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04-14-2013, 10:44 AM
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Originally Posted by knorthern knight View Post
Given that Sacramento has problems matching the old bid, and Hansen has upped his bid by another $25 million, I don't see Sacramento keeping the Kings. At best they get a promise of an expansion/relocation somewhere down the road, contingent on a new arena.

What worries me is Hansen's apparent unwillingness to own an NHL team. This is eerily reminiscent of ASG in Atlanta. Hansen would have to weigh the ONE TIME $80 million in contingent funds (for getting an NHL team) versus THE ONGOING REVENUE STREAMS he'd have to forgo to an NHL team. Unlike the case in Dallas, the cost of the arena is not split 50/50 with the owner of the hockey team. He would lose the ticket/suite/parking/concession/etc revenue for 45 dates a year. A hockey team simply is not feasable without it.

If instead he booked 20 or 30 rock concerts/WWE/MMA/tractor pulls, he would get to keep that revenue. Another factor to consider is that the NHL team would be competing with NBA team for sports fan dollars and sport sponsorship dollars. On the other hand, "them Idol shows that kids like" appeal to a totally different demographic. They would be additional revenue streams, instead of cannibalizing the NBA revenue streams. Hansen could legitimately make the rents high enough that an NHL team would not be viable. Look at Paul Allen in Portland, Les alexander in Houston, and ASG in Atlanta. For a hard-headed businessman that already owns an NBA team, adding an NHL team is questionable at best.
1). Hansen had stated he didn't want to be a majority owner, but talked about having minority stake.

2. Hansen has talked about needing 2 anchor tenants in the building

3. Third Hansen has talked about RSN it is well known the more content you can deliver, the more dollars you can leverage. Same with corporate dollars. If he can offer 80 dates a year of professional sports (to go along with ufc, concerts) he can leverage higher rates.

4. Our economy is one of the top 5 in the country and will continue to growm , see below from SI report:

The economies of the two competing cities was another big part of Seattle's presentation to NBA owners. The online retailer Amazon is building a 3.3 million square-foot campus in Seattle that will serve as one of the country's largest corporate headquarters in a city location. As many as 17,000 young college-educated workers are expected to be hired by Amazon in Seattle, which could increase Seattle's annual GDP by more than 15 percent.
Hansen's group told NBA owners that Seattle has 13 companies rated in the Fortune 1000; Sacramento has none. The Seattle economy has been ranked among the top five in the U.S. for the last four years, according to the independent research firm POLICOM, while Sacramento has dropped from No. 19 in 2011 to No. 55 this year. The Seattle group told owners that Sacramento's fall has been structural rather than cyclical, based on Sacramento's emphasis on residential home construction leading up to the recent housing crisis. When the housing bubble burst, the Sacramento economy was hit hard. Seattle's 32,555 season-ticket requests at the time of the meeting last week was more than three times the number of pledges of Sacramento.

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