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troutman · 05-08-2012, 10:43 AM

Grange on Coyotes: Bettman's bill of goods

http://www.sportsnet.ca/iphone/hocke...n/?region=WEST

According to long-time Glendale city councilor Phil Lieberman, the terms of the deal being given to Jamison -- who has partners, apparently, but wouldn't name them -- basically see him guaranteed $306 million in management fees for Jobing.com Arena over the next 21 years, or an average of $14.6 million a year. A large chunk of that money is front-end loaded, with Glendale on the hook for $92 million over the next five years.

Lieberman says he shudders to think what hockey in the desert has cost the city he's lived in, worked in and served for most of his life after returning from the Second World War.

"I figure about $134 million in cold hard cash so far," he said. "Wow is right."

$50 million AEG paid upfront to Kansas City for the right to manage The Sprint Center (which was opened in 2007) through 2033. The arena was built with an eye toward attracting an NHL or NBA team. It never happened, but the city and the arena may be better off for it.

The flexibility the arena has in terms of dates without having to work around a sports team's schedule may actually off-set whatever benefits the facility might get from a sweetheart lease deal the club would surely command.

Since opening the Sprint Center AEG has turned a $6 million operating profit without an anchor tenant and been one of the busiest arenas in North America. So far the city's $14-million bond payment has been covered by a tax on rental cars and hotels. It's not like the city is swimming in cash thanks to their arena, but they're making it work and don't have the burden of under-writing a money-losing sports franchise.

05-08-2012, 10:43 AM	#699
troutman Unfrozen Caveman Lawyer Join Date: Oct 2002 Location: Crowsnest Pass Exp:	Grange on Coyotes: Bettman's bill of goods http://www.sportsnet.ca/iphone/hocke...n/?region=WEST According to long-time Glendale city councilor Phil Lieberman, the terms of the deal being given to Jamison -- who has partners, apparently, but wouldn't name them -- basically see him guaranteed $306 million in management fees for Jobing.com Arena over the next 21 years, or an average of $14.6 million a year. A large chunk of that money is front-end loaded, with Glendale on the hook for $92 million over the next five years. Lieberman says he shudders to think what hockey in the desert has cost the city he's lived in, worked in and served for most of his life after returning from the Second World War. "I figure about $134 million in cold hard cash so far," he said. "Wow is right." $50 million AEG paid upfront to Kansas City for the right to manage The Sprint Center (which was opened in 2007) through 2033. The arena was built with an eye toward attracting an NHL or NBA team. It never happened, but the city and the arena may be better off for it. The flexibility the arena has in terms of dates without having to work around a sports team's schedule may actually off-set whatever benefits the facility might get from a sweetheart lease deal the club would surely command. Since opening the Sprint Center AEG has turned a $6 million operating profit without an anchor tenant and been one of the busiest arenas in North America. So far the city's $14-million bond payment has been covered by a tax on rental cars and hotels. It's not like the city is swimming in cash thanks to their arena, but they're making it work and don't have the burden of under-writing a money-losing sports franchise.