AEG given permission to move Quakes in 30 days

Discussion in 'MLS: News & Analysis' started by Rocket, Nov 4, 2005.

  1. Goodsport

    Goodsport Moderator
    Staff Member

    May 18, 1999
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    Mmm... Isis! [​IMG]


    [​IMG]


    -G
     
  2. chayes

    chayes New Member

    Feb 29, 2000
    Raleigh, NC
    Re: AEG: Odds of Quakes Move 50-50

    Only reason I mentioned Seattle was due to this post by Andy Mead...

    https://www.bigsoccer.com/forum/showpost.php?p=6575167&postcount=25

    Sounded like he's hearing that something is going on. Maybe he'd like to elaborate here...
     
  3. Goodsport

    Goodsport Moderator
    Staff Member

    May 18, 1999
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    Could it be that Seattle will join Toronto in the 2007 MLS expansion? :confused:

    If so, cool! :cool:


    -G
     
  4. curtwpg

    curtwpg Member

    May 19, 2004
    Winnipeg, MB, Canada
    Re: AEG: Odds of Quakes Move 50-50

    It is amazing that there have been no solid rumours of where the Earthquakes would be going to. If I am not mistaken (I skimmed the posts to date), it does not appear that Houston is the possible destination. No other city has been mentioned with any frequency or plausibility.

    This causes me to think:

    1) SJ is going nowhere and the comments are meant to:
    a) spur a purchaser in the SJ region;
    b) spur the powers that be in SJ that a SSS must be built or else the team will be leaving (the "deadline" sure worked in Toronto)

    2) AEG might consider shutting the team down for the 2006 season. This should spur a lovely discussion about what would happen to the SJ players for the 2006 season.
     
  5. Goodsport

    Goodsport Moderator
    Staff Member

    May 18, 1999
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    Exactly!


    1) It's true that the Earthquakes aren't leaving the SJ area. As for spurring a purchaser and the powers that be for an SSS: it would simply be to spur them to finish the negotiations sooner. Talks have already been progressing on those fronts for some time now. :)

    2) Not gonna happen.


    -G
     
  6. Earthshaker

    Earthshaker BigSoccer Supporter

    Sep 12, 2005
    The hills above town
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    Sounderfan could give the best view on this possibility, however, I will give it a shot. The owner of the Sounders, Adrian Hanauer, has stated he would not go it alone to bring an MLS team to Seattle, and there has been no talk that I have heard that he is actively looking for partners, or has found any. And if the league is adamant that new teams have an SSS in the works I don't see how Seattle fits into their plans, since there is not any real talk about building an SSS in the Seattle area at this time. The only intriguing element is that Liwieke's brother is CEO? of the Seattle Seahawks and that the Sounders get to use Qwest field rent free at this time. Qwest is a magnificent stadium, but would be fairly cavernous when occupied by a soccer crowd, (unless Man U is playing Celtic, 67,000 :) )
    Hopefully Sounderfan will come along and add any more info, or correct any wrong info I may have given.

    I do agree with Goodsport that it would be cool for Seattle to get an expansion team sometime soon, then I would have two teams to cheer on. ;)
     
  7. Re: AEG: Odds of Quakes Move 50-50

    I'll preface these comments by reiterating that I very much hope to watch a Toronto Blizzard vs San Jose Earthquakes game in the not too distant future.

    I don't think an SSS is such a big issue for the Sounders or another would be Seattle ownership group as it would be elsewhere. Seattle almost got in instead of Salt Lake City last time around despite having no plans for an SSS so it looks like the potential lease deal at Qwest Field is much better than what would be obtained at any other NFL stadium in terms of access to revenue streams. Maybe the possibility of Vancouver stepping up by the end of the decade has created some additional ownership interest beyond Adrian Hanauer?
     
  8. rhymeorreason

    rhymeorreason Member

    Nov 16, 2004
    OPKS
    Re: AEG: Odds of Quakes Move 50-50

    The accurate, short answer is "We have no idea."

    The convoluted, long answer is:

    There is a local investor group that has been in negotiations with HSG for months. They are interested in having a team in Kansas City.

    Having a team in Kansas City is dependent on a locality being willing to support the development of an SSS. A recent study indicated that an SSS combined with retail development and a championship-level youth soccer complex could inject a boat load of money into the local economy.

    Any discussions regarding HSG selling the team are taking place in private. No one outside of HSG and any potential purchasers know the status or progress of the situation.

