Axios Live: Richmond has high hopes for city's Diamond District project

RICHMOND, Va. — Richmond is growing the city's sports and entertainment industries by funding projects like the Diamond District baseball stadium, Richmond Mayor Danny Avula said at an Axios Live event last week.

Why it matters: Sports are enjoying an upswing in brand deals, investments and media attention as the power of fandom grows along with demand for in-person sporting experiences.

Axios' Mike Szvetitz and Sabrina Moreno spoke with Avula and Richmond Raceway president Lori Waran at the event, sponsored by FanDuel.

What they're saying: Richmond's ongoing Diamond District project aims to connect sports, live entertainment and restaurants through a development that will include a new stadium for Richmond's baseball team, the Flying Squirrels. The project is a great focus of growth for the city, Avula said.

State of play: "There's still a lot that has to get worked out," Avula said, noting that his job is to shepherd the project to completion since coming into office a year ago. "There wasn't really a plan to figure out how to pay for the Sports Backers Stadium sale."

• "We figured out the most efficient way to pay for that stadium was to basically take a loan from ourselves ... pay off the stadium, and then in the next phase of the Diamond Development deal, the money that's transacted in that would then pay ourselves back."

The intrigue: The Flying Squirrels will pay the city $3.2 million a year in rent for the stadium, connecting the development's success with the team's ability to deliver on that rent model.

What we're watching: The Flying Squirrels have done a great job of connecting with the community, Avula said. "The work that they've done over the years has really built a huge fan base here, and that should only grow."

• "The new stadium is a gorgeous, gorgeous facility," the mayor said. "And then you think down five to 10 years about the development that's going to happen around it, hotels, housing, new retail space, park space – it will be a really attractive place to be."

What's next: Virginia hopes to continue drawing attention to its growing sports prowess, including racing.

• "While we aren't a professional sports team … we are one of the only professional sports that the Commonwealth has," Waran said. "We show up on NBC, and we show up on Fox, and major networks, and that puts us on a map on a global stage."
• "And so to the extent that we can utilize that platform to grow attention, not just for the sport, but also for our region, that's something that we need to continue to do."

Content from the sponsor's remarks:

In a View From the Top conversation, FanDuel president Christian Genetski spoke about the effects of legalized sports betting.

• "I think there are broader benefits, too," Genetski said. "Obviously, the leagues have monetized a lot of this. That money flows back to players. It flows back to teams through marketing partnerships and data partnerships."