The Battle for San Antonio Continues; Hartman’s Scorpions Face More Obstacles in Stadium Financing
The proposed North American Soccer League team in San Antonio ran into more hurdles this week. Gordon Hartman’s team Soccer for a Cause has been trying to gather support to find the $8 million he says he needs from the city and county to build a stadium on STAR Soccer Complex, a stadium he hopes to have built in time when his proposed team starts play in 2012. But the San Antonio businessman ran into several roadblocks this week which even Hartman expressed surprise at.
Hartman’s team, the Scorpions, held a press conference this week to announce Nike as a sponsor. Some believed that may have been a move to focus positive attention on the club. A joint feasibility study commissioned by San Antonio and Bexar County, which some believe will recommend Hartman get turned down for public financing, will report back to the city and county next week.
On Friday the San Antonio Express-News published a front page story in which Judge Nelson Wolff explained that Hartman would be in violation of his public financing that he received for STAR should he continue with his current plan. Hartman plans on taking out two youth soccer fields at the 14-field complex to make way for the stadium. The judge says he would be in violation of his agreement.
“Clearly we can’t do that,” Wolff said. “That money was approved by the taxpayers, and it’s just for amateur sports. It’s not for professional.” The judge said he is fine with Hartman building a pro sports stadium as long as he doesn’t affect the existing fields.
STAR was partially funded with $5 million in venue-tax dollars voted on by Bexar County in 2008. As Judge Wolff stated, the funding came as part of a proposition to support youth and amateur athletic facilities.
According to the report, Hartman claims he can work around that issue. However, the South Texas businessman has bigger issues to tackle. The San Antonio Express-News discovered SS&E has a no-compete clause with the county. According to that report, Bexar County Director of Venues Michael Sculley said the clause was allowed into the contract when building the AT&T Center. It doesn’t state the county can’t fund a soccer stadium, but it would most likely make it impossible for Hartman to use the facility for other entertainment events, something he’s hinted in the past he might do.
While it does seem startling that a county might have a no-compete clause with a pro sports team it certainly isn’t the first time this has happened, as Memphis found in 2005.
While it looks as if Hartman will have hurdles to jump, SS&E’s plan of taking their proposed USL PRO team to Alamo Stadium may also face obstacles. My San Antonio.com revealed on Saturday a 1939 ordinance which prevents San Antonio Independent School District from using the venue for any private or profit driven purpose.
“Clearly there have been other professional sports at Alamo Stadium since then,” said Leo Gomez, SS&E vice president for public affairs. “Our legal counsel has advised us that there certainly is the opportunity to lease Alamo Stadium, lease being the key term. Our legal counsel has advised us that it’s not an issue.”
Hartman released a press statement on Friday which read:
We’ve requested $8 million to create a venue for our team, the Scorpions, that will compete in the North American Soccer League (NASL), just one step removed from Major League Soccer (MLS). Contrast that to the $415 million in public funds that have been expended to create other sports venues such as the AT&T Center, the Alamodome and Wolff Stadium where other pro teams play.
We’re truly disappointed at the heavy-duty efforts behind the scenes to derail Soccer for a Cause, however we’re not going to let technicalities stop something that offers so many positive benefits to our community.
For the full press release click
Jan. 28, 2011
Statement by Gordon Hartman Concerning Roadblocks to Soccer for a Cause
Now that Soccer for a Cause is rapidly gaining momentum, it’s disheartening when all of a sudden various and sundry roadblocks have appeared in the pathway to pro soccer for the benefit of Morgan’s Wonderland. The most surprising and puzzling of these roadblocks is a non-compete clause that protects Spurs Sports and Entertainment from any other professional sports team setting up operations in San Antonio.
Those of us who are dedicated to helping the special-needs community are certainly accustomed to roadblocks. We had to overcome plenty of obstacles to create Morgan’s Wonderland, the world’s first ultra-accessible family fun park designed for special-needs individuals of all ages, their families, friends and the public at large. We take our inspiration from those who everyday must struggle with all sorts of physical and cognitive challenges.
