Expert: It Would Be Expensive, But Angels Can Relocate

anaheim_angelsThe OC Register reports on the presentation made to the Anaheim City Council last night by sports consultant Daniel Barrett of Barrett Sports Group. Some excerpts:

A consultant on Tuesday told the City Council that it could cost $600 million to $700 million to relocate the Angels baseball team to another city within Southern California, likely financed with help from an outside investor.

“There have been discussions about Tustin. I don’t know if that’s real or not, but there are potential relocation areas,” said Daniel Barrett, founder of Barrett Sports Group, who is assisting Anaheim city officials with the stadium lease talks.

Barrett speculated that the Angels could also potentially move to Irvine or Industry. He also noted that Los Angeles city officials could change their mind about building a football stadium adjacent to Staples Center and opt instead to build a baseball stadium.

Mayor Tom Tait said he believed it could cost closer to $1 billion to purchase property and build a new stadium. Barrett said he believed the cost to be lower, based on the possibility of an outside investor assisting Moreno with financing or if the team finds a city willing to provide free land. The discussion came after Barrett outlined recent public and private investments to build or renovate four other Major League Baseball stadiums.

I think the takeaway here is that the Angels have relocation options — contrary to the assertions of the naysayers who have confidently claimed the city has the Angels over a barrel because the Angels aren’t going anywhere because they have nowhere to go (although I’m hearing that particular talking point less and less). Personally, I think that if the council majority had not act the extend the opt-out period, the Angels would have already exercised the option.

18 comments

  1. That $700 million is absurdly low. What’s the assumption of public assistance combined with the $700m? 1:1? Not realistic. Steel and concrete at today’s rates are already more than that. I’ll give it the benefit of the doubt that it assumes increases in operating costs (i.e., private stadium maintenance, property taxes, etc.) are offset by increased revenue, but that’s dubious without a final deal.

    I’d love to know how much it’d cost Moreno to move the Angels under the existing lease without the opt-out extension. You really REALLY think that Moreno would have already pulled the trigger?

    Fine, Matt. Pony up the plan. You tell me exactly what Moreno would have had to do and the cost associated to his business vs. his existing situation, and we’ll talk about what’s realistic and what isn’t.

    Here, I’ll give you a head start. Hint, costs end with billion. Pick your number up front. Add $500m for each year of construction delays beyond 2016.

    1) Select a site
    2) Secure $300m to $1000m in public aide (land/construction)
    3) Convince the legislature to override CEQA
    4) Convince the governor to override CEQA
    5) Likely hold a public vote in the selected area re: #2 (see San Diego, Santa Clara, and San Francisco stadium deals). Likely would have to finance this himself.
    6) Identify a temporary home during construction
    7) Agree on terms for temporary home
    8) Market season ticket sales to an entirely new fan base.
    9) Market luxury boxes to an entirely new fan and business base.
    10) Renegotiate TV and media contracts
    11) Secure relocation approval from Major League Baseball
    12) Litigate with rival MLB clubs
    13) Renegotiate contracts with major players / senior players regarding home field relocation; compensate players for relocation costs
    14) Negociate exit payments with Anaheim re: capital maintenance fund
    15) Litigate with Anaheim regarding lease exist and quasi-contracts
    16) Litigate with existing season ticket owners and luxury box owners re: owners rights diminished by relocating
    17) Oh, I dunno, raise $700m in his own funds IMMEDIATELY. Start paying interest on that loan.

    He didn’t have anywhere to go, Matt. Anywhere reasonable at least. If you (and apparently the council majority) really believe that a billionaire was going to make a bad business decision to the tune of $2b on the strict emotional appeal of not getting his way in Anaheim, I believe I may have a bridge you might be interested in.

    • Oh, right, I totally forgot . . .

      18) Design and build a $700m to $1600m modern baseball stadium.

      Any other project managers want to laugh with me at the absolute ridiculousness of getting this size of a capital project done in two years? In California?

      What a joke.

      • Matthew Cunningham

        You’re assuming the Angels couldn’t find someplace to play on an interim basis.

        • That’s item #6, actually. We’ve had this discussion.

