New Arena Site and Financing Plan to be Unveiled by January

[martyconlonontherun]

http://www.forbes.com/sites/mikeozanian/2014/06/28/losing-my-mind-over-the-milwaukee-bucks-sale/

I don't see where it says they can't move the team. It says the nba can buy it back but doesn't say anything about not moving or selling the team before that. And was that nba deadline part of the contract or something already in place? Is it the same deadline as the one that could pushed backed.

[brewcity77]

I don't see where it says they can't move the team. It says the nba can buy it back but doesn't say anything about not moving or selling the team before that. And was that nba deadline part of the contract or something already in place? Is it the same deadline as the one that could pushed backed.

The provision was written into the contract by Kohl in order to prevent Edens and Lasry from moving the team.

In a unique part of the sales contract, the NBA has the right to buy the Bucks back from Edens and Lasry for $575 million if a new arena isn't finalized by 2017, when the Bucks' current lease is up. This was a provision installed by Kohl to ensure the new owners would not have the option to move the team if arena funding doesn't come through.

I can't find a source, but I remember hearing that if the NBA goes through with the buy-back, Edens and Lasry cannot be bidders for the team. So they can't sell the team back then jump back into the process to take the Bucks to Seattle. Kohl is a smart enough guy that I'm sure the buyback provision will make sure either Edens and Lasry keep the team here, or they end up out in the cold.

[jsglow]

My instincts are as follows.  Current Bucks ownership won't be able to get the necessary funding/support for the new arena.  The NBA exercises their rights to repurchase (paying a decent premium to ownership) with the expectation that even more money will be forthcoming from an even newer ownership team that will take the team to Seattle.  Edens and Lasry have been set up as 'beards' allowing Herb Kohl to fulfill his promise that the team would never move because of him.

That's not to say that Edens/Lasry don't want a new arena or prefer to 'rent' the Bucks.  It's just saying that they have a solid out if it comes to that.  They'll get paid for their efforts.

I'm still of the opinion that a new arena for Milwaukee is a bad idea.  I'd personally let the Bucks move and work like hell to get an NHL franchise.  Just my 2 cents.  Not really interested in the argument.  And by the way, I fully supported the construction of Miller Park so it's not that I'm anti sports facility.

[brewcity77]

I'm still of the opinion that a new arena for Milwaukee is a bad idea.  I'd personally let the Bucks move and work like hell to get an NHL franchise.  Just my 2 cents.  Not really interested in the argument.  And by the way, I fully supported the construction of Miller Park so it's not that I'm anti sports facility.

If we were ever going to get a NHL team, it would have happened when Jane Pettit built the Bradley Center. If that couldn't lure one in, I don't see any way we would be able to get one here now. I'd love to have one, but just don't think it's a remotely realistic hope.

If Milwaukee is to stay a 2-sports team town, they have to keep the Bucks. It's the only option. And unlike Seattle, if we lose the Bucks, the NBA won't be fighting and clawing to get a franchise back here.

And not trying to argue it, just trying to be realistic.

[TedBaxter]

I don't see the NHL coming to Milwaukee with the Black Hawks to the south and the Wild in Minnesota.  I don't see enough hockey fans in southeast Wisconsin to support it,

[jsglow]

I think MU does, in lieu of some sort of rental agreement or some modification thereof said agreement.  Depending on the location chosen, they may be donating the land as their contribution because some of the $500 mil price tag is land acquisition.

Perhaps.  But MU better do a much better job than DePaul who either just got absolutely hosed in Chicago or at a minimum did a horrible job explaining what they got in return for their investment.  Thank goodness John Ferraro is the Trustee Chairman these days.  Top notch financial guy from Ernst & Young.

[connie]

Perhaps.  But MU better do a much better job than DePaul who either just got absolutely hosed in Chicago or at a minimum did a horrible job explaining what they got in return for their investment.  Thank goodness John Ferraro is the Trustee Chairman these days.  Top notch financial guy from Ernst & Young.

Any MU investment you would think would require some sort of revenue split with MU, making the financing of any new facility from the private sector even more dicey.  Again, hope I am wrong.  I just don't see this happening without significant public support, and I see no leadership or demand for this to happen.

