Republic FC courting major investment group, eyes renewed Sacramento MLS bid
SACRAMENTO -- Sacramento's long dance with Major League Soccer may be taking some new steps.
On Thursday morning, Sacramento Republic FC confirmed talks with The Stronach Group, a Canadian entertainment and real estate company, for potential investment into the club.
The firm, which does business as 1/ST, owns a variety of thoroughbred horseracing tracks like Pimlico and Santa Anita Park. They also own, Golden Gate Fields, which was put up for sale earlier in the spring.
"They're looking for great opportunities and they see in Sacramento what we all know: This city is sports crazy," Sacramento Mayor Darrell Steinberg told reporters on Thursday.
While not a full-on announcement of a strategic partnership, Steinberg addressed reporters with the intention of keeping the public up to date on the negotiations. He says the talks between Republic, the city, and The Stronach Group have been happening for over a year.
"We were made aware of this opportunity some time ago and have been exploring this and have had good discussions with the various stakeholders, including City officials, Sacramento Republic FC, and the league, " says Stronach Group Executive Vice President Kevin Gilmore. "This is the type of investment that is of interest to us as we look to add to our existing sports and entertainment portfolio. However, the dynamics of exploring such an opportunity require that we refrain from discussing this broadly in the media."
"[At the Sacramento Republic game last night] I sat with Kevin Nagle and Kevin Gilmore who is the lead representative for the Stronach Group and it's good," Steinberg says. "It was time to let the public know that we're still very much in the hunt."
Sacramento had announced a move to MLS back in 2019 with the backing of billionaire investor Ron Burkle. But he backed out, instead investing in the NWSL expansion club San Diego Wave FC.
Without a majority owner bankrolling an expansion fee and the stadium construction in the Railyards, MLS moved on and eventually added San Diego -- backed by Egyptian billionaire Mohammad Mansour -- as the league's 30th team.
But Sacramento isn't throwing in the towel and hasn't since they first lost the bid.
"We will never give up and Sacramento deserves Major League Soccer," says Steinberg.
The stadium site in the Railyards which sits across 7th Avenue in Sacramento remains vacant. Steinberg says the entitlements for the site are not in any jeopardy and the land is still earmarked for a stadium. Renderings of a smaller stadium, one that would align with the USL Championship League Republic plays in, were released in 2022.
With 17 months left in his term, the mayor is firm on this saga being done soon.
"This will be done by the time I leave office, one way or another. No question," Steinberg explains.
Republic FC Chairman Kevin Nagle tells CBS13 in a statement: "I have nothing but the utmost respect for The Stronach Group and am encouraged by the tenor of our conversations. And out of respect for those conversations and the sensitive nature of what is an ongoing process, I have no further comment at this time."
As it currently stands, Major League Soccer would need to invite Stronach to negotiate for a possible franchise. Then, owners would need to vote on expansion to 32 teams, the league would have to select Sacramento and then an expansion fee would have to be paid. But Steinberg and Nagle believe, along with others within the city and organization, that if a major investor and stadium plan -- the final piece of the puzzle which stopped the big in 2019 -- came about, there is no way MLS could reasonably say no.
"We have made great progress on all of the agreements that would be necessary in order to get this done but there is a piece of it that we don't control that still needs to get done," Steinberg says.