No NHL Preseason Game in KC Makes Jack a Dull Boy

As NHL training caps are just around the corner, let us remember that Kansas City doesn't have an NHL exhibition game.  Oh, but there is an NBA exhibition game.  So never mind no big deal.  Except IT IS A BIG DEAL.  The last hockey game at the Sprint Center was the October 13th match last year between Notre Dame and Nebraska-Omaha.  And that's the last one for the foreseeable future.  Why?

#1: The NHL lockout
To a small degree, the lockout can be blamed for Kansas City missing out on a hockey game this year.  KC was set to host the Rangers and Avalanche in a preseason game, but it was canceled due to the lockout.  This disrupted a trend of exhibition games at Sprint Center for the past three of four years at the arena.  But, it's not like the NHL's popularity dwindled due to the lockout.  In fact, NBCSN set ratings records, and local ratings were up in many markets. (though it was nice to say we would never watch the NHL again if the whole season was canceled.  Truth is the NHL knows your viewing habits better than you do).

#2: Sly James doesn't understand hockey
You've seen the quote.  Major James doesn't understand the business of bringing a professional sports team to the Sprint Center.  That's AEG's job.  Who brought the Ice Breaker tournament?  NHL exhibition games?  All AEG.  To Mayor James's credit, he has no clue.  But it's not like he's supposed to have a clue.  He's the figurehead, because who do you talk to at AEG about anything happening at the Sprint Center?

#3: Tim Leiweke doesn't work for AEG anymore
Tim Leiweke – KC's AEG representative, former AEG President and CEO, and everyone's favorite anti-hero – left AEG this year to join Maple Leafs Sports and Entertainment where he's made a big splash.  Now Dan Beckerman is in charge, a guy with no ties to an arena in the middle of America nor has to throw disgruntled KC constituents a bone now and then because he lied to them over seven years ago.  Kansas City is an afterthought, and though we get the Miami Heat and Charlotte Name Pendings for an NBA exhibition game, this caters to the local college basketball audience around town more than any hope of an NBA team coming to KC.

So, when is the next hockey game in the Sprint Center?  This reiterates that Kansas City does not appear to be in the running for an anchor tenant anytime soon.  Most importantly, though, how long can Sprint Center maintain it's profitability?  With an anchor tenant, the city, arena management, and team ownership all act as checks on the arena, making sure the facilities stay as up to date as possible.  Instead, it's clear the city defers to AEG on all happenings at this arena.  If the arena is no longer profitable and modern, will AEG look to sell it?  If we look at a recent example, it took the city of Kansas City over ten years after the Kings left for Sacramento to give Kemper a much needed renovation.  As we have seen, professional sports ownership typically requests renovations to arenas or stadiums, or threatens to leave.  This is an extreme example, yes, but how long do we really expect this to be a "Top American Arena" or whatever the hell?

Let's look at last year, KC had the highest visibility of hockey in the city since the days of the Blades last year (Ice Breaker, potential Rangers-Avalanche game, the Mavericks).  Instead, we only have the Mavericks to look forward to this year.  A year ago this time the future looked bright.  This year may be a glimpse into our possible future: the Mavericks, and that's it.

Yes, let's enjoy our world class arena with all of it's fun events, and let's enjoy our Missouri Mavericks and the success they have had in just a few short years.  But, it's okay to be cautiously pessimistic of the future of Kansas City hockey.

So, to paraphrase a statement by mayor Sly James, "What would you rather have, events at the Sprint Center or no events.  What do you think would make more money for the city in the long run?"  Maybe shoehorning one hockey event in Sprint Center this year would not have been such a bad idea, and would give the city one more "event" to boast about.

This Quote Deserves Its Own Place in Hell

“Let me ask you this,” (Sly) James said. “Which would you rather have, the Pittsburgh Penguins or the Phoenix Coyotes? Who do you think would make more money for the city in the long run?”
Perhaps the team that wins.  But, if either moves to Kansas City, it's almost a guarantee they will both lose.

:(


For more on this story, click here.

* * *


Also, this article exists, but isn't worth debating.  It's basically every baseless, basic argument put into one editorial.  HOT TAKES like "there aren’t enough pro basketball or hockey fans in this city to support a team even if we got one" obviously lack objectivity and research, and more importantly turn the discussion away from whether or not the P&L District and the city lose money because the Sprint Center doesn't have an anchor tenant (i.e. 40+ guaranteed events for X amount of years).  


And they say print journalism is dying.


(To Yael's credit, this editorial doesn't appear to have the same amount of research and thought as many of his others.  Perhaps the Star just wanted a familiar voice to chime in on the issue.  Not sure why that would be the case, nor what this article was attempting to prove.)

