The Business of Sports

Marlins Stadium Update No. $2.4 billion

Thu, 09 Jul 2009 23:58:30 -0500

At the same time out of work construction workers swarmed the grounds where the Orange Bowl once stood for a shot at a job on the Marlins’ $515 million ballpark, critics were gasping over the $2.4 billion it is expected to cost to pay off the construction bonds for the project.

Miami-Dade County officially released the financing costs for the bonds late this afternoon, but the Miami Herald had already published the numbers. The $2.4 billion is the cost over 40 years to pay off $409 million in bonds, most of which will go to the ballpark.

There’s been no shortage of criticism of the numbers, including by our own Mike Mayo, especially since County Manager George Burgess told commissioners last week he didn’t know the final costs, as he was asking commissioners to approve increasing the interest rate on a portion of the bonds. The financing schedule takes into account the higher than anticipated interest rate and backloads higher debt service payments to ensure the county has collected enough tourist tax dollars to cover the payments.

In his memo with the financing schedule, Burgess stressed the county is working hard to avoid dipping into the general fund, which has been pledged as a secondary funding source, should tourist tax dollars fall short.

“The bottom line is that the transaction was structured within the constrained tourist tax revenue streams in a way that will significantly minimize any exposure to the secondary pledge of the bonds,” Burgess wrote.

There’s also the possibility the bonds can be refinanced when credit markets improve.

Put simply: there’s no question the project relies on a huge sum of public dollars. County officials call them tourist tax dollars, which have a restricted use. That’s true, but they are still public dollars.

But don’t forget that when you buy a house, you pay a lot more than the asking price over the life of your mortgage. For example, if you bought a $200,000 home with 6 percent interest, you’d end up paying $431,626 over 30 years – or more than double the sale price.

The bonds for the stadium construction, which were mainly sold to institutions, are scheduled to close July 14. The team has scheduled an official ballpark ground-breaking at 10 a.m. July 18.

Yahoo and NFL Players settle suit over fantasy stats

Tue, 07 Jul 2009 22:42:01 -0500

Yahoo Inc. has dropped its lawsuit against the NFL Players union over paying for the right to use players’ names and statistics in its fantasy football games. The two sides reached a settlement, but the details weren’t disclosed.

Yahoo filed suit in federal court in Minneapolis last month, following the lead if CBS Interactive, which sued the players union last year on behalf of Fort Lauderdale-based CBSSports.com. A federal judge ruled in CBS’ favor in April that the names and stats are protected by the First Amendment.

That ruling followed an earlier federal appeals court decision in a case involving Major League Baseball that said MLB players’ names and stats are in the public domain. Both CBS and Yahoo believed the baseball ruling applies to football games as well.

The players association has appealed the ruling in the CBS case.

The Fantasy Sports Trade Association has supported Yahoo and CBS in their legal action, but has contended repeatedly that the fantasy game providers and leagues should work together to promote the games.

Andrew Feffer, the union's chief operating officer and executive vice president, told the Associated Press the NFLPA and Yahoo "continue to explore additional opportunities to work together."

Panthers reduce season ticket prices on thousands of BankAtlantic Center seats

Tue, 07 Jul 2009 13:44:25 -0500

After studying the issue and surveying fans, the Panthers are reducing season ticket prices on thousands of seats for the 2009-10 season and offering tickets in the upper bowl for as low as $7 a game and in the lower bowl for $35 a game.

The team had promised to freeze season ticket prices, but is instead reducing prices in 11 of 14 seating categories across BankAtlantic Center, marking what Panthers President Michael Yormark calls the “most aggressive price reduction we’ve had in the history of this franchise.”

Price reductions for full season ticket plans range from $2 to $17 a game. Among the reductions: Terrace level seats are dropping from $9 to $7 a game; Goal Zone from $17 to $12; Lexus Club from $60 to $55; Lower Bowl Sidelines from $77 to $65; and Premium Plaza Middle from $82 to $72. Half-season and mini-plan prices are also being reduced.

“The goal is to get fans to come to more games,” Yormark said. “We think we’ll also be able to attract the casual fan.”

The team sold close to 9,000 season tickets last season, Yormark said, meaning there’s still plenty of inventory. He says he wants fans who attend a couple of games a season to come to five or six; those that came to a half dozen games to purchase a mini-plan, for example.

