So the trips to Kansas City and Las Vegas went for naught- or rather, it was a slick move by Penguins officials to swing the Pennsylvania politicians into giving the franchise its new home. Bettman, Lemieux, and Pittsburgh and Pennsylvania government officials finally came to a deal yesterday, solidifying plans to build a new arena for the Penguins and keeping the franchise squarely in the land of the Quakers.
The deal provides for a $290 million facility to be paid for by taxes on the state's casinos. The team is responsible for a minimal portion of the financing- only $3.8 million toward construction costs and less than half a million each subsequent year for improvements. Most strikingly, the state is being required to pay the team a $10 million penalty for delaying the deal and for property already purchased by the team. The new arena is purported to be ready for the 2009-2010 season.
I'm happy to see an NHL staple stay put in one of the biggest hockey markets in the country- it would be disappointing for the game itself to see them move. However, I was excited at the prospect that the Jackets could have had a shot at moving to the Eastern Conference, which they seem to play rather well against, particularly this season.
The deal that seemed so long in the making came out to benefit the Pens more than I ever expected. I haven't followed these sort of deals much lately, but it seems like the Penguins really won this one. Not only did they score their new arena, they're paying for less than 1.5% of it- and that's not counting the $10 million penalty. Factor that in, and the government is paying for the entire construction cost plus the first 15 years of upkeep. Granted, the arena construction money is to come from the casino's coffers, but that tax money could just as easily be used to finance education, welfare, transportation costs, serve other needs of the Pennsylvania citizenry.
One could make the argument that the value of keeping the team in the Steel City is priceless, but did the taxpayers, government officials, and the City of Pittsburgh get a good deal here? Let us know in the comments.
Wednesday, March 14, 2007
Lemieux, Bettman and Officials Reach Deal: Penguins to Stay in Pittsburgh
Posted by
Tyler
on
3/14/2007
1 Reader Contributions
Thursday, March 8, 2007
Penguins Owners Check Out Las Vegas - Lemieux Doubles down on 6-6
As we all know, the Pens are looking around for a potential relocation destination. Kansas City, with their nearly completed Sprint Center, is desperate for an anchor team and looks like the current top choice. Also in contention is Houston, which also needs a team for their Toyota Center.
Lemieux and the rest of the Penguins ownership is now also investigating Las Vegas. Currently, the arena cited in the Pittsburgh press article isn't a whole lot better than what the Pens now have in Pittsburgh. But the city of Las Vegas, and it's wealthy casino elite, could easily be swain into constructing a new, more modern facility. Las Vegas already has an ECHL team (though, isn't ECHL a bit of a misnomer? There's nothing east coast about southern Nevada), which plays in the Orleans Arena, of course affiliated with the Orleans Casino. From web photos, the Orleans Arena looks like a modern facility, and I'm not sure why that venue would not be considered for NHL use.
Vegas is a city that would benefit from, and for, a sports team. They have a large enough fan base to support a team, plenty of financiers, and tons of travelers that regard the city as a mecca of entertainment, and would certainly attend games- especially if they were 'comped' to you in exchange for your high roller play at the tables. Despite this, at least one member of the Las Vegas Press thinks seeing Crosby and Staal on The Strip is unlikely.
If the Penguins select Las Vegas as their next home, they are best to do it as soon as possible. The NBA is also eying Vegas as a potential expansion or relocation site. By getting there first, the Pens could secure money and a fan base before they have in-town sports entertainment competition.
It doesn't cease to fascinate me how Pittsburgh, one of America's greatest hockey cities, is unwilling to help the team pay for a new arena, yet two other major cities (Kansas City and Houston) who haven't had an NHL team are clamoring to house the Penguins- plus several others that would love to strike a deal with Lemieux and the gang.
Posted by
Tyler
on
3/08/2007
0
Reader Contributions
Tags: Pittsburgh Penguins, relocation
Tuesday, March 6, 2007
Is it the End of the Ice Age for Pittsburgh Hockey?
