Sacramento Republic FC Needs More Investors
By Liam Pettit
CEO of SRFC, Kevin Nagle, confirmed two key investors withdrew from their final bid. FC Cincinnati now pulls ahead of Detroit and Sacramento’s bids.
On December 20th, MLS awarded Nashville S.C the first of two expansion franchise spots. FC Cincinnati and Sacramento Republic FC are the consensus front-runners left with Detroit’s bid considered a long-shot.
MLS will make an announcement on the second MLS expansion team sometime after the new year. Though, in the past week, FC Cincinnati’s shot at securing an MLS franchise has increased, but not due to any actions of their own. Sacramento’s bid is in danger of falling apart in the final hour, due to a breakdown within the club’s investment board.
Kevin Nagle, Republic FC’s CEO, along with Sacramento’s mayor, made a last-minute plea for new investors just a day after the Nashville announcement. Kevin Nagle confirmed both, Jed York and Meg Whitman, are no longer apart of Sacramento’s final bid. Nagle also said, “MLS has raised fair and reasonable questions about steps we need to take to fully assure the league we can deliver strong financial footing”.
Jed York, CEO of the 49ers, originally invested in Sacramento Republic FC back in 2015 when the club was in just its second year of playing in the USL. The investment group’s final bid expected Jed York to remain a minority owner. It is not a good sign that one of the club’s first major partners is pulling out last second. York’s decision to take himself out of the final bid shows he may know MLS does not favor the group’s pitch.
On the other hand, Meg Whitman never appeared a reliable minority investor. All assumed the former HP CEO to be an investor, until an MLS press release with Sacramento’s investment group did not include her name. Any confusion about her involvement cleared up on December 6th when Whitman formally joined the Sacramento Republic FC investment group. Just 15 days later, Whitman withdrew herself from the final bid. Whitman formally joining the team, and then leaving all within a month does not help the club look stable especially in the eyes of MLS.
With York and Whitman out, Nagle is publicly looking for new major investors. To go along with a need for new wealthy partners, Nagle is also searching for local investors and additional community support. With time running out, Nagle as the lead investor needs to secure funds in order to pay a $150 million expansion fee and continue to finance the building of their stadium.
Bad News for Sacramento Republic FC, Good News for FC Cincinnati
FC Cincinnati’s pitch for an MLS Expansion team can be personified by their 2017 U.S Open Cup run. In just two years, FC Cincinnati accomplished more than some USL teams have in their whole history. FC Cincinnati has naturally fostered a fan culture and created an excitement for the sport in a small city. Also with The Crew on the verge of relocation, MLS may want to keep a presence in the Ohio market.
Next: Three MLS expansion contenders placed on hold
The risk of MLS awarding Cincinnati a franchise comes in the way of their stadium site. Due to local resentment over previous stadium deals, the club will have a tough time deciding on where to call home. On the other hand, MLS definitely feels better about the wealthy ownership group of Cincinnati opposed to Sacramento.
From what we know now, FC Cincinnati fans may get a late Christmas present just after the new year.