Bucks Sold To Wesley Edens, Marc Lasry Michael King Staging First Boxing Card Tonight's Events A Lighter Buzz '47 Brand Launching New Campaign Anti-Drunk Driving Effort To Sponsor Race Bryce Harper Stars In Gatorade Spot podcast ESPN, Turner Launching NBA Playoff Ads Astros Launch App For In-Stadium Upgrade
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City Councilmen Tom Luken and Todd Portune are asking for more city incentives to keep the Reds at Riverfront Stadium. Luken asked City Manager John Shirey to "make the same offer to the Reds as that tendered to the Bengals," which included a guarantee to give the Bengals $2M, plus improvements to the team's practice field. Luken: "The Reds are out in the cold, irate and restless. When the Bengals were out in the cold, irate and restless, the city manager solved it. We paid the Bengals and bribed them to stay to save the franchise." Portune introduced a motion calling for the city to match payments to improve the Bengals practice field for the Reds, and restructure the luxury-box revenue cut for the Reds to be similar to that of the Bengals (Allen Howard, CINCINNATI ENQUIRER, 11/1).
City officials in Inglewood, CA are gearing up for a push to bring in a "massive sports complex that could include a new Forum and a stadium for pro and college football, aqccording to a report in the SOUTH BAY DAILY BREEZE of Torrance, CA. The facility would be built at the Hollywood Park Race Track property and could spill onto the Forum's adjacent property. The complex, which could cost as much as $300M, would be a joint venture between the city, Hollywood Park and a group headed by Lakers owner Dr. Jerry Buss -- if an indoor arena were included in the development. According to Inglewood City Manager Paul Eckles, at least one pro and college team probably would have to sign long- term contracts before a football stadium would be constructed. Inglewood Mayor Edward Vincent: "We're talking about the Raiders and UCLA. ... It looks real good." Buss said he is not looking to raze the Forum and build another home for the Lakers, but he would "listen to offers." UCLA has two years left on its contract with Pasadena for the Rose Bowl. Officials at Southern Cal, which play at the Coliseum, said they are not interested in moving (AP/WASHINGTON TIMES, 11/1).
During any major league work stoppage, the primary focus is on the economic losses suffered by the owners and players. But, in reality, the financial losses do no stop there. Today, THE SPORTS BUSINESS DAILY begins the first of a regular series on the ripple effects of the baseball strike and hockey lockout with a look at how NHL arenas are coping with -- to this point -- one month of lost revenues. As Tim Murphy, general manager of the Pittsburgh Civic Arena, puts it: "Any tenant in a building is your partner, maybe it is not structured as such, but still you depend a lot on what they do. And right now, they -- like us -- have no income coming in from hockey games." For a more in-depth look at the issues facing NHL arenas, THE SPORTS BUSINESS DAILY spoke with Dr. Jack Vivian, the Director of the Sports Facilities Research Laboratory at the University of Michigan. THE DAILY: Is there any way for the arenas, or the communities in which they reside, to make up lost revenues? VIVIAN: This is money that is gone forever, this isn't a recoverable type of money. And, of course, the community loses as well because every worker that earns money in the facility spends it somewhere else in the community. So they have to tighten their belt. The economic impact of the lockout will be devastating if it continues much longer. ... Those dollars roll over so many times in the community. Some people use 6 times, some people use 3 times -- the multipliers are different in different regions. So it has a significant impact. THE DAILY: Is there any long-term effect on rates for in- arena ad signage? VIVIAN: All of the advertising is sold on the number of looks it is going to receive, the number of views that is going to be expected. So that is all based on attendance as well. The value of advertising is depreciated because of the lack of games and exposure. ... This is money that will impact what they can sell "the board" for next time. THE DAILY: Is there any effect of a hockey work stoppage on the construction of new facilities? VIVIAN: The new facilities that have been created in the last 10 years, because of the expansion of hockey and the NBA and all the other things, now these people are saying look at the money we spent and look at the revenue that is falling off, and we're going to have to go back to the taxpayers for some other form of funding the debt service on these buildings. ... [But] you'll note that a whole lot of the new facilities are being built by the pro teams -- or the people that are in partnership with the pro teams. Very few of the new arenas are citizen voted facilities. Very few of them end up to be funded from the general tax dollars. THE DAILY: Is there a specific figure that you can attach to the losses NHL arenas could encounter? VIVIAN: I would hesitate to give a figure, but if I was asked to guesstimate I would say a typical game would be worth $2 million or $3 million -- based on where the opponent is coming from and other factors. Even if you say a game is worth only $1 million, look at the equation.
The Chiefs are one of the most popular draws in all of professional football. More fans saw the Chiefs play at home and away last year than any other team, and they recently sold out their 30th consecutive game at Arrowhead. Today, THE SPORTS BUSINESS DAILY continues to profile the NFL's infrastructure with a look at Arrowhead Stadium.
STADIUM: Arrowhead Stadium, Kansas City, MO AGE: Completed in 1972 CAPACITY: 79,104 3rd highest in the NFL. LUXURY BOXES: 81 luxury boxes, owned and operated by the team. OWNERSHIP: Owned by the taxpayers of Jackson County. MANAGEMENT: Team runs the facility on a $2 million managementfee from the Jackson
County Sports Authority.
COST: Built in conjuction with Kauffman Stadium. Combined cost of $53 million.
Chiefs added $9.5M for additional construction.
PARKING: Parking for 26,000 cars at $6 a car. Team receives all revenue. CONCESSIONS: Handled by Volume Services. Undisclosed percentage goes to the team,
with 6% of teams revenue to Jackson Co. Sports Authority.
LEASE: Lease expires in 2010 RENT: $939,358 17th highest in the NFL. ADVERTISING: Team owns advertising rights - annual revenue figure not available. PUBLIC $: $7.5 million in city, county and state subsidies for both Arrowhead
and Kauffman stadium.