Chicago Fire Negotiating Stadium Lease Buyout And Possible Rebrand

Chicago Fire News:

Will There Be An Early Termination Of The Lease at SeatGeek Stadium?

According to the sports publication The Athletic, citing multiple sources with knowledge of the negotiations, Chicago Fire and Major League Soccer are in discussions with the Village of Bridgeview to arrive at an early termination of the lease with the municipality, thus allowing the team to move out of SeatGeek Stadium in Bridgeview, Illinois.

The discussions began last year and are ongoing, and it is unclear what the potential price of the buyout would be.

Some details of the deal first emerged on social media via the Twitter account of a Fire fan, James Vlahakis. From 2013 to 2016, he worked as outside counsel for the Fire while at the firm Hinshaw and Culbertson LLP. His Twitter activity suggests that he is a passionate fan who is sometimes critical of the team’s management.

[Attorney Vlahakis is currently suing the team and president Nelson Rodriguez in an unrelated matter alleging assault, discrimination, conspiracy, and malicious prosecution.]

The Fire Soccer Club are currently in the fourteenth year of a stadium lease that was signed in 2005 and runs through the end of the 2036 season.  An agreement to buyout the lease would allow the Fire to relocate to Soldier Field in downtown Chicago.

The club refused to provide any details, telling The Athletic: “We don’t comment on social media speculation from individuals outside the organization.”

One source indicated that Chicago billionaire and Fire minority owner Joe Mansueto has been instrumental in these negotiations. It is always difficult to obtain any financial date from the respective clubs making up MLS, which is organized as a limited liability company. It is known however that Fire majority owner Andrew Hauptman sold a 49 percent ownership stake to Mansueto for an undisclosed amount in 2018.

Mansueto is an influential player in the Chicago commercial real estate arena, having bought the historic Wrigley Building in downtown Chicago for $255 million last year.

Further evidence of the team’s desire to leave Bridgeview comes from the fact that public records show the Fire have been active in dealings with the City of Chicago in recent months. For example, lobbyist filing data shows that, “Chicago Fire Soccer Holdings, LLC” paid three lobbyists from the firm Fletcher, O’Brien, Kasper & Nottage a total of $72,000 for activities between October 1, 2018 and December 31, 2018, seeking administrative action from the mayor’s office regarding “real estate matters.” 

The Fire also declined to comment on the lobbyist activity. 

Bridgeview, Illinois And The Lease

The Village of Bridgeview is located some 24 kilometres (15 miles) outside of the downtown Chicago area, and depending on the time of day and where one is coming from, can be difficult to access. Google Maps, SeatGeek Stadium/@41.831867,-87.8385522.

For this reason, escaping from the lease at SeatGeek Stadium would be an important boost in the team’s ability to reach new fans. The Fire’s stadium in Bridgeview is also not easily accessed via public transportation — it requires a train ride to Midway Airport followed by a bus ride from the airport to the stadium, a commute that takes over an hour from the city. It is also a traffic-filled 45-minute drive from most places in the city.

MLS is a party to the stadium lease, a practice that was commonplace with third-party leases in the early days of MLS, but is no longer a regular practice. Rumours circulated that other league owners will be contributing toward the buyout of the SeatGeek Stadium lease, but league sources said there are no plans for other team owners to contribute. Three separate sources familiar with ownership discussions said no such arrangement has been presented to owners of other MLS teams, and that it would be unlikely other teams would agree to such a plan. 

In an interview with Sports Illustrated last month, MLS commissioner Don Garber hinted a move back to Soldier Field could be in the works for the Fire. The team played at Soldier Field from its inaugural season in 1998 through 2002, then again from 2003-06 after a brief hiatus during the NFL stadium’s renovations. SeatGeek Stadium opened midway through the 2006 season. 

“We were playing in Soldier Field and we ended up going into a stadium that is not downtown, does not have the things around it that many of our other urban parks do,” Garber said on the Planet Futbol podcast. “And if things could work out properly maybe we end up back at Soldier Field at some point.”

MLS Commissioner Don Garber

But while moving into the city of Chicago would certainly help access a millennial demographic that has been vital to the growth of MLS around the country, it should not be considered a cure-all for a team that has struggled mightily on the field. The Fire have finished ninth or tenth in the Eastern Conference in four of the past five years, creating a mix of frustration and apathy even within its most diehard fanbase. And while the team has spent more on its on-field product, signing players like Bastian Schweinsteiger and Nemanja Nikolic, it lacks in several areas of infrastructure and support, including training grounds and a scouting network.

