Crew SC owner considers moving team to Austin, Texas

[Christopher Jee]

MLS is pro-rel - it's just based on financial performance and not footballing performance:

https://www.forbes.com/sites/chriss...e-soccers-most-valuable-teams-2/#1988d8b815de

(Scroll all the way to the financial league table)

Watch out Colorado, Vancouver, Salt Lake and Philly.

This is, ya know, as it should be, since as consumers what we really care about is whether our owners have larger yachts and or other forms of transportation than our rivals' owners.

Oh wait, apparently that's not quite right.

Its basically axiomatic that sports fans only really care about the highest possible level of competition and the locality of the league. People want to go to matches, that's why MLS has a hope in hell against its European competition, in conjunction with national pride.

 

[LeeNYCFC]

MLS is pro-rel - it's just based on financial performance and not footballing performance:

https://www.forbes.com/sites/chriss...e-soccers-most-valuable-teams-2/#1988d8b815de

(Scroll all the way to the financial league table)

Watch out Colorado, Vancouver, Salt Lake and Philly.

This is, ya know, as it should be, since as consumers what we really care about is whether our owners have larger yachts and or other forms of transportation than our rivals' owners.

Oh wait, apparently that's not quite right.

I don’t find Forbes’ estimates of franchise value all that persuasive. I’d expect the league’s business model to keep franchise values closer than is suggested by the numbers Forbes is putting out there. The article below was informative, to the extent that it’s possible to know anything about MLS’ numbers.

https://medium.com/@isaacccccccccc_...jor-league-soccer-business-model-827f4b784bcd

But I do agree with your sentiment. The league’s behavior in this Columbus episode makes it clear they have no interest in standing up for a community against their franchisees whims. So for that reason, I’d agree any smaller market fans should be wary of being bought up to be moved.

 

[dannd23]

Some people in NYC have longer commutes than the drive from Austin to San Antonio.

Cool, so let's put NYCFC's stadium in Sussex County, NJ then. There is plenty of space. We can have an 80K seater no problem. And better yet, it is only 50 miles instead of 80 miles like the San Antonio-Austin relationship.

 

[EganSoccerWords]

Cool, so let's put NYCFC's stadium in Sussex County, NJ then. There is plenty of space. We can have an 80K seater no problem. And better yet, it is only 50 miles instead of 80 miles like the San Antonio-Austin relationship.

Also without millions of people but i know your trying to be cute

 

[snugglefarts]

This idea that San Antonio and Austin are at all connected seems absolutely ridiculous to me as a Texan. What are you people smoking?

 

[NYCFC_JD]

Cool, so let's put NYCFC's stadium in Sussex County, NJ then. There is plenty of space. We can have an 80K seater no problem. And better yet, it is only 50 miles instead of 80 miles like the San Antonio-Austin relationship.

Shout out to Sussex County!! Two words I never thought I'd see on this forum haha.

 

[dannd23]

Also without millions of people but i know your trying to be cute

Obvious hyperbole, but come on. You've seen how much this board freak out for moving the stadium a half mile out of NYC. And trying to be cute? Come on man. I am cute.

See below

This idea that San Antonio and Austin are at all connected seems absolutely ridiculous to me as a Texan. What are you people smoking?

Shout out to Sussex County!! Two words I never thought I'd see on this forum haha.

Represent! I'd be very happy with a stadium in Sussex lol.

 

[ferrarinycfc]

bjarke ingels group is working on a major sports and entertainment destination in texas

https://www.designboom.com/architec...east-austin-district-texas-stadium-12-05-2017

I wonder if this is related to the crew moving to Austin ?

 

[sbrylski]

bjarke ingels group is working on a major sports and entertainment destination in texas

https://www.designboom.com/architec...east-austin-district-texas-stadium-12-05-2017

I wonder if this is related to the crew moving to Austin ?

It is not.

This is PSVs plan:

http://www.statesman.com/sports/soc...austin-soccer-stadium/9bF8P50sw5ybPPdZB2CoiK/

 

[LeeNYCFC]

The Ohio AG will investigate applying the “Browns Law” to prevent or impede the Crew’s exit. Giddyup

https://content.govdelivery.com/accounts/OHAG/bulletins/1ca7890

http://codes.ohio.gov/orc/gp9.67v1

 

[JGarrettLieb]

The Ohio AG will investigate applying the “Browns Law” to prevent or impede the Crew’s exit. Giddyup

https://content.govdelivery.com/accounts/OHAG/bulletins/1ca7890

http://codes.ohio.gov/orc/gp9.67v1

Dear Lawyers,

How is this constitutional?

 

[adam]

The Ohio AG will investigate applying the “Browns Law” to prevent or impede the Crew’s exit. Giddyup

https://content.govdelivery.com/accounts/OHAG/bulletins/1ca7890

http://codes.ohio.gov/orc/gp9.67v1

Wow! So by law, the City of Columbus can purchase the Crew if they insist on moving? That's incredible.
Add to that that the City of San Antonio is planning a lawsuit regarding their expansion bid.

Wow.

 

[mgarbowski]

Dear Lawyers,

How is this constitutional?

Might not be. I don't think it's ever been tested. But note it only applies if the team " uses a tax-supported facility for most of its home games and receives financial assistance from the state or a political subdivision." I read that as a two-pronged requirement. If you want the freedom to move don't take both forms of the subsidy.

Wow! So by law, the City of Columbus can purchase the Crew if they insist on moving?

No. They must be given the "opportunity to purchase." That doesn't guarantee they have a right to buy it. They are only guaranteed an opportunity to buy it.
Fuller quote in context:

"and, during the six months after such notice, gives the political subdivision or any individual or group of individuals who reside in the area the opportunity to purchase the team." What does that mean? I can guarantee litigation and attorney fees, but little else. At a minimum you have a right to make an offer and negotiate. What happens when the team owner says he wants more money because the club is worth more money? Who knows. A right to purchase is only truly meaningful if it specifies terms, or at least a mechanism to decide those terms if negotiations break down.