Read more here: http://www.kansascity.com/2013/06/20/4304493/mayor-says-luring-nhls-coyotes.html#storylink=cpy



The Curious Case (and Unending Questions) of Kansas City Hockey

"This man just got through talking about what the f--- he ain't
G-D did...LONG LIVE THE SCOUTS!!!"
More on this to come, obviously – the city of Glendale wants to lease their own city hall!!!, and Bettman has (supposedly) set a date – but you can be sure that the Coyotes won't end up in Kansas City.  Nope.  Not no way, not no how.  Or they could.  Who knows.  Who knows because Mayor Sly James diverts the truth on the whole issue, for some reason.  As definite as he is in his responses, he also leaves a lot of unanswered questions.  He's like a Pandora's box of dubiousness, always seemingly covering for someone or attempting to save face.  All just to convince someone – anyone – the Coyotes should not come to Kansas City.

Let me point out that James isn't necessarily wrong for doing this, nor refusing to bring the Coyotes to KC a bad idea.  It's an idea.  If the city doesn't want to do it – and if there is no ownership in place – then it does not happen.  Ipso facto.

As you may know, James claims Kansas City and the Sprint Center are not in the running to acquire the Coyotes should the NHL finally put the city of Glendale out of its misery and end their long financial nightmare.  Sly James just spoke to the Kansas City Star on the topic, because these interviews have become an annual tradition so why not.


He says in the KC Star June 20th:
“Several months back, even before that, we put out some feelers and talked to some people we trusted who knew what the situation was … the availability, the costs …” James told The Star on Thursday, “and the basic information was (the Coyotes) need a lot of money from the city in one form or the other. They said, it’s not a great deal for you, like you might hope.
“The question was, ‘What would it take?’ The answer was, ‘A whole hell of a lot. It might take you from a (profit) to a negative.’ It wasn’t something recommended to be done.”

Read more here: http://www.kansascity.com/2013/06/20/4304493/mayor-says-luring-nhls-coyotes.html#storylink=cp.
Okay, that's fine, I'll bite.  It's going to be a financial disaster...except maybe not.  The franchise is a financial disaster right now.  By moving, it seemingly avoids being a financial disaster.

It is, and forever will be, a financial disaster for the city of Glendale, who had the owner of their hockey team go bankrupt while running the team – thus sending the organization into bankruptcy.  That left the city to own and operate Jobing.com Arena at all expense to them, because the NHL had to take over the assets of the franchise.  The NHL, in its cunning ways, even had Glendale paying off part of the yearly debt of the franchise.  Over the four year span the organization went through a period of continued financial loss, mostly due to its instability and location within the Phoenix-area, and the city felt the pinch through ticket sales, paying the NHL part of the team's debts, and other lost television and marketing revenue (again, because of the instability – not because there are "no hockey fans in Arizona.").  This has continued for four plus years because no one is able to own the team under the NHL's conditions because they are a) keep the team in Glendale and b) since the team is in Glendale, the city must give that owner a sweetheart deal to keep it there i.e. literally PAY THE OWNER TO RUN THE TEAM IN JOBING.COM ARENA just so the ownership can turn a profit.  Without profit, no one wants to own the team.  Chicken and the egg, except the egg is the city of Glendale leasing out their city hall, taxing out the ass, and diverting what's left of their budget.

The tl:dr to that is the Coyotes (and any potential owner) need a lot of money from the city of Glendale, not necessarily from Kansas City...or Seattle...or Vegas...etc. because those cities don't owe the NHL.

The question here is what money do the Coyotes need from another city?  What is that money doing?  Getting them out of Glendale jail?  Moving costs?  Perhaps I don't understand the deal Kansas City has with AEG for the Sprint Center well enough to ably process what part the city has in owning a franchise.  Yes, it stands to gain or lose financially, but what is the difference between a deal with the Coyotes in 2013 and a deal with the Penguins in 2007?  If memory serves me correctly, AEG was willing to give the Pittsburgh Penguins free rent at Sprint when the team mulled relocation.  That's basically what Glendale has to offer to keep the Coyotes in town – plus several million dollars more, again, just so the team can turn a profit.  Is that what Kansas City would run into, having to eat a share of the rent costs of the arena along with AEG or an AEG approved ownership group?  Really, no one knows, and these "some people" James talked to could be anyone.  They could be your neighbor, your boss, that guy at the grocery store that bought the last bottle of Billy's BBQ sauce.  There is absolutely no reason, though, for these people to go by the nom de guerre of "some people."  Who said it?  Did AEG say that?  Was there a focus group?  With these simple fill-in-the-blanks, Sly, I wouldn't have to blog about how I think you are full of shit, were fed some shit, or a little from Column A and B.  Glendale is losing money on the Coyotes because it's turned into the bad investment for the city, not an owner.  Kansas City does not own the Coyotes, nor would they under the agreement that AEG owns any NBA or NHL franchises at Sprint.  Thus, Sly James, we require more information from you.