The purpose of Soccer for a Cause is very simple and straightforward – establishing a viable pro soccer franchise and have all profits go to the long-term financial health of Morgan’s Wonderland. We’ve requested $8 million to create a venue for our team, the Scorpions, that will compete in the North American Soccer League (NASL), just one step removed from Major League Soccer (MLS). Contrast that to the $415 million in public funds that have been expended to create other sports venues such as the AT&T Center, the Alamodome and Wolff Stadium where other pro teams play.
Some have questioned the financial viability of NASL soccer, but they need to examine the 150-page business plan we have assembled that clearly shows the Scorpions can be profitable. We wouldn’t be pursuing pro soccer if it didn’t make good economic and business sense. Incidentally, my team that put together the plan includes executives who have operated successful MLS franchises.
We’re truly disappointed at the heavy- duty efforts behind the scenes to derail Soccer for a Cause, however we’re not going to let technicalities stop something that offers so many positive benefits to our community. Now more than ever, it’s important for soccer fans, interested citizens and Morgan’s Wonderland supporters to visit www.SoccerforaCause.com , click on the link there and send an expression of strong support to local elected officials. Together we can definitely make a difference!
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Somehow USL is to blame. Or Don Garber. Or both.
Surely it’s The Man trying to keep the NASL down.
It is a little shocking that for a guy who made his millions in the San Antonio real estate development world, his due diligence team missed not one, but two very important items that could hinder the building of the professional soccer stadium at STARS.
Undoubtedly, Hartman has already sunk significant predevelopment funds with engineers, market studies, etc., to plan the stadium, not to mention large fees paid to NASL to join their organization. It would be a shame if that was all for naught.
Helping special needs children is indeed a worthy cause, although I think the business of soccer should be separated from the charitable business of Morgans Wonderland.
I agree with you Bart on the first issue you mentioned although, although it is nothing that can’t be overcome. The second part makes perfect sense if the first few seasons aren’t profitable. Can we get a hurrah for non-profit tax deductibles? Hurrah!
SSE are a bunch of Commie punks. Seriously a no competition clause, How communist is that. Someone is afraid of a little Competition.
I don’t see how they couldn’t ALSO use the stadium for amateur soccer too. Could that be a work around? It’s probably gonna be FieldTurf, so why not let schools and youth rec leagues play some games there in addition to the Scorpions. That might satisfy whatever legal mumbo jumbo is in the original deal for the STAR Complex.
Alamo Stadium, from what I’ve seen, is certainly not ideal for soccer. It’s HUGE for D3 soccer, has a track, and will share with many HS football programs. This soccer feasibility study, to me, should recommend Hartman’s plans. It will make a for a better, more professional experience for fans and players to have a purpose built soccer venue, and incorporated into a soccer complex. That in the long run should mean a better supported club and a more stable organization moving forward, that hopefully would become profitable and benefit Mr. Hartman’s noble cause.
Plus the city/county already payed most of the cost for the Spurs’ current arena.
It’s really a shame that SS&E sat around twiddling their thumbs on pro soccer and only got serious AFTER Hartman and NASL moved forward. Because now it’s really made a sticky situation out of things in San Antonio.
I know it’s cruel, but if I am SA fan, I don’t care about Soccer for a Cause. The only cause I would care about is which group will get me MLS. Hartman’s concern is Morgans Wonderland. He has been upfront and honest about that. But it really makes me question if the Scorpions can even survive at D2 standards, never mind be a MLS team one day. Causes don’t pay bills.
SSE’s concern is building a team for a potential MLS franchise. And given the Spurs track record, I’d feel safer with that side. Throw in the uncertainty about the NASL ever taking the pitch.
How many soccer clubs in this country are profitable? It’s not a business you get into expecting to make money. I am pretty sure I read just three MLS teams are profitable. That’s why I would love to read Hartman’s study. Something just seems really off about his situation.
@ Dan – can we do without the name calling?