          They couldn’t find a temporary location to play that didn’t come with a severe financial penalty. I think the most likely spot is Qualcomm, but I’m pretty sure the Padres wouldn’t take that too kindly. Your claim of Dodger Stadium I think is a bit nieve. Your second suggestion of the LA Coliseum has an even bigger financial handicap as well as a low likelihood of getting approval from MLB.

          I think I ballparked the temporary site at a financial loss of $300m per year. $500m above reflects additional opportunity costs lost from not having a new revenue stream online with the new stadium as well as increased construction costs associated with the delay.

    • Dan Chmielewski

      Ryan —
      1) there are probably several sites already identified
      2) doable
      3 & 4) see Sacramento’s new basketball arena for how quickly this can be done
      5) check
      6) Dodger Stadium is ideal — and the new ownership team would love the revenue from the Angels for this. And 7 wouldn’t be a problem.
      8) they market all over SoCal already for baseball fans who like American League play….
      9) No problem; as most boxes are corporate in nature, not a big deal
      10) no renegotiation needed for TV and media contracts; none.
      11) Rubber stamp
      12) Litigate what? Angels came into Los Angeles three years after Dodgers moved to LA. Litigation only needed if Angels leave Socal market.
      13) hahahahahahaha
      14) 15) There’s probably something in the contract already; nothing to renegotiate
      16) It’s a season ticket; contract is done when season is over. Luxury boxes owners get a refund
      17) if he’s a billionaire, Moreno probably already has it. He bought the Angels for about $184 million in 2003 and Forbes pegs the team’s value at $718 million 11 years later.

      He has plenty of places to go. I’m sure the Houston Oilers never thought their team would move to Tennessee. I’m sure there are Cowboys fans who wish the team never left the Cotton Bowl.

      And a new stadium somewhere wouldn’t be a bas business decision at all. It would provide a better experience for the fans, the team and MLB. Angels Stadium isn’t Wrigley Field or Fenway Park. It’s a dressed up industrial stadium without imagination.

      • You’re a strange man, Dan. Strange.

        I think you missed the point. If you’re looking for an exchange (I really doubt you are) let me know.

        • Dan Chmielewski

          I’m not; your analysis is flawed; there is no worry about renegotiation TV contracts for example.

          I’d like to know how many games you watch a year, or listen to on radio or actually attend in person?

          The rest of the clown car hasn’t been to a game in years. And when does the bitching about The LA KISS arena football team begin because they play in Anaheim you know……

          • You are such a Yankee fan. There’s simply no other way to describe it. Constantly wanting to compare things, see who has more, see whose is bigger, see who is better. Clearly compensating for something, like most Brox fans. You’re constantly asking me how big a fan I am, Dan– so here’s my answer (again): I’ve been an Angel fan for over thirty years. I went to my first game when I was three and walked on the field for the first time when I was four. It is the first baseball team I loved and the last. Take your ruler and your rings back to the East Coast where they belong.

            Dan, aside from the point that you went on a point by point retort to a question that was actually asked of someone else, you’ve clouded your answers with assumptions. While you bill yourself as an expert in the business of baseball and that of a business friendly democrat, it’s very clear that you have no understanding of risk or business in general.

            Anyway, what I was listing wasn’t “an analysis”, flawed as it may be. It’s a list of things Moreno and crew would have to do before moving. The goal, ultimately, would be to address each of them (as you’ve done) before moving. It’s not a list of insurmountable obstacles.

            Thanks for playing. I’m not sure what exactly you’re attempting to play, but it’s fun to watch.

            • I’ll just pick one:

              17) if he’s a billionaire, Moreno probably already has it. He bought the Angels for about $184 million in 2003 and Forbes pegs the team’s value at $718 million 11 years later.

              There is no business person in the world that would keep $700,000,000 in cash on hand. That money is tied up on some obligation to earn a return somewhere. That you’d even suggest it is comical.

              It’s not a question of if he can get it. It’s a question of how quickly and at what cost to his business. Pulling it down now to employ over (what I think is a more reasonable) six to seven years costs an awful lot of money. Say seven or eight figures a year in LPO.

              • Dan Chmielewski

                Ryan, Moreno has other business interests…you know that right? Of course he doesn’t have a billion in cash lying around and I’m sure he’s not going to use his own cash if another city offers to help fund a new stadium.

