Miami-Dade County has sold David Beckham and his group the final piece they needed for their Major League Soccer team's stadium. Getty Images
Miami-Dade County has sold David Beckham and his group the final piece they needed for their Major League Soccer team's stadium. Getty Images
Miami-Dade County has sold David Beckham and his group the final piece they needed for their Major League Soccer team's stadium. Getty Images
Miami-Dade County has sold David Beckham and his group the final piece they needed for their Major League Soccer team's stadium. Getty Images

Miami-Dade County make deal with David Beckham on MLS stadium land


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MIAMI // David Beckham is a big step closer to bringing Major League Soccer (MLS) back to Miami.

More than four years after he started scouting potential homes for a team, Beckham will soon have the piece of land he needs.

Miami-Dade County Commissioners approved a deal Tuesday to sell three acres of county land to Beckham’s group, the last part of what is a nine-acre plot on which a 25,000-seat stadium is planned.

Beckham’s group will pay just over US$9 million (Dh33m) for the last piece of land.

It has already paid $19 million for the other six acres needed. Beckham’s group says the planned stadium would be privately funded, and the stadium would also be subject to county property tax.

It is a major development in what has been at times an arduously slow – and often frustrating – process for the English soccer icon and his plans for Miami.

MLS has not officially awarded Miami an expansion franchise, because of the lack of a land and stadium deal.

A contract he signed in 2007 with the Los Angeles Galaxy gave Beckham the right to start an expansion franchise for $25 million, and in 2013 he picked Miami as where he would want to put a team.

The plan has changed many times along the way, most notably because he was unable to get waterfront land that his group first coveted for a stadium site.

“I will tell you this is probably the best site we have found, for many respects,” Beckham group attorney Neisen Kasdin said, before listing reasons that include the site’s proximity to several modes of public transportation and the Miami River.

The vote in Miami on Beckham’s land deal was preceded by several members of the community urging commissioners to vote no, mostly citing noise and traffic concerns.

A few supporters spoke as well, and after three hours of discussion commissioners approved the deal 9-4.

“This land has been an eyesore for years,” said Commissioner Audrey Edmonson, who represents the neighborhood where the stadium is planned. “Something needs to be done with it, now.”

The deal that allowed the Miami Marlins to get a new taxpayer-built ballpark on the former Orange Bowl site is still the source of major contention for the city and the county.

There is also scepticism about the Beckham group’s plan to build a stadium with no on-site parking, with plans instead to rely on shuttles, walking and public transportation.

“As far as sports deals go with the county, this one isn’t so bad,” Commissioner Joe Martinez said.

Beckham is not the only huge global soccer name pursuing MLS expansion these days. Landon Donovan has joined the ownership group that is hoping to bring a team to San Diego.

It has not been easy going for either.

The victory for Beckham came just one day after San Diego’s City Council decided not to finance a special election that would have brought plans of building a new soccer complex there to a vote.

In a pair of tweets, Donovan wrote that “we have to respect the process” and that “just because we’re down at halftime doesn’t mean we stop trying.”

* Associated Press

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Drivers’ championship standings after Singapore:

1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
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Tharanga 48, Shafiq 34, Rampaul 2-16

Delhi Bulls 91-8 (10 ovs)

Mathews 31, Rimmington 3-28

Karnataka Tuskers win by 19 runs

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India 236 (50 ovs)

England win by 86 runs

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”