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Major League Baseball Sports Facility Reports, Volume 6, Appendix 1 Major League Baseball Team: Arizona Diamondbacks Principal Owner: Jeffrey Royer, Dale Jensen, Mike Chipman, Ken Kendrick, Jeff Moorad Year Established: 1998 Team Website Most Recent Purchase Price ($/Mil): $130 (1995) Current Value ($/Mil): $286 Percent Change From Last Year: +3% Stadium: Bank One Ballpark Date Built: 1998 Facility Cost (millions): $355 Percentage of Stadium Publicly Financed: 71% Facility Financing: The Maricopa County Stadium District provided $238 M for the construction through a .25% increase in the county sales tax from April 1995 to November 30, 1997. In addition, the Stadium District issued $15 M in bonds that is being paid off with stadium-generated revenue. The remainder was paid through private financing; including a naming rights deal worth $66 M over 30 years. Facility Website UPDATE: In 2004, general partners Dale Jensen, Mike Chipman, Ken Kendrick and J.C. Royer bought Jerry Colangelo's general partnership and removed Colangelo as Chairman and CEO, replacing him with Jeff Moorad. Moorad, approved the team's fifth general partner by MLB Commissioner Bud Selig in early 2005, has injected about $50 million into the team. Moorad became CEO-elect on September 1, 2004 and pending approval will become Chairman on January 1, 2006. NAMING RIGHTS: On June 5, 1995, the Arizona Diamondbacks entered into a $66 million naming-rights agreement with Bank One that extends over 30 years, expiring in 2028, and averages a yearly payout of $2.2 million. In January 2004, Bank One Corporation and J.P. © Copyright 2005, National Sports Law Institute of Marquette University Law School Page 1 Morgan Chase & Co. merged and announced they were fazing out the Bank One brand name. However, there is currently no move to change the name of the ballpark. Team: Atlanta Braves Principal Owner: Time Warner Year Established: 1876 Team Website Most Recent Purchase Price ($/Mil): $12 (1976) Current Value ($/Mil): $382 Percent Change From Last Year: +2% Stadium: Turner Field Date Built: 1997 Facility Cost (millions): $235 Percentage of Stadium Publicly Financed: 100% Facility Financing: The original stadium was built for the 1996 Summer Olympics at a cost of $209 million. After the games, it was converted into a 50,000-seat baseball stadium for the Braves. The Braves paid for the conversion. Facility Website NAMING RIGHTS: In September 1996, Time Warner Chairman Gerald Levin announced that he planned to name the Braves' new stadium for Ted Turner after his company's merger with Turner Broadcasting System. The decision disappointed many fans in Atlanta who had hoped that the stadium would be named after legend Hank Aaron or former mayor Ivan Allen Jr. In addition, by naming the stadium after Turner, Time Warner gave up at least $3 M a year in potential naming rights revenue. The Braves have played at Turner Field since April 4, 1997. Team: Baltimore Orioles Principal Owner: Peter Angelos Year Established: 1953 Team Website Most Recent Purchase Price ($/Mil): $173 (1993) Current Value ($/Mil): $341 Percent Change From Last Year: +15% Stadium: Oriole Park at Camden Yards Date Built: 1992 Facility Cost (millions): $235 © Copyright 2005, National Sports Law Institute of Marquette University Law School Page 2 Percentage of Stadium Publicly Financed: 96% Facility Financing: Financed with $137 M in lease revenue bonds and $60 M in lease revenue notes issued by the stadium authority. The debt is being repaid from revenue generated by special sports themed lottery tickets. The remaining costs were covered with cash that accumulated in the lottery fund since it was established in 1988 to finance sports stadiums. The team contributed $9 M for construction of skyboxes. The Maryland Sports Authority spent $1.5 M on improvements in 1998. Facility Website UPDATE: On March 31, 2005, Major League Baseball and Peter Angelos agreed on a compensation package to offset the effect of the Expos, now the Washington Nationals, relocation to Washington D.C. In the agreement, MLB guaranteed a selling price for the Orioles franchise of at least $365 M if Angelos decides to sell the team. Therefore, if the team accepts an offer for less than $365 M, MLB will have to pay the difference. Additionally, the Orioles will have majority control of the newly created Regional Sports Network (RSN). This network will broadcast Orioles games as well as Nationals games. Furthermore, if yearly gross revenues fall below $130 M, MLB will have to pay the Orioles the difference. NAMING RIGHTS: In September of 2001, The State Board of Public Works amended their lease with the Orioles giving the team the authority to enter into a naming rights agreement. In addition, because the Baltimore Ravens had received a better contract on their new stadium despite a contract guarantee of parity with the Ravens, the Maryland Stadium Authority