NHL's Devils and Newark reach deal on revenue; UPD deal signed
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02-26-2013, 01:27 PM
Join Date: May 2012
Location: New Jersey
Star-Ledger (Newark) article:
The arena’s owners will also walk away from an offset clause on a ticket tax that will add 1.37 percent to the cost of most sports-event seating and the city will be forgiven for a $600,000 payment under an arbitration award, the person said. Newark will also pay the team about $2.7 million annually in parking revenue for non-municipal lots surrounding the arena, according to the person.
Seems the Devils made some concessions (allowing the ticket tax and forgiving the $600k payment) to improve relations with the city. The arbitration decision that awarded the $2.7m annually in parking revenue was upheld on appeal so the city had no leverage on that one.
Frankly, the city had no leverage at all - the Devils have largely prevailed in every legal proceeding brought against them by Newark to date. I view this deal as further circumstantial evidence that Vanderbeek's finances are secure (at least for now) given he waived $600k due to the team and committed to lease parking spaces in a new garage to be built nearby.
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