The cheapest seats in the lower bowl are the Lower Bowl End Zone, which are dropping from $50 a game to $35. The seats in the shoot once end in sections 105 to 114 Rows 18 to 28, are being redesigned and renamed the “Panthers Locker Room.” Sections of the seats will be named after individual players. In keeping with the team’s effort to provide fans more value with their tickets, fans who buy tickets in those sections automatically become members of that player’s fan club, receiving benefits such as merchandise, birthday cards from the player, pre- or post-game autograph sessions and a learn-to-skate clinic.

“It’s a way to get fans a little closer to the product,” Yormark said.

The team has also renamed the first row and Panther Club rows 2-4, the Premier Lounge and is making it a new all-inclusive club with dining and lounge location. The first row stays at $207 a game, but the Panther Club drops from $132 a game to $115.

Fans who have already purchased season tickets have been informed of the reductions and will receive either refunds or other benefits such as BankAtlantic Center bucks good for concessions, Yormark said.

As part of their plan to market the price reductions, the Panthers have enlisted the help of NFL super agent Drew Rosenhaus. Rosenhaus is appearing in TV, print, and radio ads to promote the team. The ads break today:

Marlins offering unemployed fans chance to sell tickets

Mon, 06 Jul 2009 12:21:19 -0500

The Marlins have been giving away mortgage or rent payments or $2,500 each at Saturday games and offering free tickets to unemployed South Floridians on Mondays this season.

Continuing its "Economic Relief " programs, the team is offering out-of-work fans a chance to make money by selling ticket plans. Qualified registrants, who are at least 18 and will be paired with sales executives, can earn commissions of up to 10 percent and bonuses.

Register for the Marlins Community Sales Force through July 19 at marlins.com or at Land Shark Stadium. The program runs July 20 to Feb. 15, 2010. The team will consider hiring successful sellers full-time.

The Marlins are just a game out of first place in the NL East, but selling tickets to the team has never been easy. The team, which is averaging 18,117 tickets sold per game, currently ranks last in attendance among baseball’s 30 teams.

Given the state of the economy, is it more difficult to find a job or sell a Marlins season ticket plan?

Checking in with new Dolphins CEO Mike Dee

Sat, 04 Jul 2009 10:02:14 -0500

Had a chance to catch up a little bit with new Dolphins CEO Mike Dee this week.

The veteran sports team executive, who joined the Dolphins in May after five years as Chief Operating Officer at the Boston Red Sox, is as enthusiastic about enhancing the business side of the Dolphins, as his new boss, team owner Stephen M. Ross.

Dee shares Ross’ philosophy that owning and running a franchise is akin to being the steward of a community asset. The two want to be as inclusive as possible with all fans, Dee said: “We have a new saying that: no fan gets left behind.”

That partly explains the new partnerships with Jimmy Buffett and Gloria and Emilio Estefan. Dee reiterated that while Ross’ priority is winning, he wants to ensure an entertaining fan experience, too.

“We want to make sure everything we do is fun, looking through the lens of the fan,” Dee said. “Steve’s career and his success has been built on being avant garde. He’s a bold aggressive entrepreneur. That’s what attracted me to him. He lives outside the box. That’s what makes him successful and also what makes it fun.”

The changes being made are Ross putting his “own stamp” on the team,” Dee said.

And it’s the success of the business side, Dee says, that can help the football side make upgrades and sign new players.

Among Dee’s challenges is boosting season ticket sales. Season ticket sales dropped to 47,000 in 2008, from 54,465 in 2007 and 61,121 in 2006. Dee said he expects the team to sell about 50,000 in 2009, but he’s aiming for more than 60,000 in the next few years.

“Season ticket holders are the lifeblood of your franchise,” Dee said. “We have some work to do.”

The Land Shark Stadium concession stands are being upgraded. The 100 and 400 level concession stands are being equipped with 180 flat-screen digital menu boards – just like the 110 that were installed on the club level in 2007 during the stadium’s $300 million renovation.

He said the team is also evaluating the ticket pricing in the 100 and 400 levels.

Expect more announcements of enhancements in the coming weeks. Stay tuned...

Putting his money where his mouth is: Dee says he’s making a contribution to the Dolphins Foundation each time he references the Red Sox.

Reminder: follow me on Twitter @sarahtalalay

Marlins ballpark ground-breaking tidbits

Thu, 02 Jul 2009 18:06:24 -0500

With construction bonds sold and grading work started at the former site of the Orange Bowl, the Marlins officially announced their “ceremonial” ground-breaking with a release this afternoon. It’s at 10 a.m. Saturday, July 18 at 1501 NW 3rd St., Miami.

