ATOMS NEWS

Soccer franchise plan advances

By William Bender & Dave Davies
benderw@phillynews.com
August 15, 2007

James Nevels' plan to bring a Major League Soccer stadium to Chester appears to be moving forward, with deep-pocketed investors lining up and Gov. Rendell indicating his support for a soccer franchise in Southeastern Pennsylvania.

The league hopes to announce two new expansion teams - possibly by the end of this year –- and Philadelphia is "most certainly" in the running, said MLS vice president Dan Courtemanche.

Nevels, who on Friday announced his departure as chairman of the Philadelphia School Reform Commission, and local lawyer William Doran are heading a potential franchise-ownership group that has been lobbying Delaware County and the state for money for a soccer stadium in the economically distressed riverfront city.

Rendell has met with Nevels and MLS commissioner Dan Garber in recent weeks, sources said yesterday.

"Now [that] they have a site, potentially, they have interest from the league, and they're working on a financing plan," John Estey, a senior adviser to Rendell, said yesterday. "The governor supports the concept of soccer in Southeastern Pennsylvania and these are positive moves, but there's a long way to go in this."

Rendell had clashed with Nevels over the management of the Philadelphia School District, and last week Nevels announced plans to resign from the commission next month.

Asked whether there was any connection between Nevels' prospects for state soccer subsidies and his departure from the reform commission, Estey said, "absolutely not."

Two stadium sites are being considered on the Chester riverfront close to the Commodore Barry Bridge. The estimated cost of the project, including the land, stadium, practice fields and parking, is approximately $150 million, according to Charles Kopp, an attorney representing the investor group.

Kopp declined to discuss how much public money the group is seeking, but said there would be a "large" amount of private investment. MLS usually wants at least one big-money investor in on a franchise deal because startup losses are common in the early years.

"We are talking to several people with deep pockets who have shown an interest in this deal," Kopp said.

Sources familiar with the talks said the group is seeking about $30 million from Delaware County and Chester combined, and $30 million to $40 million from the state, with the rest of the project being privately financed. Those figures could change substantially depending on which stadium site is chosen.

"We believe Philadelphia and the Delaware Valley could be a terrific home for a Major League Soccer club," MLS president Mark Abbott said in a statement yesterday. "We were very pleased by the governor's positive comments and look forward to continuing to work to bring a team to the area."

Jeffrey Rotwitt, president of Philadelphia's indoor-soccer team, the Kixx, also has talked with the league about bringing a team to the city. He declined yesterday to say what conversations, if any, he's had with Rendell or other public officials.

"I remain interested in the idea," Rotwitt said. "We're in the soccer business, and have done development of $100 million-plus projects. So this is our forte, and I'd be pleased to take a look at any opportunities that may surface."

Soccer stadium proposed for Chester waterfront
By Susan Snyder
INQUIRER STAFF WRITER
July 19, 2007

A group of investors is interested in building a $100 million Major League Soccer stadium along the waterfront in the city of Chester, legislators confirmed today.

The group has been working on the project for two years and hopes to have a meeting soon with Gov. Rendell, Major League Soccer Commissioner Donald P. Garber and key legislators to talk about securing some public funding, a source told the Inquirer today.

The investors hope to open the stadium and start a Major League soccer franchise in 2009 or 2010, but one local legislator cautioned that negotiations are in the early stages.

Last September, negotiations to build a professional soccer stadium at Rowan University collapsed when the state declined to provide aid.

Whether the effort to get public funding for the Pennsylvania project will be any more successful is uncertain.

Two sites along the waterfront are being considered, but officials declined to name them today.

The New York City-based Major League Soccer confirmed it is in negotiations with the group, with "no specific timetable" for a conclusion. The league remains highly interested in locating a franchise in the Philadelphia region.

"Philadelphia has the potential to be a tremendous market for professional soccer," said Dan Courtemanche, senior vice president of marketing and communications, for the league.

Investors are asking the city of Chester, Delaware County and Pennsylvania for funding to support the project, said Sen. Dominic Pileggi, (R., Delaware). He said he wasn't sure how much money they were seeking.

"We're talking about what is the appropriate level of participation," he said.

Pileggi described the investor group as "substantial" in their "ability to raise capital."

Pileggi and others who have talked with the investors declined to identify them.

Attempts to include funding for the project in the recent state budget failed, but state Rep. Dwight Evans, (D., Phila.), chairman of the House Appropriations Committee, said today that it's still possible funding could come from the state's capital budget.

"It's still very much alive," Evans said. "I'm supportive of it. I think it would be good for the region. I think it would put Philadelphia in the ball park somewhere down the line to compete for the Olympics."

Pileggi said it's also possible that funding could come from gaming revenue. A stadium for the Pittsburgh Penguins is in line to get gaming revenue, he pointed out.

A soccer stadium and franchise certainly would be a boon to the struggling, impoverished city, which recently got a boost from the addition of a major gambling facility.

"It would increase job opportunities. It would increase revenues coming in and folks coming into the city to see a professional soccer team," said state Rep. Thaddeus Kirkland, (D., Delaware).

It also could further heighten an already growing interest in youth soccer in the region.

Gov. Rendell's office said Rendell has participated in some "general discussion" about the project, but is not ready to take a position on it.

"All discussions have been conceptual in nature and additional details need to be flushed out," said Doug Rohanna, director of communications for Gov. Rendell.

The project is in the "early stages," said David Sciocchetti, executive director of the Chester Economic Development Authority. "A deal like this is extremely complicated and it goes though ups and downs. It's important that we don't all get too caught up and excited until it's real."

Major League Soccer, the nation's professional soccer league, was founded in 1996. With 13 teams, it is in its 12th season and is poised to make a major expansion.

The league is in discussion with more than a dozen sites competing to start new franchises in the United States, the league's Courtemanche said. It wants to grow to 16 teams by 2010, he said.

The season begins in early April and runs through October.

Details on the size of the proposed stadium weren't available today, but MLS facilities tend to hold between 20,000 and 30,000 people, according to the group's web site.

Sciocchetti said the project could help the city, adding to the recent Harrah's Race Track & Casino and a 400,000-square-foot office complex on the waterfront.

"It is exciting that MLS and a potential investor group might find Chester attractive," he said. "Having said that, we want to have a lot more information before we would be in a position to make any real decisions."

Contact staff writer Susan Snyder at 215-854-4693 or ssnyder@phillynews.com