C-o-n-f-i-d-e-n-t-i-a-l

Stadium as Anchor For Complex

Stadium as Anchor for Mixed Use Real Estate Development Complex

For San Diego by PeterJessen-gpa.com Taking a Leadership Role In Providing a Workable and Acceptable Financing/Revenue Model Creating A Solution To Continue a Tradition

June 12, 2002, Updated January 20, 2003

SAVING THE CHARGERS STADIUM CAMPAIGN for The National Football League

by PeterJessen-gpa.com

Introduction

Summary of Key approaches for campaign success

Recommended Themes

Recommended Action Steps

The Three J’s of the Campaign (Jobs, Juice, Joy)

Rapid Response Process

Backgrounders

Vision Approaches for Better Communications

Summary of Key approaches for campaign success

1. Openness with the press and regular press conferences.
2. Use these proven communications models for the campaign
3. Hold backgrounders for media representatives who are straight with the facts and information. Don’t let rumors or suspicions build.
4. Foster as many Emails from fans to legislators, officials, business, etc., to show support for the Mayor and the City Council for the Save the Chargers Campaign.
5. Establish regular Email messages delivered through Email to the fans and legislators, etc.

Recommended Themes

1. The Chargers are the People’s Team.
2. The Chargers Can Be Saved Without Needing New Taxes.
3. Stay united, not divided, and open campaign to all citizens as the Mayor has requested.
4. A shift is taking place between where private spending is spent: defense. This means that local governments have to come up with legitimate projects that will keep the private sector and private sector jobs going as well. The stadium is a perfect candidate.
5. The stadium issues address all of the tough economic times ahead for most cities in the future, promising jobs, revenue, and economic growth for San Diego. Handled correctly, the stadium issue can help drive our economy, create jobs, and help maintain teams important to the quality of life of many of our citizens.

PeterJessen-gpa.com’s Recommended Action Steps

1. Have a once a week "Knights of the Round Table Discussion" with principal campaign advisors and with different selected key people from around the city.

2. Develop email lists of all reporters, print, broadcast and cable, in San Diego, and key ones nation wide, especially those known to the inner circle, and email updates to them regularly.

3. Demonstrate how a large construction project like the Stadium has a wide range of positives: jobs (covering the private sector unions), a wider tax base that would help contribute more dollars for education (covering the public sector unions), construction and the financing that goes with all of this (covering the business community), additional spending regarding hotels, restaurants, shops (covering many of the small business community), set in motion advance planning by for tourists and game day people (covering the travel and hospitality sectors), etc.

4. Cast the stadium building as a jobs creation project with nearby moderate-income housing, expanding the benefits even further.

5. Cast construction as income distribution while simultaneously helping more people by creating more jobs for all economic levels.

6. Cast construction as job training partnerships between the city and the private sector.

7. Use the 2 page "leave behind" as a statement of action steps to explain to any one or group, for any situation, when deemed appropriate. Here is our example of ten statements to use in such a "leave behind":

Back to PeterJessen-gpa.com’s Recommended Action Steps

8. Follow the Three J’s of the Campaign

It all boils down to three J’s: the Jobs (which contributes mightily to the economy), Juice (which the money involved to finance, build, and pay workers), and the Joy (which is the reaction of fans knowing they will not lose their team).

9. Rapid Response Process

(1) Have a "rapid response" policy (and criteria for when to use it and when to leave it in the drawer) to combat the attacks and hostilities from both print and broadcast media, in order to give the stadium campaign a chance to influence the desired outcomes (all falsehoods must be responded to, but only to the falsehood).

(2) Provide "Damage Control Rapid Responses" to events, controlled and uncontrolled, meeting lies or innuendoes with facts, and, where errors have been committed, acknowledgement coupled with steps taken to correct and steps to take to prevent repetition.

a. Lies can't be allowed to go unchallenged. Any time a falsehood is made a response with the fact is then added to wherever you keep them: web site, press releases, etc.

b. Yet you don't want to get defensive.

c. Stick strictly to the falsehood countered by fact response and don’t dwell into any other area. No defense of the traditional kind, either in terms of position, party, race, religion, etc.

10. Respond to the reality that most organizations have crises

(1) Don’t deny: denial of a problem is the most frequent mistake, an often the biggest. Cover-ups don’t last. Press and public react angrily to that form of deceit.

(2) Don’t lie: you may never regain the public-s faith if you do.

(3) Don’t withhold nor give too much too soon: reveal information as a crisis emerges. Its OK to withhold comment until the picture clears and responses are decided. A bunker mentality – refusing to communicate -- invariably works to your disadvantage.

(4) Don’t react slowly: react fast. Gossip, rumor, misinformation and speculation travel farther, faster and in more ways than ever before. They thrive when not blunted by official news. Responses delivered live by ranking officials carry more weight than press releases do.

(5) Don’t play the blame game: place blame where it belongs. Be first to say you’re wrong when you are. It’s the policy most likely to earn trust or at lest reduce hostility.

11. Hold backgrounders for media representatives who are straight with the facts and information. Don’t let rumors or suspicions build.

12. Successful Vision Approaches for Better Communication That Are Recommended by PeterJessen-gpa.com:

(1) Ronald Reagan's vision strategy: have one message at a time; stay on message; don’t get distracted.

(2) Bill Clinton was able to defeat a sitting president, as he related to how people felt. So too, this campaign must relate to how people feel about the Chargers and the joy that will be theirs to keep them and the anger they will vent on politicians, local businesmen, and the NFL, if the Chargers are allowed to slip away.

(3) Roger Ailes, author of You Are The Message coached George Bush in his first successful presidential run, and also coached Ronald Reagan in his successful debate with Walter Mondale. Ailes understands public role-playing very well. Ailes’ book title sums it up: You are the message. His key emphasis is on "how to handle the press while they're trying to hang you." Thus, PeterJessen-gpa.com can outline how to establish a strategy for working with the press.

(4) Keep the vision of helping the San Diego economy. From a Save the Chargers campaign standpoint, the task is not to be left by the side of the road on these things, but to let the city know that they can help assure the stadium without having to approve new taxes.

(5) WHAT BETTER ECONOMIC STIMULUS package to San Diego than building/renovating of the stadium, with no new state taxes? PeterJessen-gpa.com provides the win-win philosophy and positive actions steps for success.

(6) No matter how the media may try to distract, "stay on message" consistently throughout the campaign.

EXECUTIVE SUMMARY

1. Our plan is applicable to any major stadium/arena project: professional football, professional baseball, professional basketball, professional hockey, etc., as well as for major universities. Most examples used are from professional football and baseball.

2. This is a multi- or mixed use facility Sports, Entertainment, Real Estate, Communications, Investment, Public Space Plan, outlining how to raise $610 million in non-tax investment, with NO public funding (only for infrastructure improvements (site preparation, streets, sewers, hookup, etc.), normal to any large-scale development.

3. The estimated Revenues of this plan are projected to be over $200 million/year, to start, through synergies for generating on-going revenues/profits/fan support, utilizing 40 ways to generate revenue in 26 revenue generating categories, including private and public space. This model includes the outline of a strategic plan for securing the funding.

4. Professional sports has become a large part of four major, emerging and enormous growth industries, (1) learning/edutainment, (2) high tech business solutions, (3) spin-offs from space exploration, and (4) tourism, totaling a combined size of $3.245 Trillion.

5. The Stadium Complex would be (1) a destination and a gathering place for fans, visitors, tourists, consumers, and sports/entertainment/real estate/business people, as well as (2) a business, real estate and communications hub. These two together will generate profits in the near term and long term, year around, because Dan Diego’s weather encourages year-round use.

6. This is a "Big Picture" Vision. It takes elements of various traditional financing plans and combines them into a new financing configuration for a multiple use sports-entertainment property that relate to all types of stadiums, even if they are in the same city or region.

7. This model discusses how to maximize both internal and external communications, including the use of the Internet and a team navigational and informational web portal, as well as outlines a PR program for use in the city/state/region/nation/world, as well as models of conflict resolution for use in getting all of the business/governmental/fan stakeholders in agreement.

OVERALL GOALS

1. To help the owner(s), the players, the legislators, the tax payers, and the fans, build/renovate a multi-use, multi-revenue generating stadium complex that is profitable and fan friendly, all year, year after year, with no new tax dollars.

2. Increase revenues, manage debt, and increase profits.

3. Integrate the team and new or renovated stadium into the vital social fabric of the city/state/region, providing a "common ground" fan experience of enchantment around his or her water cooler, coffee pot, black board, TV, and/or six pack (conversations at work, home, school, and play, for men, women, and children of all ethnic and racial groups), in order to enchant, enthrall and excite the fans in their "iron cages of modernity" year round. If we do this, we will reach our goal of selling out home games and of having 80% of all TV sets tuned to Charger games, both home and away.

