(The following was filed for a Business Week story in April 1990.)

Notes on Possibility of Major League Baseball Expansion

By Bob Andelman

Notes from interview with Tom Powers, executive vice president of Goodkin Research, Lauderdale-by-the-sea, FL.

Comparing Miami, Orlando and Tampa Bay from their economic prospects as home to Major League Baseball, Powers says, "I think any one of those spots would support the team. Obviously, given the law of numbers, if the team were to come to South Florida, there are 5-million of us, less in Tampa Bay and even less in Orlando. But the fever for baseball would be such that any one area could support it.

"Certainly two teams. I could imagine three here if you want to talk about the year 2010. I think you can support two teams now."

Powers says Florida could not yet support teams in all three cities - Orlando would be the weak link if Tampa Bay also had a team. While Tampa Bay could support a team without Orlando, Greater Orlando (Kissimmee, Daytona Beach and Melbourne) alone lacks the year-'round population that would be required to support a franchise. "I think one Central Florida team - in St. Petersburg - at this time would be feasible, not two," says Powers. "If Tampa Bay were to go after a team, where that stadium (Florida Suncoast Dome) is is fine for Tampa Bay."

(Aside from Andelman: Another potential strain on Orlando's potential: while it has successfully sold out virtually every home game of the first-year NBA Orlando Magic franchise - more than 10,000 season tickets were sold - the city was awarded the first World League of American Football (WLAF) franchise in March. Tex Schramm's NFL spring spinoff league may begin play as early as 1991. Orlando's business community will be called upon to dig deep again to buy season tickets for a sport that will begin before basketball ends and continue all summer. A MLB franchise would need season tickets during the same period.)

"Professional basketball in Miami and Orlando has been a home run, economically," says Powers.

"In my view, Orlando, Daytona and Melbourne are a market area. Tampa, St. Petersburg, Sarasota and Bradenton is a market area. You look at where the Orlando Sentinel and Tampa Tribune are delivered. These markets have mentally emerged," he says. "Tampa Bay and Orlando certainly fight for resources as regions do. If you put a team there and call it the Orlando Something, they would be Orlando. I don't think West Central Florida would think of it as their team."

In the battle over corporate gunslingers and the strength they lend to a region's credibility, Powers calls it a draw between Tampa Bay and Orlando. "The edge Orlando has is this huge convention trade. If a convention is coming in, people would be interested in baseball. That's a big plus."

Turning his attention to Miami, Powers returns to the strength in numbers argument. "If it's properly located, that team should draw very well,". he says Joe Robbie learned that lesson when he moved his NFL Dolphins out of the blighted Orange Bowl and surrounding environs to a more centrally located location.

On the negative side, Powers mentions speculation that Orange Bowl officials, fed up with the Bowl, are considering moving the annual college football game that bears its name to Joe Robbie Stadium. "Miami is myopic," says Powers. "They haven't improved that facility or their image. They have done nothing to upgrade."

If he were a betting man, Powers says he'd put money on West Central Florida getting the next expansion team.

"My guess is Tampa Bay," he says. "It has the facility, it has Steinbrenner (the Yankees owner is a long-time Tampa resident). That facility is a big plus.

"I'm not saying it would be the best market.

"I would say Tampa Bay has a leg up. I think Orlando and Miami could put up a big push and come on strong to diminish that, but that's the way I view it right now."


Notes from interview with Frank Morsani,
President, Tampa Bay Baseball Group

On Ken "Hawk" Harrelson's announcement that he had organized an ownership group to pursue a Tampa Bay baseball franchise:

"We've not been surprised. I was aware he had formed a group. We anticipated someone else would make an effort. His effort certainly validates our efforts and the (Florida Suncoast) Dome as a good place to have baseball."

Morsani says his group has been particularly low-key in recent weeks as far as lobbying goes. He says he has not had any direct contact with MLB in the last 30 days. A man with eight years, two minority interests in teams and a lot of chits in his pockets, Morsani has always been genteel in his dealings with baseball's hierarchy and owners. He doesn't want to rock the boat now.

"We've just been keeping Major League Baseball informed that we want a franchise, that we have everything in place to move forward," he says. Morsani says the Tampa Bay Baseball Group has been active in keeping the baseball commissioners, league presidents and team owners "informed on what's going on in our area" by forwarding all relevant newspaper and magazine clips.

Has baseball responded by return mail?

"If it's relevant to a specific question," he says, "they have responded."

As the time grows near and Miami and Orlando pull out all the stops, will Morsani get into a nasty war of words with the competing Florida cities as Miami and Orlando did over basketball two years ago?

"I think our track record indicates we've taken the high road," he says. "We think that (a shouting match) is counter-productive. We're the 13th TV market, what we did with our season ticket drive - 22,000 reservations in 30 days (now over 25,000) - we think those things speak volumes for Major League Baseball in our area."

He says that choosing a team is "in the purview of baseball. We think we can sell our wares against anyone. That's what we will continue to do."

What's next?

