HFBoards

Go Back   HFBoards > Other Leagues > The AHL
Mobile Hockey's Future Become a Sponsor Site Rules Support Forum vBookie Page 2
The AHL Discuss the American Hockey League; its players, teams, and games.

Allentown Lease terms- robbery?

Reply
 
Thread Tools
Old
12-30-2011, 10:44 AM
  #1
RFA
Registered User
 
Join Date: Jan 2010
Country: United States
Posts: 411
vCash: 500
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.

RFA is offline   Reply With Quote
Old
12-30-2011, 12:36 PM
  #2
Majik1987
I know kung fu...
 
Majik1987's Avatar
 
Join Date: Nov 2005
Location: Northern Illinois
Country: United States
Posts: 4,185
vCash: 500
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.

__________________
The Chicago Wolves = 2008 Calder Cup Champions!
Majik1987 is offline   Reply With Quote
Old
12-30-2011, 01:36 PM
  #3
RFA
Registered User
 
Join Date: Jan 2010
Country: United States
Posts: 411
vCash: 500
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.

RFA is offline   Reply With Quote
Old
12-30-2011, 02:49 PM
  #4
Sports Enthusiast
Not Here To Be Liked
 
Sports Enthusiast's Avatar
 
Join Date: Sep 2010
Location: Middle of nowhere
Posts: 11,200
vCash: 500
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

Sports Enthusiast is offline   Reply With Quote
Old
01-01-2012, 05:30 PM
  #5
Tommy Hawk
Registered User
 
Tommy Hawk's Avatar
 
Join Date: May 2006
Posts: 3,768
vCash: 500
Quote:
Originally Posted by RFA View Post
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 View Post
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.

Tommy Hawk is offline   Reply With Quote
Old
01-01-2012, 06:50 PM
  #6
210
Registered User
 
210's Avatar
 
Join Date: Mar 2003
Location: Worcester, MA
Country: United States
Posts: 10,269
vCash: 500
Quote:
Originally Posted by Tommy Hawk View Post
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.

210 is offline   Reply With Quote
Old
01-02-2012, 09:25 AM
  #7
Tommy Hawk
Registered User
 
Tommy Hawk's Avatar
 
Join Date: May 2006
Posts: 3,768
vCash: 500
Quote:
Originally Posted by 210 View Post
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.

Tommy Hawk is offline   Reply With Quote
Reply

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 12:33 PM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. ©2015 All Rights Reserved.