I assume that you have all read the news regarding Clay Bennett’s proposal to the state of Washington, and his letter to Gov. Gregoire. If not, go inform yourselves.
If you’ve heard it once, you’ve heard it a thousand times by now, the Sonics are looking at modeling this new arena on the Pepsi Center. Hell, they even hired the guys that designed the Pepsi Center to design their new playpen. As Bennett stated in his letter to Gregoire:
“We believe the potential for such a venue extends far beyond professional basketball and has the opportunity to benefit the entire region. An excellent example was the news last week that Denver was chosen as the site for the next Democratic National Convention to be held at the Pepsi Center, which is an example of the kind of facility we are proposing here in Puget Sound.”
Of course, Bennett failed to mention that previous conventions have been held at Joe Louis Arena, Kemper Arena, Reunion Arena, and the Astrodome – because, that, of course, would be admitting that those stadia are no longer inhabited by NBA teams, having been abandoned by the spoiled men who run/ran their respective professional sports franchises.
Bennett proposes that the Sonics will provide $100 million towards the expected $530 million cost of the arena. He expects the state to provide $330 million, and Bellevue/Renton and private financiers to provide the balance of $100 million. It’s important to note that the stadium itself is expected to cost $360 million, while the land value is estimated at $170 million, which he assumes will be donated.
In other words, Bennett plans on contributing 20% of the total cost of the project, which got me to thinking – how will the revenues for the arena be divided up? That is to say, of the X millions of dollars in revenue for an arena such as this, how much will be generated by the Sonics, how much by concerts, tractor pulls, or barbershop quartet conventions?
I did a quick look at the schedule at the Pepsi Center for the next few months (unfortunately, they don’t archive past months, so we’ll have to go with Jan. to April). Not surprisingly, the lion’s share of events at the PC are divided up between the Avalanche and the Nuggets. In fact, between 58% and 85% of a given months events are either Nugget- or Avalanche-related. Of course, that’s for the months when the Nuggets and Avalanche play, I’m sure that the Pepsi Center has plenty of things on tap for the summer.
Friday, January 19
Part II
All interesting, of course, but there’s one big, stinking red flag in the construction of the arena: the pathetic lack of funding from the Seattle Sonics. Since Bennett is so fond of referring to the Pepsi Center, perhaps he – and the rest of the people involved in this taxpayer-funded nonsense – ought to read this paragraph:
“In Denver a state of the art facility, the Pepsi Center, was developed entirely by private funding. The facility which costs $170 million almost didn't get built when one of the original funding partners pulled out of the deal. .... The two primary teams who would play at the new center are the Nuggets and the Avalanche who had a prior lease agreement with the city at the McNichols arena. In order to break the leases, the city wanted a commitment from the Nuggets and the Avalanche to stay in Denver for 25 years at the new center. The teams resisted. There was a stall of building for 2 years. Finally a deal was struck with the city. The arena would be deeded to the city of Denver when it opened but leased back to the teams for 25 years to ensure they did not move during the span of the city's agreement. During the 25 years the city will take all sales tax proceeds generated by the arena as compensation for the teams breaking their prior leases. Ascent Entertainment Group Inc. who owned the Colorado Avalanche, agreed to pay the arena's construction costs and an exemption on a 10% city/county seat tax. At the end of the 25 years, the teams will own the arena. The city was happy that no tax money was spent and the received additional sales taxes from the Pepsi Center. Major sponsors contributed their funds in exchange for naming rights, such as Pepsi, who contributed millions.”
Now, in the dozens if not hundreds of times that Clay Bennett has mentioned how wonderful the Pepsi Center is, has he ever once mentioned how the Denver pro sports teams contributed $170 million to build it? Not to my knowledge, or else he wouldn’t be offering only $100 million to build a newer, more expensive building that will destroy the viability of KeyArena.
Now, it’s entirely possible that the $100 million in city/private funds will include $70 million from Bennett’s associates, in fact Bennett even mentions that “we are continuing to do the work that will allow us to come forward with an acceptable level of contribution.” Of course, he also says that the reason the Sonics can’t contribute any more is because of the team’s poor financial position, while failing to mention that the horrific on-court product – given to us by the people that still run this team - is almost entirely responsible for that poor financial position. Further, he does not mention at any point who will be forced to cover the – inevitable – cost overruns.
