Nationwide Arena sale under discussion - Charlotte Business Journal:

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Preliminary talks have been held betweej Blue Jackets and Franklin County state legislators and Nationwide Insurance executivesd over helping the National Hockey Leagues club solve itseconomic problems, Columbus Business First has 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 bettetr lease. The issue is likely to come to a head in coming weeks as lawmakers decide whether to granf Franklin County the authority to imposs or seek voter approval for an increase in alcoho l and tobaccoexcise taxes. Such a provisiojn could be added to the state budget bill that the Generall Assembly must pass byJune 30.
Proceedzs from a higher “sin tax” could providde a revenue stream for the county to tap to retirs debt on bonds it wouldc issue to finance an arena according to people involved inthe discussions. Ohio’s beer and wine tax ratea stand at 18 cents and 32 centza gallon, respectively. There is also a $1.25 state tax on a pack of Better dealfor team? Nationwide Arena is owned by a partnershipo of Nationwide Insurance and Dispatcb Printing Co., with the insurer holding a 90 percent The Blue Jackets lease the nine-year-old arena and operate it, but revenue from eventsx isn’t covering operating costs, said Blue Jackets President Mike Priest.
That’s forcing the club to take moneyu from hockey operations to make up the he said. The formula worked in the early yearw ofthe franchise, when the team’z player payroll was lower and game attendance was Priest said, but it has contributecd to financial losses the Blue Jackets have suffered in recenf years. The club has lost a combined $80 milliomn over the past sevehn years. “We have a building financial issue,” Priest said. “That leads to a team financial issue. If we can fix the building we can fix theteam problem.
” Team officialw are exploring whether county ownershipl of the arena could result in favorabld changes to the Blue Jackets’ operating terms, Priesy said. A county agency – the Convention Facilities Authorityg – owns the land undef the arena and the nearbu Greater ColumbusConvention Center. The county also owns Huntingtom Park, the home of the Columbu Clippers in theArena “The county has not agreed to do anything,” Priesft said. “Nothing has been Commissioners are aware of what the Blue Jacketas are proposing but have not taken a position on buying the said county AdministratorDon Brown.
The count could not afford to buy the building unless a revenuwe stream was guaranteed to retires bond debt that would go with a he said. Officials also woulr need to examine theBlue Jackets’ finances, lease terms and revenues from non-hockey events such as concerts. The club likelg would be asked to signa long-tern lease to ensure it remains in Columbus, Brown “Without a covenant or guarantee like that,” he “I doubt the county would be It would not make business sense to take on ownership without being assured of an anchor Public-private partnerships involving professional sports arenas and stadiumsx are common, Priest said.
For example, tax revenu e from alcohol and tobacco sales was used in Cuyahogaq County to help finance construction of a basketballk arena for the Cleveland Cavaliers and a baseball stadium for the Indiansd inthe 1990s. Columbus went the opposite route in 1997 after voters defeated a tax proposal to fund constructionj of adowntown arena. Nationwids and Dispatch Printing, owner of the Columbus Dispatch and othermediaq operations, stepped in to build the $150 millioj arena when Worthington Industries Inc. foundere John H. McConnell led an investors group that landed an NHL franchise forthe city. The privatelh owned Blue Jackets, whose majority owner is Worthington Industries CEOJohn P.
haven’t disclosed details of the team’s finances. But mediza reports have put the team’s lease on Nationwidde Arena at morethan $3 million a year. Priest said the Blue Jackets gave up several revenue sourceas to help get thearena built, including 15 of the arena’s 52 luxury suites that were sold for 25 year s by Nationwide. The team gets revenue from the remaining luxury but receives no revenue from parkingf or arenanaming rights, he said. Priesyt was asked if the Blue Jackets wouldf consider leaving Columbus if the arensa issue isnot resolved.
“Ther very reason we are being so proactive,” he “is to avoid havinvg to deal with that question and I believe as a communituy we have the ability to find a Nationwide has participated in discussionson “public-private opportunities” for the Blue including a sale of the said Eric Hardgrove, a spokesman for the Columbus-basedf insurer. “We are not actively looking to sellthe arena,” he “It is one of the many options under considerationh to help ensure the Blue Jackets remain a strong, viable presence here for yearsw to come.
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