because he would "Say" he would and then he wouldn't, he'd just sit in the luxury boxes with his 25% and adjust his hosiery.
To be fair, they're only spending the money that LA Galaxy brings in proportionately. That tv deal is for the LA Galaxy. Now that Houston finally has their own stadium, they're no longer going to be the drain on the balance sheet that they were before at Robinson. But you can justify spending on an LA Galaxy team that brings in the higher dollar jersey sponsorship, the higher jersey sales, the bigger tv deal and in a bigger market that you can't for Houston. Also you have to consider that most of the bigger name DP's will only go to LA or NY. I believe, though, that with the new stadium bringing in increased revenues that you'll see a DP or two in Houston soon. Look at Kansas City, they waited until Livestrong opened before bringing in Omar Bravo although he was committed to them beforehand. It may not be an ideal situation to have to always be the red-headed stepchild of the Galaxy, but I don't believe that AEG is purposely screwing the Dynamo. Granted it is a conflict of interest however due to the politics of the BoG I believe that AEG may feel that it is currently in their best interest to have a higher stake in the league than any other ownership group to the point that they are loathe to divest any more interest in the Dynamo than they have. I believe that they'll hold onto their controlling stake in Dynamo at least for as long as the Hunt group continues to control two franchises. It's interesting to note that between the Hunts and AEG, they've been represented in the last five MLS Cup finals. Perhaps more (I'll have to check) if you include the teams that they owned before selling off their other teams. EDIT: I guess that throws everything off. I seriously doubted that they would sell unless the Hunts did. I guess they got what they wanted out of holding onto the Dynamo which is the stadium rights. It's similar to what they did in NY. I wonder if a share of the stadium is on the table like it was in NY.
Didn't Golden Boy Promotions run the Paquiao v Marquez fight? Cuz after payouts to overhead and the take in ppv and sponsors, I figure ODLH, or whomever, pulled in $50-60 million. So perhaps the man is not a billionaire but he is quickly getting there.
Yes but he also has his business partners in Shane Moseley and B-Hop who each own significant shares in GBP since they put in their own money when ODLH started it up. He probably get's the biggest share though. I would say that the company GBP is getting there but they'll have to divest in other investments soon.
If AEG sells it's 50% of the team to another entity, the Dynamo then become a tenant of AEG's. The agreement to build was between Houston Harris County Sport Authority acting on behalf of the City and County, and an entity named "Dynamo Stadium LLC", which was formed by AEG. When the whole stadium deal was proposed it was supposedly so that the team would be able to reap the financial rewards not available to them as tenants of Robertson Stadium. If AEG's part of the team is sold to another entity it appears to me that they will be in exactly the same position they were as a tenant at Robertson. All the revenue would go to the operators of the stadium - AEG.
This cannot be correct. If AEG sell they are out of the equation Nigel. You have them as above still in the equation. Can't be so.
So you're telling me that AEG want to do to us what UofH did to us? In the end we may get our new stadium but it'll be worthless in a financial sense? AEG wants to sell their half of the Dynamo just to get rid if some red on their balance sheets, but will turn it into profit by keeping the stadium as landlords. Wow. That's a bitch move. PS I remember that after some years doesn't the stadium become owned by the County?
I would bet that anyone buying a stake in the team gets an ownership stake in Dynamo Stadium LLC. It might not be a 50% stake but it will be a substantial equity interest. AEG won't get crap for their stake if they don't make it feasible for team operator. They'll do something like what they do with Staples Center where they built and own it but the teams get cuts of the revenue streams, whether thru agreement or by owning a stake in the stadium operating entity.
That's what they tried to do with Red Bull only they made a mistake when they gave RB an equal share in the stadium and the two sides couldn't agree on the design. It's likely that if they do sell a stake in the stadium it will be just short of a controlling stake giving them carte blanche on the design.
Design is already done. Future changes could be designed, but that is the future. For now it would be operating issues. If/when AEG sells their Dynamo interest it will be up to the Dynamo's new owners to negotiate for what they can or know to negotiate for. Who will advise them on this? Perhaps they will get good counsel. Perhaps they will not. AEG will not offer anything up. Nigel's scenario seems very possible to me -- that the Dynamo wind up a tenant to their landlord who owns and runs their competitor.
Well that sounds swell. We can be the Kansas City Royals of MLS on the lowest cash payroll in the league playing in a new stadium with an onerous lease. The price they get for their stake in the team is going to be very correlational to what they are willing to give up in terms of sharing revenue from the stadium or giving up equity in Dynamo Stadium LLC.