4. Recognize and take advantage of the transition of pro sports teams from a sports industry into a juggernaut sports-entertainment-communications-real estate public spaces industry

5. Create tangible and intangible benefits for the city/county/region/state.

6. Attain and benefit for the community and state to the tune of $1 billion in direct dollars generated by having a professional football team, for the city with the only NFL team south of San Francisco.

7. Attain and benefit for the community and state the $1 billion in indirect dollars generated by having a professional football team, for the city with the only NFL team south of Oakland.

8. Involve external Minority Business Enterprises while providing internal minority issues management.

9. To stay ahead of the fan/tax payer curve: refusal to pay with tax dollars as they are no longer needed to underwrite professional sports, and to do so with the players’ union. Taxpayer revolt is costing Canada its teams (and maybe Florida’s soon too, as its fans applauded their legislature’s early May 2001 for refusing to consider a stadium funding bill for the Marlins of MLB. The new winners will maximize profits without new taxes.

10. Emphasize winning as giving one’s best and providing the best ever effort each week, defining "winner" as a participant who gives his all, so that win-loss numbers refer to games and not to teams or fans, in order to prevent a negative soap opera mentality (the only thing is winning and rejecting any who don’t) from taking over the game, and fostering a positive soap opera mentality (where the fans are eager to follow the positive lives and activities of the players).

No New Taxes Financing

"absorbing information on the values at stake"

"communication as the ultimate exercise of power"

1. The multi-use Combining Sports, Entertainment, Communications--Real estate-Investment-Public Space model outlines how to raise $800 million to $1Billion in non-tax investment, therefore incurring no new taxes. The model also includes a modest amount of public funding for infrastructure (site preparation, streets, sewers, hookup, etc.), normal to any large-scale development.

2. Developing a Profitable Sports-Entertainment Model, Combining Sports, Entertainment, Communications--Real estate,-Investment-Public Spaces Venue

3. This plan positively exploits for the owner all aspects of the transition of professional teams from being part of just the sports industry to being part of the Sports-Entertainment-Tourism-Communications-High Tech-Real Estate-Public Spaces industry, a unique industry that is only now being understood and only now beginning to be exploited in all senses of maximizing profits for both the near and long haul. The famous example is railroads, who thought they were in the train business, not recognizing they were in the transportation business, missing out on ships, trucks, and planes.

4. The ten categories of financing are:

1. $50 million -- from the owners, the Spano Family.
2. $150 million -- from loan from the NFL to the City of San Diego, to be paid back by bonds backed by user fee increases in ticket and parking revenues
3. $60 million – from 40 new Executive Suites at $75,000 each (City of San Diego gets 40% of these revenues for 20 years)
4. $100 million -- from real estate development investments in the football complex
5. $100 million – from development bonds paid back from (1) anchors and (2) smaller business located in the football complex
6. $100 million from entertainment and other public space usage
7. $50 million – from the City for infrastructure (i.e., normal city large project development costs: land and site prep, streets and sewers, etc., source to be determined
8. 610 total potential for new or renovated stadium complex

5. Professional sports has become a major part of four major, emerging and enormous growth industries (as reported by the award winning Hoffman Development Group, September 1999). The San Diego Charges, the city, and the business community, can forge a great private-public business partnership to give all an opportunity to participate in this economic pie that can become a key jewel in the Southern California crown. This is the national pie. Our slice of the pie will be large due the uniqueness and weather of the great City of San Diego.

$ 625 Billion in discovery learning/edutainment (source: Lehman Bros. 1997)

1.000 Trillion high-tech business solutions (source: IBM)

120 Billion space exploration spin-off business (source: KMPG Peat Marwick, 1997)

1.500 Trillion in tourism (by the year 2010; source: US Department of Commerce)

$3.245 Trillion Total

6. To maximize profits, professional sports needs to recognize its real estate aspect, and include mixed-use commercial and residential development (with the financing provided by the tenants and anchors) on the outer edge of their properties. Rather than build just a stadium, other facilities can be built-in, whether above ground or below ground, to generate activity and profits year round. The game provides sports and entertainment. Music is used and could therefore also be made and recorded in recording facilities. With so much parking, other use facilities could be built, such as multi-plex movie theaters and large event hosting. The same is true of public spaces. Then, given the huge amounts of money in salaries, the opportunity for profit investment vehicles is huge, which, when established and managed, would allow for a wide range of compensation parts, including signing bonuses, deferred payments, set aside funds to meet contract incentives, and to provide players with exposure to strategies for positive player retirement: profit pool investments as well as retirement hedge funds. In order to maximize these parts, the facilities would also be used to provide and generate communications, including using an Internet web portal, providing television and radio broadcasts, as well as generating print publications.

7. The Stadium Complex would be (1) a destination and a gathering place for fans, visitors, tourists, consumers, and sports/entertainment/real estate/business people, as well as (2) a business, real estate and communications hub; these two together will generate profits in the near term and long term, year around; and (3) a place that would also involve the non-profit community of schools, community centers, and the faith community.

8. We believe that by working together, we can develop a new financial model which will satisfy the owners who need to make a profit, the taxpayers who don't want to subsidize [a game that generates millions], the small businesses and others who profit from the games, and, of course the fans for whom the Chargers have long been a cherished part of their lives. We are inviting all the key players in the debate both for and against a new stadium to join with us in working to put our heads together to create a new financial paradigm that works for San Diego and in turn works for the Chargers which means it will work for the fans.

Mission Valley is Prime Land

Stadium Complex Synergies for Generating On-Going Revenue/Profits

Many Opportunities for Companies to Participate

The Chargers can increase their stadium revenues to be competitive by doing he following:

Sources of revenue/profit generation for the Chargers:

1. Permanent seat licenses

2. Luxury suites (existing 113): share revenues with the city, 60-40, for the revenues from the addtional 40 boxes/suites

3. Luxury boxes

4. Club seats

5. Ticket sales

6. Parking

7. Concessions

8. NFL shared common revenues from TV and licensing ($65 million in 1999).

9. Stadium area itemized sources of revenue/profit generation, to be shared by the Chargers with the City: Luxury suites (increase from 113 to 153): share revenues with the city, 60-40, for the revenues from the additional 40 suites ($60 million over 20 years)

10. Luxury boxes (share revenues with the city of 60-40 of all additional boxes)

11. Club seats (share revenues with the city of 60-40 of all additional club seats)

12. Signage (space for signs of corporate advertisers: share revenues with the city of 60-40)
Never forget: the Stadium Complex is more than a stadium stand alone:
It is an opportunity for developers (which could be the Chargers, but doesn’t have to be)
To generate yet more Stadium area revenue/profit possibilities

13. A full service studio (film, video, DVD, TV, multi-media)

a. broadcast capability
b. recording studio
c. sound stage/shooting capability
d. Others as later identified, which would generate additional revenue for the team in the same space
e. These would occur simultaneously, if need be, with other events

14. Keeping in mind that there is an opportunity for a world-wide communications company, to position itself for expansin, growth, and success, in the comples.

15. Build an office building as part of the new complex, whether above ground or under ground. Many companies would enjoy the prestigious location. This would also be a good location for businesses of the owner, partners, and/or investors. If built by a partner or in alliance, the partner firm or company in alliance would finance the construction.

16. A commercial/housing/shopping complex:

(a) Stores for shopping
(b) Restaurants and upscale bars
(c) Office tower (or underground)
(d) Entertainment centers/venues
(e) Condominiums above stores and offices
(f) Moderate priced housing on fringe areas as trade off for tax benefits
(negotiate such that this housing is to be for workers at the complex)
(g) Incubation of new businesses
(h) Parking, etc.
NOTE: tenants would finance their own areas.

17. A movie theatre multi-plex (possibly closed on game day Sunday afternoons) 18. Etc. "Etc" is an important concept for it leaves the door open to new ideas and new understanding of the situation as it unfolds in real time, in real life.

Conclusion:

The Chargers Can Bring Needed Enjoyment and Enchantment to the Community

Home games also provide opportunities for parent-child bonding in a way no other state wide organization enables. And for those women who enjoy football, the home team games enable women to move beyond the "soft side" of Sears to the "tool" side, in terms of both enjoyment of the game and camaraderie with fellow women fans, as well as provide them with a greater understanding of an experienced enjoyed by their boy friends, husbands, sons and fathers. The home games also provide all fans with one of the few places left where any fan can engage in bonding with others, which takes place either at the game, before the TV set, in reading the same newspaper and magazine pieces, or in discussing it with others anywhere, anytime, any how.

The home games are where tens of thousands gather to sing, dance, sway, do the wave, and get carried away with the enchantment of it all. When the Mets won their last championship series game in NYC 2000, before moving on to Atlanta and defeat, the fans stood for 15 minutes, singing and celebrating and enjoying the moment. Could you tell the difference between them and those singing and swaying at an evangelical crusade? And how about the "wave" at both baseball and football games? The sense of the transcendent quality of community with the home team runs deep in fans and citizens who are not quite big fans, and is part of the enchantment quotient. We thus will do all that is necessary to bring clarity to the on-going debate regarding a stadium everyone wants but about which there is no current consensus on funding. The issue is not whether to build it but how to finance it. Missing is a consensus. Our model presents a method that can be used to develop a solid, almost "super" majority consensus.

