After almost two years of "meandering and sometimes
maddening negotiations" over a Newark arena, execs from
YankeeNets and the state of NJ confirmed that negotiations
will "move into the final stages" this week, according to
George Jordan of the Newark STAR-LEDGER. During the talks,
the parties will "hammer out subsidies and loans" for the
$325M project. Meanwhile, YankeeNets said it has
"commitments for as much as another" $200M in private
financing. According to two NJ legislators, YankeeNets are
seeking $200M in subsidies and loans. Of that, $75M from
the state would go to infrastructure improvements.
YankeeNets would have to repay the "majority" of the
remaining $125M, which they plan to repay with sales tax
revenue, tickets sales and "other cost savings" over 15
years (Newark STAR-LEDGER, 12/11). In N.Y., William Rhoden
wrote on the Devils and Nets bid to play in downtown Newark
by 2004. Continental Airlines Arena, where the teams
currently play, "is losing money and is costing taxpayers
about $50 million a year in operating subsidies."
YankeeNets President Finn Wentworth: "Fundamentally, the
Meadowlands isn't working. The Devils are a Stanley Cup
champion. The Devils as a Stanley Cup champion aren't
drawing what the Rangers are drawing, and the Rangers
haven't been in the playoffs for going on three years. If
you don't have to win the Stanley Cup to sell out the
Garden, over in New Jersey you can win the Stanley Cup
championship and you're still not selling the place out.
That's evidence that there has to be some fundamental
flaws." Asked about the advantages of a move to Newark,
Wentworth said, "People, people, people" (N.Y. TIMES, 12/9).
The SPORTSBUSINESS JOURNAL's Andy Bernstein notes that after
19 games, local TV ratings for the Devils have fallen 38%
compared with the same number of games played last year, and
that nearly 20% of the seats at Continental Airlines Arena
have "gone unfilled" at Devils home games. Devils President
Lou Lamoriello: "I don't think we could do any more
marketing and promoting than we're already doing. When you
win the Stanley Cup, you can't get much more exposure than
we have gotten" (SPORTSBUSINESS JOURNAL, 12/11 issue).
