Metro Seattle: NHL, NBA and Arena - Part IV

[JawandaPuck]

Chris Hansen fields questions from the Arena Advisory Panel - March 8, 2012

As has been speculated previously, the Seattle NHL team will be more than a just tenant for the new arena...

Hansen has said he needs an official commitment from the city and county to negotiate with the NBA to acquire a professional basketball team. He has said another ownership group will secure an NHL team, but that both will finance and build the arena.​

This should mean a healthy share of all arena revenues for the NHL team, since its being built in partnership with the NBA team. This also lays a strong foundation for a partnership on the regional sports broadcasting side as well I would think.

All this points towards a very lucrative proposition for the potential NHL team owner. My money is still on Bellevue's John McCaw and his Kirkland brother Craig McCaw, being the main guys behind the NHL team. But Hansen isn't saying yet...

But the 44-year-old San Francisco hedge-fund manager declined to identify the other investors, telling the committee he would do that only when a franchise is acquired. "It's not my place to put other names out there," Hansen said, although he said the investor group would also include people from his business network.​

His role as the face of the investors group is much like that of his role as hedge fund manager. In fact, his group includes some of his hedge fund clients it would seem.

Arena Advisory Panel issuing a report on March 16

Jan Drago is co-chair of the Arena Advisory Panel, a citizens committee made up of local business and community leaders. The group met for the first time Wednesday night to determine whether the city and county should back a proposal from Seattle-native and hedge fund manager Christopher Hansen. He's promised to pay $290 million for construction of the new arena in Seattle's SoDo neighborhood, but asking the public to finance $200 million, to be repaid with future arena revenues.

"It sounds to me like they're building in as much protection as they possibly can," Drago says cautiously.

An expert told the panel the taxpayers would get paid before any other creditor in the case of bankruptcy, and pointed to NBA and NHL takeovers of bankrupt franchises in Phoenix and New Orleans, where the teams continue operating.

"There's kind of a double protection there before the city is left holding the bag and stuck with an empty arena."

The panel is on a tight timeline. It's tasked with issuing a report on March 16.

Hansen is expected to attend an upcoming meeting and lobby on behalf of the proposal. Drago says she hasn't met him or spoke with him, but can't wait.

"It's very interesting. I mean, I haven't heard one person that's met him say anything negative about him," Drago says. "He kind of seems like the guy riding in on a white horse who loves Seattle and loves basketball. It almost seems too good to be true."​

Sodo Arena Announcement - Feb 16, 2012

​

Arena Deal Term Sheet: http://www.seattle.gov/mayor/media/PDF/120216PR-ProposalPrinciples.pdf
Arena Deal FAQ: http://www.seattle.gov/mayor/media/PDF/120216PR-FAQ.pdf



NBA and New Orleans Hornets Update - Feb 25, 2012

Stern said they expect a deal to be struck within the next 10 days. But Stern said they are a little bit behind because they haven't struck a deal with the state of Louisiana on a renegotiated lease extension. "It's moving closer day by day," Stern said regarding the renegotiated lease with the state. "It's progressing well, but it's not finished."

Stern said their lease discussions with the state includes a $50 million to $60 million upgrade of New Orleans Arena, which opened in 1999 and has been the home of the Hornets since they relocated from Charlotte, N.C., in 2002. The renegotiated lease is not expected to include any escape clauses, and any owner must, as part of the sales agreement, sign off on a 10-year extension that would keep the team in New Orleans through 2024. The Hornets' lease with the state expires in 2014.

A new lease with the state would require approval by the Legislature, which doesn't convene until March 12. "It's a long process and we hope to get it completed before the legislative session starts," Stern said.​

Bellevue Making Noise - Feb 28, 2012

Bellevue City Manager Steve Sarkozy said at a Bellevue Downtown Association forum Tuesday that the City Council has given him "a license to hunt" each year for investors or property owners who want to bring an NBA and NHL arena to the city. "I'm not here with an announcement. We continue to work with several private interest groups and, frankly, several locations in the city," Sarkozy said.

He said Bellevue is "in the game" and that the idea of an Eastside arena is "very real, very much a possibility." He declined to identify any of the sites or people with whom he has spoken ... Areas of Bellevue mentioned as possible arena sites include auto row (along 116th Ave NE), the eastern edge of downtown and the Bel-Red corridor.

