Stronach is talking about buying into Sacramento soccer team

Belinda Stronach, whose company announced this month it would close Golden Gate Fields, is trying to resurrect a plan just 65 miles away to bring a Major League Soccer team to Sacramento in a bid that could cost upwards of $500 million.

Darrell Steinberg, the Democrat mayor of Sacramento, told reporters Thursday that city leaders have been negotiating with The Stronach Group to invest in an MLS expansion team, which could cost $200 million, to a yet-to-be-built stadium in the downtown railyard that could run $300 million more.

“They’re businesspeople, good businesspeople,” Steinberg said. “They’re looking for a great opportunity, and they see all that we love about Sacramento.”

Steinberg’s announcement of what had been private negotiations for more than a year came 11 days after The Stronach Group’s announcement that Golden Gate Fields would be closing in December. A spokesperson for Stronach had not responded by early Friday afternoon to Horse Racing Nation’s question about whether one announcement had anything to do with the other.

One executive with Stronach said in written statements to Sacramento media that there have been discussions about the potential investment, but he stopped short of saying the company was all in.

“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,” said Kevin Gilmore, the former executive with three National Hockey League teams who this spring became the chief operating officer at Stronach. “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.”

Steinberg said he sat at a game Wednesday night with Gilmore and with Kevin Nagle, the CEO of Sacramento Republic FC, the minor-league soccer team that has been trying to find the money to jump into MLS.

Nagle said in a statement to television station scaramentCBS 13, “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.”

Media reports in Sacramento say Steinberg has been trying to hatch a deal with Stronach for 16 months. Since there have not been any direct, formal negotiations with the league, there has been no comment from MLS, which still would have to approve any new team for membership.

Two years ago Southern California grocery billionaire Ron Burkle backed out of a bid to expand the MLS to Sacramento. At the time he said the economic aftermath of COVID was the main reason.

Yahoo Sports reported Stronach was at the MLS All-Star Game this month in Washington. The league has 29 active teams with plans to add a 30th in San Diego in 2025. There have been reports MLS would consider expanding to 32 teams.

Stronach has not answered questions about its plans for Golden Gate Fields’ 140 acres of land that straddle the Albany-Berkeley city line. The Berkeleyside news website reported the land and its improvements were assessed by Alameda County at $68 million, although the sale value probably would be much higher.