When Anaheim Falters, Disney Gives It a Boost

Like a yo-yo tethered to the hand of the Walt Disney Co., Anaheim’s fortunes rise and fall every time the entertainment giant twitches.

When the city owned a vacant new arena, Disney filled it with what has become one of the most valuable professional hockey teams ever.

When the city needed to revitalize its stagnant downtown, Disney broke ground on a multipurpose ice-skating rink designed by world-renowned architect Frank O. Gehry.

Now, as the city was licking its wounds from the departure of the Rams, Disney once again stepped in to transform defeat into victory. By buying a piece of the California Angels, the Disney corporation expands its empire in Anaheim and seizes an opportunity to grab a larger share of the region’s entertainment dollar.

The Disney-Angels deal also will give a hefty boost to Anaheim’s plans for a major retail and sporting complex near The Pond and Anaheim Stadium, city officials said.

“We’re as happy as the devil over here,” said City Manager James D. Ruth. “The city has had a wonderful 40-year relationship with the Disney Co.”

Savvy Disney officials always seem to time their ventures in the city when they can profit the most. But Anaheim doesn’t mind. Nor does the county.

“What a shot in the arm for Orange County,” Supervisor William G. Steiner said. “It’s a great time for this to happen. Our self-esteem hasn’t been the best because of the bankruptcy. This is nothing but a plus for Orange County.”

Anaheim’s reliance on Disney for economic opportunity was never as evident as it was recently when the city banked its future on a proposed $3-billion Disneyland expansion project that was shelved by the company last January.

Since then, the city has moved forward with a $172-million revitalization plan around Disneyland and the Anaheim Convention Center, but it has done so without the firm commitment of a Disney project.

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It is not known exactly when Disney will return to the city with a new version of the expansion plans, which could be either a much more modest proposal than the massive resort once envisioned, or a large project built incrementally.

But city leaders think Thursday’s developments are a positive sign that some sort of expansion will occur.

“This is the best thing that could have happened to us,” Councilman Lou Lopez said. “I think buying the Angels will inspire them to go on with the Disneyland expansion.”

The city was also moving forward on its own with plans to build a massive sporting and retail complex in the area of Anaheim Stadium and The Pond. Disney’s partial ownership of the Angels is expected to significantly buoy those ambitious ideas.

“This just enhances all opportunities,” Councilman Bob Zemel said. “Everything we’re working on just got easier.”

While Disney’s timing appears to be perfect for its own interests, Mayor Tom Daly said the timing is also great for the city.

“Now that we know who the new partner will be, we can redouble our efforts to create a more valuable sports complex on the arena and stadium properties,” Daly said. “Our goals are one in the same: to create a quality environment for visitors and to deliver a quality product.”

In February, the city hired a consulting firm to develop a master plan to revitalize an 807-acre area that includes the Big A and The Pond. The consultants have been charged with the task of exploring ways to link the city’s sports facilities to other tourist destinations, such as Disneyland and the Anaheim Convention Center.

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What exactly would be built in the area--now primarily devoted to an office building complex--has yet to be decided. But restaurants, stores and a trendy virtual-reality entertainment center in a park-like setting of canals and landscaping have been discussed in the past by city officials.

Among the consultants involved in the planning are Jerde Partnership Inc., the firm responsible for designing the popular CityWalk in Universal City. The company’s work, which began in March, is expected to take about eight months.

“We have great plans for that area,” Ruth said.

Disney will also benefit from ongoing negotiations between the city and the Angels over a new lease that would include a new baseball-only stadium to be built next to the Big A. Those negotiations had been stalled in recent months. But with Disney as a new minority owner, negotiations are expected to accelerate.

Because the Angels have long called Anaheim home, nothing new is being brought to the city by Disney’s purchase of part of the team. But what makes the deal so enticing is the company’s ability to put its powerhouse marketing skills behind the franchise.

“After what they did with the Mighty Ducks, Disney knows they can take a team and market it to create an exciting atmosphere,” said Anaheim Chamber of Commerce President Jeff Farano.

Already Disney officials say that they have marketing plans that will package sporting events with overnight stays in their hotel and admission into their theme park. In typical Disney fashion, the company wants to corner the entertainment and tourism markets.

“With their marketing skills, Disney is able to promote the team and the area,” Farano said.

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Disney’s decision may also help the city in its efforts to land another professional football team. Anaheim’s reputation as a venue for professional sports teams took a tremendous beating when the Rams relocated to St. Louis--a move that was approved by the National Football League in April.

Now, city leaders say they feel vindicated.

Ruth said Disney’s commitment to the professional sports in the city should dismiss “any fears people have about marketability of sports in the city.”

“I’m convinced that sports in Anaheim will now actually be a second gate attraction,” Zemel added. “The possibilities are endless when you consider tying the resort area into stadium development.”

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The Mouse Roars

The Walt Disney Co.’s decision to acquire 25% of the California Angels will leave the company with control of daily baseball operations. Disney also has an option to purchase the rest of the team.

California Angels Profile:

Team owner: Gene Autry

Year formed: 1960

Autry’s purchase price: $2.45 million in 1960

Estimated current value: $120 million (based on reported Disney purchase price)

First season: 1961

Division titles: 1979, 1982, 1986 (lost in playoffs each time)

Cumulative record: 2,600-2,796 (.482 winning percentage)

High-profile stars: Nolan Ryan, Reggie Jackson, Rod Carew and Don Baylor

The Deal: Disney could end up buying the whole team. Here’s how ownership will be split for now:

Disney: 25%

Autry: 75%

Source: Times reports; California Angels Media Guide

Disney and Sports

If the partial sale is approved by Major League baseball owners, the Angels will take a place in Disney’s growing sports empire, which also includes:

The Mighty Ducks, a National Hockey League franchise whose worth was recently pegged at $108 million, second highest in the league.

A 90,000-square-foot community ice center being constructed in Anaheim.

A 1.1-mile oval track at Disney World in Florida, scheduled to be the site for an Indianapolis-style car race next January.

A 100-acre international amateur sports center that will be home for the Amateur Athletic Union and will include a 7,500-seat stadium, field house, tennis arena and training and fitness facilities.

The Walt Disney World/Oldsmobile Golf Classic, a $1.1-million PGA Tour event.

The Disney World Marathon, the last of which attracted 12,000 runners.

The Disneyland Marathon, which drew 8,000 combined for 26.2- and 3.1-mile races in March.

Source: The Walt Disney Co.