Enron Lands Houston Venue In A 'Big' Way
By Don Muret
Monday, April 26 1999
Monday, April 26 1999
Published on AllBusiness.com
Enron Energy Services emerged as the victor in the bid for naming rights for the Houston Astros' new ballpark, scheduled to open in April 2000. Astros VP Bob McClaren told AB the 30-year deal exceeds American Airlines' $150 million title sponsorship of the new Dallas arena.
"I told a local reporter it's bigger than Dallas," said McClaren. Enron owns approximately $30 billion in assets, producing electricity and natural gas.
As part of the deal, the Houston-based utility will manage all energy contracts and provide heating, ventilation and air conditioning at the 42,000-seat, retractable-roof stadium.
The roof will close and the AC will kick on when Houston's infamous humidity hovers over Enron Field. Fans will still enjoy a view of the Houston skyline because the roof will contain 50,000 square feet of glass.
The Houston Chronicle reported Enron may earn as much as $200 million over the 30-year period for managing the venue's energy services. Enron also signed a similar exclusive with the San Francisco Giants at new Pacific Bell Park.
With the Astros, Enron will also develop an estimated 5,000-space parking structure next to the ballpark, pending Harris-County Houston Sports Authority approval. In the agreement, the team and Enron would split parking revenues on game days.
Enron is one of 13 local businesses that originally invested $40 million in private financing for the HOK Sport-designed building replacing the Astrodome. For the last 35 years, the dome has served as the home to the Astros and the expansion Colt .45s.
McClaren said two other partners in that collective venture, both Fortune 500 companies, were interested in naming rights.
He declined to identify them, but said other group partners are Compaq, Texaco, Shell, Southwestern Bell, El Paso Energy, BFI waste management, Hines Co. real estate, Conoco, BMC software, Marathon Oil, Chase Bank and investment firm Sanders, Morris & Mundy.
"We wouldn't have had the new ballpark if not for them," McClaren said. Total construction cost is $250 million. The Astros will pay $7.1 million annually in lease payments over 30 years to the sports authority.
McClaren noted there were no special perks promised to the 13 firms other than the usual amenities.
"When those 13 came together, the only thing the Astros granted them was the first right to negotiate for seats, naming rights and other advertising opportunities. We never got past the partnership for the naming rights," said McClaren.
The Astros now turn their attention to relocating season ticket holders. The team capped at 3,000
"I told a local reporter it's bigger than Dallas," said McClaren. Enron owns approximately $30 billion in assets, producing electricity and natural gas.
As part of the deal, the Houston-based utility will manage all energy contracts and provide heating, ventilation and air conditioning at the 42,000-seat, retractable-roof stadium.
The roof will close and the AC will kick on when Houston's infamous humidity hovers over Enron Field. Fans will still enjoy a view of the Houston skyline because the roof will contain 50,000 square feet of glass.
The Houston Chronicle reported Enron may earn as much as $200 million over the 30-year period for managing the venue's energy services. Enron also signed a similar exclusive with the San Francisco Giants at new Pacific Bell Park.
With the Astros, Enron will also develop an estimated 5,000-space parking structure next to the ballpark, pending Harris-County Houston Sports Authority approval. In the agreement, the team and Enron would split parking revenues on game days.
Enron is one of 13 local businesses that originally invested $40 million in private financing for the HOK Sport-designed building replacing the Astrodome. For the last 35 years, the dome has served as the home to the Astros and the expansion Colt .45s.
McClaren said two other partners in that collective venture, both Fortune 500 companies, were interested in naming rights.
He declined to identify them, but said other group partners are Compaq, Texaco, Shell, Southwestern Bell, El Paso Energy, BFI waste management, Hines Co. real estate, Conoco, BMC software, Marathon Oil, Chase Bank and investment firm Sanders, Morris & Mundy.
"We wouldn't have had the new ballpark if not for them," McClaren said. Total construction cost is $250 million. The Astros will pay $7.1 million annually in lease payments over 30 years to the sports authority.
McClaren noted there were no special perks promised to the 13 firms other than the usual amenities.
"When those 13 came together, the only thing the Astros granted them was the first right to negotiate for seats, naming rights and other advertising opportunities. We never got past the partnership for the naming rights," said McClaren.
The Astros now turn their attention to relocating season ticket holders. The team capped at 3,000