Anschutz Entertainment Group on Thursday sold one of its five Major League Soccer teams to Red Bull, the Austria- based energy-drink maker.
Sports-business experts called the deal a great move for Los Angeles-based AEG, owned by Denver financier Philip Anschutz, because it allows the company to keep a stake in the real-estate development connected to the team.
MLS teams are money-losing ventures, but the real estate connected to the teams makes them more attractive, experts say.
The sale of the New York/New Jersey MetroStars will help AEG defray the cost of a $90 million soccer stadium it is financing in New Jersey. The stadium, expected to open in 2008, will be home to the team, which was renamed Red Bull New York.
As part of the deal, AEG will manage and book the venue.
Anschutz is “able to leverage the sale in a way that helps his other business interests,” said Jeff Marks, managing director for the Sports Business Group, a Los Angeles-based industry consulting company.
Red Bull bought the team, a 50 percent stake in the stadium and the naming rights to the venue. Financial terms weren’t disclosed, but Red Bull reportedly paid $50 million or more.
While Red Bull and MLS trumpeted the sale as a “landmark moment” for the league, AEG remained mum about the deal, which raised questions about who brokered the sale.
MLS commissioner Don Garber acknowledged that the league started discussions about the MetroStars sale because “we knew that Red Bull had an interest in soccer in this country.”
He said the deal was completed in less than 30 days.
Garber has said he wants each owner in the league to only own one team.
AEG wrangled for years with New Jersey officials to gain public financing for the stadium. The company agreed last August to foot the entire bill for construction of the stadium, although public funds will be used for a parking facility and other costs.
Anschutz “accomplished a major benefit for the league by getting the stadium deal done,” said Marc Ganis, president of SportsCorp Ltd., a Chicago-based sports-business consulting firm. “He sold the team at a time when its future looks quite bright, which should be good for the whole league.”
Staff writer Andy Vuong can be reached at 303-820-1209 or avuong@denverpost.com.