Whats another term for people who don’t do everything possible to not have competition. Besides their is a reason the SSE have been playing with their thumbs. They are not serious about bringing MLS to San Antonio. They want the Spurs to be the number 1 show town and will keep their so on so called soccer team in the minors. That’s what they did with the Rampage.
Hartman has already said that he wants to move the team to MLS when the fanfare is strong enough. That’s his proposed stadium is expandable to 18,000 seats.
As it relates to Hartman wanting MLS, I heard the same thing from Rawlins when he moved his D2 team in Austin to D3 in Orlando. Many are called but few are chosen.
Now, from what I do understand, the Hartman structure may be acceptable to MLS, as Saputo’s group is a not for profit entity in Montreal as well. The question is whether Hartman is a Saputo, and I don’t think that is the case. However, having said that, Hartman made his money on his own, and with Saputo, he is a third generation titty baby. Big difference between the two on how to be successful. If this were the criteria, I would place my vote on Hartman, he is first generation.
“Whats another term for people who don’t do everything possible to not have competition.”
People….who DON’T do everything possible….to NOT have competition.
I don’t know, you’ve got me there.
But a term for people who DO everything they can to keep there from being competition….well, “cable franchisee” would be one term. “Monopolist” would be another.
And the Spurs were talking about a USL team as far back as April of 2009…a year and a half before Hartman’s group was announced as an NASL team.
So….tell me again who was trying to pick a fight with whom?
So Montreal have shown that a non-profit organization is capable of operating a D2 team and I believe Hartman has publicly noted that. Anyone have any ideal how closely aligned is Hartman’s plan to that of Saputo’s to make him so confident that his soccer for a cause will work? And isn’t that what NSC tried to do with the Stars but ended up looking for an investor?
Bart, you mentioned the difference between how both Hartman and Saputo accumulated their wealth, with Saputo appearing to have better financial stability of the two, which I guess is partly the cause of my concern for Hartman’s proposal.
@drebin
Yes, but Bart did say that he (Bart) felt that Hartman would make smarter moves all around because he himself (Hartman) accumulated his wealth, whereas Saputo was born into it. Although that doesn’t mean Joey has no business sense, it means Bart, and probably many others, feel that a person can be judged based on what they themselves have done.
I think Hartman is making some good strides in San Antonio myself.
KT, I agree most of the time with your logic but in this case I think there’s a counter point to be made. The SS&E plan seemed totally dormant until NASL announced a team. At that point there was a sudden interest again.
I am going to agree with BQ on this one. So what if SSE had “rights” through USL for San Antonio? There was little, if no action taken by the Spurs, except for an ocassional “we are committed to looking for the right venue and then analyze if we want to do this” piece of mind.
While that may be good for the Spurs, it is not good for San Antonio in terms of soccer. Actions speak louder than mere words, and I think Hartman indeed lit a fire up the broad butts of SSE.
A lot of this deals with the Spurs houghty thought process that they were the monopoly for professional sports in San Antonio. Competition breeds excellence.
Bart, you hit it right on the spot.
Just a thought but if it they were really serous about get a MSL team in San Antonio and they have a soccer following and the owner have deep pockets like they say they do just buy FC Dallas and move them. It really doesn’t matter who win to me but I just think they are going about is the wrong way. Here is a couple of facts way this might work.
1 Look at Philadelphia Union their was maybe a supporter club thier other than that their was no other soccer team at any level and they were second in the league for attendance last year.
2 look at Seattle they had a D2 team and their attendance went up form around 2,000 to 35,00 and Dallas is a MLS.
3 They would be closer to their revels and that sell especially with Texas pride.
4 San Antonio has a better on just about the same soccer supports base as Dallas.
4. It work for the Oilers, Browns, Sonics and a host of NBA, NFL, MLB teams.
Why take the long way when you can take the short u have a bigger Population than Austin and the same size as Dallas I sure San San Antonio muster up a average 11,231 a game that’s what FC Dallas is pulling now.