downtown than any other American stadium built for soccer and will be easily accessible to fans from the entire Houston area.

AEG Facilities, the world's largest venue manager, will manage the stadium on behalf of the Dynamo. The stadium will be included in AEG Facilities' worldwide network of more than 100 elite venues across five continents."



From http://www.myfoxhouston.com/dpp/news/local/100413-county-approves-dynamo-stadium-deal

"The city has already purchased the 12 acres that will be used for the project at a cost of $15 million. The county will reimburse the city one-half of that cost to gain an equal ownership share."



So what is the worry here exactly? Are you all worried about that AEG will retain control of stadium managment?


Edit: http://www.fieldofschemes.com/news/archives/mls/houston_dynamo/

"The funding breakdown: The Dynamo will pay for $76 million in construction costs, while the city and county will share $15 million in land costs, plus $20 million in infrastructure improvements. The city and county will jointly own the 21,000-seat stadium — presumably so that the Dynamo don't have to pay property taxes — and charge the Dynamo $65,000 a year in rent."

http://www.chron.com/sports/dynamo/article/Downtown-stadium-OK-d-for-Dynamo-1599732.php
"
The Dynamo have agreed to pay $76 million to build a professional soccer stadium in downtown Houston and then lease it from the city and county for $65,000 a year.
The board of the Harris County-Houston Sports Authority, a joint city-county agency that acts as a pro sports stadium landlord, unanimously approved the deal Thursday morning. While the Dynamo will pay most of the cost of construction, the city and county will own the stadium."

 

Be careful what you ask for.

 

Right, that's what all the links I just posted say. However everyone here is talking about how AEG will not want to sell a stadium they will never own...

 

so if they sell the share, they are gone forever correct?

 

They own the stadium. They will cede control to the city to avoid tax but make no mistake the agreement places them in charge. They are paying for it.

 

Thats what I'm trying to understand. The articles I provided say that under the current situation AEG will run the operations provided by the lease agreement. I also know there are two AEG owned Dynamo companies, Dynamo Soccer LLC and Dynamo Stadium LLC.

 

so if they turn over the operations to the potential new stakeholder, they are out, correct?

 

I'm not certain why news of the sale is such a shock. MLS has been here before with AEG. I saw this coming the day ground was broke downtown.

1. AEG sold its controlling interests in the Fire & Toyota Park to Andell Holdings in '07

2. In addition to purchasing the team, Red Bull bought out AEG's $100**million share of the stadium. Of course, even though ground was broke in '06, the entire project was delayed due to Red Bull redesigning the stadium to what's there today, as well as an enviornmental cleanup.

Both of these deals occurred after a stadium deal was already in place.

Fact is, this was coming and you can expect the owner to purchase controlling interest in both BBVA Compass Stadium along with the Dynamo. Question is, who will it be and for how much?!? Based on the stadium price and the expansion fee Saputo paid for MTL, I'm thinking $140 million dollars... EDIT: Actually half that, forgot about Brenner/DLH lol

 

even though AEG owns the stadium, I believe the stadium lease is with the Dynamo and the City/County through Houston sport authority. AEG will use the stadium for high school football, concerts, festivals, or whatever they want to schedule for that venue. Dynamo home games and TSU (whatever the name is) home games are controlled by the lease, like texans and reliant, rockets and toyota center, or astros and minutemaid. AEG will make it's money with all events outside of the dynamo and TSU. So whoever owns the dynamo will own the lease and that is not "renting" the stadium from AEG.

 

AEG said in their interview that several local people have already come forward wanting to buy the team.

 

Can anybody name any local billionaires that may be interested?