The lease with the Village of Bridgeview imposes a significant restriction, one which prohibits the Fire from playing any MLS home games outside of Bridgeview, without the express permission of the Village. According to two sources, MLS commissioner Don Garber flew to the Chicago area to meet with Bridgeview mayor Steven Landek ahead of the MLS All-Star Game announcement in 2017 in hopes of securing a Chicago Fire regular season match at Soldier Field during that season. League officials held off on an announcement that the All-Star game would be held at Soldier Field in order to pair that announcement with the Fire game, and team and league officials were optimistic a deal had been struck. In the end, however, Bridgeview declined to allow the game.

Chicago-Fire-Default-2

Possible Rebrand Also In The Works?

“We’re still in that process, and I think refresh is the word we like.”

Nelson Rodriguez, Fire GM

Multiple sources confirmed meetings have also been held regarding a potential team rebranding, though no decision has been finalized on whether that will include a new team name. Vlahakis’ tweet indicated that the Fire would rebrand as “Chicago City Football Club” as part of the move back downtown.

Fire general manager and president Nelson Rodriguez said on the record in a roundtable discussion with reporters last summer that the team has considered a brand “refresh.”chicago-fire-logo-png-chicago-fire-logo-vector-299

“We’re just still in that process, and I think refresh is the word we like,” Rodriguez said. “It’s not an overhaul, it’s not a major change. It’s an iconic badge. There’s a lot of great history at the club, a lot of great work from people that came before (COO John Urban) and I arrived, which we think should be honored. We will continue to honor that, but times change, there needs to be a little bit of an evolution and I think we need to hone in on what our voice is for today, and that’s what we’re working on.”

The Fire, which won MLS Cup in its inaugural season in 1998, holds a historic place in the league’s history. Conversely, the brand has almost no resonance in the city of Chicago, where game days are mere blips on the radar of most city residents and bigger media outlets in the market do not provide regular coverage. That lack of market penetration, paired with the dreadful management of a franchise that has made the playoffs just twice in the last nine seasons, has created a massive problem for the league as a whole. MLS, which is eyeing a new media rights deal in 2021, needs to remedy its lack of interest in the third-largest media market in the country.

A Fire rebrand would follow the model set by the MLS franchise in Kansas City, which rebranded from the “Kansas City Wizards” to “Sporting Kansas City” in 2010. That rebrand, paired with a new stadium opened in the summer of 2011, has been one of the success stories in MLS. That rebrand and new stadium, however, was buoyed by the consistent success of the team and charismatic coach and Sporting Director Peter Vermes, supported by a large infrastructure investment on the part of the investors owning the team. Kansas City’s MLS  franchise, which won an MLS Cup as the Wizards in 2000, stands out as one of the league’s few “original 10” teams that experience success in their home market.

Before And After:  Kansas City Rebrand

Kansas_City_WizardsSporting_Kansas_City_logo

 

 

 

 

Other MLS original clubs have struggled to keep pace with recent expansion teams, including two other teams that have rebranded: FC Dallas, originally the Dallas Burn, and the New York Red Bulls, originally the New York/New Jersey Metrostars. The Red Bulls, while a success on the field and with a top-class stadium, have not seen that translate in its attendance figures. Other MLS original franchises that are struggling to make a big impact within their market include the New England Revolution, Colorado Rapids and Columbus Crew. Columbus nearly relocated before being saved by new ownership, while Colorado and New England, like Chicago, have struggled in most seasons over the past decade; New England has just three playoff appearances since 2010, Colorado has four, and the Fire have just two.

Those on-field struggles have showed themselves at the gate. The Fire has an average announced attendance of 15,723 over the past nine seasons, and has averaged just 11,029 in three home games this season, the worst in MLS—just below Colorado and New England.

A chance to get back into the city could provide a jumpstart, but negotiations with Bridgeview have been tricky in the past. One source pointed to a recent example to show that no deal is done until the papers are signed.

Reviews of SeatGeek Stadium on Yelp

Published by

Ken Russo

A lawyer by background, I focus my work on the business, communications and team operations side of world football. | Um advogado por formação, concentro meu trabalho nos negócios, comunicações e operações de equipes no futebol mundial. | Abogado con fundación avanzada en comunicaciones, enfocado en los negocios del fútbol y las comunicaciones.

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