Catching Up on San Antonio; An Update

2011 February 21
by Brian Quarstad

A lot has transpired in San Antonio over the last several weeks. As was expected, the joint city/county study on professional sports was released several weeks ago. The San Antonio Express and particularly writer Richard Oliver have been all over this story and doing an excellent job of digging through the sound bites and getting to the core issues.

The last post IMS made concerning this issue was in late January. Since then the joint city/county pro sports study came back with their findings. It wasn’t good for Gordon Hartman or Spurs Sports and Entertainment (SS&E), although it seemed more detrimental to Hartman’s Scorpions, who are scheduled to play in the NASL in 2012 as an expansion team. SS&E own a USL PRO franchise that they would like to see up in running in that same year.

Hartman has said all along he planned to take all profits from his pro soccer team and have them pay for the costs incurred by his special needs theme park called Morgan’s Wonderland. Hartman has plans to build a stadium for the Scorpions on property he already owns at STAR Soccer complex northeast of the city. The former real estate developer was looking for $8 million ($4 million each from the city and county) in public financing to build the stadium. He claims to have $11.5 million in private donations of the $17 million Hartman needs to get the project started.

On February 4, the staff of the San Antonio Express met with city and county officials concerning the joint feasibility study. They told the newspaper it was doubtful they would be investing in minor league soccer due to the findings of that report which said only one minor league soccer team in North American is currently making a profit.

“Professional soccer teams are not going to make enough to support themselves, let alone a special-needs park,” said Michael Sculley, director of the Bexar County community venues program office.

Days earlier County Judge Nelson Wolf had stated that Hartman could not eliminate two youth soccer fields at his STAR Soccer complex to build his stadium. He had noted that the STAR facility was built with other financing from the county that stated those fields had to be used for youth programs.

“What jumps out at you in this study is the fact that whether it’s the NASL or the USL or the others, they don’t make any money,” Wolff said. “And that’s a concern.”

Wolf said he told Hartman that perhaps he should first play games at an existing facility to determine if he team could make the profit he’s projecting. But Hartman said that idea is a non-starter since his projections are based on owning his own stadium which he claims must happen if he is to see those projected revenues.

The Express reported on February 15 that the San Antonio Independent School District (SAISD) had agreed to explore a relationship with SS&E who want to use the district’s Alamo Stadium for their USL PRO team. Some members of SAISD had gone on record saying they believed a partnership could cut costs for the district who are cash-strapped as are most school districts across the country.

The city of San Antonio had previously approved a large bond that would renovate the 70-year-old 22,000 seat stadium. It’s believe that SS&E would like to control the venue using it for pro soccer but would also bring other events into the stadium.

Hartman is continuing to pursue public money for his stadium. But recently he’s said he may have to look for private investors to get the job done. He also said that he would not be interested in following that avenue unless there was a mechanism to sustain Morgan’s Wonderland. While Hartman has always been upfront in saying supporting the theme park was his only reason for owning a pro soccer team, his comment in regard to sustaining the theme park may be getting closer to what this is about.

Sources close to the situation in San Antonio are now saying that Hartman is actually looking for a mechanism to refinance Morgan’s Wonderland and the Stadium was the vehicle to get him there. The theme park that opened in April of ’10 has been far more expensive than Hartman had anticipated and he’s been losing money at a very high rate. In fact the SA Express states in their article that the 25-acre park and soccer complex, originally pitched to cost just more than $13 million, were finished last year at a price tag of about $34 million.

In a report on January, 17, Hartman told Josh Baugh of the San Antonio Express that if he cannot find the financing to build his stadium he may have to look to other options to fund Morgan’s Wonderland. He told Baugh alternative forms of financing could mean he would have to sell his team. That’s a task that may not be so easy being the team has never played a game or signed a player contract.

“I think the potential for ‘Soccer for a Cause’ is viable,” said Hartman. “We have so much momentum and desire to pull this off.”

12 Responses
  1. Bart permalink
    February 21, 2011

    I am a bit confused, from this article, it sounds as though San Antonio will not be fielding a team next year, however, just last week, USSF President Sunil Gulati said that he met with the San Antonio ownership and was confident that the team would be moving be moving forward with NASL next year?

    Is it possible that President Gulati was deceived? Say it ain’t so, Sunil!!

  2. jw7 permalink
    February 21, 2011

    This is almost funny. Gotta luv the very premiss that the “profit” from the D2 team will help pay for… McDreamland!

  3. yankiboy permalink
    February 21, 2011

    @Jw7: Little harsh Bro. Yes, it is completely unrealistic to beleive that the Scorpions can help support the amusement park but I personally think the intentions are incredibly noble.
    Unfortunately, you need more than good intentions in order to make something work (or there would bearound 45 US second division teams right about now)>

    I hope there is a way for them to realize the dream of the amusement park.

