United Center offers DePaul free rent for Blue Demons games

[Tugg Speedman]

United Center offers DePaul free rent for Blue Demons games

http://www.chicagobusiness.com/article/20121119/BLOGS02/121119774/united-center-offers-depaul-free-rent-for-blue-demons-games

The owners of the United Center have offered DePaul University 10 years free rent and a court-full of other perks if they'll move Blue Demons basketball games to the United Center, according to sources close to the matter.

But DePaul reportedly still is leaning toward an alternate location, a new arena that would be built for it near McCormick Place, even though the school would have to come up with a reported $75 million toward construction costs.

That's the latest in the fast-moving story about the all-out competition to lure the Blue Demons from where they now play in Rosemont — a competition in which Gov. Pat Quinn has joined Mayor Rahm Emanuel in playing a key behind-the-scenes role.

Here's what's going on.

As I reported a few weeks ago, DePaul has made it obvious it would like to play its 16 men's games each year at a site closer to its Lincoln Park campus. And, fortunately for DePaul, it has two deep-pocketed champions vying for its favor.

One is the Metropolitan Pier & Exposition Authority, the government agency that runs the McCormick Place convention center on the Near South Side. As I previously reported, McPier is highly interested in building an arena near McCormick Place that would be the Blue Demons' new home as well as available for convention gatherings. Mr. Emanuel has been pushing that plan, insiders say, hoping to bring more people to the Near South Side and spark development of nearby bars, restaurants and other nightlife.

But United Center ownership — Blackhawks owner Rocky Wirtz and, particularly, Bulls owner Jerry Reinsdorf — are making an extraordinarily vigorous push themselves, perhaps out of fear that a new McPier arena would pull away some of the United Center concert and other nonbasketball business.

According to multiple sources, the offer centers on 10 years of free rent. But it gets better than that.

A copy of the PowerPoint presentation United Center ownership made to DePaul says that the United Center "would redesign its basketball floor to allow the two 'end zones' to be removable. For DePaul games, they would be replaced with 'DePaul,' 'Big East' or whatever is desired," with a large DePaul logo decal going over the Bulls' one at center court.

DePaul also would be allowed to hang its championship banners from the rafters, use the owners' and marketing suites, use the Bulls' locker room, install a Blue Demons store and have dedicated restaurant and other staff. And the Bulls would help DePaul sell tickets to its games, give Blue Demons season-ticket holders an early crack at concert tickets and let the team use the facility one night a year for free for "fundraising or other purposes."

Howard Pizer, Bulls executive vice president, was not available for comment today, but told the Chicago Sun-Times last week that its offer to DePaul was "very lucrative." Now we know how lucrative.

Details of the offer also were related to Mr. Quinn in a previously unreported meeting with school officials earlier in November in his Chicago office, I'm told. Mr. Quinn did not commit himself, but hinted that he might prefer a privately financed option at a time when the state is cash-short.

Mr. Quinn's office confirmed that the meeting occurred, adding only that it would review proposals as they come up. Mr. Quinn appoints some members to the McPier board and, while they constitute a minority, they could make approval difficult if they object to plans backed by the board majority, who are appointed by the mayor.

Meanwhile, multiple insiders report, talks between DePaul and McPier are continuing. I'm told the school is leaning in favor of the McPier plan, because it would be in its own building rather than a tenant in someone else's, and because it would have a clear shot at scheduling games without having to work around the Bulls' and Blackhawks' schedules.

But there are two problems.

One, DePaul would have to come up with around $75 million to pay about half of the cost of construction of the 10,000- to 12,000-seat arena. But the school would get naming rights, and reportedly already has a major donor expressing significant interest.

Probably the bigger obstacle is control of the property on which the arena would go, just northwest of McCormick Place buildings.

As my colleagues at Crain's have reported, the property now is in bankruptcy and it's uncertain who will end up holding the title. Until that's clear, it will be difficult to negotiate a sale price or acquire the land through condemnation, though insiders are confident that matter is being resolved.

DePaul spokeswoman Cindy Lawson told me this morning that the school is "still exploring all options presented to us." All she would add is that "no decision has been made at this time."

But things finally may be turning up for a school that hasn't had much luck on the basketball court lately. Stay tuned.

[LAZER]

I wouldn't mind that one bit.

[Goose]

If I were DePaul I would jump on that. Plus if they get on campus facility they can bolt early.

[GGGG]

I would hold out for my own floor however...versus the end-zone changes and "decal" over the Bull.  (Which are illegal now anyway.)

[Brewtown Andy]

I would hold out for my own floor however...versus the end-zone changes and "decal" over the Bull.  (Which are illegal now anyway.)

Beat me to it.

[Tugg Speedman]

I would hold out for my own floor however...versus the end-zone changes and "decal" over the Bull.  (Which are illegal now anyway.)

If that is what DePaul wants, it will not stand in the way of a deal.

[bilsu]

If I were DePaul I would jump on that. Plus if they get on campus facility they can bolt early.

I would think a 10 year free rent contract would come with significant commitments from DePaul. Such as the market value rent would be owed for all 10 years, if they did not complete the lease.

