Chicago Fire

The Chicago Fire is a Major League Soccer (MLS) team acquired by Andell Holdings, an investment firm led by Andrew Hauptman. Purchased for $35 million in 2007, the Fire experienced significant struggles with its home venue, Toyota Park in Bridgeview Illinois, due to poor public transport access and suboptimal maintenance. Despite growing league fortunes and increased sponsorships, the team’s location in suburban Bridgeview posed a significant strain on the popularity of the club.

To effectuate its expansion plans and address these challenges, Andell Holdings must make two critical decisions regarding its ownership of the Chicago Fire. First, Hauptman needs to evaluate the financial and operational ramifications of relocating the team to Soldier Field in downtown Chicago despite the large payments the village of Bridgeview was demanding to break the team’s long-term lease on Toyota Park. This decision hinges on calculating the required increase in attendance to offset the financial burden and considering other non-economic benefits such as brand visibility and fan engagement. Second, Hauptman must determine the optimal timing and strategy for Andell’s exit from Fire ownership. The sale of Andell’s stake required assessing when the team’s valuation would peak and the impact of any decisions regarding the team’s home venue.