​

Part III: http://hfboards.mandatory.com/showthread.php?t=1103231
Part II: http://hfboards.mandatory.com/showthread.php?t=1094241
Part I: http://hfboards.mandatory.com/showthread.php?t=908743
Nickname thread: http://hfboards.mandatory.com/showthread.php?t=1096759

Click to read more...

 

[knorthern knight]

By beenhereandthere

Again, I predict, that they play 1 more year in Phoenix, that's more likely than them moving to either QC or Seattle.

• Only if the NHL wants to take a $40 million bath. Glendale is NOT going to shovel another $25 million at the NHL.
• Glendale's credit rating has been lowered by Moody's because of the money they've thrown at the NHL.
• And before they come up with $25 million for next year, they still have to figure out where the last 5 million from this season's payment is coming from.
• In addition Glendale has been borrowing to pay for Camelback Ranch ballpark.

  The city has been using borrowed money to pay for the ballpark debt, but that is expected to be depleted around 2014. A nearly $16 million debt payment is due that year. City officials have not unveiled backup plans.

Glendale could be in need of a bailout soon; forget about them bailing out the Coyotes.

If the Coyotes have to move this spring, the Seattle bid is in a tight spot, because Key Arena is not suitable for an NHL team.

 

[dronald]

Let us not forget that Glendale is obviously going to look into the future. They aren't going to sit back and say, "Hey, let's give another 25 million to this team just so it can move next year." If they sense a move is coming, they aren't going to let the team stay an extra year just so Seattle can have a team.

 

[maruk14]

Aside from Key Arena ... Seattle needs approval on this new arena plan to even be in the discussion if the Coyotes are going to relocate. Right now the committee is still holding hearings (1 has happened with 2 more in the next couple of weeks - Chris Hansen is expected to testify at the next hearing this Monday) with the intention of offering a recommendation on 3/16. The goal is approval so Hansen can make a presentation at the NBA owners meeting in mid-April.

If all that happens, I still contend the NHL won't make a decision on relocation based on a temp venue. Ownership and the permanent building will be way more important. They have already given tacit approval for the Key as a temp facility. Relocation will take on a much longer view so if Seattle can get all it's i's dotted and t's crossed this spring they will be right in the thick of relocation talks if the Coyotes move.

 

[Grudy0]

If all that happens, I still contend the NHL won't make a decision on relocation based on a temp venue. Ownership and the permanent building will be way more important. They have already given tacit approval for the Key as a temp facility. Relocation will take on a much longer view so if Seattle can get all it's i's dotted and t's crossed this spring they will be right in the thick of relocation talks if the Coyotes move.

That seems to be spot-on.

Here's where I think the reality lies:

Hansen is keen on the SoDo project, right next to the CenturyLink and Safeco stadia, enough that he's putting up a good chunk of the money.

The government over in Bellevue is now making noise about an arena.

If building an arena requires a commitment from either or both the NHL and NBA to place a team there (and both own a team within their respective leagues), which is more likely: acquiring a team with a year-to-year lease (Coyotes), or acquiring a team with a few years remaining on their lease (Hornets)?

If the Coyotes ownership situation is still in flux and payments from the City of Glendale for running the Coyotes are drastically reduced next season, the Coyotes can be relocated to Seattle by the NHL, the owners of the franchise. The NHL can sign a deal to play out of either Key Arena or Tacoma Dome for the next year or two, while negotiating a sale of the team to the party that presents the best stadium plan.

It's a perfect scenario: a bidding war for a team in order to build an arena. But the team would have to be there in order to start a bidding war.

 

[Northender]

That seems to be spot-on.

Here's where I think the reality lies:

Hansen is keen on the SoDo project, right next to the CenturyLink and Safeco stadia, enough that he's putting up a good chunk of the money.

The government over in Bellevue is now making noise about an arena.

If building an arena requires a commitment from either or both the NHL and NBA to place a team there (and both own a team within their respective leagues), which is more likely: acquiring a team with a year-to-year lease (Coyotes), or acquiring a team with a few years remaining on their lease (Hornets)?

If the Coyotes ownership situation is still in flux and payments from the City of Glendale for running the Coyotes are drastically reduced next season, the Coyotes can be relocated to Seattle by the NHL, the owners of the franchise. The NHL can sign a deal to play out of either Key Arena or Tacoma Dome for the next year or two, while negotiating a sale of the team to the party that presents the best stadium plan.

It's a perfect scenario: a bidding war for a team in order to build an arena. But the team would have to be there in order to start a bidding war.

