The Boston Red Sox are reportedly planning the further expansion of their real estate interests in the Fenway area and not Fenway Park.
The Boston Red Sox recently made senior management structural changes within the business aspect of the Boston Red Sox via Fenway Sports Group (FSG), as reported by the Boston Herald and previously discussed on BoSox Injection.
Of significance is the wife of team principal owner John Henry – Linda Pizzuti Henry who now holds a small minority interest in shares of FSG. Ms. Henry has been an active participant in the development of extensive Red Sox real estate interests in the Fenway area.
Last year the Red Sox were public with their plans regarding the Fenway area and continued development. The Red Sox have also received historic tax credits and the City of Boston and state have made significant infrastructure improvements in the Fenway area – an area now considered quite “hot” as developers are prone to say. Now another real estate expansion.
"“I think you’ll see probably more changes outside of the ballpark—substantive, big changes.” – John Henry (2/17)"
The latest release via the Boston Herald is merely a more definitive plan on how FSG plans on preceding in the area. The holdings consist of several parcels in the Fenway area and 20 acres in front of JetBlue Park in Fort Myers, Florida according to Jonathan Gilula, the team’s latest addition to the vice president listings as VP of business affairs.
The parcels noted may be familiar to those who wander the area on game day or on a pilgrimage and include the parking lot next to the Boston Beer Works, a garage next to the Cask’n Flagon, and the building that houses Tony C’s Sport’s Bar and Grill – and that is just the short list.
The immediate plans are in the evaluation stage as the Red Sox determine the best use for development including hotel/retail uses and the potential to improve the parking facilities in the area.
The FSG also reiterated that they have no intention of seeking a shutdown of local streets on game days – an issue that is of concern to the Fenway Civic Association. The FSG will also continue to work with neighborhood groups on development and mediation issues regarding FSG development.
"“I’m sure that people in the neighborhood would be concerned about all the usual things, depending on the type of proposals of course — height, density, massing, traffic impacts on the community.” “Then, of course, the uses. If it’s entertainment-related uses, they will really seriously have to consider the impact on (residents). At this point, Fenway is in dire need of affordable housing, and we’re pretty limited as to what we can do.” – Richard Giordano – FSG"
Are the Red Sox being operated as a “loss leader?” That is a pricing strategy designed to sell an item or items below cost to entice shoppers to enter the store and create a customer base. The Red Sox now brand the team with cooperative advertising and business arrangements that have expanded to an ever-growing real estate empire. Is this a good thing?
The revenue flow from other enterprises has certainly allowed Henry’s group to enter into other sports ventures and to even purchase the Boston Globe. Will the revenue from non-Red Sox sources be funneled into the team? Maybe that is a rezoning behind exceeding the luxury tax? Just supposition on my part since I am certainly not privy to the internal workings of FSG.