Nor does he mention at any point the irony of building new luxury boxes, which will inevitably sabotage the sales efforts of the Mariners and Seahawks, the same problem KeyArena and the Sonics ran into when their luxury box sales plummeted after the construction of Safeco and Quest Fields. But, hey, that’s a problem for the Seahawks and M’s right?
Look, I’m all for the Sonics being in Seattle, I really am. But I am damned sick and tired of taxpayers being asked to fund projects for private enterprises for billionaires when there are scores of non-publicly financed stadiums across the country and when people in this city are sleeping on the streets.
It’s a bluff, folks, and I pray the legislature sees through it in time. My message to Clay Bennett? Go ahead, move to Oklahoma City. Just don’t start crying when 8,537 show up three years from now to watch Mouhamed Sene fumble yet another entry pass in the low post while Ray Allen and his 36-year-old legs do a statue impersonation at the 3-point line.
“In Denver a state of the art facility, the Pepsi Center, was developed entirely by private funding. The facility which costs $170 million almost didn't get built when one of the original funding partners pulled out of the deal. .... The two primary teams who would play at the new center are the Nuggets and the Avalanche who had a prior lease agreement with the city at the McNichols arena. In order to break the leases, the city wanted a commitment from the Nuggets and the Avalanche to stay in Denver for 25 years at the new center. The teams resisted. There was a stall of building for 2 years. Finally a deal was struck with the city. The arena would be deeded to the city of Denver when it opened but leased back to the teams for 25 years to ensure they did not move during the span of the city's agreement. During the 25 years the city will take all sales tax proceeds generated by the arena as compensation for the teams breaking their prior leases. Ascent Entertainment Group Inc. who owned the Colorado Avalanche, agreed to pay the arena's construction costs and an exemption on a 10% city/county seat tax. At the end of the 25 years, the teams will own the arena. The city was happy that no tax money was spent and the received additional sales taxes from the Pepsi Center. Major sponsors contributed their funds in exchange for naming rights, such as Pepsi, who contributed millions.”
Now, in the dozens if not hundreds of times that Clay Bennett has mentioned how wonderful the Pepsi Center is, has he ever once mentioned how the Denver pro sports teams contributed $170 million to build it? Not to my knowledge, or else he wouldn’t be offering only $100 million to build a newer, more expensive building that will destroy the viability of KeyArena.
Now, it’s entirely possible that the $100 million in city/private funds will include $70 million from Bennett’s associates, in fact Bennett even mentions that “we are continuing to do the work that will allow us to come forward with an acceptable level of contribution.” Of course, he also says that the reason the Sonics can’t contribute any more is because of the team’s poor financial position, while failing to mention that the horrific on-court product – given to us by the people that still run this team - is almost entirely responsible for that poor financial position. Further, he does not mention at any point who will be forced to cover the – inevitable – cost overruns.
Nor does he mention at any point the irony of building new luxury boxes, which will inevitably sabotage the sales efforts of the Mariners and Seahawks, the same problem KeyArena and the Sonics ran into when their luxury box sales plummeted after the construction of Safeco and Quest Fields. But, hey, that’s a problem for the Seahawks and M’s right?
Look, I’m all for the Sonics being in Seattle, I really am. But I am damned sick and tired of taxpayers being asked to fund projects for private enterprises for billionaires when there are scores of non-publicly financed stadiums across the country and when people in this city are sleeping on the streets.
It’s a bluff, folks, and I pray the legislature sees through it in time. My message to Clay Bennett? Go ahead, move to Oklahoma City. Just don’t start crying when 8,537 show up three years from now to watch Mouhamed Sene fumble yet another entry pass in the low post while Ray Allen and his 36-year-old legs do a statue impersonation at the 3-point line.
Tuesday, January 16
Two in a row! w00t-w00t!
Dear Supersonicsoul readers: I apologize for the recent lack of posts, but in case you haven't noticed, it's SNOW-BLIZZARD 2007 outside, and my computer-typing fingers have been frozen. Also, the four-hour season premiere of 24 has been on the last two nights (Spoiler Alert: the world blows up!).
So, in summary, I'm sorry. It won't happen again. Probably. Did I mention the Sonics won their SECOND GAME IN A ROW tonight?! w00t-w00t!
Sorry.
-Paul
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