For $325m, the Angels sign...

[gotbeer]

3 hours ago, eaterfan said:

The Rams broke ground on their stadium in January 2016, I think. It will open in July 2020. It's a year behind schedule because of the heavy rains they got the first winter. There are a lot of differences that I think could lead to a faster build in Anaheim. 

1. Rams stadium had to be built about 100 feet below the ground because of the flight path with LAX. Angels won't have to dig.

2. Rams stadium is designed to hold 70k (expandable to 100k) plus it has separate concert venue built in. Angels stadium would presumably be much smaller.

3. Rams stadium will have a "canopy." That takes time to build. Angels stadium will likely be open air. 

Some things that may cause more delays for the Angels than the Rams:

1. Rams stadium is only a construction site. They don't have to deal with the team currently playing there. 

2. Kroenke has F.U. money and is spending it on this. He is paying crews to work round the clock. Not sure Arte wants to get it done ASAP no matter what the cost. 

 

Add to the Rams stadium.  

Estimated Cost to build the stadium.  $1.8 billion.

Right now, it has cost estimated to be over $5 billion.  

https://sports.nbcsports.com/2019/11/25/new-los-angeles-nfl-stadium-will-cost-as-much-as-cowboys-colts-eagles-venues-combined/

 

[gotbeer]

4 hours ago, aznhockeyguy said:

She did a very good job of writing the article.  Correct me if I'm wrong but here's what's going to happen and why it's happening.

What does the City of Anaheim get?

1) 325 million upfront

2) No longer required to maintain and upkeep the stadium and surrounding parking lots as the city owned the stadium and surrounding land. 

3) The city no longer have to do an annual 700k payment to a maintenance fund.

4) No more super favorable lease terms to Arte for said stadium.  

5) Increased tax base/income as the surrounding area gets developed with more housing/commercial space.

6) A parking structure as said development will take up parking space.

7) A baseball team until at least 2050.

8+) Other ancillary benefits that is yet to be determined but so far has been: using local companies for the construction/remodel of the stadium, low income housing as the area gets developed, and additional parks.

Why would Anaheim do this? 

Depends on your viewpoint.  Anaheim was giving some money to Arte via super favorable lease terms while paying for upkeep and maintenance, all so that the city can have a baseball team.  According to the article, the city has only made ~600k in 2 decades from the stadium and surrounding land, but this can be construed in accounting.  Without knowing further details into what goes into that figure or how it was derived, I'm not really sure if that's good or bad (I'm an accountant). 

If you're a fan of not giving public subsidies to sports team owners like myself, you can definitely chalk it up to a win as this gets Anaheim out of the stadium leasing business, while also increasing the city's tax base as the site gets developed.  However, the price they got for said land is about 33% of fair market value according to some estimates and to me it's one last subsidy to Arte to keep the team in Anaheim until 2050. But after that, Arte or whomever owns the team at the time can threaten to move again to get more subsidies from somewhere else. Also, I listed item number 8 as a benefit, however according to the article the low income housing and parks will have a dollar value that will be subtracted from the purchase price, meaning most likely the city will need pay back some of the money that they're getting right now after those items are built.   

 

What does the Angels/Arte get?

1) Ownership via a partnership of stadium and surrounding land: Expect more and more events outside of baseball to maximize revenue.

2) Via the partnership 153 acres of valuable Orange County land at ~33% of fair market value according to some estimates.

3) Stadium certainty until 2050.

Why did Arte and the Angels do this?

I can see why Arte would do this, he essentially used the Angels' leverage to get him and his partners valuable land for 33% of fair market value in some valuations.  After the deal is signed, Arte can essentially said screw it and sell the team, saddling the new owners of the team with the obligations of the stadium remodel/build and staying here until 2050.  Arte and his partners will get to keep the land and Arte will get to keep the proceeds of selling the team.  I wouldn't be surprised if something like this happens, as baseball attendance and ratings are declining and the TV money might not be there anymore.  For the Angels, I think it's a fair question whether or not this will affect the team's spending this offseason.  Now that the Angels are responsible for the stadium remodel/construction, I wouldn't be surprised to see some belt tightening in terms of spending.  

Of course all of this is speculation, but based on the article these are some of the items I've concluded, but hopefully these will help you guys with what this deal means.  

 

I think the biggest thing that the city of Anaheim is going to get out of this stadium deal.

Quote

the team also would be solely responsible for either making millions in stadium repairs or building a new venue.

And BTW.  This stadium deal will probably eventually cost Arte $0 because of this clause.

Quote

Community benefits including affordable housing, parkland in addition to what’s already required of new developments, and a local hire agreement for construction; the housing and parks would be given a dollar value that would be subtracted from the land’s selling price.

 

EDIT:

One additional big thing in favor of Anaheim on this deal.  No mention of any new taxes, only that they will be receiving tax money.  IE, no Disney Hotel room tax to pay for their expansion, or no tax breaks for building anything.