Except for 1 thing... GB has to think about the owners who want their Phoenix money back asap and Quebec actually has someone who is willing to shell out a couple hundred million TODAY. Phoenix is going to Quebec for the 2012 season. Book it.

 

[maruk14]

You don't know that. All you know is no one has gone public besides Don Levin. It has been reported there are 2 different groups in Seattle with interest in owning an NHL team.

So, there goes your theory of no one wanting to pony up in Seattle to buy the team.

 

[AdmiralsFan24]

If Hansen said he needs an NBA and NHL team to make the arena work, I don't think he would have gone this far into the proposal if he didn't have people who wanted to own a team.

 

[beenhereandthere]

Except for 1 thing... GB has to think about the owners who want their Phoenix money back asap and Quebec actually has someone who is willing to shell out a couple hundred million TODAY. Phoenix is going to Quebec for the 2012 season. Book it.

Playing out of the Pacific Division? I doubt it.
MLB had a few owners that were willing to pay for the Expos and move them somewhere else besides Washington DC. Did that mean that MLB took them to a place where they could not recoup their losses right away? No.
That alone, no realignment as of now for next year, speaks more to the Coyotes, playing at least 1 more year out of Glendale (thanks to a lockout or Jamison's sale coming through) or moving to Seattle.
If they go to QC instead, it's based on pure greed. That would hurt the image in America, by moving to 2 small Canadian cities in back to back years. If they were spaced at least 4 years apart, with no NBC 2 billion dollar contract, then that may be a different story.

 

[dronald]

That would hurt the image in America, by moving to 2 small Canadian cities in back to back years. If they were spaced at least 4 years apart, with no NBC 2 billion dollar contract, then that may be a different story.

Why do you keep saying this despite it being disputed over and over.

The contract is already in place, people in Phoenix don't watch NBC for Hockey anyways and who the hell are the people that would look down on Hockey if QC got a team. Not like anyone in those cities have any idea what goes on in Hockey anyways.

 

[Undertakerqc]

Why do you keep saying this despite it being disputed over and over.

The contract is already in place, people in Phoenix don't watch NBC for Hockey anyways and who the hell are the people that would look down on Hockey if QC got a team. Not like anyone in those cities have any idea what goes on in Hockey anyways.

Yeah some people over exagerate the importance of Atlanta and Pheonix as a tv hockey market. There is barely 10k people watching hockey there. If Phoenix move its to Québec City. Seattle is just not ready yet, the new arena as not even been confirmed yet. And Bettman as been saying that it wants to right the wrong of Winnipeg and Quebec City losing its team. Winnipeg is done, Québec is next, the writing is on the wall.

 

[maruk14]

To think NBC won't have any say in a franchise relocation after forking over that much cash in a tv deal is a mistake. Moving another Large US market to a small Canadian market will have ramifications on an AMERICAN tv deal, a TV deal that is larger than any in Canada, BTW. NBC will certainly get their pound of flesh in another relocation.

It's also not like the QC deal is done. Last I heard the site was contaminated and there were no guarantees the $400MM budget is even realistic.. Who will cover cost over-runs?

Until a shovel hits dirt QC and Seattle are in about the same place.

 

[maruk14]

QC Arena a done deal? Not so fast ...

http://www.thespec.com/sports/hocke...e-names-adviser-to-keep-arena-costs-on-target

 

[Bob1321]

yes its done deal,

but 31 march its the go or not

 

[Undertakerqc]

Seattle just is not ready. No approved financing for the arena, no clear NHL team owner. NHL is an aftertought. And with no NBA team available the Hanson project is far from done. He said it clearly, no NBA team, no building. That does not mean you wont get a team in a few years... but the evidence is you guys are not ready...

 

[Nuclear SUV]

Seattle just is not ready. No approved financing for the arena, no clear NHL team owner. NHL is an aftertought. And with no NBA team available the Hanson project is far from done.

You are wrong on every count! Seattle is on the fast track to get an arena done before the NBA relocation deadline THIS YEAR.

Seattle needs the Hornets and Coyotes. Sorry Quebec, get in line.

 

[maruk14]

Seattle just is not ready. No approved financing for the arena, no clear NHL team owner. NHL is an aftertought. And with no NBA team available the Hanson project is far from done. He said it clearly, no NBA team, no building. That does not mean you wont get a team in a few years... but the evidence is you guys are not ready...

Arena financing is in place - it's just waiting for approval. That should happen in 2 weeks.

Don Levin has expressed interest in owning an NHL team in Seattle on numerous occasions. How much more clear do you need?

