Disney Will Run Show at the Smaller A

The California Angels will stay in Anaheim for at least 23 more years and play in a refurbished Anaheim Stadium under an agreement reached between Walt Disney Co. and the city Wednesday that paves the way for the company to buy the team--and rename it the Anaheim Angels.

Ending months of on-and-off negotiations, the city and entertainment giant announced an accord, but it will not receive final approval until mid-May.

Although some city council members and community activists criticized the deal, it was hailed by several civic leaders and baseball officials.

“Everyone is a winner today,” said American League President Gene Budig, who joined city, Disney and Angel officials at a news conference after the council’s 3-2 approval. “This agreement will be good for the city, Disney and major league baseball.”

The agreement calls for Disney to fund most of the estimated $100-million stadium remodeling cost and keep most of the revenue from the venue, which likely would no longer be capable of playing host to an NFL team.

In return, the Angels will enter into a 33-year lease with the city, although Disney has the option of breaking the agreement after 23 years. Three of those years would be while the stadium is renovated into a smaller, baseball-only venue. The Angels’ current lease expires in 2001.

Disney also will not oppose the city’s goal to build Sportstown Anaheim, a huge entertainment, sports and retail complex envisioned for Anaheim Stadium property--and scaled back at Disney’s request so it will have more parking spaces for baseball.

Disney chief Michael D. Eisner said, “Naturally, I am pleased that we seem to have found mutually agreeable terms with the city.”

Anaheim Mayor Tom Daly lauded the deal as “a step forward . . . an investment in our community.”

Wednesday’s announcement came after the City Council approved a memorandum of understanding concerning the agreement.

Under the terms of the deal, Disney will put up $70 million toward a $100-million renovation of Anaheim Stadium. The city would pay the remaining $30 million.

Disney will take over operations of the city-owned stadium in October. The fate of the stadium’s 40 full-time employees is not known.

The plan, particularly the cost-sharing of the renovation, was criticized by some council members as too favorable to Disney. Critics also objected to the closed-door negotiations.

Although Disney announced its plans to buy the team from owners Gene and Jackie Autry last May, finalizing the deal has taken more than 10 painstaking months.

The accord was reached exactly three weeks after Disney had declared the baseball deal dead, unable break an impasse with the city after several weeks of protracted negotiations.

Baseball’s owners approved Disney’s purchase of 25% and managing control of the team in January, but the company added a last-minute condition that it would not go forward with the purchase until it resolved stadium renovation and lease issues with the city. Disney set a March 17 deadline for the deal, but talks broke off days before it was met.

The deal, negotiated in private meetings, closed with remarkable swiftness. It was only last Friday that either side would admit to any official negotiations even though a new proposal was floated to Disney by the city on March 22.

Peter Ueberroth, the former baseball commissioner who had formed a group of investors ready to buy the team before Disney stepped in last May, was waiting in the wings to try again when the Disney deal collapsed. But Ueberroth confirmed March 18 that the two sides were still involved in discussions.

In order to reach agreement, Disney and Anaheim said they compromised on some key issues: Sportstown Anaheim, the length of the team’s new lease and sports taxes.

The city had wanted--and got--at least a new 30-year commitment from the team. Disney was seeking a 15-year out clause, but settled on a 20-year option to abandon the stadium.

Sportstown Anaheim, which initially called for about 80 acres of new development on stadium property, will now be pared down to about 40 acres.

Disney’s presence in Anaheim is expected to grow even more dominant later this year when the company unveils plans for a second theme park to be built in the parking lot of Disneyland, seizing yet another opportunity to grab a larger share of the region’s entertainment dollar.

Gene Autry, the team’s founder, bought the expansion franchise for about $2.45 million in 1960. The team first played in Los Angeles at Wrigley Field, then Dodger Stadium, then moved to Anaheim in 1966 to play in the new Big A.

Sources put the worth of the Angels at about $120 million, putting Disney’s 25% share at $30 million.

The Autrys have long hoped to rid themselves of the day-to-day operation of the Angels, while remaining prominent fixtures around the stadium and majority owners. Disney will have the option of buying the remainder of the team upon Gene Autry’s death.

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Deal at a Glance

The heart of Anaheim’s deal with the Walt Disney Co. for the operation and renovation of Anaheim Stadium is financial. Highlights of the arrangement:

* RENOVATION COSTS: Disney will contribute $70 million and Anaheim $30 million.

* REVENUE: Disney will operate the stadium and retain all monies until income thresholds are met.

* PARKING: City will provide 12,500 spaces on site for baseball.

* LEASE: 33 years (three years for renovation and 30 for operation). Disney may bail out after 20 years of operation.

* STADIUM NAME: Team may “sell” the stadium name subject to city approval.

* TEAM NAME: Will change to Anaheim Angels no later than 1997 season.

* SPORTSTOWN: City’s ambitious plans for a sports and entertainment complex scaled back to 40 acres.

A Done Deal

The Walt Disney Co.’s negotiations to buy the Angels started with a phone call last May, then fell apart in March. On Wednesday, the entertainment giant and Anaheim announced a lease agreement that paved the way for the purchase of the team. How the negotiations began and finally came to a close:

1995

* MAY 5: Disney President Michael Eisner calls Angel owner Jackie Autry to discuss buying a percentage of the Angels. At the time, the Autrys are negotiating with former baseball commissioner Peter Ueberroth.

* MAY 18: Disney announces an agreement to purchase 25% of the Angels, with an option to buy the rest later.

* SEPT. 6: Eisner hints that Disney may scrap its previous plan for a new stadium and instead consider renovating the Big A as a baseball-only venue.

1996

* JAN. 18: Major league baseball owners approve Disney’s purchase of a 25% share of the Angels; Disney sets a 60-day deadline to settle issue of stadium renovations with the city.

* JAN. 25: Disney and Anaheim officials hold their first meeting since 60-day deadline was set.

* MARCH 1: Anaheim presents Disney with a renovation cost-sharing offer but refuses to discuss details.

* MARCH 4: City Council agrees to pay $30 million of the stadium’s estimated $100-million renovation cost.

* MARCH 8: Mayor Tom Daly defends an agreement giving Disney virtually all stadium revenue and eliminating any chance of bringing football to Anaheim Stadium.

* MARCH 12: City officials and Disney representatives appear discouraged after long sessions to work out terms of agreement.

* MARCH 13: Disney pulls out of negotiations over terms of Angel purchase.

* MARCH 14: Blaming city officials for the deal’s collapse, Jackie Autry threatens to relocate Angels when their lease expires at Anaheim Stadium in 2001.

* MARCH 18: Investors, including Ueberroth, say they are considering purchasing the Angels.

* MARCH 19: Ueberroth says he can’t proceed with talks to purchase the Angels because Disney and Anaheim have quietly resumed talks. Disney executives deny it.

* MARCH 26: City leaders meet with American League officials to examine why Disney deal collapsed. Speculation arises that league officials are pushing the city to return to the bargaining table.

* MARCH 31: Disney Sports Enterprises President Tony Tavares admits discussions with city “were never, indeed, over.”

* APRIL 1: Anaheim offers Disney a new proposal that calls for scaling back the city’s ambitious plans for a sports and entertainment complex called Sportstown.

* APRIL 2: Anaheim and Disney reach a tentative agreement. The City Council still must approve the proposal.

* APRIL 3: Anaheim City Council approves deal with Disney, 3 to 2. Disney buys a controlling interest in the Angels. The city agrees to pay $30 million of a $100-million refurbishment of Anaheim Stadium and scales back plans for Sportstown.