    The way I see it, there are five possible outcomes for the Wizards:
    1) The local investors could buy the Wizards, get an SSS built, and they stay.
    2) The current team could move and the local investors could buy expansion rights. If a stadium deal gets done, they use those expansion rights.
    3) If the stadium deal doesn't get done, they pass on the expansion rights.
    4) The current team moves and no expansion rights are purchased.
    5) The current team is purchased by a non-local investor and plays in KC next year while the new owner makes plans to move for the 2007 season, with the local group still considering expansion.

    I echo this sentiment from a Wizards perspective, also:
    Originally Posted by curtwpg
    It is amazing that there have been no solid rumours of where the Earthquakes would be going to.

    If there are out-of-town buyers for these teams and they will be playing in a new city, they have managed to keep the purchase negotiations with HSG or AEG quiet, negotiations with wherever the team is moving quiet, any SSS pre-planning/negotiations quiet, and any personnel moves involving the new owner's front office quiet. It boggles my mind that there could be no leaks, considering the number of people who would have to be involved in all those negotiation and decisions.

    Plus, if you were going to effectively market and launch in a new area next spring I'd expect a front office to be in place now, to hit the ground running after an announcement is made.
     
  9. cristoforo7

    cristoforo7 New Member

    May 14, 2003
    Re: AEG: Odds of Quakes Move 50-50

    Re the Wizards, I note that the Houston Chronicle article is specific to the Earthquakes and says nothing one way or the other about the possibility of the Wizards moving to Houston.

    Re the Earthquakes, I think everything so far points to two possibilities which have been discussed: (1) new local investor-operator buys team and keeps it in South Bay or Bay Area (if South Bay can't get its SSS act together); or, (2) MLS "buys back" the team from AEG-- likely for a pittance, if anything-- and keeps the team in the Bay Area for 2006 as a league owned team, with 2007 and beyond t.b.d.

    Bottom line: Earthquakes will stay in the Bay Area for the 2006 season (possibly not at Spartan if Spartan Shops plays hardball). 2007 and beyond is still a question mark (which could be resolved very soon).
     
  10. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    I think if there is a Seattle 2006, then one of the owner will be Paul Allen. Granted, there won't be a SSS but if it works financially (like the REvs) then it might happen.

    It's a big IF though that Paul Allen will join.

    However, with the adidas deal, MLS losing less money each year and the improved state of soccer in the US, Paul Allen might just chase a MLS team.
     
  11. Dignan

    Dignan Member+

    Nov 29, 1999
    Granada
    Club:
    FC Dallas
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    "Plus, if you were going to effectively market and launch in a new area next spring I'd expect a front office to be in place now, to hit the ground running after an announcement is made."

    Unless you already have one in place, ala Rochester Rhinos. Don't be surprised if one of these teams ends up going to Rochester, you can't ignore a brand new soccer stadium and an already established soccer fan base.

    Hunt has had discussion with DuRoss and the Rhinos before.
     
  12. EastBayGrease

    EastBayGrease Member

    Mar 1, 2005
    Santa Clara
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    How about one of the South Bay Jr. Colleges such as De Anza, Foothill, or West Valley?

    The Quakes currently practice at West Valley. I attended one of their pre-season practices and was amazed at what a beautiful location it was. The field is up in the hills, has a view of the south bay, and is surrounded by redwoods. The practice field is too small to fit in bleachers, but I couldn't help but fantasize about an SJ SSS built into the hills a la the Nou Camp, so fans could watch the game and those in the high bleachers could look out onto a view of the the Sillicon Valley *pinch*.
    ( for map of West Valley, put "14000 Fruitvale Avenue, Saratoga, CA" into maps.google.com and select the "satellite map" option. Note the BLUE track!)

    De Anza has a nice turf football field. (put "21250 Stevens Creek Blvd., Cupertino, CA" into maps.google.com and select the "satellite map" option.

    Foothill has a nice turf football stadium as well. (put "12345 El Monte Rd, Los Altos Hills, California" into maps.google.com)

    Of these three, I think De Anza is the most centrally located. Foothill and West Valley as located to the far west of the valley in upscale neighborhoods in the hills("West Valley is located on the west end of the valley? Really??" ), De Anza, while on the west side, is not up in the hills.

    I have no idea about public transportation, parking, etc.
     
  13. roadkit

    roadkit Greetings from the Fringe of Obscurity

    Jul 2, 2003
    Fornax Cluster
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    WRONG. The 'new" owner's group is led by Kevin Payne - he's not going to sell the team to anybody. The likely outcome of a deadlock with DC politics regarding the SSS is a move to nearby Virginia or Maryland. Not the most desirable of circumstances, but one that essentially protects the fans base which is one of the best in MLS and the key to future profitability. Payne is not going to "cut off his nose to spite his face."
     
