SBD/11/Franchises

THE OUT FOR THE DEVILS' LEASE MAY BE IN THE DETAILS

     In New York, Larry Brooks examines the events contributing
to a possible move by the Devils to Nashville.  Brooks notes that
the Devils have initiated an audit of the NJ Sports & Exposition
Authority, a strategy that caught the NJSEA by "surprise."  The
audit charges that there are "13 areas in which their landlord is
in default of the lease."  In the past ('86 and '91), the Devils
"simply demanded renegotiation of the lease."  This time,
however, the team has "opened a process under which they have the
ability to declare a breach of contract and immediately terminate
the lease."  Brooks notes that four of the "areas of alleged
misconduct concern" are number of parking spaces, drafts in the
building, overlap of events, and the safety of a pedestrian
bridge.  Brooks writes that Devils Owner John McMullen believes
"that he has been treated outrageously" since moving to NJ in
'82, and that -- "as much as a desire to make more money" is
driving his threats to move to Nashville.  Despite McMullen's
complaints, Brooks concludes that NHL Bylaw 36.5, which lists 24
criteria to be evaluated in determining whether a team should be
permitted to move, does not back up the Devils' claims (N.Y.
POST, 5/11).
     NASHVILLE'S READY, JUST IN CASE:  Nashville Mayor Phil
Bredesen presented a $57.5M plan to the city council to bring a
team to the new downtown arena, but "he tied the package firmly
to approval of beer sales at the facility."  The arena is under
construction 85 feet from the a Baptist church, and city beer
laws require a distance of at least 100 feet between businesses
that sell beer and churches.  Bredesen wants a vote on the beer
exemption before the sports package (Jim East, Nashville
TENNESSEAN, 5/10).
     HERE'S THE DEAL:  Bredesen's package breaks down into $27.5M
in revenue bonds, $12M in equal contributions by the Metro
government, Gaylord Entertainment and the team owner, and $18M in
ticket sales, rent and concessions.  The $12M would fund a Metro
Sports Authority to oversee the arena, with the authority paying
Gaylord about $350,000 a year (4.8% of non-NBA/NHL revenues) to
manage operations.  In addition, the authority would cover $20M
in reolcation fees for any pro team.  The team's lease would be:
100% of ticket revenue; 100% of radio/TV revenue; 97.5% of team-
related suite sales;  50% of non-team suite sales;  35% of game
day merchandise; 100% of NBA/NHL-related ad revenue; 40% of gross
revenue on game day concessions; 75% of game day parking revenue
from an attached 350-car garage; and 2.2% of non-NBA/NHL revenue
(Nashville TENNESSEAN, 5/10).
Return to top
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug