FC Barcelona, Comcast-Spectacor Potential Investors in Philly MLS

Like the rest of us, Jay Sugarman, the franchise majority owner and CEO of iStar Financial, is feeling the effects of this terrible economy. Since February 2008, the share price of iStar has dropped over 90%:

Shares in the company were valued at $20.19 on the day Philadelphia was awarded an MLS franchise in February 2008, but the stock closed at $1.78 last Thursday. He has pulled more than $20 million out of the market since November 2006 and acquired 600,000 shares of iStar in the last six months, but the precipitous decline in stock price has cost him more than $38 million since February 2008.

Unlike the rest of us, Jay can afford to lose a cool $38 mil and not want to jump off the Bridge that looms above his latest financial endeavor. Are dwindling funds forcing Sugarman to seek addtional monetary resources, possibly from FC Barcelona?

Nick Sakiewicz, MLS Philly CEO, seems to be downplaying this speculation saying, "Sugarman’s net worth extends far beyond his shares in iStar, and the team’s effort to raise additional capital is part of an effort to find someone who brings sports, entertainment or soccer expertise to the table." FC Barcelona is a wildly popular and successful Spanish club so whatever the motives may be, this definitely can't hurt. It could bring more football (soccer) credibility to Philly MLS in terms of team operation and the overall experience for spectators.

Speaking of specta-cors, Philly's own Comcast-Spectacor might be interested in dropping a few bucks into this project Under The Bridge (shameless plug):

Comcast-Spectacor is also in discussions with the club to provide it with $7 million in debt as part of an agreement that would see the facility operator manage the stadium upon completion, according to sources who requested anonymity because of the sensitivity of the discussions.

MLS Commissioner Don Garber doesn't appear to be concerned about the effect of a poor economy on team expenses and the ability for Philly to succeed:

The fact that the team has secured more than 6,000 season-ticket deposits and two sponsors a year before kicking off indicates the strength of the market and the organization Jay has put together in Philly. I have absolutely no concern about their ability to be successful.

Damn Right.


Sports Business Journal via Sons of Ben