[jsglow]

If we were ever going to get a NHL team, it would have happened when Jane Pettit built the Bradley Center. If that couldn't lure one in, I don't see any way we would be able to get one here now. I'd love to have one, but just don't think it's a remotely realistic hope.

If Milwaukee is to stay a 2-sports team town, they have to keep the Bucks. It's the only option. And unlike Seattle, if we lose the Bucks, the NBA won't be fighting and clawing to get a franchise back here.

And not trying to argue it, just trying to be realistic.

Perhaps.  But times are different.  Old man Wirtz is dead.  He was the one who reportedly single-handedly blocked the deal along with the crazy price that was being suggested at the time.  Heck, the Blackhawks even televise home games nowadays!  Totally agree with you that if the NBA departs we won't get another team.  

[Tugg Speedman]

Any MU investment you would think would require some sort of revenue split with MU, making the financing of any new facility from the private sector even more dicey.  Again, hope I am wrong.  I just don't see this happening without significant public support, and I see no leadership or demand for this to happen.

+1

If MU ponies up money for the new arena, then they own part of it, and get a percentage (depending on their ownership) of ALL events at this arena.

The better question is whether an investment in a new arena in Milwaukee is a good idea.

[Tugg Speedman]

Perhaps.  But times are different.  Old man Wirtz is dead.  He was the one who reportedly single-handedly blocked the deal along with the crazy price that was being suggested at the time.  Heck, the Blackhawks even televise home games nowadays!  Totally agree with you that if the NBA departs we won't get another team.  

The league has to approve a franchise moving to Milwaukee.  If the blackhawks don't want it, the league will not approve it.  End of story.

[jsglow]

Any MU investment you would think would require some sort of revenue split with MU, making the financing of any new facility from the private sector even more dicey.  Again, hope I am wrong.  I just don't see this happening without significant public support, and I see no leadership or demand for this to happen.

I think you're right.  If MU kicks in $100MM then it needs to own 20% of the $500MM facility meaning that when The Who do their 60th anniversary tour we'll be getting a check from the promoter.  I just do see it.  At a very minimum, MU will need to demonstrate that the net present value of the check they write is lower than the net present value of the free rent over the next 20 years. Doesn't seem possible.

I will be watching Dr. Lovell very carefully.  He's definitely into 'community building'.  I'm trusting that his only interest is the betterment of Marquette.  Support for Milwaukee is fine but there are certainly limits.  

[jsglow]

The league has to approve a franchise moving to Milwaukee.  If the blackhawks don't want it, the league will not approve it.  End of story.

Of course Walt.  All I'm saying is that what the Blackhawks wanted in 1987 and what they might want now is often 180 degrees different.  (For those that don't know the story, old man Bill Wirtz died in 2007.  The next generation runs the organization totally different.)

[Tugg Speedman]

Of course Walt.  All I'm saying is that what the Blackhawks wanted in 1987 and what they might want now is often 180 degrees different.  (For those that don't know the story, old man Bill Wirtz died in 2007.  The next generation runs the organization totally different.)

Yes lots of things have changed under Rocky, but that does not include wanting another NHL franchise 90 miles away.

[GooooMarquette]

Yes lots of things have changed under Rocky, but that does not include wanting another NHL franchise 90 miles away.

Never understood why they wouldn't.  Is it a bad thing to have a natural geographic rival?  Do the Blackhawks rely on fans from Milwaukee to fill the stands?  Are all Blackhawks games televised in Milwaukee like they are in Chicago?

We all know how much it hurts the Pack to have the Bears, and vice versa.

[esotericmindguy]

Yeah, the Al isn't big enough for a NBA training facility

Huh? The timberwolves don't even have a training facility and you think the Al isn't "big" enough for the bucks? Come on.

[ChicosBailBonds]

I think you're right.  If MU kicks in $100MM then it needs to own 20% of the $500MM facility meaning that when The Who do their 60th anniversary tour we'll be getting a check from the promoter.  I just do see it.  At a very minimum, MU will need to demonstrate that the net present value of the check they write is lower than the net present value of the free rent over the next 20 years. Doesn't seem possible.

I will be watching Dr. Lovell very carefully.  He's definitely into 'community building'.  I'm trusting that his only interest is the betterment of Marquette.  Support for Milwaukee is fine but there are certainly limits.  

Does that mean they are also on the hook for some of the losses annually, too? 

