After losing $55M in two seasons playing in Greensboro,
NC, Hurricanes Owner Peter Karmanos "is heralding a new
financial era" with the opening of the new Raleigh Sports
Arena, according to Ned Glascock of the Raleigh NEWS &
OBSERVER. Karmanos "not only hopes to break even the first
year, but also thinks the team can soon turn a profit." He
said operating the arena will "give us all kinds of sources
of revenues we didn't have in Hartford or Greensboro." The
franchise will be a $70M business the first year in the new
arena, and Karmanos said that to "break even," the team will
need to average about 14,000 fans for 41 home dates. At
that rate, the team would net $575,000 a year from parking
revenue and $2.3M from concessions. Karmanos called the
14,000 figure "conservative ... for a market like the
[Research] Triangle." In leasing 58 luxury suites, the
Hurricanes hope to collect $6-7M the first year. The team
also "hopes to net" $5-6M from arena advertising. Karmanos:
"It's not bad; it's not great. It's certainly better than
Hartford, where we got zero" (NEWS & OBSERVER, 10/28).
PRIVATE EYES: Glascock added that the Hurricanes'
parent company, Gale Force Holdings, "plans to treat its
contracts with advertisers, performers and vendors as trade
secrets exempt from disclosure under North Carolina's public
records law." While taxpayers "have contributed" $97.7M, or
63% of the arena's $154.8M cost, Gale Force CEO Dean Jordan
said the public's investment is protected because the
company would absorb any operating losses. Jordan: "This
is our building to manage, and we've paid for that right.
The public has no risk in this building" (N&O, 10/26).