I agree your analysis on that. The problem for us is that AEG will control this process. What they want is a venue for concerts which they are getting. I'm not convinced they value their ownership of the Dynamo much. Also, I don't assume the counter-party that AEG deals with understands how important the stadium issues/control/revenue are to long-term success. We often assume rich people are super smart. Yet the history of sports is riddled with rich people getting taken. In this instance -- Lieweke has no incentive to seek out a strong partner in MLS. He is better served by selling to a weak partner who does not know what they are doing in the transaction.
BTW .. and perhaps Nigel can confirm this for us ... but I don't think Brenner/Boxerdude have any equity in the stadium at all. They didn't negotiate for it.
I think MLS' BoG would frown on that, even if it's AEG doing it. They don't want another DC United, especially when the landlord is one of their members. They can't force AEG to do anything, but AEG enjoys alot of clout in this league and crippling another franchise wouldn't be good for their own interests. It's not an idea situation though. The main thing is that I'd be willing to bet that Dynamo still will control most gameday revenue with a fair and equitable rent. AEG's still getting their concert and event venue and 100% of the TSU rent whenever that's supposed to kick in.
Please share your reasoning. Why wouldn't the most influential member of the BoG, one AEG, want exactly that? Having said that .. I kinda agree that Garber and the others would/should frown on it. I'm just concerned about their willingness to stand up to Anschutz.
Agreed. I will say this, if the owner has to get a loan to buy the 50% stake in the team, its probably less likely they make a poor deal because enough advisors will have to sign off on it. AEG will give up control of soccer revenues I believe to retain all of the other operating rights as a concert or other venue. If AEG is going to fully pay off the debt on the stadium, then it would stand to reason the team owner won't get as big a cut of the revenues from the stadium. Which would lower overall debt costs for a new owner so they could theoretically still do OK. BTW, this has me thinking, for the suite contracts (and maybe club seats) are they with the Dynamo club or are they with Dynamo Stadium LLC? I've always thought that the suite and club seat sales would be revenues mainly dedicated to covering the debt service on the stadium, at least indirectly. Same for naming rights, if they get a 10 or 20-yr deal, it can be essentially dedicated to paying off the debt on the stadium, which means no incremental revenues for soccer operations.
Well that's just my point, at this point they would have to stand up to them. The only problem with that is that the biggest way that the BoG could hurt AEG is by witholding future team autonomy initiatives like future DP expansions or academy allowances but the only problem with that is that AEG isn't the only ownership group that wants those things. However, AEG is usually the bellweather as far as these changes are concerned. Neither Redbull, MLSE or the Sounders can push an issue like AEG can. They lose a bit of that if they don't play fair with Dynamo and they know it. And they don't need it either. They have the venue, two dedicated tenants, and other event revenue. The objective, increasing thier entertainment footprint, is completed. Screwing over Dynamo doesn't help the Galaxy as much as it will hurt them in the longrun since MLS may not be able to stand up to them, but they will lose most of their authority in the league and many of their allies within the league. Redbull might currently support them on many issues, but if they bully the new Dynamo owners too much it may bring up foul memories of their own dealings with AEG. Besides, in the end it doesn't make sense. Business is about building partnerships when you can and Dynamo's new owners aren't really their adversarys so much as future business partners. I like the previous post's remarks on this.
Great question. And I know the answer. Suites and club seats are with the stadium -- not the soccer team. That is why season tickets normally get you 20 games. Suites get you all events except for TSU Football. Club seats get you 20 games + 10 events.
Thanks. Although I think only President's Club seats get the 20 + 10. Regular club gets the 20 + rights to buy on the 10 and others IIRC. I say that because if it was 20 + 10 for regular club seats I and many others would have jumped on them as it would pencil out economically IMO.
So your assuming that the KC owners, Red Bull Corporation, the Krafts, the Hunts, and all the other owners care about how AEG treats the Dynamo? I don't follow that. If AEG screws over Houston and permanently hobbles one of their competitors why do they care? The Houston club will still produce the league revenue the same. The Houston club will just not have access to club revenues that would never be shared anyway. The losses would be on the Dynamo's books, not MLS's. Or am I getting that wrong? In fact, wouldn't it not lead to Houston being the anti-Dallas? FCD fails to produce for the league and has abysmal attendance -- but is actually one of the only profitably franchises because of stadium lease revenues. I would think the BoG would be more bothered by that scenario -- and not at all by the potential Dynamo scenario.