Selling Houston

Perhaps the biggest business story of the week is the pending sale of the Houston Dynamo to Rockets’ owner Leslie Alexander.  The sale includes both the team and the lease for BBVA Compass Stadium.  According to reports, the sale will include the entire ownership interest in the team including the portions owned by AEG,  Oscar De Le Hoya and a third partner.   The Houston Chronicle reports that “The Dynamo organization is divided into two arms, and the Rockets will purchase both. One controls the team. The other is Dynamo Stadium Corporation, which paid to build the $95 million facility and has a lease and development agreement with Harris County-Houston Sports Authority to manage the stadium for 30 years.”

Rumors of the proposed sale started to emerge within the last month.   The sale will divest AEG of its final interest in a team other than the Los Angeles Galaxy.  The Hunts are now the only MLS Investor with an interest in two clubs.  AEG and the Hunts were instrumental in floating multiple teams during some of the lean years in MLS and the slow divestment of their interests is a positive sign for the league.

Alexander will join a number of multi-sport owners in MLS including the Krafts, Kroenke and the Hunts.  With the recent completion of their downtown stadium, solid attendance and consistent on the field success, the Dynamo were well positioned for a sale.  After the first tier of high profile league franchises in New York, Los Angeles and Seattle, Houston sits comfortably in the second tier with a solid coaching staff, a great fan base and a core of recognizable players known in the Houston sports community.