How much of Hansen/Balmer's plan was based on the NHL as a second team?... I wonder if they run the risk of being cut out completely if they don't play ball with the NHL?
The only interest Hansen/Ballmer have in the NHL is that of a tenant in an NBA arena. As back~seat passengers. Its always been "NBA 1st". These guys have no interest, less than zero in hockey, the NHL. The only interest they have in it is as tommy mentions above; if they secure an NHL owner/franchise as a tenant theyd have received another $80M in funds to put towards the construction of the arena in SoDo. Such an arrangement does not portend well for the future & sustainability of an NHL franchise in Seattle as "tenants only" in a building managed & controlled by Hansen & Ballmer. In todays NHL model, with the exception perhaps (yet to be seen) of the Islanders in Brooklyn @ Barclays, it is absolutely imperative that the NHL franchise have access to & controls ALL revenue streams. As a tenant, they would not.
So beyond just the acquisition of an NBA Franchise that doesnt appear even remotely likely at this stage in the game, just exactly what kind of a Lease would Hansen & Ballmer provide to an NHL franchise? They'll be up to their necks in debt. Exhibit A: NBA Owner Jerry Colangelo in Phoenix. When the Jets were sent packing to Arizona under neophyte ownership, after being booted from Minnesota & homeless, Burke & Gluckstern sign a punitive & illogical Lease to play out of the then called AWA Arena, brand new, just opened, Jerry up to his eyeballs in debt & squeezing the Coyotes for every nickle he could get guaranteeing their insolvency and promulgating the Hell that followed & continues to this very day in Glendale. And theres more, much much more & Seattle specific going back 25 years...
In 1989 the NHL announced it would be expanding in 1992. Backed by Microsofts' Chris Larson, former Seattle Totem Bill MacFarland spearheaded the bid when low & behold, Bill Ackerley, son of Seattle Supersonics' owner & Manager of Key Arena Barry Ackerley enters with a competing bid of their own. Well, one thing leads to another, Larson, MacFarland & the Ackerleys pool their resources, join forces, good to go, right? The Expansion Fee was $50M and they had to show that they were capable of carrying costs for 5yrs, which was no problem, and additionally, they had plans to build a new state of the art arena replacing Key which was nearly 20yrs old, of a former generation, requiring major upgrades & renovations. Summer/fall of 1990 Larson & MacFarland make a brilliant written presentation to the NHL, all impressed, loving the idea that wow, Microsoft, new age money, Seattle ascendant, fabulous market, ideal, lets get it on! Pat Quinn was involved, and his inside sources told him Seattle was a lock.
Early December 1990, Larson, MacFarland, Barry Ackerley & an Ackerley financial advisor by the name of Bill Lear arrive on the NHL's doorstep along with other hopeful applicants to make their verbal pitch to the NHL Board of Governors. Theyve all 4 strategized & rehearsed every line, got their acts together, waiting nervously for their chance to present themselves & shine when totally unrehearsed and out of nowhere, Barry Ackerley & Bill Lear tell Gil Stein (VP & Genl Counsel of the NHL at that time) who had come to escort them into the Boardroom that they would first, just Ackerley & Lear, like to talk to the Board of Governors "privately". Larson & MacFarland didnt know what was going on or why, last minute, but they trusted Ackerley & Lear, reluctantly said ok fine. We'll just wait here patiently, but obviously concerned, wondering what the Hell this is all about...
Ten minutes later, Gil Stein comes out of the Boardroom & tells them that Ackerley & Lear had withdrawn Seattles application, no reason given, then left the Boardroom via another exit & eff'd off back to Seattle leaving Larson & MacFarland absolutely stunned!.... They were permitted to present their verbal presentation, however quite naively the legal application had been put into Ackerleys name so it was an exercise in futility..... And so it begs the question; "Why"? Why the charade, the duplicity, deceit & backstabbing, then gutlessly amscray through a backdoor?... All about the arena. Ackerley wanted Key Arena updated & upgraded and was simply using Larson & MacFarland along with the NHL itself as leverage against the City of Seattle & King County. Either drop $100M on reno's to the building or we'll build a brand new arena & leave Key vacated. Vacant.
Charming story yes? This Im afraid is exactly what your dealing with when it comes to huge money, arenas', the NBA vs NHL, though sometimes complimentary, and how these guys deal with one another. All kinds of variations, mechanizations & manipulations but tell ya what? I wouldnt trust Hansen & Ballmer to do right by the NHL in a building those two controlled & managed. I wouldnt trust any of them at NBA Inc to do any kind of favors for the league or newbie owners. Like asking Wyle E. Coyote to mind the Sheep. With friends like that who needs enemies? No, Im afraid the only way this gets done is if its done independently of any play for the NBA, as passengers in the backseat of the NBA's vehicle cuz tell ya what? Just a matter of time before Hansen & Ballmer pull over to the side of the road, nice quiet spot, tell their NHL pal to get out, duct tape his mouf shut & tie him up, put him in the trunk of the car and maybe throw him the odd Chiclet for that days sustenance, his meal... ya. Balanced diet of nothing. Not worth the risk. Totally unsustainable unless Hansen & Ballmer owned part of the NHL team & actually cared. Look at what ASG did in Atlanta? Even then, even when NBA guys wind up buying an NHL club they never wanted, look how that turned out?.... and look what Ackerley did to Key Arena? Useless for hockey. So we'll see. Im convinced there are some seriously large Whales circling out beyond the horizon of Puget Sound. Its going to take some serious private equity to get this done but the cost to reward I think is there, Seattle superior to many pre-existant NHL markets. Guess we'll see....
Nope. Just hockey.