"We're just hopeful to receive a letter asking us to make a presentation," says Morsani.

As for the local flaps surrounding the Florida Suncoast Dome - from Peter Ueberroth's infamous letter ("Even if you build it, we won't come") to George Steinbrenner's early complaints about St. Petersburg and from community clashes over the bloated cost of the dome to a lawsuit over inadequate handicapped seating - Morsani expects MLB to rise above what he calls "community issues."

"I don't think those things are relevant," he says.

Background on Morsani:

President of Tampa-based Precision Enterprises Inc., dealer of Mercedes-Benz, Saab, Nissan, Oldsmobile, Toyota and other automobile lines; currently holds 10 dealerships in all; age 58 as of last November; other business interests include trucking, advertising, real estate, manufacturing and construction; former chairman of the Super Task Force for Internationalizing the Tampa Bay Area; former president of the U.S. Chamber of Commerce; although the Tampa Bay Baseball Group is Morsani's agent, he has done baseball business under the MXM Corp. banner since an attempt to purchase the Texas Rangers in '88; there was talk in March 1989 that NBA Charlotte Hornets owner George Shinn might join the ownership team but that apparently has not materialized; TBBG broke a years-long grudge with St. Pete in late Dec. 88 and agreed to join efforts with his long-time enemy; the joining hands came as a result of the stamp of approval the Chicago White Sox put on St. Pete's domed stadium after coming within 30 seconds of moving there in mid-'88; Morsani has a letter of intent with St. Petersburg, designating MXM as the exclusive dome lessee if the partnership acquires an expansion franchise.

Money partner in TBBG is William Lawrence "Bill" Mack:

Mack, age 50, is a New Jersey developer with investments in Tampa; the two pursued ownership of the Minnesota Twins in 1984 and the Texas Rangers in 1988; Bowie Kuhn - commissioner in '84 - wrote in his memoirs that he and American League President Bobby Brown met with Mack and Morsani in '84 and persuaded them "that the future interests of Tampa were not going to be served" by pursuing ownership and relocation of the Twins; in the case of the Rangers, Morsani again kept the high road, keeping Ueberroth informed of his every move; of Mack & Morsani, George Steinbrenner told the St. Pete Times, "They have every qualification to be excellent owners"; as for his real estate interests, Mack opened the 19-story One Mack Center in downtown Tampa in 1981; he broke ground on the next block for the 28-story, 416,000 s.f. Two Mack Center in 1988 and it may open by late 1990; his father, H.B. Mack, 80, in 1963 founded the company Bill now runs; here's a small circle: Mack's partner in the Mack Center projects is James Cusack, Morsani's attorney and friend; Cusack brought the two together in 1979; the St. Pete Times has described Mack as a millionaire "many times over"; he is president of the Mack Co. of Rochelle Park, N.J.; his father and three brothers are involved in the company; the Macks make their money building, leasing and managing office and warehouse space across the country; Bill and brother Earle teamed up with former St. Petersburg corporate raider Paul Bilzerian in a failed $722-million takeover attempt at Hammermill Paper Co., although the partnership sold its stake and made a $60-million profit; Mack has also been involved with Mario Cuomo; Mack studied finance and real estate at the Wharton School of Business.

Handicapped:

St. Petersburg's baseball stadium offers great views from every seat - if you can walk.

A 1988 lawsuit by resident George Locasio, who uses a wheelchair himself, contends the city discriminated against disabled people in the design of the Florida Suncoast Dome by constructing wheelchair seating on just one level of the stadium.

Besides the question of possible civil rights violations, a crucial issue was whether the city was bound to use federal guidelines to determine the number of disabled positions, which would have required 440 spaces instead of the current 274. U.S. District Judge Elizabeth A. Kovachevich ruled in March that when the city used federal money to buy land for the stadium it obligated itself to follow federal guidelines for construction. Florida state guidelines are less demanding. St. Petersburg claims the cost of following the federal rules would be $3-million.

The case was supposed to go to trial in March but the judge ordered a 60-day postponement to encourage Locasio and the city to negotiate a compromise. Locasio says he does not expect the case to be settled, however.

Locasio is a strong proponent of equal access for the disabled. He has been pressing the issue with the city almost since the day plans to build the stadium were announced, but city officials have ignored him until now. Locasio is represented by George Rahdert and Pat Andersen, who also represent the St. Petersburg Times on first amendment issues.

Gov.'s Baseball Dinner

Opening night at the Dome on March 1 was a black-tie event for 1,700 people: the 43rd Annual Governor's Baseball Dinner.

Held annually in Tampa in the early years and St. Petersburg since 1970, the Governor's Dinner has traditionally honored baseball's brass, owners, front-office staffs, marketers, managers, players and the media for their contributions to the state through spring training.

"It used to be stag, an absolute drunken brawl. But it's toned down lately," says Bill Bunker, executive director of the Pinellas Sports Authority, who was responsible for organizing the dinner during much of the '70s.