Edited December 4, 2019 by gotbeer

[eaterfan]

30 minutes ago, gotbeer said:

 

Add to the Rams stadium.  

Estimated Cost to build the stadium.  $1.8 billion.

Right now, it has cost estimated to be over $5 billion.  

https://sports.nbcsports.com/2019/11/25/new-los-angeles-nfl-stadium-will-cost-as-much-as-cowboys-colts-eagles-venues-combined/

 

I think those numbers a little skewed. I think the $1.8 billion is for the stadium and the $5 billion is for the entire development. 

[gotbeer]

3 minutes ago, eaterfan said:

I think those numbers a little skewed. I think the $1.8 billion is for the stadium and the $5 billion is for the entire development. 

Not that I know of.  Kroenke only owns the stadium land part.  The rest of the development is still under whatever firm bought out HP.  According to the article, and multiple articles I've read, the $5+ billion is only attributed to the stadium.

[Slegnaac]

Cole can now safely sign with the Angels knowing that he will not be moving in the near future.

[Glen]

There goes all the money Arte was gonna spend on Cole.

 

I'm not going back through this thread to see if anyone has already said this.

[W.E. Baxter Author]

The good part about all of this is that Angel Stadium of Anaheim will stay in tact, and there won't be such a big hole left in the Platinum Triangle or the City of Anaheim. However, ever since the franchise started identifying with Los Angeles (36 miles away in another county), things have been going from bad to worse more and more with each passing season. This is something The Angels will just have to ride out.

[Lou]

45 minutes ago, W.E. Baxter Author said:

The good part about all of this is that Angel Stadium of Anaheim will stay in tact, and there won't be such a big hole left in the Platinum Triangle or the City of Anaheim. However, ever since the franchise started identifying with Los Angeles (36 miles away in another county), things have been going from bad to worse more and more with each passing season. This is something The Angels will just have to ride out.

wtf are you talking about? 

[W.E. Baxter Author]

What do you think? What would have happened had The Angels moved to Long Beach? The Angels would have truly been the Los Angeles Angels which would have ended any curse. But Anaheim at the very least would have been stuck with a stadium that probably never would have been used again, or the city would have demolished the stadium which probably would have been replaced by more condos. Either way, there would have been a big hole being left in the Platinum Triangle and the city as a whole.

[Lou]

holy crap. you actually believe in curses? 

[failos]

@W.E. Baxter Author has seen some shit

[ten ocho recon scout]

44 minutes ago, Lou said:

holy crap. you actually believe in curses? 

Here we see THE curse... actually cursing some.. one, or thing.

[Stradling]

Where is anyone getting a $900 million valuation, the article I read said $475 million.  

[tdawg87]

1 minute ago, calscuf said:

W.E. Baxter is a Clitmaster.  Show some respect.

He's the Clit Commander.

[gotbeer]

22 minutes ago, tdawg87 said:

He's the Clit Commander.

 

[Vegas Halo Fan]

10 hours ago, wopphil said:

What happens after 30 years? If they bought everything, dont they get to stay indefinitely? 

Seems that it would be hard to throw them out of a ballpark that they own.

[Jay]

I think what W.E. Baxter is saying, and correct me if I'm wrong, is that the Angels suck.

 

[AngelsLakersFan]

1 hour ago, Stradling said:

Where is anyone getting a $900 million valuation, the article I read said $475 million.  

Clod

[failos]

1 hour ago, calscuf said:

W.E. Baxter is a Clitmaster.  Show some respect.

I’m pretty sure he’s a cock master

[ScottT]

I think he may be an Orioles fan.

Actually, it's great that the pound sign Orioles fan is trending on here... or something.   That's rare

[Dtwncbad]

Fun fact:  the stadium was built in 1966 at a cost of $24 million.

[ScottT]

The late 90s renovation cost $118 million. That's around $188 million in today's  dollars The place is 22 years older.  Is it safe to say a necessary and meaningful renovation will be at least that, and maybe as much as $300 million?

I'm gonna go out on a limb and say will have a new stadium long before 2050.  Id be surprised if it isn't  announced/leaked in the very near future. Tim Mead talked about it to us for years.  The old building has issues.  Some are obvious, some are not. These things can drag on, but how long can they afford to stand pat?

[Dtwncbad]

Seems like the stadium is roughly in the middle of the parking lot overall.

If a new ballpark were to be built on site, and the Angels would have to play in the existing stadium while it is being built, the new structure would go where exactly?

[ScottT]

That's a good question.  I think the stadium is a bit north... and definitely east. Of center.   So, a new one might be closer to Orangewood... or St College.  Though, they already mentioned getting rid of the grove.... so there could be room that way, too?  Or that could be parking. 

[ScottT]