S.F. hedge fund manager Chris Hansen "would need to secure only an NBA team" before the city of Seattle contributes public money to help construct a new venue -- "a departure from original reports that NBA and NHL franchises would both need to be secured," according to Nick Eaton of SEATTLEPI.com. The parties involved with the proposed arena "seem to all agree that it's nearly impossible to secure both an NBA team and an NHL team at the same time." But without an NHL team, "King County would not contribute much to the effort." With only an NBA team lined up, "the city of Seattle would take on most -- if not all -- of the public financing." Under a formal agreement unveiled yesterday, the city and county would contribute $200M to "construction of a new arena south of Safeco Field," with $120M coming from Seattle and $80M from King County "in the form of bond loans." If no NHL team is secured, only $120M in public money "would go to the project, with the county's contribution capped" at $5M and Seattle "still on the hook" for up to $120M. The memorandum of understanding "now goes before the city and county councils for scrutiny and consideration." Seattle Mayor Mike McGinn said, "This commitment to invest in upwards of $800[M] of private capital -- I feel like repeating it: $800[M] in private capital -- is one of the largest commitments of private capital ever made for a project like this in North America. It's a real vote of confidence in this city.” McGinn said that the “city is ‘committed’ to working with the Mariners, the port and any other groups who are skeptical of building a new arena in Sodo” (SEATTLEPI.com, 5/16).
BIG PERSONAL INVESTMENT: In Seattle, Lynn Thompson writes Hansen and his investment group, ArenaCo., will contribute $290M “to the arena construction and upward" of $500M to purchase an NBA team. The investors also “hope to attract” an NHL franchise. The councils are “likely to ask for the identities and financial strength of Hansen's other investors.” Hansen previously indicated that he would “likely provide their names sometime in June.” Hansen and ArenaCo. would “privately finance construction of the arena and pay for any cost overruns.” An NBA and NHL franchise both would “have to agree to 30-year nonrelocation agreements” (SEATTLE TIMES, 5/17).
THE SPORTS SCENE: In Seattle, Jerry Brewer writes the proposal is “a chance to transform Seattle from a city with major-league teams to a true major-league city.” In the “admittedly absurd world of pro sports, this is as fair of a deal as any prospective owner will propose.” Still, there are “legitimate concerns,” as Seattle has been “a victim of too much disappointment for such a young sports city.” Brewer: “Ultimately, this game will be a test of the city's sports ambition.” Hansen has presented “the best deal you'll see over the next decade, maybe longer.” It is “an ambitious, creative and thoughtful deal,” and the legitimate concerns “are all manageable.” Brewer: “If Hansen succeeds, prepare to enjoy a lush Seattle sports scene, the kind you've never had before, the kind that will change the quality of life for every entertainment fiend in the city” (SEATTLE TIMES, 5/17).
GOOD NEWS IN QUEBEC? The GLOBE & MAIL’s Paul Waldie writes hockey fans in Quebec City “have received some good news from officials in Seattle, who appear to be softening their interest in an NHL team in preference for an NBA franchise.” Seattle may be “keen to show an interest in basketball because the NBA’s Sacramento Kings could be looking for a new home soon.” That element “should help Quebec City, which is in the early stages of building a $400-million (Canadian) arena in an attempt to lure an NHL franchise” (GLOBE & MAIL, 5/17).