The pro team serves as a great collective choir director, as the citizens of the state join in the chorus to sing and dance and feel, if only for that moment and in the subsequent moments when the memory is recalled, an enchantment of life, transcending the ordinary everydayness of life.

The home team demonstrates that this interaction, on a deeply felt level, is reciprocated by its marvelous programs in the community, giving back to those who have given the support underlying their success, and for holding the home team in a special place in their hearts. As noted above, the home team serves as a rallying cry around which diverse people find a common point on which to agree, and through which they find another point of meaning and excitement in the shared community of fandom.

Part II

Internet Strategies
Submitted by PeterJessen-gpa.com

June 18, 2002

This supplement to the June 12, 2002 "Saving The Chargers Stadium Campaign For San Diego," details how to dove tail traditional media/PR with Internet/PR to create community dialogue leading to a successful "Save the Chargers" and "New Stadium" Campaign.

Communications Strategies Campaign Goals

1. Generate fan awareness and interest in the Chargers’ 2002 Season

2. PR campaign for Spanos family: going from loathed to loved, from condemned to celebrated

3. Generate fan interest in new Head Coach, his record, and the Chargers’ future

4. Begin process to make Chargers rivals to the 49ers and Raiders in the hearts of California football fans

5. Begin human interest stories re team members, players and coaches

6. Begin campaign to average 60,000 fans/game in the stadium

a.Increase number of season ticket holders

b.Create ticket give a way plan to generate more single game ticket sales

7. Begin the process to double the value of the team within four years

8. Generate support for a new stadium among all tax payers (fans, officials)

9. Generate support for the no new taxes financing of the new stadium

10. Begin the process to generate $200 million/year during first year of new stadium

11. Hammer on the "Three J’s" of the Campaign: Jobs (which contributes mightily to the economy), Juice (which the money involved to finance, build, and pay workers), and the Joy (which is the reaction of fans knowing they will not lose their team)

12. Dispel the belief that the Chargers are leaving and therefore shouldn’t be backed with support of any kind, including season tickets and single game ticket holders.

Recommended Themes

1. The Chargers are the People’s Team.

2. The Chargers Can Be Saved Without Needing New Taxes.

3. Stay united, not divided, and open campaign to all citizens as the Mayor has requested.

4. The stadium issues address all of the tough economic times ahead for most cities in the future, promising jobs, revenue, economic growth, pro-team quality of life for all citizens.

5. The best problem solving discipline is communications.

6. There is no Teflon, whether in the private or public sector, even for the formidable.

7. It is true for all: you cannot not communicate. Everything said and done is a communication.

Overall strategy setting up the Internet Strategy for Communications Success

1. Openness with the press and regular press conferences.

2. Clear Gideon-like commitments and alertness by all staff and volunteers.

3. Use the proven communications models suggested by PeterJessen-gpa.com. Use different ones for different campaign purposes.

4. Hold backgrounders for media representatives who are straight with the facts and information. Don’t let rumors or suspicions build.

5. Develop a communications target list for the first 100 days in office. Each week review and change as needed and add seven more days. At the end of 60 days, do so for the fourth month, etc.

6. Take advantage of the INTERNET, as outlined below, with an interactive, flexibly changing web page and Email communications.

SUGGESTED USES OF THE INTERNET AND EMAIL STRATEGIES

Take advantage of the INTERNET with an interactive, flexibly changing web page, such as:

www.chargers.com - www.chargersstadium.com

1. Develop email lists of all reporters, print and broadcast and cable in San Diego, and, as appropriate, San Francisco, Oakland, and Sacramento, as well as selected national ones (especially those with whom good relations already exist). Create buzz.

2. Put an auto responder on each web site for instant responses to emails, with those to actually respond to with more to be decided on a case-by-case basis.

3. Have explanatory paragraphs for most issues for use in selecting email responses.

4. Have all email responses end with "Support Save Our Chargers Campaign"

5. Send out a short one paragraph statement every day, with reference to longer pieces on the campaign web sites

6. Use the 1-2-3-4 knock out punch of the Internet of reach of audience/exposure; richness of content (quantity and quality); affiliation for loyalty, and navigational control/influence (which is changing things faster than we can sometimes comprehend, so why not create a parade rather than follow someone else's), with interaction in ways that are still being explored and discovered, in order to impact positively on the "Save Our Chargers" new stadium campaign.

7. In other words: Exploit the differences in communications channels by adapting to each accordingly: the far-reach-here-for-a-moment-and-gone-just-as-fast-TV and radio; sound-bite and highlight needs of TV, the extended debate needs of talk radio, the reach and information richness of local newspapers, the vast reach and lesser richness content format of national print media, the excitable point needs of columnists (take the offensive and turn controversies into positives, and the Internet, as noted above, which brings three new dimensions/dynamics to the communications strategy party: (1) transparency (all is open), (2) speed (blur), and (3) the 1-2-3-4 knock out punch noted above of reach, richness, affiliation, and navigation.

8. Develop and add to WEB LOGS, which can run on any site, and which run in reverse chronological order, including listing relevant web sites, so people can follow the history of the development of the "Save The Chargers" campaign.

9. Web Stream news conferences and game highlight on the web site, so media, fans, etc., can hear from the organization's key people, and talk about subjects close to their heart without having to be edited to a too short piece or edited by media where the message is considerably different from the unedited version.

10. Maintain an updated new stadium pamphlet on both web sites that can be quickly Emailed (quicker, cheaper, easier) to provide any news outlet or fan that asks.

11. The Web page can also create the "perfect" periodic, easily changeable pamphlet to reflect the Communications Strategy approach being followed at the moment, as well as enable the providing of "examples" of what is undermining and sabotaging the otherwise fine relationship between the organization and the people.

12. Use an intranet for the Charger organization and its consultants, on which can be placed schedules, commentaries, favorable media pieces, and provide navigational links to appropriate information related to the campaign (see layout of www.ceoexpress.com

13. Have a chat room on the Internet site to discuss the campaign and to keep up with the debates in the community and among the voters. Chat rooms are the biggest "value" AOL provides to its users, and creates it "stickiness" (return visits).

14. Have a designated consultant from PeterJessen-gpa.com provide input into any continuing negative thread that might appear on one of the major newspaper’s web site, in order to provide a positive response. Keep an eye out for others and respond to them as well.

15. Develop a FAQ list, updated regularly on the Internet site.

16. More interactive website: include streaming footage of the Chargers (owners, head coach, players) about subjects close to their hearts.

17. Create a database of visitors that will receive regular Charger news emails, etc.

18. Get 3rd party spear carriers/water carriers: prominent businesspersons or government officials, columns or lead stories in local/national/world newspapers and magazines. Place their positive statements about the Chargers in general and stadium in particular on both web sites.

19. Use selected printed materials: (1) "Tradition Book" and video/DVD to tell the story of the organization, accomplishments and glory and significance. ; (2) "Tail Gate Guide" for use by fans to celebrate, with advertisers limited to those with products, services, stations, or publications that could be used at a tail gate party.

20. Use the "Work Out" method of GE to get the message to all in the organization, top to bottom: three books to look at: one on Jack Welch, one on GE, one on using the work out method.

21. Use the Internet medium to provide rapid responses to negatives news/columns about the organization: Use parallel columns. In the column to the left = falsehoods. Column to the right = the facts, citing the source for each. Archival research would be prominently displayed, and added to as new material is developed. When this is a sensitive issue, hold a truth on-line contest to see which voter can find the most blatant and obviously false statements.

22. Net Gain: Expanding Markets Through Virtual Communities: Hagel and Armstrong make the case that business success in the very near future will depend on using the Internet to build not just relationships, but communities. They also discuss how noncommercial Web communities could use content, chat, and bulletin boards to promote e-commerce. In our case, it is to promote acceptance of a new Governor.

23. Hosting Web Communities: Building Relationships, Increasing Customer Loyalty, and Maintaining A Competitive Edge: Figallo shows the advantages businesses can gain from creating or supporting online communities, plus what types of expectations are unrealistic. He believes, for example, that creating online communities is not a reasonable way to directly boost sales or provide a highly profitable income stream. He does show, however, that it can offer major corporate advantages in the same way that good public relations or other indirect marketing activities do.

24. Have links to:

i. A ten minute radio show
ii. A call-in local TV show, either broadcast or community access, which ever can be obtained.
iii. Other newspapers in California. Use a journalism link to other papers as done by www.ceoexpress.com, including to alternative newspapers.