  4. February 21, 2011

    This came out in yesterday’s San Antonio Express-News (from the Editorial Board): http://www.mysanantonio.com/opinion/editorials/article/Soccer-won-t-be-park-s-solution-1020480.php

    BQ: “In a report on January, 17, Hartman told Josh Baugh of the San Antonio Express”… That report was on Feb 17. That was less than a week ago, that they first said the dreaded words “selling the team.”

    It is sad that Mr. Hartman is already speaking of “selling” the team even if it is to benefit MW. The only thing is, who in San Antonio is interested in buying just to go head to head vs the Spurs? I doubt the Spurs are interested in NASL.

    I would hope he would at least try and play a couple seasons before deciding to put up for sale.

  5. Eaashley79 permalink
    February 21, 2011

    Thanks for keeping the soccer public informed about the cluster that is going on down here in San Antonio. Gordon Hartman is a good man that has done wonderful things for the special needs community in SA, but I’m starting to think he may be in over his head with his “soccer for a cause” idea. It’s frustrating to hear him already talk about selling the “team.” He had to of known about these roadblocks. In these economic times, no matter the pull-at-your-heartstring ambition, no community is going to offer public funds to build a SSS for D2 soccer. His STAR soccer complex was already built with public money specifically for youth and amateur facilities. I don’t know how he thought he would sneak a professional facility on to those fields. If he does decide to build, he’ll have to use private funds on adjacent land also owned by him. But it’s obvious he doesn’t want to go this route.

    I know this is par for the course for the lower soccer leagues, and I saw exactly what can happen up the road in Austin, but I had high hopes for the potential of professional soccer in San Antonio. Now I’m not so sure. Hopefully, SS&E has some good news that will come out of their camp.

  6. Jake152 permalink
    February 21, 2011

    For NASL to get fully sanctioned in 2012 and beyond, San Antonio Scorpions need to be there… Correct?

    How did USSF not fully vet the SA situation?

    Sounds to me like NASL needs to ensure San Antonio gets on the pitch or if Hartman decides he wants out the NASL will have 4 teams they need to find new owners for.

    Not looking good for NASL in 2012.

  7. El Padre permalink
    February 21, 2011

    @Jake152, don’t forget that Baltimore, fromerly known as Crystal Palace, who are original members of the NASL announced their intention to be up and running for 2012. Aaron Davidson had also said that there was another franchise in the works which would be announced at a later date. Besides, there is still the possibility of Rochester & Orlando coming back into the fold. Many of their decisions were based on the premise that the NASL would not be playing- and they are. That will undoubtedly influence their future plans. They have their work cut out for them, but the future of the NASL does not rise and fall on San Antonio.
    Remember that Austin is now an open market with a proven fanbase. That would be an easy franchise to sell as a new ownership group would have a very recent example of the city’s desire for soccer. My personal dream scenario would be that the NY Cosmos, as at least a step in their bid for an MLS franchise, begin their professional team in the NASL. They’ve reported that they’ve already signed their first player about a month ago so he needs to play somewhere. Where there is a will, there is a way.

  8. Jake152 permalink
    February 21, 2011

    El Padre: I know NASL success does not rise/fall on San Antonio. I meant if they have to find new owners in San Antonio, that will be a total of 4 teams that need new owners. Half the league! That is why I say 2012 does not look good. And this is following USSF’s requirements to find new owners in those markets and to get San Antonio going as well.

    I don’t see Orlando & Rochester moving to NASL anytime soon.

  9. Dan permalink
    February 21, 2011

    I really don’t know what to say, If it happens to be true and a non Spurs team doesnt rise then i will not be supporting a SA team because i have no faith in the Spurs Intentions. At least with Hartman you know where he stands even if you don’t agree with it. With Spurs i think they want to say hey soccer is not strong enough to be D1 in San Antonio so that Their Basketball team will remain top dog. But that’s my opinion.

  10. jw7 permalink
    February 21, 2011

    @whitenortherboy I actually filtered that one before I wrote it.

  11. yankiboy permalink
    February 22, 2011

    @El Padre: I don’t think the NASL is counting on Baltimore to be able to make a comeback. The ownership group is working very hard but there are an awful lot of hurdles to overcome in order for Baltimore to play in either division again–especially in the NASL/second division.

    I’m not saying to write them off; I’m just saying that they are a long shot to make it back. If they somehow manage to make it then the NASL would be thrilled but Davidson and crew realize what Baltimore is facing and are not counting on the fact that they can make it back.

    I hope that we do. If all it took was hard work, great ambitions we would still be there.

  12. February 23, 2011

    Hartman’s STAR Soccer Complex is in the NE side of SA, not South of it… and there are some minor typos… other than that… thanks all

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