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It took more than 10 years for David Beckham and the Mas family to finalize the deal for a new stadium for Inter Miami, the Major League Soccer team they own together, with the City of Miami. But less than a year after that deal closed, Beckham and Mas scored an even greater feat: signing Lionel Messi.
The Argentinian legend and World Cup hero signed on to play for Inter Miami when his contract with French soccer club Paris Saint-Germain ends at the end of the month. After months of speculation on Messi’s next move, the announcement in early June electrified soccer fans the world over, and tickets for Messi’s potential debut game in the team’s current Fort Lauderdale stadium quickly reached upward of $20,000.
“This is a really special moment, getting arguably the greatest player of all time to play in Miami in Major League Soccer,” said sports lawyer Irwin Raij, a partner at law firm Sidley Austin who specializes in stadium development deals.
The stadium-anchored development deal will turn the public Melreese Golf Course into Miami Freedom Park, whose centerpiece will be the home stadium for Inter Miami. In addition, the 131-acre development will include 1 million square feet of commercial space, 750 hotel rooms, public soccer fields, and a 58-acre public park. Construction on the stadium could begin as soon as this month, according to Jorge Mas.
Commercial Observer spoke with Raij, the co-chair of Sidley Austin’s entertainment, sports and media industry group, who represented the City of Miami in the Inter Miami stadium negotiations, about the development deal, the Messi move, and his own role in launching Sidley Austin’s Miami office, which opened last August.
This interview was edited for length and clarity.
Commercial Observer: Can you explain what you do?
Irwin Raij: I’m the co-chair of the entertainment sports and media practice at Sidley Austin and that covers the business of sports. So I help people buy and sell teams, whether that’s controlling interests or limited partner interests. And I do a lot of stadium development, or sports-anchored development, which is not just the stadium but the development around the stadium; and I negotiate depending on what side I’m on.
I’m one of the rare folks in the space that has represented the banks, leagues, teams, and governments — oh, and private equity and developers — so I’ve worn six different hats in the space. And I’ve worked in every league.
You joined Sidley Austin last May to help launch its Miami branch. What’s happened since? How have you grown and settled in?
I was living in New York; I grew up in Miami and left for 29 years. I left to go to law school, and ended up in New York, but I grew up here. My parents are here. And, so, during COVID, we just ripped the Band-Aid and decided to come down and be closer to family. I thought it was important for my parents to spend time with their grandkids and everything that comes with that.
Myself and my co-chair Chuck [Baker] were brought in to formalize the sports part of what’s now the entertainment, sports and media industry group at Sidley. But a big part of my decision in joining Sidley was being in Miami, being part of founding an office, and being entrepreneurial. We opened in August, and I think our office, depending who you ask, on a given day is 35 to 40 people. So, in a very short period of time, we’ve expanded significantly.
Can I ask how to say your last name? And where does it come from?
Good questions, both. It’s pronounced ‘rye,’ like the bread. The J is silent. The original spelling of my name was ‘Reich.’ My grandparents emigrated from Poland and Russia to Cuba. When my grandfather made it to Cuba, and he said ‘Reich’, they spelled it with a J. I’m known as a Jew-ban in Miami circles — that’s a Cuban Jewish American.
My parents left Cuba when they were 13, and they met in Miami. Not at 13, but not that much later… I think my dad was engaged and had a Master’s in engineering by 19. They’re my heroes.
You represented the city of Miami on the Inter Miami deal which took almost a decade — how did it feel to get across the finish line last fall?
It felt good to get the transaction completed. I think it took longer than any of the parties anticipated. There were a lot of complicated issues.
But I’m really excited. I was very bullish on the future of Inter Miami and excited about what can happen, and now they can deliver on a new stadium. I think the Messi transaction just accelerates what should happen, and hopefully they break ground sooner because of it. And, hopefully, it puts them in the best position possible to be successful on the field and economically — because those are two different things.
The stadium is on city-owned land but it is privately funded, so where did the City of Miami come in?
The land was [or is] actually Melreese Golf Course, a city-owned piece of property that was operating a public golf course. As I understand, it was the only public golf course in the City of Miami. And it’s adjacent to an airport.
The toughest thing on a transaction like that, which is the complex public-private partnership, is beyond the economics; it’s actually making sure everyone’s speaking the same language and that they understand the transaction they’re entering into.
In this transaction, our primary objective was to set the table so the parties understood what the implications of the agreement were. Some other deals are really grinding on elements of the source of public funding and how it comes together.