[Canned Goods n Ammo]

This is a great deal for DePaul.

But, the only problem is that real estate in chicago is limited, and only becoming more scarce.

If they wait to 10+ years to build their own, they may never get it.

[T-Bone]

This is a great deal for DePaul.

But, the only problem is that real estate in chicago is limited, and only becoming more scarce.

If they wait to 10+ years to build their own, they may never get it.

I think that nails it. 

[🏀]

This is a great deal for DePaul.

But, the only problem is that real estate in chicago is limited, and only becoming more scarce.

If they wait to 10+ years to build their own, they may never get it.

Construction prices will never, ever be this cheap again.

[Dish]

This will be absolutely fascinating to see how this plays out. What this article didn't point is that Reinsdorf/Wirtz are fighting for the Pink Line to extend out towards United Center, with a stop (or two) west of Ashland. Especially now that the Bulls new facility will occupy what is now Parking Lot J on the west side of the arena.

UC is 100% owned (and already paid for) by Wirtz/Reinsdorf's groups. Quinn & Emanuel are going to fight real hard for McPier and DePaul. Inspite of the attendance at Allstate, Stephens family can't be thrilled with this, and I'm sure they'll fight hard too. Hard to believe a struggling basketball program can cause so much interest, but all you have to do is follow the money.

[Blue Horseshoe]

Deadspin has a nice summary. Petchesky concludes that it is in Reinsdorf's best interest to just block out competition of another venue.

http://deadspin.com/5961895/jerry-reinsdorf-will-basically-bribe-depaul-to-move-to-the-united-center

[Marqevans]

Having it at McCormick Place will add another 20 minutes of travel for northside and Milwaukee  fans vs the United Center.

[warriorchick]

This is a great deal for DePaul.

But, the only problem is that real estate in chicago is limited, and only becoming more scarce.

If they wait to 10+ years to build their own, they may never get it.

An even bigger question mark is in what state will DePaul Basketball be in ten years?  And that's assuming there is a Big East.  If the conference collapses within the next couple of years and it is every team for itself, DePaul will no doubt suffer the most.

[🏀]

Having it at McCormick Place will add another 20 minutes of travel for northside and Milwaukee  fans vs the United Center.

Also easier Metra ride, IMO.

[Canned Goods n Ammo]

An even bigger question mark is in what state will DePaul Basketball be in ten years?  And that's assuming there is a Big East.  If the conference collapses within the next couple of years and it is every team for itself, DePaul will no doubt suffer the most.

That's a great point.

If they build something and the program actually does get better, there still is no guarantee that the team will have a good conference (or any conf.) to play in.

Playing in a CONF. USA-type conference would mean a significant hit to potential revenue.

Honestly, I think they should probably take the United Center deal, invest heavily in getting the right coaches in place and see where they are at in 5-7 years. If they are good and have some momentum, they could start a capital campaign to raise some funds and take a few years to get their new building in place (with the help of the city as well).

They risk missing out on some real estate, but they will probably just have to live with that. The risk of building an arena right now might just be too great.

[Tugg Speedman]

An even bigger question mark is in what state will DePaul Basketball be in ten years?  And that's assuming there is a Big East.  If the conference collapses within the next couple of years and it is every team for itself, DePaul will no doubt suffer the most.

They will be fine becuase they play in the third largest TV market and their always be room for them.

Side note, what makes you think conference relqignment will ever end.  This musical chairs will go on and on, the music is never stopping.

[warriorchick]

They will be fine becuase they play in the third largest TV market and their always be room for them.

So does Loyola. It wasn't that long ago that Marquette used to play the Ramblers in the UC, and look where they are now.

[Tugg Speedman]

So does Loyola. It wasn't that long ago that Marquette used to play the Ramblers in the UC, and look where they are now.

And so does UIC, the difference is DePaul has a TV contract, the others do not.

[JoBo2756]

Another note is that I think the UC is trying to get the city to pay for part of a big entertainment center right next to the UC. That's definitely part of their calculation as well. If they can block another venue being built, get more crowds at the UC, that's a double whammy in their favor... Well played ReinsWirtz. (see what I did there?)

Here's the article with info on the entertainment center:http://www.suntimes.com/news/metro/16424950-418/bulls-plan-practice-facility-next-to-united-center.html

I'd totally go for the UC deal if I was DePaul. Very little downside there and it's closer to LP.

[Dawson Rental]

They will be fine becuase they play in the third largest TV market and their always be room for them.

Side note, what makes you think conference relqignment will ever end.  This musical chairs will go on and on, the music is never stopping.

If you can't see an end game to conference realignment, you simply don't understand it.

[Tugg Speedman]

If you can't see an end game to conference realignment, you simply don't understand it.

How many conferences has MU been in in the last 20 years?  Answer, 4 (Midwestern Cities, The Great Midwest, Conference USA and the Big East). 

I'll bet we'll be in four more in the next 20 years.  And in 5, 10 and 20 years the football conferences will be completely remade.

Conference realignment started 20 years and has never stopped.  Why do you think it will be over soon.