Looks like global warming isn't the only thing killing Penguins. It was announced yesterday that the Pittsburgh Penguins were at "an impasse" with Pittsburgh municipal authorities regarding plans for a new arena. The team's owners are set to move if they can't arrange a new home for the team in Pittsburgh. Even though the Pens' owners offered $120 million toward a new arena, the construction and development costs are estimated to be $290 million, and the City of Pittsburgh and its taxpayers are not ready to commit that much cash.
In another attempt to raise the necessary funds, a gaming company called Isle of Capri Casinos offered to pay the taxpayer's share of costs in exchange for a license to open a casino in the Pittsburgh area. The casino license instead went to a competing corporation and this plan fell through.
With no other solution in sight, Mario Lemieux and other owner representatives are "aggressively" pursuing relocation. The top candidate for relocation remains Kansas City, but as mentioned in a previous Jacket Times post, Winnipeg, Portland, and Oklahoma City are also potential destinations.
It's a shame for a true hockey city to be struggling to keep their team (I can't help but draw comparisons to the Cleveland Browns' plight). The entire issue seems to revolve around the new arena that would replace the aging Mellon Arena, which was built all the way back in '61. To put that into perspective, the Beatles performed there in 1964... just months after first coming the US. Since opening, the arena has been renovated a few times, but the upgrades have been minimal. According to wikipedia, many 'upgrades' have been inadequate to keep up with modern technology and unable to compete with other professional sports venues. Apparently many seats have obstructed views and other seats are blocked off entirely because of roof leaks. Even one of the arena's most notable features, a retractable roof, was deactivated in order to compensate for a modern scoreboard. (Watching hockey with the roof open would be something special... though a tad chilly.)
I've never seen the inside of Mellon Arena, so I can't attest to its stagnant architecture, nor incapability to meet modern sports venue needs. Therefore, it is difficult to explain to a Nationwide Arena patron what the Penguins and their fans are going through. Is there any venue in Columbus that can compare to Mellon's degradation? The two potential candidates that come to mind are St. John's Arena at Ohio State and the Ohio Coliseum and Expo Center at the fair grounds, where the Columbus Chill formerly played. Speak up in the comments if you have some insight.
Posted by
Tyler
on
3/06/2007
3
Reader Contributions
Tags: Pittsburgh Penguins, relocation
Wednesday, January 3, 2007
Pens talking with KC (the sunshine band was not invited)
Hot off the wire today (ok, so it's not so much a wire. it's a computer... but it's connected by wires, right?) comes a story from Pennsylvania's more fledgling hockey franchise. Owners of the Pittsburgh Penguins franchise are in serious talks about moving the team.
The Pens have struggled financially for a while now, and they haven't been as skilled of a team since the departure of Jaromir Jagr and now part-owner Mario Limieux. The team has a couple young stars though, including Malkin and some guy named Sidney Crosby, who has already racked up over 60(!) points this season.
Kansas City is one of several cities that will be considered for Penguin relocation. Also on the docket are Winnipeg, Portland, and Oklahoma City. KC is already nearing construction on the nearly $300 million Sprint Center, which has not yet signed an anchor franchise of any kind. The arena should be up and running by Fall 07.
If the Pens move west, it is highly likely that they will need to switch conferences. The NHL will need to move a western conference team to the east in order to keep balanced. Columbus would be a prime candidate for such a change, and if the team that switches takes Pittsburgh's spot directly, (without other divisional shifts) they would compete most closely with Philadelphia, New Jersey, and both New York teams.
I would support a change of this nature for the Jackets. The competition is a little lighter in the eastern conference, road trips would be shorter, and there wouldn't be much jet lag or time changes to deal with. In any case, it would be nice to not have to play Nashville and Detroit so many times a season.
Posted by
Tyler
on
1/03/2007
0
Reader Contributions
Tags: NHL, Pittsburgh Penguins
