Columbus lawyer John Rosenberger, City Auditor Hugh Dorrian and Franklin County Convention Facilities Authority Exec Dir Bill Jennison yesterday announced a proposed deal that would "keep the Blue Jackets" in town, according to a front-page piece by Doug Caruso of the COLUMBUS DISPATCH. The plan, which "has been two years in the making," would move Nationwide Arena from an ownership group led by the insurance company "into the hands of the facilities authority." Nationwide would "invest more than $52 million in the Blue Jackets, becoming a 30 percent owner of the team, and buy naming rights to the arena." The company would pay the Blue Jackets $28.5M "over 10 years for naming rights," and the team then "would agree to remain in Columbus through 2039." The Blue Jackets have said that they "are losing $10 million to $12 million per year on their lease deal with Nationwide." The deal is "expected to save the team" $9.5M per year, and Blue Jackets President Mike Priest issued a statement "praising the proposal." Priest said, "This report offers a solution that will provide a long-term sustainable business model for the organization. We are encouraged by the report’s findings." Caruso notes the proposed deal "would place in public hands an arena that voters declined to fund with higher taxes" in 97. Franklin County and Columbus "would pledge up to a third of the tax revenue they are due from the state’s four casinos through 2039 to finance the $42.5 million purchase of the arena from Nationwide Realty Investors and to pay to operate it." Columbus City Council spokesperson John Ivanic said that it "could be two to three weeks before they vote on the deal" (COLUMBUS DISPATCH, 9/15).
NATIONWIDE IS ON YOUR SIDE: In Columbus, Mark Williams notes "plenty of insurance companies sponsor events or pay for naming rights of arenas and stadiums." But Ohio State Univ.'s Fisher College of Business professor Rao Unnava said that the ownership stake is "unusual and probably won’t provide much of a payoff for the company." Instead, Unnava said that the company's investment is "part of a trend among corporate leaders nationwide toward social responsibility." He added that the motive "has more to do with company leaders’ desire to make a city better rather than expecting anything in return" (COLUMBUS DISPATCH, 9/15). Also in Columbus, Bob Hunter noted "fans of the Arena District and the local hockey team will hail this potential deal as a home run for the city." Critics will "scream about the city and the county buying an arena it doesn’t need." Hunter adds, "Both sides have a point, but that one line -- the team would agree to remain in Columbus through at least 2039 -- continues to resonate. In today’s volatile pro sports climate, it’s difficult to overstate the significance of that statement. ... Without some kind of deal, the city seems destined to lose the Blue Jackets -- to Quebec or some other franchise-poacher. And if it does, there’s no way that area can thrive as it does now" (COLUMBUS DISPATCH, 9/15).
