Red Bull to buy out AEG's stake in Red Bull Park

When Anschutz Entertainment Group sold the MetroStars to Red Bull more than a year ago, it sold everything but a 50 percent stake in the Harrison Stadium Project now known as Red Bull Park.

That too has been sold now.

After weeks of negotiations to buy AEG's stake, sources have confirmed that Red Bull is ready to announce a deal that would remove AEG from a project it had been working on for seven years, leaving Red Bull as the sole owner of the stadium, which is set to open in late 2008. No financial details have been made public but the deal could be worth as much as $50 million.

So why is AEG cutting bait on a project it spent seven years working on? Let's just say the working relationship between AEG and Red Bull on the project has been less than ideal. AEG has experience building stadiums for MLS and has its method of doing things while Red Bull has its own unique vision for what a soccer stadium should look like. The staging that has become standard for all of the recent stadiums built in MLS was an issue but not the deal-breaker, according to sources. The disagreements and conflicts between the sides were threatening to jeopardize the timely completion of the project and led to Red Bull paying the large fee to be able to have full control of designing and operating Red Bull Park.

Missing out on owning a piece of Red Bull Park doesn't mean nearly as much to AEG now that it is running the Prudential Center in Newark, the new home of the Devils and a prime concert venue that made Red Bull Park somewhat obsolete for AEG's plans. It also won't hurt much if AEG can have a stake in a New York soccer stadium in three to four years. AEG is rumored to be in on the ground floor of Mets owner Fred Wilpon's plans for a New York expansion team and potential stadium in New York.

Is this good news for Red Bulls fans? It is good news in the sense that Red Bull is showing its seriousness about its investment. It could also lead to Red Bull pulling out all the stops to have the stadium ready for next season.

It should also be noted that not having AEG pimping out the field to any event with money to burn should help the quality of the field. I have seen far too often how badly beat up the fields at Home Depot and Toyota Park can be thanks to the neverending stream of events that take place there. Not having a stage take up one end of the stadium will also be good (though I seem to remember there being something in the stadium's design to minimize that anyway.)

The deal could be bad news if Red Bull struggles to complete construction, with more delays still a possibility. It should also be noted that part of the appeal in owning Red Bull Park is that it would make selling the club an easier proposition in the future. Does this mean Red Bull is selling anytime soon? No, but the value of owning the entire project goes beyond the amount they will have paid for it and it makes the club price significantly higher.

What do you think of this development? Do you think it's good news or bad news? Share your thoughts below.

Comments

[Jim]

I hope they eliminate the "open" end of he stadium where AEG typically places the stage, to me it always looked unfinished. Having a more traditional soccer venue with seats on all sides will make for a better atmosphere.

[Trex]

I think it's great news because the most visible and long-lasting effect of this will be how the stadium looks for years to come. After seeing those old AEG renderings again with the stage and open ends, it made me SO happy to hear this news. Red Bull's vision of the stadium is so much better and will provide a great atmosphere for games. Also, we will have a unique and more european stadium which I like, not a cookie-cutter AEG concert stadium which also has a soccer field on it. Good stuff.

[Joamiq]

I also would prefer a stageless design more reminiscent of smaller Euro clubs, and I'm glad that Red Bull seems to be stepping up to the plate, but more important will be whether they use some of their cash to get suitable replacements for AEG, who have the experience in building and operating soccer stadiums in the US. If they can step in right away and put the right people in the right positions, then great. If not, hello 2009.

[degerron]

Man I sure hope AEG don't get involved in the possible Queens team.

[Nick]

This is great news for a couple of reasons. Having Red Bull fully committed to the team and the stadium even if it is simply to make the Red Bulls look like something worth buying 5 years down the road is great because they will have to get more people to support the team and get out to the new stadium. Plus it'll be good to have a non-AEG run stadium so that it won't have the stage and so that there are some other, non-AEG, ideas on how to run SSS in the U.S.

[Keenan]

Thumbs Up! Good riddance AEG. I'm certain the Red Bull "vision" will be all about soccer and nothing else. One question though... How in the hell could Red Bull "pull out all the stops" to get the stadium built and ready to play in by the start of next season!?!?

[J.K]

The best part about this is that Red Bull will have full say on who it rents the stadium out to when the team isn't playing there.

The Home Depot Center's pitch always looks like garbage with all the extra events tearing up the pitch.

[Fuegofan]

Only thing I'm mad about is that it's too far along to get a different architect and start from scratch. After the mistakes at TP (e.g. you can't see the field from the stadium club), and the fact that IIRC they're involved in RSL's and DC's stadiums, I'd just as soon not have yet another Rossetti stadium in the league.

[Jim]

May the Mets and AEG find happiness in bringing Alexi Lalas back to the NY area. That would make my day as a Red Bull fan.

[gabe79]

Good news so far ... even if Red Bull had plans to sell the team later, it would not nessarily be bad news. In order to increase the value of the team it would need a valuable venue, along with a stable fan base and a good on-the-field product. These investments will not only increase the value of the team but overall quality of the club which would also attract future talent.

[ct]

I don't care who owns it. Just build the thing.

[the metrologist]

"It should also be noted that not having AEG pimping out the field to any event with money to burn should help the quality of the field."

There's no saying they won't do that just because they're taking the stage out of the blueprints, Ives.