There will be all the usuals you’d expect: team, Miami, Miami-Dade County, state and Major League Baseball officials, Billy the Marlin, the Mermaids, the Manatees. Marlins broadcasters Dave Van Horne and Felo Ramirez will host. New renderings and a video will be shown.

The first 1,000 fans to show up at the free event will get a coupon for a “ballpark-style lunch” and a ground-breaking pin to commemorate the occasion. Original Marlins Charlie Hough and Benito Santiago are to conduct a ceremonial first pitch, in honor of their role as the “first ever ‘battery’ in franchise history.” All fans will be able to shovel dirt where home plate will be in the new ballpark.

But here’s my favorite part of the press release – a sports business sentence like I’ve never seen - ENJOY:

“The Badia Spices Groundbreaking Ceremony, built by the Florida Carpenters Regional Council, is presented by South Florida Ford Dealers, Preferred Care Partners and Baker Concrete Construction.”

Meanwhile, the team is holding a “groundbreaking” essay contest. The prize? Serving as honorary participant in the groundbreaking ceremony and getting a groundbreaking shovel, personalized Marlins jersey and four infield box seats to a 2009 regular season game at Land Shark Stadium.

The contest is open to kids ages 6 to 12, who must describe in 500 words or less – in English or Spanish - what a new Marlins ballpark in Miami means to them and why they want to play a role in the groundbreaking. Submissions will be accepted until 5 p.m. July 13 online at marlins.com or in person at the team’s offices at the stadium, 2267 Dan Marino Blvd., Miami Gardens.

Marlins Stadium Update No. Scene 1

Wed, 01 Jul 2009 23:42:50 -0500

Project: Marlins new ballpark
Director: Jeffrey Loria
Dir. Of Photog: David Samson
Date: July 1, 2009
Scene: 1; Take 1 (aka 7 billion)

Work finally began at the site of the new Marlins ballpark in Little Havana today. Workers began moving the dirt, grading the site where the Orange Bowl once stood. Marlins President David Samson called it essentially flattening the ground. (See photo by the Marlins' Robert Vigon below).

Workers arrived at the site at 7 a.m., just hours after Miami-Dade County Commissioners took the final votes (9-3) needed to ensure the sale of the bonds to pay for construction so the project could move forward. That almost didn’t happen. The deal was almost derailed again late Tuesday, when County Manager George Burgess told commissioners the county had fallen about $6.2 million short in its effort to sell the bonds.

Neither the county nor the city would agree to put any more money into the deal to build a $515 million, retractable roof stadium. The Marlins said they’d cover the gap, but some commissioners worried about the county’s liability, changing the deal again and why, if the team was willing to give more in the final hour, the county hadn’t extracted more from the team in the deal.

Team and county officials worked into Wednesday morning to craft changes to the deal that would incorporate the team’s agreement to cover the gap and allow the county to sell some of the bonds at a higher interest rate than anticipated. The commission voted at 1:10 a.m. The changes are to go to the city of Miami or approval, but the county ensured the project could still go forward, even if the city rejects them.

"If last night had not worked out and there had been a termination, that would have been the end of baseball in South Florida,” Samson said. “What we decided as a team was that it was enough. It was time to start.”

Unless the bond sales do not close – something Samson doesn’t anticipate – the project is to move forward with an official, ceremonial ground-breaking scheduled on July 18. Samson said “There are no hurdles.”

Burgess said the bonds were sold Wednesday afternoon with a closing date later this month.

The Marlins have been trying for years to secure financing to build a new ballpark with a roof so they can protect fans from heat and rain and control their own revenue. At Land Shark Stadium, the team pays rent and receives only percentages of revenue from concessions, parking and advertising signage.

Burgess said he was feeling “very good” about the state of the project.

“Projects like this that are this large and complex, I don’t know that I’ve ever encountered one of these kinds of game changers that can have an impact and found it to be easy,” Burgess said. “The North Terminal [of the airport] has not been easy, but it has an enormously significant effect. In the long run it helps define a community … We’re going to look back and this [ballpark] is going to be a wonderful addition to this community.”

Marlins Stadium Update No. $6.2 million (UPDATED 1:10 AM)

Tue, 30 Jun 2009 23:39:52 -0500

Miami-Dade County fell short by $6.2 million in its effort to sell bonds for a new Marlins ballpark Tuesday, but site preparation work is expected to begin Wednesday morning at the former location of the Orange Bowl.

