Magic COO Martins Says Arena Reason Why Team Is Borrowing
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Over Last Six Years, Martins Says Magic Have
Been Losing On Average About $15M Per Year |
Magic COO Alex Martins said over the course of the last six years, the team has been "losing some $15[M] on average per year," primarily due to the "short-comings" of Amway Arena, which the club will vacate when it moves into its new arena in '10. In an ORLANDO SENTINEL podcast, Martins said, "The fact is that we do not have access to the revenue streams that many of the other teams around the league have access to with a more modern facility, thus that was the reason, from a team standpoint anyway, that we worked with the community to establish a new building." Martins added, "In these difficult economic times, some NBA teams are absorbing some more losses than what they have been accustomed to in the past." The NBA on February 26 is planning to borrow $200M, which will be available to 15 teams, and the Magic plan to borrow $10M. Martins said the loan is an "aggregate of $10[M]," as the Magic can "either access the full $10[M] now or we can access a portion of it and access the rest at a later time. But the entire facility expires seven years from now." Martins also said if it the loan is not renewed the "balance of unpaid principle and interest will need to be payable at that time." Martins said the loan is "just a bridge for us to get us to that new event center over the next couple years when we have the opportunity to have the revenue streams to break even on a regular basis." Meanwhile, Martins noted the Magic "have decided to freeze our season-ticket prices for next year." Martins: "We have looked for other opportunities to sustain ourselves over the last couple years in the Amway Arena without having to hit our season-ticket holders with that burden" (ORLANDOSENTINEL.com, 2/19).
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