25. Rapid Response and "Damage Control" Process

a. Use the Internet medium to provide rapid responses to negatives news/columns about the organization: Use parallel columns. In the column to the left = falsehoods. Column to the right = the facts, citing the source for each. Archival research would be prominently displayed, and added to as new material is developed. When this is a sensitive issue, hold a truth on-line contest to see which voter can find the most blatant and obviously false statements.

b. Have a "rapid response" policy (and criteria for when to use it and when to leave it in the drawer) to combat the attacks and hostilities from both print and broadcast media, in order to give the campaign a chance to influence the desired outcomes (all falsehoods must be responded to, but only to the falsehood).

c. Apply the "Damage Control Rapid Responses" to events, controlled and uncontrolled, meeting lies or innuendoes with facts, and, where errors have been committed, acknowledgement combined with announcing the steps taken to correct and steps to take to prevent repetition.

Part III
Smart Growth

Submitted by PeterJessen-gpa.com
June 20, 2002

This Supplement #2 (Supplement #1 of June 18, was on "Internet Strategies) to the June 12, 2002 "Saving The Chargers Stadium Campaign For San Diego," details how to blend real estate and overall geographic growth into a community dialogue, the success of which depends on larger development entities like the new Chargers stadium and, more importantly, an NFL team, as they become part of the "bonding blocks" of the greater San Diego community.

This report is a commentary on the following articles:

"To make big ideas work, S.D. needs a new support system," Neil Morgan, SDUT, 6-19-02

"The Morgan Report: Updates on life and issues in San Diego," SDUT, 6-14-02

"Task force to give city advice on Chargers," Caitlin Rother, SDUT, 6-19-02

"Chargers say they can't compete financially," 5-29-02 SDUT Mark Fabiani interview

"Chargers’ point man Fabiani no NFL novice," John Marelius, SDUT, 6-9-02

"Chargers' ticket guarantee an issue at City Council meeting," Ray Huard, SDUT, 5-22-02

"Chargers aren’t alone as candidates to move," Jim Trotter, SDUT, 5-26-02

There are two dynamics that have historically been unchanged regardless of people and politics, ideologies and policies, religions and races:

MACRO-level: the only constant in history is change. It can be slowed but never stopped.

MICRO-level: all human interaction takes place face-to-face within the concept of roles, whether shared or not, whether perceived equally or not, whether understood or not.

Assumptions taken from the articles:

That if at all possible, the Spanos want to stay in San Diego

That it is more of a site issue (Mission Valley vs. East Bay or East County or North County) rather that a city issue (San Diego vs. L.A.).

That regardless of whether individuals or groups promote or retard growth, love or fear growth, all agree that if possible, it would be better to have agreement on directing the changes than let the forces of change go undirected, which means that if a round table is set up, the knights of the various groups will attend and work together.

The stadium issue is about more than the Chargers: it is about a stadium that would host the Super Bowl (the NFL’s favorite spot; remember how many are coming from cold, humid East Coast and Mid-West climes in January), and other major events. The Super Bowl itself is worth $250 million to San Diego each time it is held. The stadium is also about international soccer matches, motocross, concerts, and other events, all of which can generate revenue to help support the stadium for the City.

No new taxes need be levied on the average San Diego tax payer, although a small increase in a tourist tax (hotels, motels), could be levied by the city council without needing a vote, with the key to its success being how it is presented: a tourist/business tax, not a tax on San Diego residents (at least on very few).

The team is an important civic, cultural and financial asset to the city.

The team, in bottom line terms, has a positive net economic and quality of life effect on the city.

Concerns to look at:

"regional transit (never profitable anywhere)": Transit cannot be understood properly unless the cost-benefit analysis includes all contexts: when time of travel, environmental impact, regional stability, reduction in congestion, and moving people for large events, as the stadiums, and other factors, it is worth it in community cost terms for everyone to support it.

"distrust...prisoner’s dilemma...remain prisoner". Given the nature of humans and the witness of history, people would be crazy not to distrust. The solution is to use a conflict resolution process that clearly lays out the rules of the game. Planning is a necessity. Social engineering is not. Key also, therefore, is to know the difference between planning (which all should embrace) and social engineering (which all should shun). The former is inclusive, the latter is exclusive. The former allows for cooperation, the latter creates conflict.

"growth" -- That Shakespeare’s notion that "a rose by any other rose is still a rose" fits here as well. Whether it is called "growth," or "smart growth," or "densification," or "population growth," or "insufficient funding," or "growth in housing costs," or "smart growth financing", it still involves everyone the same way and therefore it behooves everyone to cooperate to collaborative resolve the issues so that the problems can be solved, and then let the race begin as to who wins the race and who places 2nd, 3rd and fourth. The bottom line is that all will cross the finish line. And that is all anyone can ask.

Dealing with "industrial acreage and flatland...subdividers...quality of life....soaring housing costs....decline in water quality....insufficient funding" needs to be done is such a way that all win some and lose some and none win all and none lose all. Communities often need some common ground rallying point to gather around. The Chargers, Padres and Aztecs provide three tangible intangibles that all in the wider community can get behind and support, generating civic pride and cooperation for other issues.

That all the major interests converge to a central point of shared interest and benefit from a new Stadium and the Chargers staying in San Diego: developers (economic and real estate), tourist industry (including ConVis, Convention Center, airlines, travel agents, Padres, Chargers,), environmentalists, Torey Pines and other recreation spots, ocean related resorts and businesses, and the great catch-all: citizen watchdogs/voters/tax payers.

The four "conflicting groups" (developers, business, environmentalists, citizen watchdogs) should be seen not as opponents in a win-lose game of dividing the San Diego pie, but rather points of scales seeking balance in sharing the San Diego pie, that they are not so much in conflict as not yet finding the common ground from which they can all work. Our system of government/nation is built on a system of "checks and balances." We need developers and business to create the jobs that throw off the taxes and charitable giving that fund government agencies and private trusts and funds looking after the environment. Watching all three are the citizens. This is good. It’s the American way. Democracy is a wonderful tool. It helps us keep our freedoms, which is part of keeping our liberty. As we look around at the conflict spots in the world today, that gives us pause to celebrate our way of life and to be thankful that all of us can participate in its future. Having said that, the issue becomes not so much a new support system as using the one already in place. The Chargers and Padres and Aztecs help focus the common ground from which to deal with the serious issues of growth confronting the region.

The way to start is to think of four circles. Lay them down and then push them together until there is an ellipsis in the center where they all overlap. This is the common ground on which all agree. Most common ground areas are agreed upon as being important: development (economic and real estate), jobs, environmental protection, education, housing, and transportation. From a common ground standpoint, all four (to borrow from a book title) are "indispensable enemies." At the same time they are all "comrades in arms." In the recent popular film Black Hawk Down, there is a scene that reminds us that quite often what we lack is not instruction in how to do something (some Czar of Super Planning) but rather to be reminded that how to cooperate and win together is already in side us. Thus, in the movie, the hero says to the soldier standing nearby in shock, to "get into that truck and drive" as the driver has been shot. The soldier replies "But I’m shot" too. The hero then replies, "Everybody’s shot. Get in and drive." To put it in the words of Peter Jessen, all groups can then see why it serves each of them to take "the high road of healing and harmony," as all, really, are in the same boat.

How PeterJessen-gpa.com Can Help Both the Chargers and the City of San Diego

We are marching to the drumbeat of four central ideas:

(1) We are friends of the Chargers and want to help the Chargers solve the problem of how to achieve their goal of building a stadium with little or no debt and no new taxes.

(2) We are friends of all of San Diego and sports fans and want to show them how to achieve their goal of keeping the Chargers in San Diego, and deal positively and profitably with the predecessor stadium, Qualcomme, either through renovation or replacement.

(3) We are friends of the Spanos family and are responding positively to their challenge, "show us," with our proposal of how to build the stadium with only normal infrastructure public spending, how to incur little or no debt, and how to generate profits on an on-going basis; year round, so they can stay competitive staying in San Diego.

(4) We are friends of everyone, responding positively to the invitation for how to hold a San Diego conversation, by providing a series of models that could be used to facilitate such a series of resolution conversations and meetings.

Historic Opportunity for the Chargers and the City of San Diego

PeterJessen-gpa.com can help the Chargers and the City of San Diego join together to benefit from THREE "once in a lifetime" historic opportunities to lead the nation in sports management (which would help increase the Chargers and the City’s brand and reach) by being the leaders in the United States regarding

(1) Showing how to deal with the stadium issue with no new taxes in this new day of tax reductions taking over from tax maximizing (every owner and city will thank you, as will their legislatures and tax payers)

(2) Showing how to, in particular, use this model to solve multiple stadium solutions by combining a football complex with a real estate investment/development project.

(3) Showing how to positively transform the economics of professional sports, especially the NFL, before it is dragged down the MSB path.

PeterJessen-gpa.com can provide strategic thinking and creative ideas to support the various dimensions of the problems facing the Chargers and the City of San Diego, including supporting legal, public affairs, public relations, communications (internal and external), and government affairs.

We recognize that all have to deal with the reality of global and technological forces that are at work around the city, the state, the country, and the world, sorting metropolitan regions into winners and losers depending upon how much and how fast capital and talent are rearranged. Quality of life as defined by having big league teams is a component of corporate thinking when it locates new businesses and offices.

