Share the Cost

Posted by on  •  0 Comments  • 

The Stadium Task Force is ready to dive into a financing project to come up with the money for the new NFL Stadium at the Qualcomm sight for he Chargers.
 
In a wide ranging set of conversations with different people on the task force, I think I have configured out, how and where the $800M to $1.2 B is going to come from to get this shovel in the dirt at the end of 2016, with an eye towards an opening day in a new stadium in 2019.
 
Mayor Kevin Faulconer spoke to NFL Commissioner Roger Goodell about the Task Force decision about the Q-sight, and the money needed.  The NFL G-Fund would loan San Diego $200M.
 
Adam Day, head of #CSAG wants the Chargers and Dean Spanos to follow thru on his their commitment to put up 200M of their own money.
 
Ron Roberts, representing the San Diego County Supervisors, has parlayed ideas of a County Loan, maybe up to $500M.
 
The San Diego River District, which operates under state funding, has begun the process to seek money for a River-Walk project adjacent to the Q-sight, that becomes part of that development.  They have the rights to 52-miles of that river, but a park, and additional parking also, could mean a contribution to the Stadium account.
 
Creating a 1500-room hotel is part of the plan, that would generate tax revenue.
 
Creating office buildings, restaurants, and additional shopping malls then creates tax revenue for the prospective pool of money they need.
 
Building an 8-story parking garage that could be used by SDSU students, fans, and commuters is part of the blueprint.
 
A new stadium with new concessions could lead to an investment from that business entity to be added into the pot.
 
An investment from San Diego State towards dorm or academic buildings adjacent to the trolley sight, that connects to campus, becomes another revenue stream.
 
When you start to list ideas that could create these revenue streams, you can understand why there was optimism from the Task Force at the Thursday press gathering outside the stadium of legendary sports-writer Jack Murphy, who helped lead the drive for the construction of the original stadium.
 
There are plenty of smart people with global business backgrounds in this group.  They have till mid-May to create a blueprint for financing this project.
 
And while Chargers officials were in Carson as part of the opening day drive  to gather signatures for a ballot vote to fast forward that project, it seemed like a typical slap in the face from the NFL team towards this city.  Another day where a story broke in Chargerville about efforts to help build a stadium, while the owners representative was off  somewhere else doing something at an alternate sight.
 
The people who want to keep the team in San Diego were at work, hoping to guarantee the franchise has a proposal that wins for them, but more importantly for the city.  The owner of the team seems to be sending a different message to his community, and that’s a shame.
 
But to quote Yogi Berra, it’s not over till it’s over, and the Task Force is not throwing the towel in on the financing game, despite Mark Fabiani’s continued attempts to throw cold water over everything being done in Dean Spanos’ adopted home town.. 

Stadium Deal – The Tough Decision

Posted by on  •  0 Comments  • 

The easy part is done, now the toughest part is about to begin.
 
The Mayor’s Stadium Task Force, after 4-weeks of evaluation, review of blueprints, looking at grand designs, and talking to real estate developers, says a new NFL Stadium will be built on the Qualcomm sight in Mission Valley.
 
That despite toxic oil plumes beneath the surface, and flood plain problems in all the lower portions of the massive Mission Valley parking lot.
 
But this makes sense, if you can build a stadium that is part of a bigger development, that might include shopping centers, office buildings, and more condos.  It all has to be combined into one package, with a tiny bow on top, because all of that creates the tax fund revenue you need to pay for it all.
 
Yes this decision takes us back to what could have been done, and was proposed in the early 2000s, the same idea, to develop all that city owned land into something special.  However there is one big difference.  
 
The Spanos family killed the idea because they demanded they be given the 166-acres of pricey land at the Q-sight to develop themselves.  They would have taken the financial risk, but gotten the enormous financial benefits from all that construction, plus the profits from the Stadium.  The city said no then.
 
Now the real work begins.  How do you finance it all?.  The City and the County need to brainstorm how much can be built, how much tax revenue can be triggered, and whether San Diego needs more shopping centers, condos, or office buildings, in a city already booming with vacancy availabilities.
 
We are not talking now about just an $800M stadium for the NFL team, the college team, and our two signature bowl games.  We are talking about a possible $1.6B deal because this is so much more than just replacing the old San Diego Jack Murphy Stadium.
 
The Spanos family can be of great service in the think tank process, by hand delivering their, and the NFLs, financial commitment to the Stadium project.  A nice round contribution of $400M from them combined, an investment for the profits they will gain, would start this off on the right foot.
 
It won’t be easy.  There won’t be any hotel tax to use, for that seems earmarked for strictly downtown, and maybe the Convention Center.  I would hope in the last four weeks, a segment of that task force has been in contact with other NFL cities to learn how they got done what they got done. 
 
And while the Chargers kept saying downtown was their logical choice, it just appears there were too many obstacles.  The MTS land had to be cleared and cleaned up. The Port District Commission had to have a say in location.  The Convention Center issue is still yet to be resolved.  And the Hotel Tax was not going to be available for the complex Stadium project.
 
