Deal Reached To Build Soccer Stadium, Bring Team In Austin

AUSTIN, TEXAS — A deal has been reached for a new soccer stadium in Austin, soccer officials said Wednesday.

Precourt Sports Ventures (PSV), LLC and the City of Austin announced the finalization of the partnership, setting the stage for new Major League Soccer team Austin FC will begin play in the near future, according to both parties. The deal calls for a privately funded $225 million soccer park and stadium to be built at McKalla Place, according to MLS.com. Groundbreaking is scheduled to begin next year, with the 20,000-seat stadium projected to be ready by the spring of 2021.

The project will be funded privately by PSV, including all construction costs and operating expenses, during the course of the club's lease of the stadium from the city of Austin, officials said.

“Bringing major league sports to Austin will help bring all parts of our diverse city together, so today’s lease signing is very exciting for our community,” Mayor Steve Adler said in a prepared statement. “The partnership between the team, the league and the city is a great deal for Austin. I can’t wait for us to celebrate our first MLS championship.”

Anthony Precourt, chairman of Precourt Sports Ventures, echoed similar sentiments: “We are thrilled to have taken this significant step toward bringing Major League Soccer to Austin and building a world-class soccer park. We are extremely grateful to the City of Austin for allowing us to become a part of this wonderful community, and we are honored that through building this stadium we will be able to create jobs, provide a first-rate soccer and entertainment complex and bring a unifying platform for all of Austin to rally behind – all at no cost to the taxpayer.”

Aside from the stadium that will double as an entertainment and multi-purpose event venue for the city, there will also be a park and open space, for the public, on a year-round basis, according to MLS Soccer. Austin FC also plans to invest in local youth soccer, nonprofit causes and affordable housing in the area, among other initiatives, according to the report.

“This agreement solidifies our partnership to bring Major League Soccer to Austin,” Mayor Pro Tem Kathie Tovo, who sponsored the resolutions, said. “Along with a professional sports franchise, PSV will also bring youth soccer programs, discounted and free tickets, and numerous other community benefits that will enrich our city for years to come.”

MLS Commission Don Garber lauded the city's dynamics in making the announcement: "Austin is a thriving, dynamic and multi-cultural city, and we are very excited that the city and Precourt Sports Ventures have finalized their lease which will allow for the construction of a soccer stadium and for the launch of an MLS club in the capital of Texas. The tremendous support from Austin’s passionate soccer fans, corporate community and local government is remarkable.”

Soccer league officials are still trying to determine if Austin FC will begin play in either 2020 or 2021, officials said.

Soccer officials noted the construction makes use of an underutilized project with revitalization. Another benefit, officials added, is that the project will cost the city nothing. Officials ticked off other benefits of the redevelopment over the initial 20-year lease term (and any renewal terms):

• $550,000 in annual rent payments paid to the city by PSV, on top of capital reserve fund contributions made by PSV.
• Net-positive contribution to the city’s annual operating budget according to the city’s estimates.
• No new or higher taxes for taxpayers with this redevelopment.
• More than $6.7 million of support for youth soccer programs, including clinics, camps, scholarships, equipment and gear donations, as well as the repair and construction of soccer fields and futsal courts.
• Nearly $4 million in direct contributions to Foundation Communities to build affordable housing at McKalla Place or another mutually agreed upon location.
• $2.43 million in charitable contributions and an additional 2,500 volunteer hours to Austin charitable organizations.
• $3.64 million in direct contribution to Cap Metro over 15 years.
• Private funding of site preparation and off-site infrastructure costs estimated at $3 million.
• Free open park, communal spaces and performance areas in a park-deficient neighborhood.
• Rent-free use of the facility by the city and affiliated public sector entities for civic-oriented events.
• Off-site traffic control, emergency responders and litter pickup on game and event nights paid by PSV.
• Opportunities for local, on-site food and beverage sales.
• City retains ownership of the land and stadium and has no responsibility for cost overruns.

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>>> Stadium rendering courtesy of Precourt Sports Ventures