San Diego has much to build on: an international airport, two major league teams, investments in art and theater, innovative social policies on occasion, creating one of the most breath taking and beautiful and quality of life places to live. The key is to keep this heritage going, to maintain these traditions, and to enable all citizens to reconnect better.

The Chargers, Padres, and Aztecs help everyone feel connected, providing the one thing all can discuss together regardless of their background. So its more than 60-80,000 fans watching ball games in a stadium. It is all of the same citizen fans watching on TV, listening on the radio, following in the newspapers, magazine, and ESPN.

Football creates a positive community fever. PeterJessen-gpa.com can help the Chargers and the City of San Diego fan that fever positively so that all win in the stadium resolution task, and do so in such a way that it does not become a burden on tax payers. PeterJessen-gpa.com can help the city revive its football spirit.

PeterJessen-gpa.com reminds everyone that even though not everyone likes football (it is the number one sport in America, but there are still those who don’t follow it), professional teams are on the same level of investment in the future as transit, real estate projects, free ways, and theater. They are part of the investment communities make to retain and attract the talented wealth-producers of the new economy. These investments benefit everyone. New wealth will fix and sustain good schools, health care, roads, compassionate social services and civic pride that San Diegoans expect and cherish. Deep down, we believe that San Diego citizens hunger for better than "good enough."

PeterJessen-gpa.com can help the Chargers and the City of San Diego bring the big four together (developers, tourist industry, environmentalists, and citizen watchdogs/voters/tax payers) to work for the benefit of greater San Diego, now and in the future:

Part IV
Public Relations Strategies

Submitted by PeterJessen-gpa.com
June 26, 2002

Part I, June 12, 2002 was "Saving The Chargers Stadium Campaign For San Diego," which detailed how to blend real estate and overall geographic growth into a community dialogue. Part II, June 18, 2002, was on "Internet Strategies. Part III, June 20, 2002, was about how growth success is greatly helped by larger development entities like the new Chargers stadium and, more importantly, an NFL team, as they become part of the "bonding blocks" of the greater San Diego community. Part IV, Public Relations: how to achieve the above.

1. Critique/Assessment/Commentary of Of "L.A. Quiet; other cities may woo chargers"

2. Public Relations Strategies and Solutions

3. Summary of Other Solution Pieces

Overriding Assumptions

• Both/and is better than either/or
• All parties want to control their fate and destiny, but no party acts in a vacuum.
• There is the potential of $200 million yearly revenue from a mixed-use facility for all to share

Critique/Assessment/Commentary on:

"L.A. QUIET; OTHER CITIES MAY WOO CHARGERS"

2nd page subhead: TEAM MUST DEAL WITH PROBLEM OF PUBLIC RELATIONS

San Diego Union Tribune, June 26, 2002

Regional Edition Front PageA Reality Check

The Good News

The Chargers are obviously a "hot" property.

The fact that two sets of investors have approach the Chargers underscores this fact.

Six communities want them

There are NO BETTER demographic and geographic and weather spots to which an NFL team could move to that are better than San Diego

Even though the old NFL "box" or "paradigm" no longer fits, of having communities build stadiums for owners, this is still good news, as (1) making the stadium complex a real estate development mixed use project frees up tax and other breaks already on the books, and (2) removes the delays and red tape of having to get jurisdictional legislation for new tax monies, which are not needed due to #1.

Building a stadium will enhance San Diego and make it as attractive as L.A., which will be sorely needed once L.A. builds its new NFL stadium.

The Bad News

The story portrays the problem as a Chargers problem. It is not. The Chargers can go anywhere they want, even though, and this is critical, they do NOT want to move. The City of San Diego cannot move. But first San Diego (private and public sector) has to recognize this as a CITY problem, NOT a Charger problem.

This is also and INVESTMENT issue, not a higher taxes/free ride issue.

The City of San Diego risks losing its NFL presence. If the Chargers were to leave, the city would also lose the $250 million each Super Bowl brings (with a new Stadium, San Diego could get at least two and maybe 3 Super Bowls each decade).

Without a new stadium, the Holiday Bowl could be lost.

Without a new stadium, the Aztecs are isolated

Six cities are wooing the Chargers.

Houston had to put $1 billion on the able to get their new franchise that begins this year. Much was based on suites to be paid for by Enron, Reliant, others. They now leave the team and the NFL worse off.

The City Council members have to ask themselves: if they owned a team, and someone laid a billion on the table, would take it or walk away?

The bad news for the City of San Diego is that it looses a lot and consigns itself to a lower rung yet, after SF, LA, and Oakland.

The bad news for the Chargers is that any move would still be a pig in a poke, even with the money.

The heat is NOT off because of the L.A. back down, as six cities coming out of the woodwork attest.

It is a mistake to think L.A. won’t come back.

The Coliseum wants the NFL team VERY badly.

L.A. AEG is only in tactical retreat; they’ll be back. The heat won’t go away. They wouldn’t have put in all of the time, money and energy that they did re the Memorial Coliseum first, and then later to the Staples Center area, if they were not fully committed to getting an NFL team. That has not changed, only the how, and when they have an answer for that, they’ll be back, full fore.

The heat is off ONLY in the sense that the Chargers are not the team wanting to move. If they were the only team the goodies offered might be too great to resist, even for rational people. But with six out there, the offerings will not be as great, as the "winner" will be the team that wants to move more than it wants the money (which it’ll get anyway).

Assume L.A. AEG will swing back to their first location, the Memorial Coliseum, once they figure out how.

This again distracts: it is NOT an L.A. question (nor a Houston, Birmingham, etc., problem).

Some cities, even without the strength of San Diego, are so hungry for an NFL team that they will foolishly do anything to get one. The problems encountered now have resulted in a rash of teams wanting to move and cities willing to pay them what they want to get them, creating a whole new set of down the road problems.

The problem in San Diego is being tacked independently by too many groups: Citizens Task Force, Chargers’ consultants, cadre of businesspeople: there needs to be one group, and that group needs to be led by the Chargers, for only the Chargers can make all of the pieces happen with a new stadium (Super Bowl, Holiday Bowl, etc), for only the economics of the NFL make new stadiums possible (a great paradox, given the few number of uses they have, but that is the reality, and only reality fill the cash box).

The activities of Enron, Reliant, Andersen, etc., give all CEOs a bad name, lowering their trust and credibility quotients, EVEN WHEN innocent.

The Problem: thinking Either/Or rather than BOTH/AND

It’s an economic issue AND an emotional issue.

The "economically competitive" issue is a UNIVERSAL: makes no difference which team, which city, without it they CANNOT win. Why would top athletes NOT go with the teams that offer the most? Anyone reading this would do the same.

The issue is NOT the stadium per se, but who will build it.Other cities recognize that an NFL team brings lots of goodies (ask the San Diego Super Bowl Host Committee: $250 million for each game).

The two sports experts, although with different views, are correct: (1) "the team is likely to leave if city officials don’t make an attractive offer, and (2) the time has passed for NFL teams to win publicly funded stadiums by threatening to move.

Re #1: In general, this is correct. What is wrong is that the statement assumes the only attractive offer the City can make is raise taxes to build a stadium. This is a false assumption (see proposed solution outline below). It also assumes that a company, in this case the Chargers, would be willing to stay in a losing situation where they have no chance to win. No businessman minds being called crazy (sort of adds an element of excitement) but they don’t like being called stupid, which the assumption that they should stay and lose represents.

Re #2: Absolutely correct. BUT, the time has not passed, as attested to by this article, that other cities won’t offer benefits to attract the team from the city that doesn’t facilitate a stadium (NOTE: the key word here is facilitate. Fund is no longer an option. But it doesn’t need to be.

Another "expert" says the NFL won’t allow the Chargers to move.

He is wrong on both counts: the NFL goes for what is good for the NFL, and revenues are what are good for the NFL (and any other business). They’ll go where they’ll get the revenues.

This "expert" contributes to the false myth that the NFL office in NYC runs the NFL. The owners run the NFL. And owners rarely vote against each other because the next time it might be them wanting to move.

The NFL office may make it tough, but the owners have the final say.

This same expert shows he is "old paradigm" and definitely not thinking out of the box as he says the city can’t give a stadium due to the "troubled economy." The economy is fine, and is the issue but NOT financing it. "Troubled economy" is a code word for "voters don’t want to pay more taxes for new stadiums." And why should they, when there are models that cut the red tape and time of dealing with getting new tax laws when there are laws on the books already to solve the issue?

The Univ. of Oregon Warsaw Sorts Marketing Center expert is also "behind the times."

He is correct about 5 years ago.

BUT, he assumes also that the stadium must be built on new tax dollars (otherwise, what makes it harder?)

And given the stadium problems and fiascos in Oregon, one might want to think twice turning to this group, which is into "either/or" instead of "both/and."

Why is anyone still listening to Marc Ganis?

His involvement in the fiasco in Minneapolis with the Vikings has led to such bad blood between the city and the team they now see no alternative but to leave (that is the best example; there are others; check what happened to those he "helped").

