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-   -   Allentown Lease terms- robbery? (http://hfboards.hockeysfuture.com/showthread.php?t=1066471)

RFA 12-30-2011 10:44 AM

Allentown Lease terms- robbery?
 
http://poststar.com/blogs/phantoms_f...9bb2963f4.html

I've never seen a lease so one-sided, the taxpayers are taking all the risk on here, then the Brooks can buy the arena at the end?? I guess it looks reasonable compared to Abbotsford, but here it really looks like the taxpayers are building the Brooks an arena. I'm all for progress and pubilc projects, but the protestors at the city meetings are probably right in this case. I doubt they even know why though.

Majik1987 12-30-2011 12:36 PM

That summary doesn't really provide enough details to say if it fair or not. Is it the concessions and such for the hockey events or ALL events at the arena? If it is just the hockey events, then I don't really have a problem with that. The rent should be set high enough by the city to cover the facility cost for the team. The city can re-coup additional costs by hosting concerts, circuses, and other events at the arena.

RFA 12-30-2011 01:36 PM

http://www.mcall.com/news/local/alle...,3111365.story

Is more specific......

in years 11-29, Brooks will owe the city's arena authority $1 a month. (that won't cover much)

Lease terms

The arena authority gets:

•Base rent payments totaling $6.7 million

•Annual capital improvements payment of $500,000

•Annual payment of $100,000-plus to cover city services

•$8 million capital contribution toward arena

The Phantoms' owners get:

•All revenues from concessions, ticket sales, food sales

•Naming rights and advertising revenues

•Right to purchase arena at close of lease

--
They get about 15% of concessions now in GF; Devils get about 50 cent per item, River Rats got 25 cents a person if the crowd was over 4,000 (actual, not reported).

The advertising and naming revenue is huge also, it is usually split.

Sports Enthusiast 12-30-2011 02:49 PM

Who was the guy on acid who actually agreed to this proposed lease? If I lived in that city I think I would wanna smack him! Lol

Tommy Hawk 01-01-2012 05:30 PM

Quote:

Originally Posted by RFA (Post 41659371)
http://www.mcall.com/news/local/alle...,3111365.story

Is more specific......

in years 11-29, Brooks will owe the city's arena authority $1 a month. (that won't cover much)

Lease terms

The arena authority gets:

•Base rent payments totaling $6.7 million

•Annual capital improvements payment of $500,000

•Annual payment of $100,000-plus to cover city services

•$8 million capital contribution toward arena

The Phantoms' owners get:

•All revenues from concessions, ticket sales, food sales

•Naming rights and advertising revenues

•Right to purchase arena at close of lease

--
They get about 15% of concessions now in GF; Devils get about 50 cent per item, River Rats got 25 cents a person if the crowd was over 4,000 (actual, not reported).

The advertising and naming revenue is huge also, it is usually split.

Quote:

Originally Posted by Green Men Rule (Post 41662043)
Who was the guy on acid who actually agreed to this proposed lease? If I lived in that city I think I would wanna smack him! Lol

How do you figure this is a bad lease for the authority? They are getting $7.3 million per year in rent payments with no worry about whether or not events at the arena make money. The arena manager is taking on all the risk here.

I am betting right now that in GF and Albany they are not paying that kind of money for arena rental. If I recall correctly wasn't there something a couple of years ago where the Amerks were complaining that they were paying 200k per year in arena rental and that was too high?

Also, I am not sure where you think the $1 a year payment is referenced. They are paying 8.7 mil per year for 29 years which is probably the bond payment amount. They pay an additional 100k per year (average) for the right to play hockey in the arena, which is a front loaded. They pay 900k in "hockey rent" in years 1 through 5.

210 01-01-2012 06:50 PM

Quote:

Originally Posted by Tommy Hawk (Post 41757127)
How do you figure this is a bad lease for the authority? They are getting $7.3 million per year in rent payments with no worry about whether or not events at the arena make money. The arena manager is taking on all the risk here.

I am betting right now that in GF and Albany they are not paying that kind of money for arena rental. If I recall correctly wasn't there something a couple of years ago where the Amerks were complaining that they were paying 200k per year in arena rental and that was too high?

Also, I am not sure where you think the $1 a year payment is referenced. They are paying 8.7 mil per year for 29 years which is probably the bond payment amount. They pay an additional 100k per year (average) for the right to play hockey in the arena, which is a front loaded. They pay 900k in "hockey rent" in years 1 through 5.

Ummm, your math is way off. Reread that article, that $6.9M in rent is spread out over the 29 years and not per year...the remaining money (up to $600k) is paid per year.

Tommy Hawk 01-02-2012 09:25 AM

Quote:

Originally Posted by 210 (Post 41759365)
Ummm, your math is way off. Reread that article, that $6.9M in rent is spread out over the 29 years and not per year...the remaining money (up to $600k) is paid per year.

OK. I see the team will pay 33.5 million over the term of the lease. Since most of it is front loaded, the value is higher than the payment amounts.


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