When the Los Angeles Dodgers signed an unusual deal in 2007 with the city of Glendale, Ariz., for a gleaming new spring training facility the club expected a windfall.But as the economy has soured, the team has struck out in an attempt to generate sponsorship revenue for the suburban Phoenix stadium called Camelback Ranch.
“We added elements that would make it more valuable, but it didn’t appeal to any sponsors,” said Greg Corns, vice president of operations for Camelback LLC, a joint venture between the Dodgers and Chicago White Sox that operates the new facility, which opened this month. “If we sell three next year, that would be great.”
Camelback Ranch had unsuccessfully offered nine unique sponsorships that would have given its corporate partners a host of benefits such as a stadium suite, signage and even trips to Los Angeles to see the Dodgers play.
The failure to sell the sponsorships presents a financial risk for the club, which entered into a unique arrangement with Glendale to get the stadium built.
The city spent $110 million of its own money on construction, but ceded full control over sponsorship and ticket revenues to the joint venture. That passed any profits – but also any operating losses – to the joint venture.
“In Arizona, all the other spring training stadiums are subsidized by the city,” said Julie Frizoni, Glendale’s marketing director. “By the time bills are paid and revenue is counted, operating and maintenance could cost up to $1 million annually.”
The city plans to recoup its investment with added tax revenue from visitors. When the plan was first announced, Glendale cited a 2006 study showing that the stadium could generate up to $19 million a year for the local economy
The joint venture with the White Sox, meanwhile, could become profitable if a strong ticket base is built, events are booked year-round and some sponsorships eventually generate revenue.
Dodgers Manager Joe Torre, relaxing on a recent morning at the complex as the team warmed up for a game later that day, said he remembers the days when spring training existed solely for players to get in shape for the upcoming season.
Those days have passed in an era of multimillion-dollar player contracts and $110 million spring training stadiums.
“Owners paid out a little bit of meal money. If you broke even, you were happy,” Torre recalled. “Now, we pay attention to make it more appealing for fans.”