To my knowledge, the Bradley Center has never been profitable in it's existence (perhaps in a few years they broke even).  It has been a while, but when I used to work with Skiles and Costello and those guys, that was the case.  Feel free to correct me if someone has more updated information.

[connie]

Does that mean they are also on the hook for some of the losses annually, too? 

To my knowledge, the Bradley Center has never been profitable in it's existence (perhaps in a few years they broke even).  It has been a while, but when I used to work with Skiles and Costello and those guys, that was the case.  Feel free to correct me if someone has more updated information.

I believe you are correct, but it is hard (for me) to separate out the numbers when they have over 35m of deferred maintenance.

[marqfan22]

anyone heard what the capacity might be? I hope it goes smaller. Brooklyn is only 17,700

[Cooby Snacks]

anyone heard what the capacity might be? I hope it goes smaller. Brooklyn is only 17,700

There was an interview with one of the owners a few weeks ago saying they're thinking of 16,500.

[marqfan22]

that would be a perfect size for MU. create more demand for big games and near/full capacity for many games

[kmwtrucks]

The the Arena will get built: because Kohl is putting in $100Mil, The owners It was said are now up to $150 mil.  They have added a few more Minority investors that are developers and also some local investors.  You have MU making some type of $$ commitmant.  Lets call it $25 Mil. and naming rights which would run $50 mil as a guess. So right off the bat you have $325 of the $450 needed without any public financing.  That is just to close to get the city and the owners to walk away.

That said the reason it will get done is because these guys are $$$$ for a reason.  Since they purchased the Bucks another franchise sold for 2 billion and they purchased for $550.  IE that got a good deal and the NBA only has to buy it back for $575 so with all the time and effort in buying and looking for a new site ETC they would not make any money on the deal at all.  If the NBA buys it back the price in Seattle would be $1.5 bil is my guess.

But the biggest reason is becasue the the NBA TV deal for 2016-17 goes from 31 million per team (current deal) to 86 million per year for 9 years.   Do you think the owners are going to walk away from 86 million in TV Revenue for nothing over 50 or 100 mil needed to get it done.  if they have to add more private investment they will. and this does not even go into the Ego of owning a Pro sport franchise with is like owning a yacht.   

[Chili]

The the Arena will get built: because Kohl is putting in $100Mil, The owners It was said are now up to $150 mil.  They have added a few more Minority investors that are developers and also some local investors.  You have MU making some type of $$ commitmant.  Lets call it $25 Mil. and naming rights which would run $50 mil as a guess. So right off the bat you have $325 of the $450 needed without any public financing.  That is just to close to get the city and the owners to walk away.

That said the reason it will get done is because these guys are $$$$ for a reason.  Since they purchased the Bucks another franchise sold for 2 billion and they purchased for $550.  IE that got a good deal and the NBA only has to buy it back for $575 so with all the time and effort in buying and looking for a new site ETC they would not make any money on the deal at all.  If the NBA buys it back the price in Seattle would be $1.5 bil is my guess.

But the biggest reason is becasue the the NBA TV deal for 2016-17 goes from 31 million per team (current deal) to 86 million per year for 9 years.   Do you think the owners are going to walk away from 86 million in TV Revenue for nothing over 50 or 100 mil needed to get it done.  if they have to add more private investment they will. and this does not even go into the Ego of owning a Pro sport franchise with is like owning a yacht.   

Ding! If they have to pony in $200MM they will still see that back fairly quickly. They don't want to lose this asset.

[Pakuni]

Yes lots of things have changed under Rocky, but that does not include wanting another NHL franchise 90 miles away.

Regardless of what Rocky wants, there are many, many cities out there with better potential for an NHL franchise than Milwaukee.
The league is very interested in Vegas. A second franchise in the Toronto area would be a cash cow. The Portland (Ore.) junior team does better attendance than the Admirals. Seattle, Quebec City and Kansas City also are more attractive options for a variety of reasons.
Sorry, Milwaukee.

[Texas Western]

The naming rights of the new arena will be enhanced by our involvement. A large percentage of our games are nationally televised and almost all televised in some respect .

[kmwtrucks]

the Atlanta hawks are up for sale so it will be interesting to see what $$ amounts people would bid for them?   That might be a good indicator of where the Bucks value should be.  I'm thinking atlanta comes in just over 1 billion.