Blue Jackets Leading Discussions About Possible Arena Sale
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A-B Opposes Nationwide Arena Sale To County
Over Potential Increase On Beer Taxes |
The Blue Jackets are "leading discussions about the possible sale of Nationwide Arena to Franklin County [OH], using higher taxes on alcohol and cigarettes to help fund the deal," according to Jeff Bell of BUSINESS FIRST OF COLUMBUS. One option under discussion "calls for the county to buy the 18,000-seat arena from Nationwide so the team can work toward getting a better lease." The issue is "likely to come to a head in coming weeks as lawmakers decide whether to grant Franklin County the authority to impose or seek voter approval for an increase in alcohol and tobacco excise taxes," and such a provision "could be added to the state budget bill that the General Assembly must pass by June 30." Sources said that proceeds from a "higher 'sin tax' could provide a revenue stream for the county to tap to retire debt on bonds it would issue to finance an arena purchase." Bell noted Nationwide Arena is "owned by a partnership of Nationwide Insurance and Dispatch Printing Co.," with Nationwide holding a 90% stake. The Blue Jackets lease and operate the arena, but team President Mike Priest said that event revenue "isn't covering operating costs," which is "forcing the club to take money from hockey operations to make up the difference." Nationwide spokesperson Eric Hardgrove said that the company has "participated in discussions on 'public-private opportunities' for the Blue Jackets, including a sale of the arena." Franklin County Administrator Don Brown said that county commissioners are "aware of what the Blue Jackets are proposing but have not taken a position on buying the arena." Brown said that the club "likely would be asked to sign a long-term lease to ensure it remains in Columbus." When asked if the Blue Jackets would "consider leaving Columbus if the arena issue is not resolved," Priest said, "The very reason we are being so proactive is to avoid having to deal with that question and issue" (BIZJOURNALS.com, 5/28). Priest said in a statement, "As an organization, we have incurred substantial losses over the past several years, of which a significant portion is related to arena operations under the current structure. It is a building financial problem that has become a team financial problem. If we fix the building problem, we fix the team problem" (Blue Jackets).
BEER MONEY: In Columbus, Jim Siegel reports Anheuser-Busch is "already expressing opposition to the plan, which reportedly would raise taxes on beer" by 142%. A-B President Dave Peacock Thursday met with Ohio Gov. Ted Strickland, state Senate President Bill Harris and state House Speaker Armond Budish to "express opposition to the plan" (COLUMBUS DISPATCH, 5/29).
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