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Angels lease could generate millions...


CAngels11

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http://www.ocregister.com/articles/team-593349-million-city.html

 

ANAHEIM – A proposed stadium lease for the Angels contains benefits so generous that in addition to covering the cost of the team’s renovation of the ballpark, it could bring team owner Arte Moreno tens of millions of dollars of new income...

 

 

anyone have access to full article?

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While I don't have access to the full article.  This was on there.

 

 

Proposed lease terms

The proposed lease for Angel Stadium was drawn up by city staff and a city consultant, in consultation with the Angels. It is the basis for negotiation; none of the terms have yet been approved by the City Council.

Current lease

• Team keeps all receipts on the first 2.6 million tickets.

Team keeps all revenue from concessions, advertising, stadium naming rights, non-baseball events, and virtually all receipts from on-site parking.

Team uses the word "Anaheim" in its official name.

City receives $2 for each ticket sold after the first 2.6 million.

City pays about $400,000 annually in debt service.

City pays about $600,000 annually in maintenance.

Proposed lease

Team keeps all receipts on the first 3 million tickets

Team keeps all revenue from concessions, advertising, stadium naming rights, non-baseball events, and virtually all receipts from on-site parking.

Team can drop "Anaheim" from its name

Team pays for all annual maintenance.

Team pays for stadium renovations, estimated at $130 million to $150 million.

Team can develop the surrounding 128 acres, paying the city $1 rent per year for 66 years.

City tax revenue from new development is rebated to the team.

City receives $2 for each ticket sold after the first 3 million.

City pays about $400,000 annually in debt service.

Source: City of Anaheim

 

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No idea what this means for the Angels as far as the amount of revenue it could generate. Would this be Angel revenue or Arte revenue?

 

From the way I'm reading it, could be both ways.  

 

First, no new stadium.  A refurb of the current stadium.

 

Second.  Arte develops the land on his own dime.

 

Third.  Any city taxes (which I assume is property taxes) would go to the Angels.  

 

Fourth.  The city clears itself of $600k in annual maintenance costs.  

 

At least that's how I am reading it.  So what it sounds like is the Angels get the master lease, and then subleases it to Arte's development company.  

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The part about the land development would be interesting.

I find it very interesting. There's potential but Lennar tried to go big across the street right before the economic downturn and now there's been nothing but weeds in an empty lot for the past five years. He'll probably take into account the "Artic" train station being built down the street and consult with the city on their eventual plans for the Platinum Triangle. I'm just an outsider looking in but I'm hoping some urban development finally starts to take hold in that area. With the train tracks and three major freeways close by it's the perfect place to create a "downtown OC" type setting. We shall see.

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Arte is smarter than most of us. In case you haven't been following Estrella Mountain Ranch in Goodyear Arizona, he and a partner have made hundreds of millions over the last decade. Look it up. I once thought he was so smart when he played Goodyear vs Tempe in spring training negotiations, but seeing Estrella unfold and his value of the Angels basically quadrupling over a decade, no wonder we sign Pujols and Hamilton. What is most interesting is the mandate not to exceed $189 million unless the assumption is he is willing to go above it in future years and delay the inevitable tax from setting in a little longer. 17.5% tax isn't that much considering all things. Arte is so much richer than when he bought the Angels and now he can profit from doing so on land near the stadium. There has got to be something going on within MLB to limit teams going over luxury cap.

Edited by nmh
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Arte is smarter than most of us. In case you haven't been following Estrella Mountain Ranch in Goodyear Arizona, he and a partner have made hundreds of millions over the last decade. Look it up. I once thought he was so smart when he played Goodyear vs Tempe in spring training negotiations, but seeing Estrella unfold and his value of the Angels basically quadrupling over a decade, no wonder we sign Pujols and Hamilton. What is most interesting is the mandate not to exceed $189 million unless the assumption is he is willing to go above it in future years and delay the inevitable tax from setting in a little longer. 17.5% tax isn't that much considering all things. Arte is so much richer than when he bought the Angels and now he can profit from doing so on land near the stadium. There has got to be something going on within MLB to limit teams going over luxury cap.

 

If Art is concerned about going over the luxury tax it means he is really concerned about going over the luxury tax year after year.

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at a minimum, I would think they have to increase that 66 years to 99 year $1 per year lease to attract investors........the 'Iron Triangle' or whatever it's called these days -- development prospects there have not worked out well.

 

and, yes, the deal does relieve the City of Anaheim of maintenance costs.......

 

Arte can keep talking about moving out -- perhaps to downtown LA -- but the reality is, these two (City of Anaheim and the ANGELS) need each other.

 

I really can't see any other practical OC site -- perhaps some downtown LA stuff -- but with redevelopment agencies now eliminated -- these kind of downtown re-development projects need to be privately financed..........another reason the COA wants to get rid of the maintenance cost of the ballpark and environs.

 

Good luck to Arte.........Stadium needs some infrastructure work but, really, there's no better location........

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