Sacramento’s entry into Major League Soccer delayed one year due to coronavirus
Sacramento Republic FC’s entry into Major League Soccer has been delayed one year due to complications from the coronavirus pandemic, including uncertainty about how to design a stadium for the post-COVID-19 era as well as a desire by the team and league to wait until fans and the Sacramento economy are back on their feet.
Matt Alvarez, a Hollywood producer whose investment group landed an MLS team for Sacramento last fall, said that group remains focused on bringing the team here and building a state-of-the-art stadium, as promised.
But, given the current virus issues and uncertainties – including an indefinite California ban on fans in stadiums – Alvarez said his group and MLS officials agreed that the smartest step is to take the time “to launch it the right way.”
Alvarez’s investor group, headed by Los Angeles supermarket billionaire Ron Burkle, won the rights in October 2019 to operate a Major League Soccer expansion franchise, and with it the initial obligation to build a 20,000-plus seat stadium in the city’s downtown Railyard redevelopment site downtown by 2022.
MLS officials announced Friday they have reached the same one-year postponement agreement with St. Louis, the other team that was going to enter the league in 2022. Charlotte, which was to begin play in 2021, will wait a year until 2022.
“We are still bullish on soccer, MLS and Sacramento,” Alvarez told The Sacramento Bee during a Friday phone interview. “We try to keep perspective. We think Major League Soccer has a ton of room for growth. This is a long play for us. We are in it for the long haul.
“We want to give the market an extra year to improve.”
For the moment, it has become harder to line up construction materials and crews. The financial markets for loans are more expensive. And sports officials are still in the early stages of understanding how to redesign new sports facilities in a way that makes them safer for fans, but still allows for the close-together experience that makes stadiums exciting.
Alvarez said new stadium designs may have fewer seats, and wider aisles, but that fans are expected to still have that sense of being part of a large, intimate vocal group.
“There will be a strong (economic) comeback,” Alvarez said. “People hunger for sports, and collective experiences.”
MLS delay was likely amid COVID-19
Sacramento Mayor Darrell Steinberg said he has been talking with team officials since the virus hit, and knew the delay was likely. He said he sees Friday’s announcement as a positive.
The league could have changed its plans to expand to new cities, and the investor group could have changed its mind as well about investing in a team in Sacramento.
“For me, this is a reaffirmation that we are going forward with a dynamic ownership team,” Steinberg said. “The real story is our partners and the city are fully committed to achieving this great outcome for Sacramento.
MLS officials issued a statement as well on Friday, reaffirming their intentions to expand the league, despite the virus setbacks.
“We have always taken a thoughtful and strategic approach to our expansion planning and have delivered successful launches for every new club,” said MLS Commissioner Don Garber. “It is important for each club to take the necessary time to launch their inaugural MLS seasons the way their fans and communities deserve.
“With the extra year to make up for what has been a challenging 2020, these teams will be well-positioned for their debuts and for long-term success.”
The pandemic has already deeply impacted Sacramento’s existing lower-tier professional soccer team, also called Republic FC. Its current United Soccer League season was halted for several months before relaunching this month with an abbreviated scheduled and no fans in the stands.
The Republic team last month disclosed it would furlough more than half the team’s full-time employees, which number in the 50s.
The tentative price tag for a new downtown Sacramento’s stadium is expected to top $300 million. That cost will be privately financed by the investor group. The city of Sacramento plans, however, to kick in $33 million worth of incentives, including a loan of up to $27.2 million.
Burkle, who has said he sees Sacramento as a growth city, has said his group also will build on the 17 acres that surround the stadium, to enhance fan experience and generate extra revenue for the team. He has declined to provide details. In Pittsburgh, where Burkle co-owns the Penguins National Hockey League team, his group built a hotel.
“You want to control your environment,” he said. “I think that helps build the fan experience.”
“If we can imagine that we can build things there, and build profitable things there, that helps us bring price into context,” Burkle said in an interview last month. “But more importantly than bringing the price into context, it helps us control the (fan) experience and we can program what goes across the street.”
This story was originally published July 17, 2020 at 1:00 PM with the headline "Sacramento’s entry into Major League Soccer delayed one year due to coronavirus."