The NFL team wanted a recommendation, and wanted it quick.  No ‘half baked deals’ they said.  It took the Task Force just 4-weeks to determine this was the best sight possible, so there should be no complaints from the Spanos-Fabiani corner.  They got that recommendation early.  Now in the next nine weeks, the Task Force needs to create a financing business model that helps everyone.
 
I cannot buy our community would accept PSLs, for the fans already feel ripped off by ticket prices, parking prices, food prices once you turn off Friars Road. You cannot tax the fans more than they are paying.
 
But if other cities have creatively financed deals, then maybe San Diego can fight a right formula, taking something that the 49ers, Steelers, Vikings have done in their communities.
 
I would have thought the Gaslamp idea would have been a slam dunk, but the hurdles seem insurmountable considering the time frame that exists. 
 
It’s been easy to take shots at the horror-show leadership of past Mayors in San Diego.  The Chargers find that a very convenient way to scald the community.  But the reality is, they wanted lots of free land initially; then we had 9/11; then we had the Wall Street scandal and job layoffs that crippled America.  No one, even with good leadership, was going to get things done with all that for the last group of years.
 
Maybe the Q is the best sight.  And maybe down road, a portion of unused land, becomes our new Sports Arena too, if the economy, and the city’s progressive mindset gets right.
 
Salute the Task Force for what they have done in a pressurized situation.  Now we await the financing package.  Won’t be easy, but smart-caring people, in the community should find a way, with the team’s help to make this work.

An Historic Day in the NFL

Posted by on  •  0 Comments  • 

It was a day like never seen before in the history of the NFL and free agency.  
 
We have had historic days in the National Football League, whether it was Joe Namath’s New York Jets Super Bowl win over the Colts, or it was OJ Simpson of Buffalo being the first ever to rush for 2,000-yards behind the Electric Company line in Buffalo, or the Ice Bowl in Green Bay, or the Hershel Walker or Eric Dickerson trades..
 
But never off the field have we seen a day like yesterday, launching the 2015-free agent shopping season.
 
There were 5-blockbuster trades announced, involving leading rushers, starting quarterbacks, and big money players.  Then 55-players changed teams on the first day of free agency, including some high water-big money contracts.
 
The landscape in the NFL has forever changed.  The salary cap is at an all time high of $143M, and now trades amongst NFL teams in the offseason are very much changing the look of rosters.
 
Eagles quarterback Nick Foles is now a Ram.  Philadelphia has ex St. Louis big money quarterback Sam Bradford.  LeSean McCoy has a record contract and lots of carries coming in Buffalo.  The Jets have brought in explosive wide receiver Brandon Marshall.  Seattle wound up with pass catching tight end Jimmy Graham. The Lions dealt for massive defensive tackle Hloti Ngata.  
 
Some of it was salary cap driven, some of it was changes in coaching staffs.
 
Then NFL teams opened their checkbooks, and the contract offers made were staggering, as were the signing bonuses, and more so than ever, the guaranteed money.
 
Ndomukong Suh heads to the Miami Dolphins on a (6Y-$114M) deal with $60M guaranteed.  He is as good a defensive tackle in the history of the game, and if he stays healthy for four season, should pay off handsomely on the deal. 
 
The New York Jets fired another volley in the long standing border war with the Patriots, signing CB-Darrelle Reavis to a record (5Y-$70M) deal with nearly $40M-guaranteed. 
 
Seahawks young DB-Byron Maxwell is headed to the Eagles on a (6Y-$63M) package, alot of money for a player who has blossomed in just 18-months.
 
Kansas City shelled out ($55M) to Eagles WR-Jeremy Maclin, a huge amount of money for a player who has had just two really good seasons in the league.
 
New England was stunned in the loss of Revis, but did hand over ($47M) to safety Devin McCourty, a proven stars.
 
Julius Thomas, the young tight end, left Denver for Jacksonville, lured by a ($46M) package.  Green Bay’s big play WR-Randall Cobb elected to stay there at a price of ($40M).  
 
Offensive lineman set records too, with the Raiders giving Chiefs OC-Rod Hudson  a wild ($44M) payday, and Arizona handing over ($40M) to guard Mike Iupati of the 49ers, contracts never seen like that before.
 
Of course there were those players franchise tagged, who got guaranteed one year deals, like the ($14M) to Dez Bryant of the Cowboys, the ($14M) deal to Denver’s Demaryius Thomas, and a $13M-package for Chiefs linebacker Justin Houston.  
 
The NFL Union has done an amazing job at the bargaining table on behalf of players.  NFL clubs had to spend to 88% of the salary cap in years gone by, but the union found a number of teams sitting on cap space, and pocketing the money.  The new rules in the CBA, you must spend to the cap, and the NFL guarantees teams will spend 95% of all available cap space.  Lots more money going around.
 
And as we saw on day one, sign early, and get the money while it’s still available.  What was spent in day one, won’t be there for today’s second day of deals.
 
