The MLB Network was a pipe dream just four years ago. Today the reality of a new baseball only channel is likely to take root in Harlem. The network anticipates turning a profit within the next year. Here are some excerpts from an article in The Sports Business Journal:
The channel will develop its state-of-the-art headquarters in Manhattan’s Harlem neighborhood, with MLB partnering with Vornado Realty Trust to build a dramatic new structure at 125th Street and Park Avenue. The building will be the first top-tier office property to be developed in the neighborhood in decades.
Some formal announcements are being targeted for the April 15 celebrations of Jackie Robinson Day, particularly with regard to the Harlem development project. But much is either still unknown or in the working stages, such as who will run the network. MLB is working with top recruitment firm Spencer Stuart to find a chief executive for the network.
“New York is the center of the world, and we want to have something that’s truly unique,” Carey said. “This is going to be so much more than a typical league network, and the idea is to have multiple ways to create excitement. You really need to be in Manhattan to do that.”
MLB then became connected with Vornado, which needed an anchor tenant to help push forward its plans for the modern, 21-story office tower in Harlem, using the former site of a hotel and retail development that never materialized. Within a matter of weeks, negotiations were well along for the MLB Network to occupy two lower floors for its studio and production operations, two upper floors for administration and sales, and place elaborate electronic signage and video boards facing the high-traffic, adjacent areas along Park Avenue.
Financial terms of the real estate venture have not been disclosed. But industry sources suggest that MLB, even after contributing up front to some of the tower’s development costs, will do far better than other city properties investigated that lease for more than $70 per square foot. Further sweetening the situation is that the space will be completely build-to-suit.
In the meantime, the MLB Network will operate out of Secaucus, N.J., using the recently vacated MSNBC studios. The tenancy will be temporary, with the move to Harlem projected to occur in mid-2010.
The MLB-Vornado deal has not nearly been the end of the story. The project has sparked another feisty debate on the merits of gentrification and whether Harlem truly wants or needs an upscale commercial development such as this. Complicating that debate is roughly $20 million in city tax breaks that Vornado and MLB are believed to be seeking as part of the project. The pair of entities have received city planning approval for needed zoning variances to build the full 21 stories as intended, with city council authorization still pending.
Read the whole story on: TheSportsBusinessJournal.com
Anonymous
April 2, 2008
One of the worst things that could happen to 125th street is this. More affordable low to mid income housing, and space for the businesses who were bought out, should be the focus of 25th.