Ganis doesn’t know what he is talking about.

He again puts the issue on the team, a good market, and political will.

The issue is NOT the team. The issue is what city wants to facilitate the community being able to leverage an NFL team for the economic well being of the city.

NO city determines whether a city stays. He is flat out wrong. That again makes the culprits the team and the city like two bad guys on Main Street shooting it out at high noon. The only ones who benefits are the consultants giving bad advice leading to the shootouts. Both the shooters (team and city lose) and the consultants get paid. Any consultant using this model will lead to trouble.

And the market is not the issue either, not in a day of TV when teams in smaller markets can still be competitive. The market is not the issue. The issue is how much revenue a stadium can generate. Stadium only revenues will no longer suffice. Mixed-use real estate stadium complexes are the best bet for all.

He is also wrong about political will. In St. Paul, the political will was there for a Twins stadium. But the voters turned it down. And when earlier Minnesota legislators came out in favor of a Twins stadium using public financing, many lost in the next election or almost did, and thus cooled to the idea.

So political will refers to Mayors and Governors, City Council members and legislators. But it’s the voters who decide.

"All it takes" is a statement of unbelievable shallowness and proof of being locked in the "old ways."

The only consultants that should be used are those showing models that solve the problem for both sides, recognizing that the issue it coordinating independent actors (team and city) in the teeth of their own autonomy. Neither controls the other. Therefore, all either/or scenarios are disasters. ONLY both/and will win the day.

Public Relations Strategies and Solutions

The "Public Relations" Problem for the Chargers

Here we get a truly accurate statement in the article: "the Chargers have to deal with a public relations problem." Issues that have inflamed that need to be dealt with to calm everyone down:

1. Talking to LA after the $78 million 1995 Qualcomm Stadium lease deal with the "notorious ticket guarantee."

2. The $12 million training facility and HQ and then training in L.A.

3. The 60,000 general admission seat guarantee per game

4. The escape clause despite the $78 million renovation money

5. The Chargers appear to have broken faith, when all they did was go by their deal

6. The Chargers appear to be asking for more, more, more, when all that is going on is they are better negotiators, and are acting on the reality of how badly cities want teams. Being the stronger negotiator, they have taken advantage, breaking the key rule of negotiating, which is to make sure the weaker player is satisfied too if a strong partnership is to be developed, rather than set up a breakup later.

7. The "no" to the question of whether they are more important than other aspects is again taking the "either/or" approach, which requires a winner and a loser, rather than the "both/and" which serves everyone is win-win all around

8. Beating the Task Force to the punch regarding the two jobs it has:

o Demonstrating it is an important asset in BOTH quantitative economic terms AND qualitative quality of life terms, so that the task force doesn’t conclude yes one the second question but no on the first

o Providing it with workable "outside the box" suggestions it will work with so that the Task Force can come up with a resolution for all, at once, and not have to then fight the Chargers later to save face.

9. They mayor believing the "we need to decide" must be changed to include all parties, public and private, City and Chargers, not just the city.

10. Not blame having a crummy stadium on the City AND not saying its up to the city to fix it, BUT RATHER praising and thanking the city for all the wonderful years, and now that its time to get a new one, to work with the City to do so

11. Do a better job of showing how the Chargers benefit the city by being an NFL team that makes the city eligible for a Super Bowl at least twice a decade.

12. Making the public have to fight to be a part of the discussion when it should be invited in

13. Become more exclusive: involve county and regional participation in the new football complex AND revenue streams, REGARDLESS OF WHETHER EITHER THE COUNTY OR REGION CONTRIBUTES DIRECTLY (they’ll contribute indirectly by helping fill the seats with fans).

14. Invite the group the article identifies as the Super Bowl Host Committee to be involved, to give it a wider circle of influence and acceptance.

15. Invite the group the article identifies as San Diego International Sports Council to be involved, to give it a wider circle of influence and acceptance.

The city council and Mayor need an outside presence to reduce the anxiety for all sides.

Missing from article: the 1986 stadium law

Bill Bradley, opposed to local funding of stadiums (talk about biting the hand that fed him) was a sponsor of the 1986 law that says 90% of stadium revenues must go to the teams. This is what caused the feeding frenzy of stadiums and claim of owners to the revenue and making the

However, my making this a mixed-use real estate development, it becomes a different entity. There is plenty of revenue to be generated and, thus, revenue to be made by all, whether in the form of taxes or in the form of profits.

The "Public Relations" Problem for the City of San Diego

It has gone from looking to eager to keep the Chargers to not eager enough.

The city acted on good faith assumptions that are not warrantable in business and now looks stupid, giving it little maneuvering from.

The city council and Mayor now sees their own re-elections in the balance and therefore need an outside presence to reduce the anxiety for all sides.

The Key Question on which all else hinges:

It all hinges on one, and only question: does the Spanos Family want to stay in San Diego or not?

If the answer is no, read no further, as money will lead them out. Period.

If the answer is yes, keep reading, for the means and mechanisms are available to get them what they want AND to get the city what it wants WITHOUT having to go the county or state (although they can be involved if they want to).

PeterJessen-gpa.com can offer PUBLIC RELATIONS consulting regarding following:

1. A public relations campaign for the Spanos family, working with those now doing the same, such as Mark Fabiani and the City, to turn the Spanos family from one of the most hated to one of the most beloved families in the city and region.

2. A public relations campaign for the San Diego Chargers, working with those now doing the same, such as Mark Fabiani and the City, to turn the Chargers from one of the most hated teams to one of the most loved teams in the city, region and state.

3. The strategies and activities needed to bring about the above two, responding to the PR problems listed above and on p. 5.

4. Full use of Internet and Email strategies [See Part II]

5. Build support through explanation of "smart growth" strategies [See Part III]

6. Energize the city fostering Team and City Goodwill and the beginning of a "New Friendship" between the Chargers and the fans and citizens of San Diego.

7. Compliment the existing public relations teams, public and private, however desired, in the management/staffing/administration of the needed public relations

8. Include "spin" while simultaneously moving beyond spin to work with print and broadcast journalists to build a Charger Story, heralded past, potential present, glorious future.

9. Enable the city and the team to use communications as their ultimate positive exercise of their power.

10. As member of the competition committee along with the owners, Peter Jessen has an unparalleled understanding of The NFL

11. As the head coach with the best record during the 90s despite the lowest revenues, Peter Jessen has an unparalled understanding of professional football teams

12. Enable the city and the team to use communications as a problem solving discipline.

13. Enable all to realize there is no Teflon, even for the formidable.

14. Provide a 24 hour rapid response service for print and broadcasting services on stories/rumors/innuendoes/lies about either the City or the Team

15. Provide communications briefings for any in need, City/public and Team/private.

16. Enabling all to see the big picture and absorb the information as developed on the economic and community values at stake as a whole, rather than the false dichotomy of Chargers and City or even worse, making it a Chargers only problem.

17. Provide a Competitive Analysis frame of reference for analyzing and guiding the discussion.

18. Gather the research and intelligence needed by all involved, gathering information and advice from a wide an audience and source network as possible, which includes seeing around corners (staying ahead of the event horizons of trends and events), contributing to the guidance mechanisms of agendas, plans, and other communications strategies

19. That means that PeterJessen-gpa.com will provide BOTH input (information needed to make quality decisions) AND output (press releases, web site, speeches, letters, statements for the leaders of both the City and the team to use to communicate their view points on the issues.

20. Utilize any of 197 communications strategies in 23 categories to reduce conflicts, anxiety, and promote a favorable response from all in the San Diego Region.

21. Develop from any to all of 34 Internet and Email strategies

22. Offer conflict resolution borrowing from any or all of 16 different models for use with groups, public and/or private, to resolve the conflicts and solve the problem.

23. A realistic assessment of both the community and business environmentSummary of Other Solution PieceS That Can Be Provided By PeterJessen-gpa.comStadium complex financing

24. A minimum of 10 different ways to finance construction, 8 of which do not require new taxes

Team and Stadium complex revenue

25. A minimum of 13 operational models for the team and complex for use in developing the best for the City of San Diego and for the Chargers, each with third party endorsements.

26. A minimum of 40 ways in 26 categories to generate revenues from such a complex

27. Increase positively both the top and bottom line of the Chargers

28. Increase positively the revenue to the City of San Diego without raising taxes.

Fan and citizen support of the team, city, and stadium

29. From all of the above: rally the citizenry around the City, the Stadium, and the Chargers.

Part V
25 Reasons for the Why and How
Of A City of San Diego/San Diego Chargers Stadium Complex

1. These 25 points are predicated on the fact that the only option of value for the City of San Diego, its business community, and its team the Chargers, is to play the appropriate responsible leadership roles to make Mission Valley a flagship development in the U.S., and the Chargers a true "Home Team," within the reality that key is a winning attitude, that 16 teams will lose on any given Sunday, but that approaching the realities of the NFL means any team can get its chance to sit atop with the NFL cycle of champions.

2. Developing Mission Valley will be good for the City of San Diego and the Business Community and for the community of fans.