Players getting rich; teams hoping now they get big time production out of the people they just gave big time contracts to.

Chargers – Multiple Choice Exam

Posted by on  •  2 Comments  • 

The possibilities are fascinating for the San Diego Chargers.
 
The signing of Denver Broncos young, veteran, offensive tackle-guard Orlando Franklin, is a huge upgrade over what they had on the field last year.
 
More importantly, his versatility fits right in, with the unique group of teammates he will join the trenches, once OTA workouts begin in May.
 
Franklin was a 3-year starter at right tackle in Denver, and I thought played well.  Last year, he moved inside to left guard, and though the Broncos had problems, he and teammate Ryan Clady were not the issue.
 
The Broncos lost a couple of centers, had an injury at right tackle, and forced rock-solid right guard Louis Vasquez to go outside and play on the edge, not his normal slot.  The end result, Denver wound up having problems at three offensive line positions, and the pressure and hits on quarterback Peyton Manning got worse and worse as the season wore on.
 
Franklin joins the massive DJ Fluker on that San Diego offensive line.  Fluker has been a road grader at right tackle, but might be even better playing inside at right guard.
 
Chris Watt wound up as the starting center last year, a position that became a Mash unit, with all those injuries.  Watt came out of college as a guard.
 
We know the Chargers, with the 17th pick in the first round, will get a shot at a very good offensive lineman.
 
Reports say Iowa’s guard Brandon Scherff will fall to them.  Florida State center Cam Irving will be there too.  LSU offensive tackle La’el Collins and Miami Hurricane Ereck Flowers could also drop.
 
Think of the mix San Diego could have.  Scherr drafted as a guard. Watt is your young center, Fluker stays at tackle, and Franklin plays left guard, next to King Dunlap.
 
Or maybe Irving is the choice to play center, with Watt going back to guard, with Fluker on that right side.  Franklin and Dunlap anchor the left.
 
Maybe Collins falls to them, and becomes their right tackle, Fluker kicks inside at guard, next to Watt, with Franklin and Dunlap rounding it all out.
 
Could the field tilt with the two wide bodies, Franklin-Fluker playing next to each other?  You could keep Watt in the middle, bring back Chad Rinehart next to Dunlop, and go draft a running back or defense instead.
 
The signing of Orlando Franklin was a brilliant stroke, because he can do so many things, with guys who have already done so many things.
 
The possibilities for the Chargers are endless in this Multiple Choice exam they will take on draft day.

Chargers – Bold or Timid

Posted by on  •  1 Comment  • 

NFL free agency starts tomorrow morning for the Chargers and everyone else in the NFL.
 
In San Diego, there are many things to be done in a short, short time.  The biggest, find enough talent to put around quarterback Philip Rivers, before the clock runs out on his record setting career.
 
The window is closing on the 30-plus year old quarterback.  He has taken some big hits, dealt with being hurt, each of the last two seasons.  His franchise has 1-playoff win in 6-years.
 
The Chargers had some $21M left in cap space after the signings of kick returner Jacoby Jones of Baltimore, and the re-signing of offensive tackle King Dunlap. Now the agreement to keep cornerback Brandon Flowers, reduces the available amount.
 
The Sunday night news flash was something.  The Chargers close to a deal to sign Broncos starting offensive lineman Orlando Franklin, a huge get to solidify a weak link on the team.
 
The roster still may have shortcomings, and the team will have to go find more money to fix holes on defense.
 
It’s a nice haul so far, but there may be more holes to deal with early tomorrow morning, when players can actually start signing, especially if the rumors come true, that safety Marcus Gilchrist may get an offer from the Redskins, and the same for cornerback Shareece Wright, from Miami.
 
They could spend their 1st round pick on another offensive lineman, or maybe the need now becomes defense.
 
The Bolts need a true defensive tackle, and free agency offers them some  proven veteran.
 
Ndamukong Suh of the Lions is asking for $16M a year, an enormous amount of money, but he changes everything on your defense if you sign him, but he appears headed to Miami.  The Patriots Vince Wilfork is a force upfront and a strong leader in the lockeroom, and a short term contract could lure him.  The Jets Kenrick Ellis has upside, size, and a bit of experience, and seems poised to leave the Jets.
 
In the secondary, the name Troy Polamalu, headed to the twilight of his career may be out there too, and a short term rental to bring the ex-USC Trojan and Steeler  home, might be worth the investment, from a talent standpoint and a chemistry one too.
 
Tom Telesco has shed his conservative approach.  He may need to do more… The GM has the ability to restructure Rivers’ $17M-cap figure contract and give him an extension. They can do the same with safety Eric Weddle’s $10M cap figure deal, and give him a short term extension.  Those deals now give you more cap space immediately to finish the job..
 
San Diego doesn’t need more draft picks to develop, they need instant veteran additions.
 
The window is closing on Rivers career fast, the roster needs experience and leadership.  Time to move quickly on all this, for signings start at 10am-Tuesday..
 
Telesco once viewed as “Tom Timid”, could finish as “Tom Terrific.”