By Alan Snel
LVSportsBiz.com
A Southern California company called The Renaissance Companies led by “financial engineer” Floyd Kephart is buying the Las Vegas Lights soccer team in downtown Las Vegas and wants to redevelop downtown Cashman Center into the home of a Major League Soccer (MLS) stadium that would hold 25,000 fans.
Kephart, of Rancho Santa Fe in San Diego County, told LVSportsBiz.com Wednesday that his company is entering a 180-day period with the city of Las Vegas for an “Exclusive Negotiation Agreement” during which the two sides will negotiate a potential deal for Renaissance to gain control of the 60-acre Cashman Center site. Kephart and his team will appear before the Las Vegas City Council June 5. Working with The Renaissance Companies is Boston-based hedge fund Baupost Capital, LLC, which, through its The Baupost Group, would control the MLS team. Billionaire investor Seth Klarman is Baupost chief executive.
From city documents for the June 5 city council item:
Kephart said a future ownership group will make an application to MLS, which is looking to expand from 24 to 30 teams. Kephart did say the Lights, now in its second year in the United Soccer League and owned by pro soccer advocate Brett Lashbrook, will be sold to an ownership group with a composition to be determined. The Lights’ attendance is among the top six in the United Soccer League.
But still unknown at this point is whether Renaissance is seeking public money, always a politically controversial move that plagued the city the last time Las Vegas tried to get a Major League Soccer team in 2015. City leaders led by Mayor Carolyn Goodman teamed with Baltimore development group The Cordish Companies and pro soccer advocate Justin Findlay of Findlay Automotive Group in an unsuccessful bid to win an MLS team for Las Vegas four years ago.
The NFL Raiders are moving to Southern Nevada because state legislators approved a hotel room tax increase that will raise enough money to give $750 million to the Raiders. Even the Las Vegas Convention and Visitors Authority (LVCVA), the local tourism agency, gave $80 million to Howard Hughes Corporation in the form of a “naming rights deal” so that the Summerlin master developer could build the new $150 million Aviators baseball park that opened in April (just outside the city of Las Vegas border.)
“I’m not sure where we are for the financing,” Kephart said. “We have to figure out the best way to redevelop (Cashman Center).”
This is hardly a done deal. It simply opens a 180-day window for the city and Renaissance to negotiate a possible agreement. Kephart told LVSportsBiz.com: “We don’t know what the cost is (for the stadium and redevelopment). We don’t have a financing plan. We have to look at the economic viability.” He also said he did not know how much Renaissance is willing to invest in the stadium and redevelopment plan.
The city of Las Vegas wanted an MLS team before as we said. In 2015, the private Cordish-Findlay stadium development team wanted public money to help pay for a soccer-only stadium in Symphony Park. But this time, Goodman said the Cashman Center site is a better location for an MLS stadium than Symphony Park, which is now being used for cultural and residential uses.
Plus, the timing is better now. Las Vegas is now a hot sports market with the NHL Vegas Golden Knights’ arrival in 2017 and NFL Raiders coming in 2020 , while sports gambling has been embraced by leagues and teams through deals with companies such as Las Vegas-based MGM Resorts International and Caesars Entertainment.
Goodman said use of public money for a soccer-only stadium on the Cashman Center site will be “part of the discussion.” But Goodman noted, “Private money has to be the lion’s share.”
Goodman said there is a variety of other city redevelopment incentives that can be packaged together in a potential rebuilt Cashman Center for Renaissance and Kephart. Goodman did say that Major League Soccer does not want a future team to share a stadium with another sports tenant. That would rule out an MLS Las Vegas team sharing the Raiders stadium with the NFL team and the UNLV football team.
“The MLS does not want to share. They want their own facility,” Goodman told LVSportsBiz.com.
Las Vegas Councilman Bob Coffin responded, “I will support this ENA on Wednesday to give this venture a chance for all parties to get to know each other. It will be a nice fit for all the neighborhoods which have grown up in the 70 years since Cashman became the place for sports of all kinds.
“Brett Lashbrook is a born cheerleader for the Lights and his enthusiasm is infectious. I have a hope that somehow the Findlay family will get a chance to participate since they were the ones who had to endure the mindless criticism of their efforts four years ago,” Coffin said.
Kephart, who was in Las Vegas Wednesday but had to catch a flight to Southern California, said there is enough room and space on the 60-acre Cashman Center site to build a 25,000-seat MLS stadium on 12 acres while Cashman Field stays open to allow the Lights to play soccer games while a stadium is potentially being built. He also envisions medical training facilities on the site and also building a residential component as part of the Cashman site redevelopment.
But how will it be financed? That’s an unanswered question. Kephart did say Baupost would be his capital partner in the Cashman redevelopment and stadium project. Kephart also said, “We will be the new owner of the Lights.” The ownership group would include members of Renaissance, Baupost and others, while Lights current owner Lashbrook would work with the group, Kephart said.
“I’m not sure where we are for the financing,” Kephart said. “We have to figure out the best way to redevelop (Cashman Center).”
LVSportsBiz.com tried to reach Lashbrook, the owner of the Lights. But instead, the Lights PR staff sent out a generic press release. We caught up with Lashbrook before the Lights lost, 5-3, to Orange County FC in a Lamary Hunt U.S. Cup tournament match.
Kephart said he has been impressed with Lashbrook’s soccer development efforts in downtown Las Vegas and praised the Lights for their attendance and promotions. The Lights are known for their zany promotions, such as last year’s helicopter cash drop during halftime of a soccer game.
“Brett has offered to drop me from a helicopter, but I’m not worth the $5,000 he drops,” Kephart joked.
Just last week, LVSportsBiz.com wrote that Cashman Field is not equipped to host an MLS team.
LVSportsBiz.com will be at the Lights’ Lamar Hunt U.S. Open Cup tournament game at Cashman tonight to talk with fans about this story.