Ron Burkle bailed on Sacramento’s soccer dream. Now he’s getting sued over stadium work
Four months after he torpedoed Sacramento’s Major League Soccer effort, billionaire Ron Burkle is being sued by the company that was developing the city’s MLS stadium.
Icon Venue Group — a nationally-known stadium developer — sued Burkle and his business partner, Matt Alvarez, for fraud and breach of contract, saying the two men lulled Icon into believing the MLS project was on track despite lingering details that needed to be resolved.
Filed last Friday in Sacramento Superior Court, the suit says Burkle and Alvarez failed to pay Icon more than $2.3 million for work done on preparing the downtown railyard site for the proposed $300 million stadium.
The suit says Icon agreed to start working on the project in early 2020, about three months after Burkle, Alvarez and MLS Commissioner Don Garber came to Sacramento to announce that Sacramento Republic FC would be admitted into the country’s top soccer league.
As developer, Icon was to oversee design, construction and infrastructure work on the new stadium — the same tasks the Denver-based company undertook when the Sacramento Kings built Golden 1 Center.
Icon says it went to work for Burkle and Alvarez, even though a formal contract wasn’t executed, based on assurances that the MLS project was proceeding.
Alvarez, Burkle’s point man on the stadium deal, told Icon officials that the project “was to proceed full speed ahead,” the suit says. Alvarez also told Icon that while the Burkle group hadn’t finalized an agreement with MLS over Sacramento’s entry in the league, that “was a mere formality,” the suit says.
However, a deal was never completed, and in February the Burkle group told MLS it was backing out “based on issues with the project related to COVID-19.”
Mayor Darrell Steinberg has vowed to find a new deep-pocketed “whale” to replace Burkle, and Garber said in April that the league isn’t giving up on Sacramento.
“There’s still a lot of energy in Sacramento, it’s a good soccer market,” Garber said. “Mayor Darrell Steinberg is very focused on trying to put another ownership group together. We’re going to work with him to see what can be achieved, if another group can be put together to reach an agreement with the city and others.”
Frank Quintero, a spokesman for Burkle’s main investment firm, the Yucaipa Cos., declined comment on the lawsuit.
Quintero, however, confirmed reports that Burkle and Alvarez have been awarded a franchise in San Diego in the National Women’s Soccer League. He declined to comment further on the San Diego investment.
This story was originally published June 15, 2021 at 9:15 AM.