  14. Earthshaker

    Earthshaker BigSoccer Supporter

    Sep 12, 2005
    The hills above town
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    I agree with your (1) scenario, but don't see how you could get to (2). If AEG would be willing to sell the team for a "pittance, if anything" back to the MLS, why wouldn't they just sell it to the local I/O group and be done with it? You would have to assume that the new I/O's are coming to the table with more than a pittance in their pockets. My guess is that AEG still wants to have their finger in the pie somehow, even though they say that at 'end of the day that can't be owning this team'. It probably has something to do with future use rights of a new SSS or a renovated Spartan. Why else would they be talking with the mayor and vice-mayor of the city? You don't need them involved in the negotiations unless it somehow is going to involve city resources.
     
  15. cristoforo7

    cristoforo7 New Member

    May 14, 2003
    Re: AEG: Odds of Quakes Move 50-50

    (2) is a realistic scenario for many reasons:

    --AEG loses significant money on the Quakes every year and wants that to end in 2005
    --AEG has no place to move the Quakes in 2006, so it would have to keep the team in San Jose and lose money for another season (not to mention the very strong probability that it would lose the same or more in another location-- the difference being whether they have SSS rights or not and it is now clear they have not succeeded in negotiating an SSS deal in Houston)
    --AEG's favored franchises now all have an SSS approved or constructed and it wants to focus on those
    --AEG is not going to just give away the franchise to a new i.o. with the MLS expansion fee being more than $10 million; and the sale of D.C. United bringing in $?? million ($20 million ?)
    --AEG would still own 3/12ths of the team's i.o. rights if MLS "buys back" the team (3 franchises still owned out of 12 league teams)
    --AEG could quite probably take a big tax deduction if it just gets rid of the team (remember how popular car donation to charities have been before the IRS started cracking down-- you basically got to pick the high bluebook value of your vehicle regardless of the actual value and there was no real possibility the IRS would audit or otherwise dispute your deduction ... sometimes a deduction is worth close to as much or more as the gain one would get for selling something)
    --MLS (Board of Governors, i.e. non-AEG Governors) would refuse to pay anything significant to AEG for "buying back" the team but would certainly take the team back for little or nothing and suck up the operating losses if AEG has basically fulfilled its prior committment to be a caretaker for the team (it never agreed to caretake the team forever)
    --MLS doesn't want the Quakes's i.o. rights to be sold for a pittance to a new i.o. because that decreases the value of all franchises and MLS itself-- imagine the bad press if AEG sold the Quake's i.o. rights for $5 or $6 million + no SSS promotion rights-- it wouldn't speak very highly for MLS in the mainstream media
    --MLS taking back the team is a face-saving measure to avoid the immediately preceding scenario as well as to give the valuable Bay Area television market some more time to get its SSS act together, keeping the Quakes here for the 2006 season at least
    --if Bay Area doesn't get its SSS act together by next year, MLS has absolute control over moving the franchise (versus the veto power which is currently has with AEG as i.o.)

    So if AEG and the local i.o. can't agree on a deal, (2) is a very realistic scenario.
     
  16. falvo

    falvo Member+

    Mar 27, 2005
    San Jose & Florence
    Club:
    San Jose Earthquakes
    Nat'l Team:
    Italy
    Re: AEG: Odds of Quakes Move 50-50

    I worked for a guy Italy who is based out of the South Bay who's potential worth is around 200 million. I did all his books in Europe and was in charge of his money. He gave over 10 million to a a major University in the in the US as a tax write off. The guy is loaded and hasn't lost a penny from his investment. By him giving the money away, he has actually earned more moeny and has become more wealthy in the process. By writing all of this off his taxes as a loss, what happens? The rich get richer. He has reaped the rewards in his other business ventures thru stocks & bonds and other dealing becuase of his donations. When AEG says they lost 20 million in the Quakes they are so full of it , its not even funny! They have made at least that in sponsorship dollars alone.
    These days 10-20 million means nothing to these coporate big wigs and especially nothing to a company like AEG.
    They won't be losing a dime!
     
  17. Earthshaker

    Earthshaker BigSoccer Supporter

    Sep 12, 2005
    The hills above town
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    Is he a soccer fan? :D
     
  18. Earthshaker

    Earthshaker BigSoccer Supporter

    Sep 12, 2005
    The hills above town
    Club:
    San Jose Earthquakes
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    I am not saying the local I/O's are offering a "pittance". My guess is that they have offered the $$ asking price, but like I said, AEG still wants their finger in the pie in somehow. Half of your points could also be applied to scenario (1). The only way I could see MLS taking back the team was if they felt there was no serious local I/O at this time, no serious offer coming from anywhere else, and they did not want the league to contract any further.
     
