New efforts to bring MLB to Portland are creating headlines...and skepticism.
Our good friends at NewBallpark.org explain:
The Portland effort bears striking similarities to Montreal’s recently launched efforts. Both underestimate the cost of the stadium and the cost to acquire a franchise. Montreal’s study pegs the total cost at just over $1 billion, which would’ve been a better bet three or four years ago, during the recession and before the new national TV contracts. It’s hard to see any team being available for less than $600 million, maybe even $700 million because the revenue streams are so attractive. That would put the total cost at a combined $1.2 billion, maybe $1.3 billion when including infrastructure and land. Both cities also appear to be dependent on a rich investor group or corporation to fund the private side. That’s a lot to ask for, essentially a subsidy to be borne by a company.
Both teams stand a good chance of being future revenue sharing recipients, even with new ballparks in place.
I explained back in October that MLB will never land in Portland, largely because TV markets are now more important than ticket sales in a lot of ways. And Oregon just cannot compete with places like West/Central Florida, Montreal, or New Jersey.
" It’s hard to see any team being available for less than $600 million, maybe even $700 million because the revenue streams are so attractive"
ReplyDeleteIf this is true, then the Rays current valuation of $530 million is quite conservative, considering that they are a perennial contender in a very attractive TV market. Looks like Stu Sternberg is doing quite fine with his $176 million investment back in 2005.