 

[JGarrettLieb]

Might not be. I don't think it's ever been tested. But note it only applies if the team " uses a tax-supported facility for most of its home games and receives financial assistance from the state or a political subdivision." I read that as a two-pronged requirement. If you want the freedom to move don't take both forms of the subsidy.


No. They must be given the "opportunity to purchase." That doesn't guarantee they have a right to buy it. They are only guaranteed an opportunity to buy it.
Fuller quote in context:

"and, during the six months after such notice, gives the political subdivision or any individual or group of individuals who reside in the area the opportunity to purchase the team." What does that mean? I can guarantee litigation and attorney fees, but little else. At a minimum you have a right to make an offer and negotiate. What happens when the team owner says he wants more money because the club is worth more money? Who knows. A right to purchase is only truly meaningful if it specifies terms, or at least a mechanism to decide those terms if negotiations break down.

I believe adequate compensation for the franchise would be $1bn.

6 months of negotiations later, you either have an absurdly large amount of money for a worthless franchise or you have your franchise moved to where you want it to be.

 

[413Blue]

My lawyer friend said that he believes the law is toothless as federal law, mostly within the commerce clause, supersedes this law.
Not sure how valid that argument is, but I've seen mostly doubt regarding this law's applicability so far.

 

[mgarbowski]

Also, look at the AG's press release:
"As Attorney General, should ownership of the Columbus Crew initiate a move of the team without complying with Ohio law, I am prepared to take the necessary legal action under this law to protect the interests of the State of Ohio and the central Ohio communities which have all invested to make the Columbus Crew a proud part of our Ohio sports tradition and help Mapfre Stadium earn its reputation as ‘Fortress Columbus.’”

What does the Crew have to do to comply with Ohio law? 1. give 6 months notice, 2. give the locals an "opportunity to purchase." Then the AG has nothing.

Also, neither the the City, county, or state will ever buy the team. They don't want the headaches of running a team. They don't want to finance the purchase price. So who are the local investors who will step up to buy? Where were they when Precourt bought the team?

This is an AG doing what AG's do best. Issue press releases.

 

[413Blue]

Also, look at the AG's press release:
"As Attorney General, should ownership of the Columbus Crew initiate a move of the team without complying with Ohio law, I am prepared to take the necessary legal action under this law to protect the interests of the State of Ohio and the central Ohio communities which have all invested to make the Columbus Crew a proud part of our Ohio sports tradition and help Mapfre Stadium earn its reputation as ‘Fortress Columbus.’”

What does the Crew have to do to comply with Ohio law? 1. give 6 months notice, 2. give the locals an "opportunity to purchase." Then the AG has nothing.

Also, neither the the City, county, or state will ever buy the team. They don't want the headaches of running a team. They don't want to finance the purchase price. So who are the local investors who will step up to buy? Where were they when Precourt bought the team?

This is an AG doing what AG's do best. Issue press releases.

It should be noted however, that the county does own and operate the minor league baseball franchise. Far less complex than getting involved with a major league club and all that comes with SUM and everything, but it would not be totally unprecedented for the county, which I believe owns the fairgrounds in which Mapfre sits, to own a professional sports franchise.

That being said, no way would they be able to spend $150m+ for the team, plus the necessary stadium upgrades, without a massive taxpayer revolt.

 

[EganSoccerWords]

I believe adequate compensation for the franchise would be $1bn.

6 months of negotiations later, you either have an absurdly large amount of money for a worthless franchise or you have your franchise moved to where you want it to be.

Why wouldn't the government set the market price like eminent domain cases? You could go to court to haggle over the what true market value is but the fact that you have forbes valuing the team at 130 million and expansion teams paying 150 million would make it hard to justify a high price especially with MLS crying poor in recent union cba negotiations.

I think the bigger question I would have is a) how does the single entity structure impact the fact that Precourt is not an owner but an investor in MLS who has the right to operate a franchise and b) if Precourt violates the law what would the repercussions. A fine?

 

[JGarrettLieb]

Why wouldn't the government set the market price like eminent domain cases? You could go to court to haggle over the what true market value is but the fact that you have forbes valuing the team at 130 million and expansion teams paying 150 million would make it hard to justify a high price especially with MLS crying poor in recent union cba negotiations.

I think the bigger question I would have is a) how does the single entity structure impact the fact that Precourt is not an owner but an investor in MLS who has the right to operate a franchise and b) if Precourt violates the law what would the repercussions. A fine?

Where in the law does it say fair market price?

Look back at the legislative notes when they were making the law, it was intended to be that the owner would make an offer that he would accept on the spot, the determination of how that number came to be was never discussed and never made it into the poorly worded final bill.

 

[mgarbowski]

Why wouldn't the government set the market price like eminent domain cases?

The sharp answer is because it is not eminent domain and you don't just apply the same rules because the government is a party to both. Eminent domain is not an "opportunity to purchase." It is not even a purchase. It is literally a taking. The government just takes your property, but has to pay theoretically "just compensation." Which gets litigated anyway.

It would be fun to watch the game of chicken if the government does push this, and if Precourt resists. This price would end up getting litigated, which would mean MLS would have to open its books. MLS would hate that, but they could threaten to comply which causes all sorts of problems for the government. If the club and league are profitable the price goes up. If not so profitable, the majority of constituents who don't give a damn about soccer in Columbus wonder why the hell the government is buying a non-lucrative business venture to satisfy a small group of fans.

This is going nowhere but to the Theater of Political Posturing.