That point, for all intents and purpose, is what's at issue.  What does Sly gain from not disclosing these people?  Just tell us who you talked to and what they said.  If your neighbor made up a chart and Power Point presentation that said the city would lose money by acquiring the Coyotes, then fine.  We know the qualified source to direct our questions.

Anyway...

What else...?  Oh yes.

James goes on to say (bold mine):
“We were told, you should continue to look for a team, you’re in a good enough situation, where you have an arena that is working,” James said. “It’s not like we’re desperate or have an arena that is dark and not making money. You don’t have to jump at a deal just because something is out there.”According to Pollstar Magazine’s annual report, Sprint Center was the sixth-busiest arena in the United States in 2012 and No. 22 in the world. Even without an anchor tenant, Sprint Center provided $1.85 million to the city in 2012 through its profit-sharing agreement.
 This is true, and so financially responsible of him.  At issue are the promises made when the Arena opened.  Those promises are seven years and counting.  People get impatient.  And Sprint's not going to be around forever.

Kemper Arena lived to be about thirty before it was absolutely not profitable anymore.  If Kansas City acquires a team TODAY, they could have a lease at Sprint similar to the Chiefs and Royals at the Truman Sports Complex: 25 years (for a frame of reference, Glendale wants a 15-year lease on a nine year old arena).  Of course, any team may not sign that kind of a lease, but who knows how much longer Sprint will be around, or profitable.  The city has to understand people get impatient about a pro sports franchise moving into Sprint because its not "new" anymore.  There are new arenas going up across North America that can attract a franchise – or owner – better than Kansas City can (Seattle, Quebec City, etc.).  Technically before Sprint, Kansas City had an available arena since 1976.  The window closes a little everyday.

But, we're being too nice to Mayor Sly.  Here's where he tells a blatant lie (bold mine, again):
Of course, the other part of the equation to bring a team to Kansas City is identifying ownership. Both the new Phoenix group and prospective Seattle group are from out of the area and if AEG — which operates the Sprint Center — has an ownership group waiting in the wings for Kansas City, it is not saying.
“I’m not aware of a group,” James said. “That was part of the early discussion, whether there was a group that could step up … my understanding was there was not a group.
My mistake.  He might have actually told the lie a year ago around this time:
"I'd say, if anything, we're closer on the hockey front than we are the basketball front.  There's a cohesive hockey interested group."
Later, Sly makes it clear on his Twitter account that "Nothing even close" to a deal exists but then WHY DID YOU SAY THAT?  Anyway, the point is who knows what we can believe.  There has probably never been a "cohesive hockey interested group," and that's fine, because Sly didn't necessarily mislead us, because he totally didn't say that (even though he did).  Again, he's not at fault.  We all are, for assuming that the minds behind downtown revitalization of the mid-2000s had a professional sports team in mind.

Personally, I'd love to have an NHL team in Kansas City.  But, honestly, I could give a shit less if I felt like the mayor or AEG would give us the actual financial risks of why we can't pursue the Coyotes, and quit acting like Sprint Center is some Mecca of entertainment that's evolved past the need to host the competitive gladiator events of the dirty proletariat.  Madison Square Garden and Staples Center are Meccas of entertainment, and they do just fine hosting multiple professional sports teams plus events.  The Sprint Center is a nice arena in the middle of America with a good event booker.  That's it.  But what happens when Sprint Center gets older, and can't support those great musical acts?  What happens when we are back where we started, when those acts bypassed KC to go to Omaha, and St. Louis, and OKC, and Des Moines?  Where is the staying power for Sprint?  Does the downtown revitalization stall in five years when Sprint is twelve years old and not considered "modern" anymore.  Then what?

Oh, and to his credit James does get something unequivocally right in that article: Kansas City does not have a potential hockey ownership group.  At all.  None.  And that's all he really needed to say anyway.

Read more here: http://www.kansascity.com/2013/06/20/4304493/mayor-says-luring-nhls-coyotes.html#storylink=cpy



Read more here: http://www.kansascity.com/2013/06/20/4304493/mayor-says-luring-nhls-coyotes.html#storylink=cpy

Mayor says luring NHL’s Coyotes would have been bad business deal for Kansas City

(editor's note: this story originally appeared in the Kansas City Star on June 20th.  It is posted here in its entirety for posterity's sake, because The Star's online articles tend to disappear quickly.  This article is not written by anyone associated with Lost City of Bettman.)

June 20

BY RANDY COVITZ

The Kansas City Star
Whether the NHL’s Phoenix Coyotes remain in Arizona or move to Seattle, Mayor Sly James does not regret that Kansas City didn’t do more to attract the club to the Sprint Center.

