Amended Financing May Kill the Deal
By Barry Svrluga and Thomas Heath
Washington Post Staff Writers
Wednesday, December 15, 2004; Page D01
Since MLB bought the Montreal Expos in 2002, it has been looking for two elements -- a new owner and a new home, providing a delicate, chicken-and-the-egg balance that may have reappeared last night. Which should come first? A new owner, who might not provide a new stadium, or a new city, with no committed buyer? The D.C. Council may have started that process all over again last night. Because the council voted to include an amendment in its deal with MLB that half of the financing for a new stadium must come from private funds, officials at the highest level of baseball said it is possible the sport could make a one-year pit stop in Washington, and that places as far-flung as northern New Jersey and Las Vegas might now be back in play. "I think it's a deal-killer," one official said of the amendment's effect on baseball in the District.
MLB had scheduled the move of the Montreal franchise to Washington, pending the District coming through on an agreement that provided the city would build a publicly financed stadium on the Anacostia River waterfront. Financing was to come from a gross receipts tax on the city's largest businesses, a tax on concessions and an annual rent payment by the team -- a deal baseball officials say was fundamentally changed by the council last night.
Returning to Canada is unrealistic, because the team's operations in Montreal are all but shut down; all that remains is a bare-bones accounting office. The team, which was renamed the Washington Nationals in a festive ceremony last month at Union Station, has already set up shop in the District, taking deposits for more than 16,000 season tickets, hiring 17 members of a front-office staff last week and selling memorabilia outside of RFK Stadium. That facility, which hasn't been home to a baseball team in 33 years, is scheduled to undergo at least $13 million in renovations to accommodate the Nationals.
But baseball officials believe that the council's actions could let them out of their deal and free them to pursue other potential suitors. Commissioner Bud Selig, in Dallas last night, was unavailable for comment. But in an appearance in Washington this month, Selig said simply, "We have a deal." Despite the fact that baseball officials had worked with D.C. Council Chairman Linda W. Cropp on minor concessions, Selig and others were clear that baseball intended to uphold its end of the original plan, and it expected District officials to uphold theirs.
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