[Ives]

True Metrologist but Red Bull, at least in theory, is a soccer-first company, whereas AEG is a concert-first company. You can disagree or give me the "How can we know for sure" but that's the fundamental difference. Red Bull doesn't need concert revenue to survive. Does that mean there will be no other events? Obviously there will be events, but I have a feeling Red Bull will have a bit more interest in keeping the field in good shape than AEG has shown with its stadiums.

[Tony M]

My instinct is that this is a good thing because Red Bull is in it for the soccer while AEG is in it for the concert venues. I would definitely defer to the Red BUll fans, but the sampling here looks positive. I see nothing to indicate that this is anything but good.

[Jasen]

for the amerisnobs in the media, here's further proof that we should welcome whatever comes with the Beckham circus:

http://www.latimes.com/sports/la-sp-plaschke22jul22,1,498987.column?coll=la-headlines-sports&ctrack=

i never said we should subject ourselves to every last bit of it, but the fact that people have the gall to complain about media attention towards soccer in this country is absurd and pompously ignorant.

[RL]

I'm rooting for Beckham to do well. It was fun to see some of the hype. The longer it continues the better the chances for more Euro stars to come and raise the level of soccer.

[Istvan from Budapest]

This is good news for NY fans.

Red Bull will take the stadium and team to the next level. The more significant the investment & risk of loss, the more attention it will get within the empire.

[Matt]

I don't see how this can be anything but good news for RBNY fans. Now hopefully they will get their asses in gear over in Harrison.

A couple of questions come to mind:

1) Was all of the talk about environmental delays, etc. just a smokescreen to mask disagreements?

2) Could this development be the result of Red Bull finding out that AEG have been in discussions with Wilpon about a second New York team?

[yo]

So, can we expect like a new design for the stadium, increased capacity, new pimped out roof design?

[Sean]

YES! Keep givin us Red Bull Park news I love it. I really hope we have a sweet stadium that other MLS teams can be jealous of. Hopefully it will be the best SSS in the US.

[brownswan]

I hope Red Bull will use their upgrade experience in Salzburg to increase the capacity in Harrison, at least to 30k.

With another NY team likely, and AEG a part of it, Herr M should pre-empt the likely pr touting the new team as the ONLY true NYC team by renaming our side Red Bull Metro. Open the arms to NJ as well as NY, honor the home of the stadium, and secure the loyalty of the ESC Old Guard that fills 101 and brings all the energy to the home matches.

Amen

[Joamiq]

I don't want the stadium to be bigger. I want something 20-25k that will be packed for every game.

And Ives didn't say the stadium could be ready for the start of next season, just next season.

[Chrisnj]

Watching "Late Night with David Letterman" - Drew Carey is my new favorite hero. His segment with Dave was a ringing two minute endorsement and explanation as to why we love football (the real one). If you didn't see it - find someone who TIVO'd it. You would be proud!

[Brad]

I think that the Beckham fiasco might not be a fiasco at all. So, in this one post, we have Drew Carey bringing up soccer on Letterman and Bill Plaschke advocating FOR Beckham? Wow. Carey has been a soccer fan for a while, don't get me wrong, but it came up on Letterman??? And Plaschke is on Around the Horn. Could we have an ESPN sports writer on our side?

Wow. All I can say.

Maybe Carey can work soccer into Price Is Right now that he's taking over as host.

[Tim]

To echo others, this can only be good news:

I like the quality of AEG personnel very much but Red Bull has made a tremendous commitment to soccer in many ways including the changes that could be made at Giants' Stadium and the training facilities. AEG never did this.

I believe (and really, really hope) that the company's commitment to soccer will more fully shine through with buying out AEG's share in Red Bull Park.

Red Bull can leverage the Salzburg stadium changes to improve the RBP design to maximize the soccer experience. AEG's emphasis on grass and covered seats were excellent moves but my feeling is Red Bull wants to do more. There was no season ticket holder venue envisioned by AEG at Red Bull Park.

When the Stadium is built, Red Bull will hopefully emphasize keeping the field in good shape (what the facility is used for and how). AEG seems to run HDC well but hopefully Red Bull will always have the field in top shape for every game.

At this point, I don't expect the stadium to be ready until the beginning of 2009 but Red Bull should still shoot for the end of 2008 because there are always unanticipated delays.

Bottom line is, Red Bull believes in premium quality in ways that other companies have not so my expectations for this "Park" are very high!

[Billy]

I've been concerned that Red Bull would bail on NY as a bad investment (attendence et al). But, if they're committing to owning a stadium and buying-out from the #1 concert promoters in the nation - then they're committed to say the least.

I'll buy me a Red Bull tonight to celebrate!

[inkedAG]

I agree with you degerron. F$@$ AEG!!

[Mike]

I don't think Red Bull has any plans on bailing on the team for two reasons:

1) They know what it takes to run a soccer team. They knew what they were getting in to.
2) NY is not a market for promotion that one just walks away from.

They probably assumed 5 years of profit loss. If they just wanted to sell the team after a couple years to turn a profit, they would have just bought the team, keep the metrostars name and advertise on the shirts.

All professional sports teams are owned and run by corporations. I would rather have a corporation openly be the face of the team, then some behind the scenes entity. Hell, the Jets are only green and white because of Hess gasoline.

And I love the Jets.

P.S. We play soccer in the states.

-Mike

[Marwin]

Great job Red bulls! I know about 156 people are waiting to purchase season tickets already... The staduim will attract more fans and will even attract more stars to play for the team.