  19. pc4th

    pc4th New Member

    Jun 14, 2003
    North Poll
    Club:
    Los Angeles Galaxy
    Nat'l Team:
    United States
    Re: AEG: Odds of Quakes Move 50-50

    You obviously don't know what the heck you're talking about. You know nothing of taxation. How can you get richer by giving away money to charity? Charity contribution is an Itemized Deduction, which only give you a tax saving at 35% (or whatever his tax bracket is). In other word, if he is giving away $10, he saves $3.5 dollars, the real cost to him of giving away $10 is only $6.5 dollar. Obviously, you should know this if you are actually doing his books.

    A second look at your screen name told me everything I need to know. You wrote a lot of post about AEG and how AEG's main purpose for SSS is for concerts. You bashed single-entity in some other threads, especially AEG and how business-oritented it is. In another word, I sincerely doubt your credibility.
     
  20. falvo

    falvo Member+

    Mar 27, 2005
    San Jose & Florence
    Club:
    San Jose Earthquakes
    Nat'l Team:
    Italy
    Re: AEG: Odds of Quakes Move 50-50

    Believe me or not! I could care less what you believe! I'm looking at bank records bank accounts and real money here! I know exactly what I'm seeing here! I have it in writing! I worked for these people and I know what kind of tax shelters they hide themselves in! I've seen it! Why in the world would I make this up? Its not my money so who cares?
    The tax laws and/or shelter are for the rich! My brother in law was a CID for the IRS and he beat them in court at their own game , don't tell me bout tax laws, they are all a bunch of crooks! If you are telling me AEG doesn't write off their losses then you have a big problem!
     
  21. falvo

    falvo Member+

    Mar 27, 2005
    San Jose & Florence
    Club:
    San Jose Earthquakes
    Nat'l Team:
    Italy
    Re: AEG: Odds of Quakes Move 50-50

    BTW, who mentioned charities? I never said nothing about charities!
     
  22. falvo

    falvo Member+

    Mar 27, 2005
    San Jose & Florence
    Club:
    San Jose Earthquakes
    Nat'l Team:
    Italy
    Re: AEG: Odds of Quakes Move 50-50

    I wish he was, then I'd convince him to buy the Quakes himself & start his own SSS. Unfortunately, he is a college football fan! I'll give you a hint. Its in the Northwest! Look it up!
     
  23. midwestsurfer

    midwestsurfer New Member

    Jun 7, 2005
    Honolulu~Tulsa
    Re: AEG: Odds of Quakes Move 50-50

    When faced with an owner trying to sell a team for less than the current expansion value, the AFL just folded the team...

    I sincerley hope that the MLS doesn't end up having to make such a rash descion....

    At least the quakes haven't appeared on ebay....
     
  24. sounderfan

    sounderfan New Member

    Apr 6, 2003
    Re: AEG: Odds of Quakes Move 50-50

    To agree with GoSounders I would add that NOTHING has been said up here in Seattle. We all must realize though that Adrian Hanauer, the Seattle Sounders GM/Operating Partner is a world-class poker player. In other words, when things are the most quiet...???

    Seattle has COMPLETELY fallen off of the radar for MLS. Whether that is just on OUR part, or the leagues' too, I don't know. Don Garber has completely STOPPED dropping Seattle's name as an expansion city in recent months.

    Hanauer recently negotiated the EXACT deal he was hoping to get for Seattle MLS with Qwest Field: the 2006 Sounders will SHARE parking and concessions revenue while also playing RENT FREE (only match-day expense will be paying for stadium personnel.)

    The 2005 USL-1 Champion Sounders have had a great working relationship with the Earthquakes over the years, loaning players, combining scouting efforts, etc.

    It sure seems like if Seattle gets a surprise in the next few weeks that it would come from the midwest, not Northern Cal. But there is absolutely no reason to think anything Seattle-MLS related is going on.

    The Sounders are already selling 2006 USL-1 season tickets, for whatever that is worth.

    ------------------------------------------------------------------------

    Only way Seattle gets the Quakes or Wizards:

    AEG agrees to lower asking price and/or stay on with Hanauer as part owners. Or perhaps Tod Leiweke, President/CEO of the NFL Seattle Seahawks puts together a ownership group with help from his Galaxian brother. No news on any of this coming down. All of the bones are here...just no guts & muscles to put it all together.
     
  25. falvo

    falvo Member+

    Mar 27, 2005
    San Jose & Florence
    Club:
    San Jose Earthquakes
    Nat'l Team:
    Italy
    Re: AEG: Odds of Quakes Move 50-50

    This is a good one!
     

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