                Thanks for admitting your analysis has flaws; there are more than you think.

                I do love the Yankees and the Red Sox and the Mets and the Angels. I worked at a radio station that broadcast Yankees games in the early 80s so its hard not to love the team. But when New York comes to town, I wear my Angels stuff.

                Also, to clear up a misperception or two you and your Tait clown car friends at OJ have: 1. You are not banned from commenting; your comments go into moderation. If you want to swear like a sailor, do it somewhere else. But you are not banned from commenting. 2. Paul Lucas is not banned from commenting; he continues to put out misinformation about our blog. 3. Two people are banned from the LiberalOC; one has since left the area and the other is Stanley Fiala. Everyone else can comment. 4. I never delete anything except a comment that violated our TOS. 5. For my many close friends who read me at LOC, I encourage them not to comment as the anon commenters who love to throw lobs from behind the wall of anonymity at me would surely stalk them. My friends don’t need that sort of grief and I already know who has my back. So what is OJ up to now, 3 convicted felons who comment regularly?

                • I don’t have a clue what you’re talking about. If you want to clear up something from another blog, do it on that blog. I don’t swear like a sailor, you strange strange man.

                  You have a gift for selectively ignoring words. I just said (seriously Dan) Moreno has his capital locked up elsewhere, genius. I also said it wasn’t an analysis.

                  Now, I mean this in the nicest way . . . You will never understand what it is to be an Angel fan. Your heart has pinstripes. That’s just how it is. Either you understand that or you don’t. If you do, you’ll get why it’s so offensive for you to run around demanding proof of other’s fanhood.

                  My first tball team was the Yankees. I cried because it wasn’t the Angels.

                  Don’t ask again.

                  • Dan Chmielewski

                    You are so wrong on so many things. Yes, capital is unlocked up but its not untouchable.

                    I’m strange? You hang out on a blog with convicted felons and classic under achievers. Congrats on being the only member of the mosh pit who actually goes to a game once a decade.

                    • I know, Dan. I JUST SAID THAT. I just freaking said it! Why are you so strange? I just said his capital isn’t untouchable and it’s a question of what it costs him and his business to get to it. Just. Said. It.

                      “It’s not a question of if he can get it. It’s a question of how quickly and at what cost to his business.” <– ME.

                      Thanks for reminding me that your blog is better and bigger, more righteous, and otherwise more glorious. It's true that, in life, I'm wrong about a great many things. I might even be wrong about this. But if I'm right or wrong, you won't see me attempt to define you or demean you based upon who shares some space with you or who you "hang with".

                      God knows what happened to you at some point that you find it necessary to constantly remind others that what you have is shinier and bigger. I have yet to read one comment thread where you didn't attempt to make someone else feel small in comparison to something you either have or do.

                      Get help. You're superior to no one and my accomplishments (or lack there of) have no relationship to yours and how dare you attempt to define me OR ANYONE ELSE based on how big your stuff is.

                  • “My first tball team was the Yankees. I cried because it wasn’t the Angels.”

                    so when the Angels leave town, I’ll send you a box of tissues. But know you’ve had a hand to push them out.

                    • You’re a class act, Dan. The model of decency and humility.

                    • Ryan, we disagree about the Angels. It’s that simple. But you are completely wrong about attempting to define me or demean me. You did that earlier in this post. I don’t do anything extraordinary here; but the crowd you hang with seems to bring up what I have or do all the time with some measure of contempt. I have no idea what accomplishments you have period. Follow your own advice

  2. How big is the hole in Mr. Cantor’s analysis: this big:
    Likely temporary stadium: Angels stadium.

    • Not locking them out would be rather bone-headish, but I suppose you’re right. That’s certainly an option, particularly with the current voting majority on the council.

      Assuming that does occur, I would hope that the city would leverage Moreno’s position and take a tremendous cut of his earnings, which Moreno wouldn’t have to pay under according to the current lease. Say $30m per year in addition to whatever Anaheim normally gets.

      But you’re 100% right. They might even let the Angels stay at the current rate (zero), too under the pretext of that economic study. Cheers.

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