Have you ever been to Seattle to claim the NHL is an afterthought? If you had you would know there are a lot of people who would rather have the NHL vs the NBA because of the way the NBA left town. There is a great hockey culture here. Not that different from soccer. Proximity to Vancouver and a large expat population here as well.

Hansen has never said no NBA no arena. Not sure where you got that. NBA is his primary interest but NHL is not an afterthought.

Like I said before ... QC has there own issues in building their arena. It is not at all a done deal ...

 

[blueandgoldguy]

Arena financing is in place - it's just waiting for approval. That should happen in 2 weeks.

Don Levin has expressed interest in owning an NHL team in Seattle on numerous occasions. How much more clear do you need?

Have you ever been to Seattle to claim the NHL is an afterthought? If you had you would know there are a lot of people who would rather have the NHL vs the NBA because of the way the NBA left town. There is a great hockey culture here. Not that different from soccer. Proximity to Vancouver and a large expat population here as well.

Hansen has never said no NBA no arena. Not sure where you got that. NBA is his primary interest but NHL is not an afterthought.

Like I said before ... QC has there own issues in building their arena. It is not at all a done deal ...

Hmmmm. Where have I seen this statement, "This should happen in two weeks" before. Seems familiar. Thinking....

 

[deeznuts]

To think NBC won't have any say in a franchise relocation after forking over that much cash in a tv deal is a mistake. Moving another Large US market to a small Canadian market will have ramifications on an AMERICAN tv deal, a TV deal that is larger than any in Canada, BTW. NBC will certainly get their pound of flesh in another relocation.

I tell you what, how about the 23 american teams keep all the 200 million per year from NBC all to themselves (8.7 million per team) and the 7 Canadian teams can keep their 140 million per year national television revenue all to themselves (20 million per team). I might also add the early rumblings are that Bettman wants double that 140 million figure for the 2014 contract renewal where CBC is fully expected to be priced out of the market.

 

[maruk14]

I tell you what, how about the 23 american teams keep all the 200 million per year from NBC all to themselves (8.7 million per team) and the 7 Canadian teams can keep their 140 million per year national television revenue all to themselves (20 million per team). I might also add the early rumblings are that Bettman wants double that 140 million figure for the 2014 contract renewal where CBC is fully expected to be priced out of the market.

If you want to get all Nationalistic and defensive about it why don't you take your 7 teams and break off from the US all together and form your own league then you can have as many Canadian teams as you want.

My whole point was only to say NBC has sway in any relocation due to that deal and nothing simply happens in a vacuum. Does that mean a team won't move to QC next year ... Of course not. But do you think NBC, after agreeing to that kind of deal will say nothing about losing a large US market? Don't be so naive.

 

[maruk14]

Hmmmm. Where have I seen this statement, "This should happen in two weeks" before. Seems familiar. Thinking....

Well, to be fair, this region has been known to over study everything so that 2 weeks could easily turn out to be much longer ...

 

[Puckschmuck*]

Well, to be fair, this region has been known to over study everything so that 2 weeks could easily turn out to be much longer ...

He is referring to the commonly known inside joke about anything occuring with regards to the Phoenix situation in "two weeks".

 

[maruk14]

He is referring to the commonly known inside joke about anything occuring with regards to the Phoenix situation in "two weeks".

I know. It also applies to Seattle and King County politics. Death by study and committee. This deal is such a no brainer though the conventional wisdom is it should sail through and be approved quickly. If that happens, Seattle and QC would both be attractive options for the Coyotes if they can't solve their situation "in the next 2 weeks".

 

[GKJ]

Seattle just is not ready. No approved financing for the arena, no clear NHL team owner. NHL is an aftertought. And with no NBA team available the Hanson project is far from done. He said it clearly, no NBA team, no building. That does not mean you wont get a team in a few years... but the evidence is you guys are not ready...

That's not entirely accurate.

 

[deeznuts]

If you want to get all Nationalistic and defensive about it why don't you take your 7 teams and break off from the US all together and form your own league then you can have as many Canadian teams as you want.

My whole point was only to say NBC has sway in any relocation due to that deal and nothing simply happens in a vacuum. Does that mean a team won't move to QC next year ... Of course not. But do you think NBC, after agreeing to that kind of deal will say nothing about losing a large US market? Don't be so naive.

Where was NBC last year to argue against the Thrashers move? Judging by NBC's broadcast schedule they were unaware Atlanta even had a team.