Update on Columbus/OSU arena management situation; $25mm losses 10-11

[LadyStanley]

http://www.dispatch.com/content/stories/local/2011/08/07/osu-arena-art-g10dlo3i-1.html

Nationwide Arena and OSU's Schottenstein Center combined arena management. Looking good, as they're $1mm ahead of where they thought they'd be. Deal has been extended.

The co-management deal was designed to help the Columbus Blue Jackets, which have been struggling with financial problems related to their lease at Nationwide.
When Ohio State and Nationwide began the agreement in May 2010, the Blue Jackets projected savings of $1 million and Ohio State hoped for $250,000 based on lower administrative costs and efficiencies.
Blue Jackets President Mike Priest said the team reached its goals of cutting operational costs and increasing attendance at events at Nationwide Arena, but he wouldn’t provide financial details.
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The one-year extension makes Ohio State the manager of both arenas through July 1, 2012. By relieving the hockey team from some of the operational costs of running the arena, it can focus on finding a long-term solution to its annual $12 million deficit, Riggs said.
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Bongiovanni said it is very rare for a market the size of Columbus to be able to support two similar-size arenas. The $110 million Schottenstein Center has 19,500 seats. The $150 million Nationwide Arena has 20,000 seats.
The arrangement also benefits music fans, because promoters can no longer use the competition between the two arenas to drive up bids to secure a show, he said. Those costs would have been added to ticket prices.

Jackets pay $5mm in rent. No longer pay management company (SMG) to manage arena (so there's some savings there as well).

(Previous thread on topic: http://hfboards.com/showthread.php?p=33109617)

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[LadyStanley]

http://www.dispatch.com/content/stories/local/2011/08/07/casino-tax.html

And Columbus may be getting $$s from nearby casino to help with their deficit.

It is likely, sources told The Dispatch, that a portion of the revenues generated by the Hollywood Casino Columbus on the West Side will be used to help the Blue Jackets. No exact dollar figures have been decided.
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Because Nationwide Arena was privately funded — a rarity in major-league sports today — the Blue Jackets do not draw revenue from naming rights, parking and luxury boxes at the same rate as other NHL clubs. The Blue Jackets lost nearly $25 million in the 2010-11 season, according to sources, and have lost roughly $53 million combined during the past three seasons. Of that total, the Blue Jackets said, between $10 million and $12 million per year is directly the result of their lease agreement.
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NHL Commissioner Gary Bettman said he foresees no such crisis [similar to Phoenix] with the Blue Jackets.

 

[Fugu]

NHL Commissioner Gary Bettman said he foresees no such crisis [similar to Phoenix] with the Blue Jackets.

Yup, he'd be the guy to go to for an assessment.

1. If he did foresee the Phoenix situation (doubt he expected bankruptcy filing), he certainly never let on. There were no concerns, iirc.

2. He actually didn't foresee the Phoenix situation devolving as badly as it did, so his assessment holds little value.

 

[Jaxs]

Here is an informative article from a blogger who has followed this situation closely.

http://tenminutemisconduct.com/2011/08/07/positive-signs-on-arena-issue/

 

[Shawa666]

Yup, he'd be the guy to go to for an assessment.

1. If he did foresee the Phoenix situation (doubt he expected bankruptcy filing), he certainly never let on. There were no concerns, iirc.

2. He actually didn't foresee the Phoenix situation devolving as badly as it did, so his assessment holds little value.

And Atlanta wasn't moving.