3. Developing Mission Valley will help elevate the "Brand" of San Diego, creating a unique, world-class, multi/mixed use sports, entertainment, real estate, communications, investment, public space and business destination."

4. There are enough financing and revenue models available to make the funding palatable to all relevant stakeholders: business community, Chargers, City, tax payers (PeterJessen-gpa.com has identified 40 ways in 26 categories).

5. Being "major league" today in 21st century is defined by having a major league sports team. The "Crème de la crème" of "Major League" are those cities with NFL teams.

6. Developing Mission Valley with a new stadium as the anchor will guarantee having a Super Bowl at least once a decade, if not twice, with each being worth in current dollar terms, of $250,000,000 per Super Bowl.

7. A new stadium could result in two Super Bowls a decade, bringing $1 Billion a decade to San Diego, plus all the inherent in-between revenues by viewers wanting to come to San Diego, especially if the real estate investment model is used that would include hotels, restaurants, office buildings, and condominiums in a mixed-use space.

8. The Mission Valley development structured innovatively can generate over $200 million/year for the team, as well as hundreds of millions for other corporations who become a part of the development and investment of Mission Valley, achieving this through synergies that will generate on-going revenues/profits/fan support, utilizing 40 ways to generate revenue in 26 revenue generating categories identified by PeterJessen-gpa.com, including private and public spaces.

9. The Mission Valley with new stadium issues address all of the tough economic times ahead for most cities in the future, providing a perfect vehicle for "smart growth" promising jobs, revenue, and economic growth for San Diego. Handled correctly, Mission Valley can help drive the economy forward in many creative and profitable ways.

10. Developing Mission Valley, building a new stadium, and relooking at the Chargers, will create an entertainment focus and almost universal water cooler topic of conversation to greatly increase and excite the quality of life of San Diegans, for whom for three generations the Chargers have been a part of their lives and bridge between generations.

11. Professional sports has become a large part of four major, emerging and enormous growth industries, (1) learning/edutainment, (2) high tech business solutions, (3) spin-offs from space exploration, and (4) tourism.

12. The Mission Valley and Stadium complex would be (1) a destination and a gathering place for fans, visitors, tourists, consumers, and sports/entertainment/real estate/business people, as well as (2) a business, real estate and communications hub. These two together will generate profits in the near term and long term, year around, because San Diego’s weather encourages year-round use.

13. The Mission Valley and Stadium construction projects would create large construction projects that has a wide range of positives: jobs (covering the private sector unions), a wider tax base that would help contribute more dollars for education (covering the public sector unions), construction and the financing that goes with all of this (covering the business and investment communities), additional spending regarding hotels, restaurants, shops (covering many of the small business community), set in motion advance planning by tourists and game day people (covering the travel and hospitality sectors), etc.

14. Recognize and take advantage of the transition of pro sports teams from a sports industry into a juggernaut sports-entertainment-communications-real estate public spaces industry. The four "conflicting groups" (developers, business, environmentalists, citizen watchdogs) should be seen not as opponents in a win-lose game of dividing the San Diego pie, but rather points of scales seeking balance in sharing the San Diego pie, that they are not so much in conflict as not yet finding the common ground from which they can all work. PeterJessen-gpa.com has the mechanisms and processes to facilitate this

15. The stadium, Chargers, and Mission Valley development will greatly enhance the brand of San Diego and the revenues and values of all businesses and corporations that participate.

16. NFL Executive suites are among the highest value entertainment venues in the world.

17. All San Diego Corporations would greatly enhance their bottom lines by strategically using their set (not single) executive suites in a new stadium.

18. Helping Mission Valley develop and the City and Chargers get a new Stadium will have a positive ripple effect generating economic development in the rings surrounding San Diego.

19. With a new stadium anchoring Mission Valley, it can become a catalyst for continued economic development not only in the downtown area of San Diego but in the concentric circles going out from Mission Valley in terms of retail shopping, hotels, restaurants, new homes/condominiums, etc.

20. The new Mission Valley stadium/economic development in conjunction with a public-private partnership with San Diego will enhance the regional benefits and overall general area investing in the region

21. One to three major companies taking the lead to lead the charge is all that is needed for success.

22. The synergies for both profits and community are greatly enhanced by the convergence of interests in Mission Valley of residents, tourists, and business.

23. Using PeterJessen-gpa.com to advise the process and strategies brings a winning record and attitude to all involved in this unique focus for San Diego.

24. PeterJessen-gpa.com can bring the 1-2-3-4 knock out punch of the Internet of reach of audience/exposure; richness of content (quantity and quality); affiliation for loyalty, and navigational control/influence (which is changing things faster than we can sometimes comprehend, so why not create a parade rather than follow someone else's), with interaction in ways that are still being explored and discovered, in order to impact positively on the "Save Our Chargers" new stadium campaign.

25. PeterJessen-gpa.com has explored dozens of techniques that an be utilized to Exploit the differences in communications channels by adapting to each accordingly: the far-reach-here-for-a-moment-and-gone-just-as-fast-TV and radio; sound-bite and highlight needs of TV, the extended debate needs of talk radio, the reach and information richness of local newspapers, the vast reach and lesser richness content format of national print media, the excitable point needs of columnists (take the offensive and turn controversies into positives, and the Internet, as noted above, which brings three new dimensions/dynamics to the communications strategy party: (1) transparency (all is open), (2) speed (blur), and (3) the 1-2-3-4 knock out punch noted above of reach, richness, affiliation, and navigation.

Media Analysis
Part VI

CITY/CHARGERS STADIUM COMPLEX by PeterJessen-gpa.com

July 8, 2002 Union Tribune Articles analyzed (5 pages regarding the 3 articles’ 14 pages):

"A Bolt of Skepticism" -- 7-7-02

"The Q Factor" -- 7-7-02

"Brewers latest to demonstrate that new stadiums draw fans...as long as you field a winner" -- 7-8-02

Key issues

Land use

Who pays

Positive cash flow to the City of San Diego as well as the team and other tenants

ALL need to be reminded that this is the SAN DIEGO stadium, NOT the Chargers Stadium; the Chargers are just one, albeit an important, part of the solution. The Chargers are the linchpin that makes it all happen.

All proposing a stadium solution want housing included (except the one "give it back to nature"), regardless of with or without the stadium

Its the Chargers’ call: everyone will follow their lead

Second article calls for lead agency to head the development. This is not a good idea. A major developer reporting to an agency, perhaps, but a government group managing the development is, as always, amateur hour. Let them be government, etc., but let real developers do the actual developing

Mixed-use football complex with housing would fit into Mayor’s "City of Villages" growth-management plan touted by the Mayor.

Chargers need to consider putting up the $5 million planning monies to show good face re staying and re working it out with all the other stakeholders, and to demonstrate they have a stake and will pay their fair share.

The team revenue from the DGSM solution would generate a minimum of $200 – 300 million a year, which is greater than the Forbes magazine estimated Charger’s 2001 revenues of $119 million/year, with a payroll of $71.8 million and operating profits of $8.9 million.

Chargers need a full throttle PR campaign (its lack suggests either that they haven’t made up their minds about L.A. or whether to stay or they think the city will rescue them). The reality is that L.A. won’t take them without their selling control of the team if done by AEG, and San Diego will facilitate but not put up the money they need for financing but not funding.Additional revenue should be put into operations and profits, not all into player salaries.

Chargers need to put on table, NOW, a plan to become competitive in the future, and to field great games even if they lose, working their way to their wins (great games, win or lose, fill seats, but poor team looking minor league will not).

Third article on Miller fields shows need to truly appreciate fans (not just raise ticket prices) and plan to accommodate THEIR pocket books with stadium design and fiscal plan, not the designer’s.

Teams without solid PR plans will lose the perception battle in the eye of the public

Fans want their teams; they want a show of commitment from team to commit back

Solid PR can generate fans in the seats Re: "A Bolt of Skepticism"

Economic arguments seem based on previously held pro or con NFL, not economic facts, and whether or not pro or con NFL or pro or con public $$. Old paradigms prevail; 21st century is ignored.

Diverts from other spending myth

• But who else will create jobs or get the revenues?
• Tourism industry is all about diverting tourist TO San Diego
• If no football, people will spend elsewhere, YES, but NOT in San Diego; Chargers help keep Sand Diego money in San Diego
• If diversion thesis is correct, how come as more and more fast food franchises opened, the old ones didn’t disappear? Ditto continued development of major malls and strip malls. They have all continued to thrive.
• The pie and the population continue to expand. Too many of the theories are way off the empirical reality
• PLUS: tourism is ALL ABOUT diverting people TO San Diego, and a Mission Valley football etc. complex is all about that diverting of others to San Diego
• Being COMPETITIVE is just as important for the City as it is for the Team

Too often "some economists" are used without mentioning names

Theories range from great economic value to amenity/livable/quality of life value only

But, $295 million from last Super Bowl

NFL studies show teams represent $100s of millions/year for stadium city/region

[One article not mentioned talks $1 billion in direct, $1 billion in indirect, which may well be high but certainly is significant]

Misses economic benefit of KEEPING the money in San Diego

Amenity value and free advertising of games and Super Bowl only FORGETS that with tourism the 3rd largest industry, Super Bowls and NFL games help make the industry and all that feed off it

Notion of team in town lowers per capita income $10/year is hogwash. Show me the econometric model. This is another "theory" to create another expert to be paid to be a professional consultant call girl on call.