Attendees included Phillies President Bill Giles, Cardinals CEO Fred Kuhlmann, and Red Sox CEO Haywood Sullivan. Former players included Stan Musial, Billy Williams, Al Lopez, Johnny Mize, Harmon Killebrew, Brooks Robinson, Steve Carlton, and Tug McGraw.

This year the lock-out cut into the festivities somewhat, but the event dovetailed with the first-ever Major League Alumni Reunion and more than 200 of baseball's all-time all-stars and Hall of Famers participated.

During his welcoming speech, Fl. Gov. Bob Martinez said, "The commitment from the city of St. Petersburg is indicative of what Floridians want."

Legislature

When it looked like the Chicago White Sox might move to St. Petersburg in 1987, the Florida Legislature rallied behind the city with an agreement to fund $30-million in stadium improvements by year's end if a team were to contract for play. (Florida Progress Corp. promised the Chisox a $10-million low-interest loan.)

Rep. Lars Hafner (D.-St. Petersburg) expects the legislature to repeat its offer if baseball comes to Florida in 1990.

"I think it was proven back in 1987 that if the time comes, the legislature is willing to rally around baseball," he says. "We would push for that again. (Tampa Bay has) a strong enough delegation to bring the money and whatever's necessary back to the area."

Hafner doesn't expect the legislature to support a particular team. However ...

"I think at this point in time, our area will be the chosen spot. And once the spot is chosen, we believe (the other competing cities) will rally around them."

What if Miami or Orlando is chosen over St. Pete?

"Would we rally around them? Yes," he answers, "but we assume it's going to be us, not them."

More History

In 1982, the TBBG offered to pay for building the Dome if St. Petersburg spent $30-million to buy the land and it was built in a central location. When a site could not be agreed upon, St. Petersburg leased a 66-acre plot on the outskirts of downtown to the Pinellas Sports Authority. The price: $1 a year for 50 years. It was at this point the TBBG decided any expansion team in the Bay area should be located in Tampa, not downtown St. Petersburg, and a 6-year, brutal war of words was waged.

In 1986, ignoring former Commissioner Peter Ueberroth's immortal telegram advising against stadium construction, the St. Pete City Council voted 6-3 to proceed with an $85-million bond sale. Two more bond issues totaling $27-million have since been required to complete the stadium.

In '87, toxic, cancer-causing chemicals were found in the soil of the stadium site, causing an expensive, time-consuming disposal and replacement process that slowed construction. Critics called it the "ToxicDome."

Morsani and Harrelson are not the only suitors Tampa Bay has seen put together a potential ownership team. Former St. Petersburg Times Publisher John B. Lake organized a rival group - financed by Florida Progress, Sarasota developer Joseph Penner, and Hubbard Broadcasting - that has since disintegrated.

Et cetera:

St. Petersburg's "Join The Team" season ticket drive in October collected 22,000 reservations at $50 each in 30 days - the total is now over 25,000. Similar drives have been run in Washington, D.C. and Orlando.

The Major League Baseball Players Alumni Association relocated from Lakeland to St. Petersburg this past winter, choosing the city over Orlando.

The Cleveland Indians moved two minor-league training programs to St. Petersburg for 1990. The New York Yankees moved their minor-league training programs to Tampa from Ft. Lauderdale last year.

St. Petersburg is home of the fledgling Senior Professional Baseball Association, the one-year-old seniors circuit for older ballplayers. And St. Pete's entry in the league, the Pelicans, won the league's first championship in January.

A group of businessmen has organized the World Baseball Hall of Fame & Museum, Inc. and has Tampa Bay high on its lists of likely sites.

FROM SEPTEMBER 1990:

Re: bonds
Revenue bonds were used to pay for both FSD bond issues. The first, for $85 million in 1985, was organized by the Pinellas Sports Authority as an interlocutory agreement between Pinellas County and the City of St. Petersburg.

Pinellas pledged its tourist development tax (then 2%, now 3%) to pay for its share of the stadium bonds; St. Pete pledged its guaranteed entitlement of $3.2 million annually from the state. This figure comes from the amount the city collected in cigarette taxes before the state took over that function. The rest of the city's money comes from a share of the $8-million (more or less, this gets confusing) in state sales tax return to the city.

The county share of the original bond issue is approx 40%; the city's is 60%.

After the stadium was built, the city needed another bond issue to expand the capability of FSD beyond baseball-only. It borrowed $22-million against downtown development revenues created by a tax increment financing district and municipal parking fees.

St. Pete's millage rate is 9, 1 below the state cap of 10. If it weren't for the stadium debt, the city finance director estimates the millage rate might be 1-1.5 lower. But without the stadium, the city would lose out on jobs and other revenue sources, so that's not a perfect prescription, he adds.

In July, St. Pete Mayor David Fischer told me the city was not struggling to make its bond payments on the FSD. And while the city has reorganized staff and eliminated a few upper-level administrative position, no cops or firefighters have been let go.

Finally, the finance director (Richard Ashton 813-893-7110) says the city retains the option of pushing its millage rate up to 10 if necessary to raise cash.