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January 16, 2009
Islanders next contestant on "Who's Threatening to Move to K.C.?"
It's now been almost five years since Kansas City announced plans to build a hockey arena without an actual hockey team to play in it. As I wrote at the time:
That sound you just heard was the ka-ching! of cash registers in the souls of NHL owners, smelling a move threat to wave in the faces of local elected officials come August.
The Pittsburgh Penguins already cashed in on that threat, and now it looks like it's the New York Islanders' turn. From TSN:
The Islanders have agreed in principle with the Los Angeles Kings to play an exhibition game in Kansas City in September.
This may not seem like that big of a deal in light of the fact other NHL teams have used Kansas City in recent years as a neutral cite for preseason games.
However, according to league sources this game could be perceived as a veiled threat of potential relocation if plans for a new arena on Long Island aren't soon finalized.
According to "league sources," huh? You mean the same league that has a vested interest in getting teams' hometowns to build them new arenas, by dropping hints that the team will move without one, if necessary? The same league whose commissioner, Gary Bettman, said on the radio Thursday of the Islanders' home, Nassau Coliseum, "That building has to be replaced. And if I were [Isles owner] Charles Wang, I wouldn't sign an extension on that building for a new lease under any circumstances"?
But I'm sure that's all just a coincidence.
I've never understood why a NHL team would want to move to Kansas City. It's got too many other big sports (Chiefs, Royals) that would complete for the limited entertainment cash and in a downturn there really isn't a lot of extra spending money in a mid-sized Midwestern city. The city has a history of not going to hockey games at all (see the KC Scouts and the KC Blades) and isn't really a hockey town since during the winter it's all about the college basketball scene. It's not like Oklahoma City or Portland or Edmonton where the team would the only major professional team in town.
It's just plain weird, the other cities should just call their bluff when teams threaten to move to KC. They won't since it'd kill their bottom line and in the end that's all that matters.
Posted by jmauro on January 17, 2009 12:07 PMI rather see an NBA franchise in Kansas City than an NHL franchise but again it was a mistake to build an arena in Kansas City without first getting a tenant, see Hamilton, Ontario's Copps Coliseum for an example.
Posted by Daniel Francis on January 17, 2009 11:38 PMThe Isles have the worst lease in sports (and the league's cruddiest arena), and it doesn't run out until 2015. But given their enormous TV contract, one that they wouldn't have a prayer of matching in KC, there's no way the owner, a Long Island native, would move the team. Nor does Bettman want it moved.
But AEG, which runs the Sprint Center, is desperate for an NHL team (the NBA, which is what they'd really like, isn't coming back), and the Isles are the likeliest target. But realistically, there's no way - I doubt they could make back on the arena what they'd lose on the TV deal, and they wouldn't own the building.
Posted by DonK on January 19, 2009 01:35 AMIs Bettman still pushing the "You just do the approvals; you don't wait for the financing, it doesn't work that way." agenda?
Also, Neil, if you have a moment can you help me better understand what approvals Wang/Bettman are seeking? I don't have a very good understanding of this project at all. Searching for details on Google has been rather fruitless. I repeatedly learn that the financing "plans" are "not discussed" or "sketchy" - but I found no info on what approvals Wang is even going for.
Lastly, wouldn't Kansas City be a non-starter for Wang, since AEG is going to seek some type of compensation for their building? (Even if they let the team play "rent free") Sorry to jump around so much - but wouldn't the City of Industry NFL Stadium be the same scenario. As you've educated us in the past - the real value of a stadium/arena is not owning it, but rather, controlling the revenues. I don't understand how an NFL team is going to realize an advantage by leaving their current stadium to go split revenues with Roski in his castle. In either case wouldn't a franchise sale be in order to achieve the lucrative "team keeps all the revenue" goal?
Thanks, best - T
If I understand it correctly, Wang is trying to use the Islanders/Coliseum situation as a wedge to get his big Lighthouse Project approved: If it goes through, he'll renovate Nassau Coliseum, if not, (starts whistling "Everything's up to date in Kansas City"). It's very similar to the Nets' Atlantic Yards gambit or the A's ballpark-and-condos plan in Fremont - it's worth it to pay for the sports facility if it can get you development rights you otherwise wouldn't have a chance at - except, of course, that those two projects don't have half a pulse between them, thanks to the state of the economy. So I'm not really sure what Wang is thinking at the moment.
And yeah, that occurred to me as well re: AEG: If K.C. still ran the place, they might be inclined to give a sweetheart lease to avoid the embarrassment of having it empty, but AEG is going to want the team to pay actual rent, which isn't going to make Wang happy. (With Roski I assume he'd be buying a team - it doesn't make sense for him to just be the landlord, unless he plans on making a killing selling beer to tailgaters.)
Posted by Neil on January 19, 2009 06:14 PMNeil: Wang and developer Scott Reckson have already won a bidding contest among a number of developers (including Mets' Fred Wilpon) for the right to develop the whole area (hotel, convention center, shopping, etc.). It's the last real develop-able area in Nassau County.
The County has OK'd the project. The Town of Hempstead is the last hurdle. It's a semi-corrupt (formerly GOP machine) town; supervisor is Republican; town board is 10-9 Democratic.
Supervisor has, in essence, dared the Isles to move (their lease runs until 2015), and the town seems to be trying to kill the project by inertia. Wang is a Long Island guy who has, until now, refrained from saying much about the arena, which is outdated, smaller than any in the NHL and, by today's standards, a hovel (it still shows the effects of years of neglect, and was built on the cheap 37 years ago).
Supervisor has told Wang he's free to renovate the Coliseum (since it's a county building, that's not her decision to make anyway). Wang is smart enough to know that if he ever did that, the project would go up in smoke.
Wang hasn't asked for a dime (unlike the 2 NYC baseball teams) -- yet. There would have to be infrastructure money spent, and the traffic (already bad) could be even worse. Really needs an LIRR station; only way to get to the building is to drive (typical '70s suburban arena).
Isles' biggest asset is their huge (well into 8 figures per season, for many years to come) TV deal -- something that would never be matched in KC. Unless AEG or someone it designates were to buy the team, they'd be nothing more than a rent-paying tenant - and that's not what they need. ARG is desperate for a team (they can't get NBA, and an NHL team was part of the promise that AEG made when the arena was built.
The saga continues.
Thanks for taking the time Neil. It seems like this Islander terror-storm is really heating up. I saw the piece in Newsday this morning. Best Regards, T
Posted by Thomas on January 20, 2009 03:03 PMThe piece in Newsday, for those who missed it:
http://www.newsday.com/sports/hockey/islanders/ny-spjohn0121,0,336003.column
Posted by Neil on January 20, 2009 03:08 PMI for one disagree with the statements that the Nassau Coliseum is a crummy arena. The building has great sightlines for hockey (better than MSG), it has the feel of an old time barn (unlike the sterile environments that have replaced great buildings like the Montreal Forum and Chicago Stadium), and if the team was competitive, the place would sell out regardless of what the facility looked like. I also see teams like the Phoenix who have a modern facility, and yet are hemmoraging money.
The Isles have the fan base - put a competitive team on the ice and they'll show up. If they feel they can replicate that in KC, good luck to them.
Posted by Zubman on January 21, 2009 04:06 PM