Although the shortfall in the bond sale threw the ballpark deal into disarray for several hours Tuesday night and into early Wednesday, the deal appeared to be back on track, after the Marlins agreed to fill the gap should the dollars be needed to complete the 37,000-seat retractable roof ballpark.

The commission debated from about 7 to 9 p.m. and then what was meant to be a 45-minute break stretched on for three and a half hours. The commission finally returned at 12:30 a.m. Wednesday and voted 9-3 for changes that will allow the deal to move forward. Commissioners approved three items, including agreeing to a higher interest rate on the some of the bonds and adjusting the county's commitment to the project to $341 million down from $347 million.

Earlier in the evening, County Manager George Burgess told commissioners the county had planned to sell $306 million in bonds, but fell short by about $6.2 million and a portion of the bonds were set at a higher interest rate than the county had expected. That means the county’s commitment to payments will remain the same, but the gap needed filling. Neither the county, nor city were willing to step up, Burgess said.

“At end of the day, we’re extraordinarily close,” Burgess told commissioners. “We’ve had conversations with the team. My ask of them was, ‘If we’re short, are you prepared to be able to cover the difference’?”

Marlins President David Samson insisted the team would -- and the public would not be asked to put more into the deal.

“We made a commitment in March," Samson said. "That commitment was there would be a certain amount of money the public would be committing and not one dollar more.”

Worried construction workers would not be able to begin working, Samson said the team would cover any additional costs.

“If this building costs $515 million, the team will put in what’s required,” Samson said. “If it costs $512 million that is what the team will do.”

You can see equipment on the site via the team’s ballpark webcam. A formal ground-breaking is scheduled on July 18.

Not to get too technical here, but while the bonds backed by the professional sports franchise facilities tax portion of the hotel tax were sold at a lower interest rate than anticipated, those backed by the Convention Development portion of the hotel tax were set at a higher rate. The “blended rate” of the two taxes fell within the county’s 7.5 percent cap, but the commission needed to sign off on the higher cap of 8.2 percent for the CDT-backed bonds.

Some commissioners worried about encumbering more taxpayer dollars, tapping into the county’s general fund if hotel dollars fall short during the life of the deal, and continuing to adjust a deal that has dogged them for years, but may finally result in a ground-breaking in a few weeks.

Commissioner Sally Heyman wanted Samson to agree to cover the $6 million shortfall rather than agreeing to cover any additional costs. Commissioner Katy Sorenson worried the county didn’t bargain hard enough while the deal was being negotiated.

“We can see clearly the Marlins have more to give and clearly have had more to give all along and it’s an example of why we can see this isn’t such a great deal for our constituents,” Sorenson said.

Panthers fans “hire” Drew Rosenhaus to negotiate ticket prices? (UPDATED)

Tue, 30 Jun 2009 12:21:44 -0500

Got your attention, right? That’s the idea.

If he can negotiate the price of ESPN talent’s lunch in an ad for ESPN’s SportsCenter (see ad below), then why can’t super NFL agent Drew Rosenhaus help out the Panthers fan with his or her ticket prices?

OK, to be clear: he has not really been hired by fans to negotiate ticket prices – who, after all, is going to pay for that? -- but he is being used as part of the Panthers’ plans to market the team for the 2009-10 season.

He tweeted about it - in all seriousness - earlier today.

“As a longtime Panthers fan and a person who believes in giving sports fans the value and the atmosphere they deserve, I am absolutely thrilled to represent the Cats faithful at the bargaining table,” Rosenhaus says in a press release issued as part of the campaign. “That said, this a unique situation for me to represent the fans as opposed to professional athletes. But as a passionate Cats follower, I’ve got my finger on the pulse of the BankAtlantic Center faithful.”

Panthers President Michael Yormark said he's gotten just the kind of response he'd hoped: attention and national media calling to talk about the "negotiations."

"We wanted to create an out of the box, unique and different type of ticket marketing campaign," Yormark said late this afternoon. “It’s getting us top of mind, we haven’t even launched our campaign yet."

Rather than just send out a press release with new ticket pricing that might languish in emailboxes, the Panthers wanted to create a buzz. And figured, why not have Rosenhaus, a well-known South Floridian, help start it?

"What we’re trying to do is raise awareness for this announcement of our new pricing. We don’t expect Drew Rosenhaus to sell tickets for us, what we do expect is Drew Rosenhaus is going to help us introduce new pricing," Yormark said. "He opens up doors for us, we might not have been able to open ... You want people thinking about your product, thinking about the Panthers."

Rosenhaus will be appearing in TV, print and radio ads on behalf of the Panthers set to break next week. That's when we'll learn about the new ticket prices, too.