Read more here: http://www.kansascity.com/2013/06/20/4304493/mayor-says-luring-nhls-coyotes.html#storylink=cpy


After investigating the possibility of pursuing the Coyotes — who have been losing money while under NHL ownership since 2009 — James was convinced the franchise would have been a bad business deal for Kansas City.
“Several months back, even before that, we put out some feelers and talked to some people we trusted who knew what the situation was … the availability, the costs …” James told The Star on Thursday, “and the basic information was (the Coyotes) need a lot of money from the city in one form or the other. They said, it’s not a great deal for you, like you might hope.
“The question was, ‘What would it take?’ The answer was, ‘A whole hell of a lot. It might take you from a (profit) to a negative.’ It wasn’t something recommended to be done.”


Renaissance Sports Entertainment, a group out of Canada which has been approved to buy the Coyotes from the NHL, is seeking a reported $15 million a year from the Phoenix suburb of Glendale, Ariz., to operate the Jobing.com Arena. Glendale has budgeted $6.5 million per year, according to the Arizona Republic, and if the two sides don’t come to an agreement by July 2, the Coyotes could be sold to interests in Seattle, where the team would play at Key Arena until a new facility was built.
Handing over a multi-million dollar subsidy to the new owners is simply too much, said James, considering the Sprint Center is turning a profit each year for the city. According to the mayor’s office, Kansas City has received nearly $8 million in profit-sharing payments in the Sprint Center’s first five years of operation.
“We were told, you should continue to look for a team, you’re in a good enough situation, where you have an arena that is working,” James said. “It’s not like we’re desperate or have an arena that is dark and not making money. You don’t have to jump at a deal just because something is out there.”
According to Pollstar Magazine’s annual report, Sprint Center was the sixth-busiest arena in the United States in 2012 and No. 22 in the world. Even without an anchor tenant, Sprint Center provided $1.85 million to the city in 2012 through its profit-sharing agreement.
Still, the mayor is not giving up on bringing an NHL or NBA franchise to Kansas City.
“Our position is, if there is a good deal out there, that makes sense, then, yeah, let’s take a serious look at it,” James said. “But if it’s going to be something that is more risk than we possibly want to take on, let’s not do that. Right now, we don’t have an offer, there’s nothing out there.”
Of course, the other part of the equation to bring a team to Kansas City is identifying ownership. Both the new Phoenix group and prospective Seattle group are from out of the area and if AEG — which operates the Sprint Center — has an ownership group waiting in the wings for Kansas City, it is not saying.
“I’m not aware of a group,” James said. “That was part of the early discussion, whether there was a group that could step up … my understanding was there was not a group.
“Doesn’t it seem like if we really want to get in the game, we need some people here who have some money who are willing to get in the game?”
Los Angeles-based AEG has undergone a change in leadership in recent months with Dan Beckerman taking over as president and chief executive officer in place of Tim Leiweke, who now runs the company that owns the Toronto Maple Leafs, Toronto Raptors and Toronto FC.
Repeated attempts to reach Beckerman have been unsuccessful, so it is unknown whether AEG — which owns the NHL’s Los Angeles Kings — has an interest in identifying a buyer for the Coyotes if they fail to reach an agreement with Glendale or Seattle.
“We are continuing to follow the lead of the NHL, so we are unable to comment regarding specifics as it relates to the Phoenix deal,” said Shani Tate, the Sprint Center’s director of communications and marketing.
The NHL Board of Governors is scheduled to meet on June 27 and hoped to approve the sale of the Coyotes. The league has yet to release its 2013-14 schedule, and it reportedly has several versions, depending on where the Coyotes are playing.
Sprint Center does not have an NHL preseason game scheduled for this fall, though Tate said that has nothing to do with the Coyotes’ situation. She did say, however, that if the opportunity were to arise, the facility can work with the NHL on scheduling needs.
“We are always making preparations, whether it relates to scheduling and making sure we are involved in the necessary conversations,” Tate said. “However, it needs to be the most responsible thing and making sure our partners at the city are also involved. We are paying close attention to the situation in Phoenix.”
Kansas City’s reluctance to underwrite the cost of the Coyotes or any NHL or NBA franchise could preclude any franchise from moving to the Sprint Center, because most clubs will demand shares of revenue from suites, concessions, parking, signage, sponsorships and other amenities.
AEG offered the Pittsburgh Penguins a favorable lease before the arena even opened in 2007, only to see the team leverage that deal for a new arena in Pittsburgh. James agrees that most clubs would want a favorable lease as well. But not all situations are the same. There’s only one Sidney Crosby.
“Let me ask you this,” James said. “Which would you rather have, the Pittsburgh Penguins or the Phoenix Coyotes? Who do you think would make more money for the city in the long run?”