was forced to deposit $10 million into an improvement fund for Oriole Park at Camden Yards. As of June 2005, the Orioles have not entered into a corporate naming rights agreement for their stadium. Team: Boston Red Sox Principal Owner: John Henry & Tom Werner Year Established: 1901 Team Website Most Recent Purchase Price ($/Mil): $700 (2002) Current Value ($/Mil): $563 Percent Change From Last Year: +6% Stadium: Fenway Park Date Built: 1912 Facility Cost (millions): $.420 Percentage of Stadium Publicly Financed: Facility Financing: N/A Facility Website © Copyright 2005, National Sports Law Institute of Marquette University Law School Page 3 UPDATE: The Red Sox plan to expand historic Fenway Park after the conclusion of the 2005 season. As part of the expansion, 2,107 seats will be added to the roofs extending over the left and right field stands, and the glassed in .406 Club behind home plate will be overhauled. NAMING RIGHTS: Former Boston Globe owner General Charles Henry bought the team for his son John I Taylor in 1904. After changing the name from the Pilgrims to the Red Sox in 1907, Taylor announced plans to build a new ballpark in 1910. Taylor called the new ballpark Fenway Park because of its location in the Fenway district of Boston. There are no current plans to change the name of Fenway Park. Team: Chicago Cubs Principal Owner: Tribune Company Year Established: 1876 Team Website Most Recent Purchase Price ($/Mil): $21 (1981) Current Value ($/Mil): $398 Percent Change From Last Year: +11% Stadium: Wrigley Field Date Built: 1914 Facility Cost (millions): $.250 Percentage of Stadium Publicly Financed: Facility Financing: Owned by the Tribune Company Facility Website UPDATE: In April 2005, the Cubs and Chicago city officials agreed on a plan to expand Wrigley Field. The expansion will add nearly 1800 bleacher seats to the outfield, a 100-seat restaurant overlooking center field, and a year round five-story building and parking garage west of the field that will house retail stores, another restaurant and 400 parking spaces. NAMING RIGHTS: Originally known as Weeghman Park, Wrigley Field was built on grounds once occupied by a seminary. The ballpark became known as Cubs Park in 1920 after the Wrigley family bought the team. In 1926, the ballpark was named Wrigley Field after William Wrigley Jr., the club's owner. Team: Chicago White Sox Principal Owner: Jerry Reinsdorf Year Established: 1900 Team Website © Copyright 2005, National Sports Law Institute of Marquette University Law School Page 4 Most Recent Purchase Price ($/Mil): $20 (1981) Current Value ($/Mil): $262 Percent Change From Last Year: +6% Stadium: U.S. Cellular Field Date Built: 1991 Facility Cost (millions): $150 Percentage of Stadium Publicly Financed: 100% Facility Financing: The Illinois Sports Facilities Authority issued $150 M in bonds for the land and the construction of the new stadium. A 2% hotel tax levied on Chicago hotel services the debt. Facility Website UPDATE: By the beginning of the 2006 season, the Phase V renovation will be complete. Phase V features a 15,000-square-foot baseball and softball skills instruction area for kids, to be located above the left field concourse. The area will be known as FUNdamentals, and will remain open during the game. Phase V also includes the addition of a 314-seat "Scout" seating area, which provides its ticket-holders with access to a private restaurant and lounge, service from private staff, and reserved parking, as well as behind-the-scenes views of the ballpark's inner workings. Additionally, Phase V will include the installation of forest green seats to the entire ballpark, replacing the blue seats that currently exist. NAMING RIGHTS: On January 31, 2003, U.S. Cellular and the Chicago White Sox agreed to a 23-year, $68 million naming rights deal. Team: Cincinnati Reds Principal Owner: Carl Lindner Year Established: 1869 Team Website Most Recent Purchase Price ($/Mil): $183 (1999) Current Value ($/Mil): $255 Percent Change From Last Year: 4% Stadium: Great American Ball Park Date Built: 2003 Facility Cost (millions): $290 Percentage of Stadium Publicly Financed: 82% Facility Financing: The Reds contributed $30 M up front toward construction, $10 M at groundbreaking and $10 M at completion. Rent will amount to $2.5 M annually for nine years, and then one dollar per year for the remaining 21 years of the 30-year lease. However, because of the extra costs of the project, the team expanded its lease with the facility to 35 years. The county will pay most of the cost using proceeds from the half-cent sales tax increase voters © Copyright 2005, National Sports Law Institute of Marquette University Law School Page 5 approved in 1996. Facility Website NAMING RIGHTS: The Cincinnati Reds and The Great American Insurance Company agreed to a 30-year, $75 M naming-rights deal that expires in 2033. The average annual payout is $2.5 M.
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