Reality says the assumptions of the drop in income would not hold up. Like saying breast milk causes heroin addiction as so many heroin addicts breast fed

Noll writes from the perspective of an ideologue: it fits his ideology well but does NOT fit empirical reality

• Especially his "football is an amenity only" argument
• His stadiums block investment theory is wrapped in "may" without any citation or example
• Ditto his theory of football stadiums have slight negative effect on the local economy: no example, no citation, despite NFL studies and San Diego’s studies to the contrary
• His stadiums and Super Bowl are better fits for cities that don’t attract tourists, as Detroit, goes against fact that NFL rarely goes to cold cities for Super Bowl and no one else is tearing down Detroit’s doors (despite losing significant population, Detroit has just built two new stadiums, one for the MLB Tigers and the other for the NFL Lions).
• 

 

Raising question of whether Chargers cause companies to move or stay is giving to the Chargers BOTH credit it deserves and doesn’t deserve; the answer is in the middle.

Notion that creative types of new economy would prefer arts and hiking trails to stadiums goes against the empirical reality that most people like to sit to be entertained; we didn’t become half obese because people are out hiking and enjoying nature. This is a real leftist bias statement with no empirical base in fact.

Notion that biotech and telecoms would come and flourish without the Chargers is a false argument, as it claims they would have moved here anyway because of the weather. IF the weather is ALL important, then why haven’t all the rest of the country’s biotech firms and telecoms moved to San Diego? Why does wretched weather cities (year round wretched) New York City and Washington DC claim many more people than San Diego?

• The notion that putting up the money for 250 university professors rather than a stadium fails to realize two things: (1) the stadium will generate its own money and not need tax payer dollars to thrive; (2) the 250 profs would require untold millions more to build classrooms and laboratories and offices, ALL of which would have to be tax payer subsidized
• Rick Florida’s notion that people would go to where they don’t go, as in Detroit (his example) ignores the fact that NO ONE wants to go to cold winter/humid summer Detroit AND they are losing population, not gaining. Florida obviously wishes he was not in Pittsburgh and was in a warm climate. So he should move if he followed his theory.

False focus on money for the team rather than for the public-private partnership

• Myth that the City should make a profit needs to be replaced with reality that the City is a facilitator which should NOT subsidize the stadium or team
• Cities are NOT in the business of making profits.
• Cities are in the business of facilitating companies making profits so they can pay taxes.
• NONETHELESS, as the City DOES own the stadium, it SHOULD run a positive cash flow, not a negative one.
• City schools, libraries, zoos, museums, do NOT make a profit. They are all SUBSIDIZED. By this argument, so should be the stadium, which is why owners call for it. BUT times have changed; stadiums don’t need that kind of subsidy any more.
• Argument for PROFIT for city is off base: City is a facilitator to make things happen and then provide taxes to pay for the privilege
• Need plan that is profitable for ALL, not just Chargers
• A public-private PARTNERSHIP will give those in the profit sector profits and those in the non-profit sector tax revenues for other things, but no debt with stadium
• 40 revenue generating ways in 26 categories provides cash flow for everyone

False focus on ability of stadium to generate monies for the team

• Misinterprets 21st Century stadium realities
• Early 20th century = public financing
• Late 20th century = team financing with public money
• 20th Century: revenues all from inside the stadium
• 21st Century: revenues from inside AND outside the stadium in public-private partnership
• San Diego has to get off of old paradigm thinking: protecting its wallet against the team, and work to fill BOTH wallets, city’s and team’s
• Jerry Jones makes $200 million/year on Team, not stadium, on revenue streams both inside AND outside the stadium. DGSM model would boost TEAM revenue another $100 million ($200-300 million total to start) plus another $100-200 million and more (depending on how the retail components are structured) for the rest of the mix-use facilities

Football as an amenity

• Uses old data of old paradigm
• Misses new uses today as seen by Jerry Jones or other examples DGSM has given
• Misses economic asset base of team
• Treats NFL as unifying water cooler topic only
• Ranks with parks, zoos, museums, theatres
• BUT none of these achieve the emotional commitment/bonding city wide
• None of these provide the high end per use revenue
• None of these provide extra revenue activities like the Super Bowl

Super Bowl should not be discounted

• Whether $250 million or $295 million, that is still a lot of money, especially if it can be once or twice a decade, which a new stadium can deliver.
• Super Bowl money needs to be factored into payment of stadium
• Top US and world execs coming to Super Bowl provide prime opportunities for selling the city to them for plant/office location and convention going
• To say those who come for Super Bowl would have come anyway needs to address the question: what else would fill 169,000 hotel room nights in a week?
• 

Re: "The Q Factor"

• Most of the experts see it as either the call of the Chargers or the call of both the Chargers and City working together.
• Downtown business group highly opposed to quick fix or insider deal.
• They are also opposed to making it a second downtown (which only a city planner, not a businessman would dream up)
• [It should be noted that with a Mission Valley mixed-use football complex, there is plenty for everyone]
• [Also: 166 acres for housing development would have to be expensive housing; 500 acre Naval Training Center, 316 acre East Village, and 232 acre former General Dynamics complex are better suited, as are rehabbing dilapidated city areas and adding to the concentric rings around the city]
• Manhattan Battery Park draws on 8 million people, San Diego would not
• $40 square foot value of land, as city owns it, is indeed cheap (that was the high end in NYC office space in 1985, although there was also $10-20/sq foot space in other buildings
• Cheap land for affordable housing would wind up under formula: a percentage. There would have to be luxury housing to provide the revenue for all of the infrastructure needs that affordable housing on such a small piece of land could NOT generate. AND, once the first set is sold, the prices will escalate fast, given the location, and those in the "affordable" range will no longer be able to afford housing.
• All housing, etc., would generate FAR LESS/year revenue for the city than would a mixed-use football complex, that would still have housing
• The site has to be redesigned, regardless of whether Chargers stay or not
• Parking can be handled through multi-story garages as at Mall of America
• Transit stop can be used to mitigate parking as in other stadium cities (requires wider planning)
• 21st century infrastructure looking ahead 50 years can be integrated into the siteRe: "Brewers latest to demonstrate that new stadiums draw fans...as long as you field a winner"
• Shows difference in how well run NFL is than MLB
• 12 new stadia since 1992
• MLB has poorer product obtaining fewer fans
• Shows MLB has hidden behind the promise of stadia rather than the management of teams
• Poor quality teams can’t draw high quantities to the ball parks
• Shows how view of people regarding owners is very important to fan attendance
• Its not so much losing as looking like amateurs that keeps fans away
• Solving the weather problems (retractable roofs) didn’t solve the attendance problems

Arizona Cardinals as Relevant Model for the City of San Diego and the San Diego Chargers

1. Az Cardinals offer yet another model and story that can relate to San Diego. They are planning a public partnership that could be overlayed on Mission Valley.

2. Their stadium site will be selected at the end of August 2002 by their Sports Authority. Construction could then begin immediately.

3. Glendale is in the lead (3 communities are vying for the right to build it).

4. Glendale’s proposed stadium features a retractable roof, a retractable side and a retractable field that moves in and out of the structure so that the grass will be able to absorb more sunlight.

5. The Glendale proposal also figures a park, tail gating area, etc.

6. The Glendale web site states that the stadium is seen as a

a. "catalyst for the continued economic development of the West Valley with new hotels, restaurants and retail shopping anticipated to be built on the land surrounding Glendale’s proposed site." This would fit well with San Diego.

b. Another quote: "The proposed facility definitely has numerous regional benefits and enhances our current investment in developing the Western area. Glendale is the best home for the Cardinals."

c. AND: "Creates a unique, world-class sports, entertainment, and business destination."

d. "In a strong show of solidarity, all 11 mayors of West Valley cities and WESTMARC, a regional coalition representing western Maricopa County, are pledging their support for Glendale’s proposal to the Tourism and Sports Authority (TSA) to build the new Arizona Cardinals football stadium next to the planned Phoenix Coyotes hockey arena."

e. Financing is to be done through issued bonds and parking and other narrow, site related revenue.

f. The Glendale stadium web page, an excellent site, has more:

1. Power point presentation at http://www.glendaleaz.com/Stadium/PressConferencePresentation.cfm
2. Additional web site features re stadium at http://www.glendaleaz.com/Stadium/ProposalUnveiled.cfm

PeterJessen-gpa.com
Peter J. Jessen
9931 SW 61st Avenue
Portland OR 97219

Tel: 503-977-3240
Cell: 503-913-3849
Fax: 503-977-3239