Apparently Rosenhaus is a Panthers fan, so does it make sense to have one of the region’s most recognizable figures in sports promote the Panthers? What do you think?

Dolphins team with marketing company for travel packages

Mon, 29 Jun 2009 15:35:37 -0500

The new business developments keep coming from the Dolphins and Land Shark Stadium. OK, this one isn’t about a celebrity (Jimmy Buffett, Gloria and Emilio Estefan) or added technology (Kangaroo TV handhelds for premium seat holders).

It’s a multi-year marketing partnership with Premiere Global Sports to provide travel packages to Dolphins home and away games and special events. The company is designing packages for Dolphins away games that start at $245 and include two-night hotel stays, game tickets and a game-day souvenir. The packages for fans from out of South Florida for home games start at $345 and include two nights at the Courtyard Fort Lauderdale Beach, game tickets and a souvenir.

For more information and to book packages, visit sportstravel.com/dolphins.

The company has worked with a number of teams, including arranging trips for New York Rangers fans to Prague for the team’s opening series last year and is arranging trips for St. Louis Blues fans wanting to attend the opening series against the Detroit Red Wings in Stockholm in October.

It’s on: Twash-talking and twagering hit Twitterverse

Sat, 27 Jun 2009 11:50:13 -0500

When I wrote a story in March about how sports fans and teams were using Twitter to do everything from play-by-play to sharing promotion and ticket discounts, I included a reference to a friendly wager.

This was before Twitter essentially exploded – teams were just getting their feet wet using the social messaging system and fans were clamoring for them to keep up. Plantation marketing executive and Panthers fan John Sternal had put the Panthers logo on the line in a bet with a couple of Chicago Blackhawks fans. When the Panthers lost the matchup between the two teams, Sternal had to put the Blackhawks logo on his account the following day.

Avid tweeters, Sternal and Toby Srebnik, a sports fan from North Lauderdale and public relations executive, have now significantly upped the ante. Sternal, a Marlins fan, and Srebnik, a Tampa Bay Rays fan, have been betting the Marlins-Rays series this season. Of the two three-game series, the fan of the team that loses each series must post the rival team’s mascot on his Twitter page for the following workweek. The Rays won the first series in May, so Sternal had to post a photo of the Rays’ mascot Raymond as his avatar.

They’ve even named their bet #billyrayavatar – in Twitter parlance – after Billy the Marlin and Raymond.

They each began sporting their team’s mascot this week. And Srebnik is already ahead again with the Rays beating the Marlins 7-3 in St. Pete last night. They’ve been trash-talking much of the past few days. Follow their adventures at #billyrayavatar. Sternal is @SternalPR; Srebnik is @fsutoby.

And don’t forget to follow me @sarahtalalay

Donald Pliner shoes for the Dolphins?

Fri, 26 Jun 2009 13:17:39 -0500

The introduction of Gloria and Emilio Estefan as minority investors in the Dolphins on Thursday had a festive air: an Estefan greatest hits soundtrack, a Cuban coffee station, plenty of Latin entertainment and lifestyle media – and even a journalist from an Italian style magazine.

Among the media, Dolphins and stadium officials were Related Group CEO Jorge Perez, who is Dolphins owner Stephen M. Ross’ business partner and the guy who introduced Ross to the Estefans, and luxury shoe designer Donald J. Pliner.

Pliner made a beeline for Ross after the press conference. He offered to make slip-on street shoes for the Dolphins. The two pairs he’s considering for the team are his T Rex (photo left) and Uwait (photo below).

Pliner makes shoes for former Heat center Shaquille O’Neal and retired Heat center Alonzo Mourning. He works with the Heat and Los Angeles Lakers. Perez wears Pliner’s shoes. So does criminal attorney Roy Black. The Estefans are his neighbors on Star Island.

The shoes Pliner has picked out for the Dolphins are made of breathable micro-fiber. “It’s more expensive than leather, but it stimulates the blood vessels, stops your feet from getting tired, keeps the blood flowing it has memory,” Pliner said. “They’re water resistant, it looks like leather.”

He added: “The point is if your feet are uncomfortable so is the body and so is the mind.”

So what was Ross’ reaction?

“He gave me his size and which size to send him first,” Pliner said.

For the record, Ross wears a size 13B. “That’s narrow, which is difficult,” Pliner said. “We’ll fit him.”

