Hurricanes - 5 year lease extension at PNC Arena
- Thread starter tarheelhockey
- Start date
tarheelhockey
Offside Review Specialist
It was supposed to have been finished in 2020... I can't say whether it happened on schedule, but I don't have any reason to think it didn't.
This was likely a big motivator for all the talks around renovations and a lease extension, and ultimately may have factored into Dundon's decision to buy the team, knowing that he could start those negotiations almost immediately.
edog37
Registered User
It has nothing to do with Quebec. Quebec right now is the new Winnipeg or Kansas City. It is essentially a break glass in case of emergency option only. The league signaled its intent the last round of expansion regarding Quebec.
Cool. I am curious with some of these late 90s arenas how their debt situation is. The way cities finance sports facilities can be mind boggling sometimes.
This arena was initially designed to be home to NC State basketball. But the Whalers agreed to move there and thus the plans were changed to accommodate an nhl team.
who knows, but a few of the 90’s arenas have had makeovers of over $100 million in recent years.
I get that part. Its more the cases of backloading payments (Like the Marlins Stadium and Solider Field renovation in the 2000s) or when they add on an interest rate swap that gets so expensive that when they refinance it half way through the deal they wind up owing more than they did when they build the thing (I vaguely recall the Panthers arena being like that)
Svechhammer
THIS is hockey?
- Jun 8, 2017
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Its good for those who like to see people in Quebec upset that a team continues to exist in Raleigh after 5+ years of continual stoking the flames of relocation
Svechhammer
THIS is hockey?
- Jun 8, 2017
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Don't be shocked if plans to go through a major renovation of PNC Arena are announced within the next few months. They've been looking into doing this for a while, and have floated some speculative ideas by season ticket members after the 2019 season.
Is it true they have plenty of out clauses like if you leave after 2025 you pay xx million and the amount lowers after every year?
BrindAmours Army
JFW
- Dec 30, 2013
- 1,911
- 2,875
That's pretty typical for mid-long term commercial leases, due to basic math.
Quebec isn't getting a team.
Found it online¸
"The lease stipulates the team would owe $31 million termination fee if it relocates prior to the 2024-25 season. That fee drops each year from there until the end of the lease, falling to $20 million, then to $12 million, $6 million and finally $3 million for relocating prior to the 2028-29 season."
tarheelhockey
Offside Review Specialist
Yes, for the same reason that buyout penalties for players are lower each year. It doesn’t make sense for the penalty to remain the same at 2 years that it was at 7.
I haven't been to Raleigh since the 90s. Other than the NC State Football stadium what's around the arena? Is there a real estate development play that seems to be all the rage in arena deals or would they be more likely to seek an arena in the downtown area for when the lease expires?
Svechhammer
THIS is hockey?
- Jun 8, 2017
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So a couple of updates to this story:
1 - the naming rights of the arena are up in August. Looking for a 7 year contract to take us to 2029
2 - Centennial Authority just cleared the path today to fund renovations for the arena.
There were plans released back in 2019 regarding a potential renovation, but it sounds like those plans are going to act as more of a baseline for what they eventually do, and will focus on creating a year round destination rather than a place to go only for games or concerts. Included within the article is news that any plans of a downtown arena are dead, and that the focus now is only on how they can make the current area as good as it can be.
1 - the naming rights of the arena are up in August. Looking for a 7 year contract to take us to 2029
2 - Centennial Authority just cleared the path today to fund renovations for the arena.
There were plans released back in 2019 regarding a potential renovation, but it sounds like those plans are going to act as more of a baseline for what they eventually do, and will focus on creating a year round destination rather than a place to go only for games or concerts. Included within the article is news that any plans of a downtown arena are dead, and that the focus now is only on how they can make the current area as good as it can be.
Something else I am curious about. Why was the initial lease only 20 years? 30 seems to be standard.
The arena was originally just for the NC State Wolf Pack. Plus Raleigh was a new market.
Arena had an anchor tenant so maybe didn’t need to tie the Canes there as long as an arena built specifically for the nhl team.
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