In this case, the end result is that part of the development will be a public park, and the land is leased so the rent goes to the city as well, right?
Yeah, I think this is a great deal for the City of Miami, but I’m biased. Assuming the project goes forward, the Miami Freedom Park entity [managed by Inter Miami ownership] will pay rent for the land. They’ll have a right to develop it and they will build a park for city residents, and then the property is subject to property taxes.
And, because it is not owned by the county, the property taxes that flow in from this transaction will benefit the city and the county, however they divide it. As real estate development comes in, those property taxes also will go to the benefit of the public.
Do you think that having this deal in place helped with the Messi contract?
I mean, I think having a brand-new stadium had to be appealing. But it’s one of the factors. Look, the Mas family deserves enormous credit for being dogged in their commitment to trying to get Messi. They were very clear about their desires for some time and they deserve enormous credit, they really do.
I think Major League Soccer deserves credit for being creative and working with their sponsors, Adidas and Apple and otherwise, to try to make this economically interesting to Messi. Of course, to Messi, the culture of Miami, the culture of this community, I think, was valuable.
And this new stadium, this shiny new stadium, the home of this team — I have to imagine was exciting as well. They’re playing in a temporary building in Fort Lauderdale, and I understand it’s a good experience out there, but this is really going to be a permanent home that should last for at least 30 years — a state-of-the-art facility.
The Fort Lauderdale stadium [DRV PNK] and the team’s training facility were both completed within the last several years. Did they build that because they weren’t sure how long the process for what became Miami Freedom Park was going to take?
I believe they always viewed it as a temporary space in Fort Lauderdale. From a business plan perspective, once they obtained the franchise, they had to play somewhere and so they spent money to renovate and fix that facility. And that’s a business expense that they had to endure to have the franchise operational. I think there was real desire from their leadership to be in Miami.
Plus, they haven’t broken ground yet, and when it happens, it’ll be probably 20 to 24 months of construction. So they’re not leaving Fort Lauderdale just yet.
Between this Messi news and Formula 1 coming to Miami, it seems like Miami is becoming more of a center for sports. You’ve worked on sports deals in so many different cities, so where do you say Miami ranks as a sports city?
Miami has been a major sports market for some time. You have an NFL team, you have an NBA team, you have an NHL team, you have an MLS team, you have an MLB team, right? So this has always been, in my mind, a major market with the team assets you have here. What we’re seeing is, in a very short period of time, a tremendous amount of success from the Panthers and the Heat and excitement around the Dolphins. And so that is further focusing people’s attention to Miami and the Miami market.
Miami is one of those cities that really benefited from COVID. It’s grown exponentially. There’s enormous attention on the city and excitement around the city, and that excitement is extending to the teams and vice versa. I think these teams are community assets, these teams create and generate pride. They may be privately owned, but they remain a community asset, right? People don’t live forever; cities last longer than human beings, right? So the idea is people who lead or own teams are stewards of, ultimately, a public asset.
And the season Miami had recently certainly helps.
Of course, the success of the Heat and the Panthers in one year is out of this world; the Dolphins were in the playoffs last year. The Marlins are having a good season. Inter Miami has struggled a little bit this year, but then they have Messi coming. So there’s a lot of energy and excitement and folks willing to invest. We have a series of team owners willing to invest in their assets, to further loyalty and otherwise.
And just like every community, we have some challenges, but the positives outweigh the negatives and our teams are a source of pride.
Miami is one of the most Latin American cities in the U.S.; it’s called the gateway to Latin America. Do you think investing in a sport that is so popular in Latin America celebrates that diversity, and bridges those identities? In other words, does Miami have a special place for soccer, more so than other American cities?
Soccer is really growing rapidly in the United States as a whole. This is one of several markets in the United States that is very appealing from a soccer perspective, but I think it’s perfect for the Miami market. “Celebrate” is a great word — to celebrate the diversity of the city and its connection to Latin America — it really is a great way of thinking about it.
I do think this market is special in that regard. I think this signing is special in that regard. It’s really knowing your marketplace, right? Playing to the diversity of the city is just going to energize this concept even further. I mean, you have David Beckham, who is part of the ownership and a very special player, a legend. And now you have Messi, potentially the greatest of all time, playing here. I just think it’s gonna be electric.
Chava Gourarie can be reached at cgourarie@commercialobserver.com.
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