Talks to buy Panthers ongoing, suitor’s board could change

Thu, 25 Jun 2009 23:42:44 -0500

We don't yet know if a public company's proposal to buy the Panthers will result in a deal. But talks between Sports Properties Acquisition Corp. and the team are ongoing. And the clock is ticking.

Sports Properties is what’s known as a "special purpose acquisition company" or SPAC. It raised $215 million from investors last year and has until January to use the money to buy a sports or entertainment asset. If the money isn’t spent it must be returned to investors with interest. The SPAC signed a non-binding letter of intent last month to purchase the team for $230 million, but it still could be some time before an agreement is reached.

What makes this story interesting right now is the role of Sports Properties president and CEO Tony Tavares. Tavares is a long-time sports team executive, who has run the Anaheim Ducks, as well as the Los Angeles Angels of Anaheim, the Montreal Expos and the Washington Nationals. He also headed venue operating company SMG.

Tavares is also linked to a group that is bidding to purchase the Phoenix Coyotes out of bankruptcy at auction and keep the team in Arizona. That group includes Chicago Bulls and White Sox owner Jerry Reinsdorf and is completely separate from the SPAC. Reinsdorf’s group is expected to put in a bid on Friday with the auction to be held Aug. 5, assuming the bids are qualified and accepted by the bankruptcy judge.

From what I’m told, Tavares does not plan to do both deals. If Reinsdorf is successful, it’s quite possible Tavares could be installed to run the Coyotes. In that case, he'd most likely resign from the SPAC.

If the Panthers deal occurs first, it’s unclear if Tavares would have a position with the team.

The NHL does allow minority ownership in more than one team: Panthers limited partners, Fort Lauderdale advertising executive Jordan Zimmerman and St. Louis orthopedic surgeon Rick Lehman bought into the Tampa Bay Lightning, too, last year.

It’s unknown how large Tavares’ interest would be in the Panthers or Coyotes, but it’s unlikely the league would allow an executive (and owner) of one team to invest in a second team.

So, we’ll have to keep watching and waiting to see how this all plays out.

Gloria and Emilio Estefan bring entertaiment to Dolphins

Thu, 25 Jun 2009 18:37:42 -0500

The Grammy-Award winning duo, Gloria and Emilio Estefan, became the first Cuban-American investors in an NFL team this morning, announcing their agreement to partner with Dolphins owner Stephen M. Ross.

The Estefans were introduced with a montage video (you can see below) that includes shots of Gloria performing at the Super Bowl (she's performed at three Super Bowls and three Olympic Games). See the other video below that one showing her taping a new version of the Monday Night Football song with Hank Williams Jr. in Nashville on Monday. That version, which includes some lines in Spanish, will be shown before the Dolphins-New York Jets game at Land Shark Stadium on Oct. 12.

Emilio promises to help beef up the game day music: "I would love to play Latin music in the games. That brings a lot of energy to game day."

Asked whether he also might one day install a Bongos Cuban Cafe at the stadium (Estefan Enterprises includes several Bongos and two hotels), he said, that's up to Ross, but he'd be on board.

"Definitely, we’ll bring Bongos here," he said, "we would love that."

Shaq gets new team, sheds Star Island home

Thu, 25 Jun 2009 17:27:00 -0500

Former Heat center Shaquille O’Neal finally unloaded his Star Island home on Wednesday, a day before he was traded from Phoenix to the Cleveland Cavaliers.

Philip Freedman, a broker with Flagstone Realty, said the deal to sell the 2.5 acre property at 26 Star Island Drive closed Wednesday. The home sold for $16 million, far below the $18.8 million O’Neal paid for the mansion in 2004 and the $32 million he was seeking for the home in 2005. He was reportedly asking $22.5 million, but couldn’t get nearly that much in this economic climate.

The home has been on and off the market for years, including when O’Neal threatened to move to Broward County when his family grew tired of the gawking boaters who stopped by to look at the house.

The 19,440-square-foot, two-story home has eight bedrooms, eight bathrooms, a dock, gym, tennis court, indoor racquetball court and a separate guest house. Other Star Island residents include Gloria and Emilio Estefan and Rosie O'Donnell.

The home was originally owned by original Heat center Rony Seikaly.

O'Neal has had contracts out on the home that have fallen through, including one with New York Yankees third baseman Alex Rodriguez in 2007.

Freedman would not identify the buyer, but the Daily Business Review speculates it could be Peter Fine, a co-producer of the Tony Award-winning Broadway musical In the Heights. Fine, the publication reported, had a contract to buy the property for about $19 million and the deal was supposed to close in January.