Forward Together Co-Chair Highlights Economic Impact of the Blue Jackets in Letter to the Editor
Editor
The Columbus Dispatch
34 S. 3rd St.
Columbus, OH 43215
Dear Editor,
Last Sunday, the Dispatch published a letter, "Taxpayers repeatedly said no to hockey," emphasizing
that since a ballot issue failed more than ten years ago, therefore the public should have no role
today in retaining the Blue Jackets -- no matter how badly it might hurt the rest of the Arena
District and our entire community to lose them.
I have news for that writer: a few things have changed since those votes. The public currently has
a huge stake in Nationwide Arena and the Jackets - to the tune of $6.7 million dollars in state and
local tax revenue annually and literally hundreds of jobs. But that's not all, the Arena District
as a whole - which depends heavily on the Blue Jackets and the Arena - pushes those totals to
about $30,000,000 in annual taxes and about 5,500 jobs. Additionally, the Greater Columbus
Convention and Visitors Bureau reports that Columbus has booked 10 major conventions/meetings
that have utilized Nationwide Arena that would not have booked Columbus if it had not been for the
existence of Nationwide Arena. The Bureau estimates these meetings have brought 108,845 attendees
who combined for an estimated $112,763,420 in convention delegate spending into the central Ohio
economy. In the next two years, 36,000 additional convention attendees are scheduled to experience
Nationwide Arena as a part of their groups' meetings, providing an additional $37,296,000 to the
central Ohio economy.
The false logic of that writer can be summarized as this: refusing to support the team with casino
money will protect taxpayers, when in fact it would have the actual opposite effect by forcing the
team to another city, thus directly losing the millions in tax revenues we receive today and clearly
jeopardizing the continued vitality of Nationwide Arena and the entire District and the taxes, jobs
and visitor spending that have been created there.
There is no taxpayer "win" in forcing the Blue Jackets to leave town. We need to think holistically
about what is best for our community and provide some rationality to our positions rather than
knee-jerk reactions to complex issues.
Sincerely,
John Bentine
Co-Chair, Forward Together
Can casino tax windfall save Blue Jackets?
Janet Adams | Business First
Friday, July 16, 2010
http://columbus.bizjournals.com/columbus/stories/2010/07/19/story2.html?ana=e_ph
business and government officials are trying to extend with a deal to stanch consistent losses that
have raised doubts about the club's future.
The trickle down of tax dollars from Ohio's new casinos may become a revenue stream needed to help
secure the Blue Jackets' future in Columbus.
Some of that tax revenue, which will start to flow in 2012 when the casinos open, could be steered
from coffers of the city of Columbus and Franklin County to help fund a public purchase of Nationwide
Arena. That would be part of a plan to create a more financially viable arena lease for the National
Hockey League team, multiple sources told Columbus Business First.
Casino developers have estimated Columbus' annual take from the state's 33 percent tax on casino
revenue at nearly $20 million and Franklin County's share at $16 million. There would be no
restrictions on how those dollars are spent.
No decisions have been made on a possible sale of Nationwide Arena, but sources familiar with the
issue said the casino revenue model is under consideration by city, county and business executives
as well as Blue Jackets officials.
"That has the potential to be part of the solution," said Blue Jackets President Mike Priest. "I'm
personally encouraged that is one of the items being looked at."
Priest said the use of casino taxes would be a redeployment of revenue from one entertainment venue
to another. It also would not require city or county officials to seek voter approval, unlike other
possible funding sources such as raising taxes on car rentals, hotel stays or alcoholic beverages.
Newfound wealth
Blue Jackets officials have been trying for more than a year to resolve what they claim is an
unfavorable arena lease that's contributing to the club's annual operating losses of $10 million
to $12 million. They think the team could get better lease terms, including lower or free rent
and naming rights revenue, if the arena is owned by a public entity, the model common in other
NHL cities.
Nationwide Arena is privately owned, with Nationwide Insurance holding a 90 percent stake in the
18,500-seat venue. The Dispatch Printing Co. controls the remaining 10 percent.
The Franklin County Convention Facilities Authority, the public agency that operates the nearby
Greater Columbus Convention Center, is seen as the most likely entity to purchase the arena since
it already owns the land under the building. It would need a new cash stream to finance such a
purchase, which could be made through a bond sale or payments to Nationwide over a number of
years, said Bill Jennison, the authority's executive director.
No purchase price has been disclosed, but a study prepared for the ColumbusChamber last year by
Ohio State University finance professor Stephen Buser said Nationwide was willing to sell the
arena to the county for $55 million in 2009. That is nearly $100 million less than Nationwide
said it paid to build the arena in 2000. But the insurer sees a thriving arena as vital to
protecting its huge investment in the surrounding neighborhood.
Jennison said casino tax proceeds could be a viable revenue source for an arena purchase, but
income from higher taxes on car rentals and alcohol sales also have been discussed.
"No one source has been selected," Jennison said. "We're looking for something with the capacity
to accomplish this transaction."
One bite at apple
Tax revenue terms for Columbus and the county are spelled out in the constitutional amendment that
allowed casinos to be built in Columbus, Toledo, Cincinnati and Cleveland. It stipulated 5 percent
of the state tax on gross casino revenue be split annually among the four casino host cities. It
also mandated that 51 percent of the tax revenue go to Ohio's 88 counties in proportion to their
population. Half of each county's tax take is to be distributed to its largest city, if that city
has a population of more than 80,000.
Under the formula, Columbus is expected to receive $3.5 million as a host city in 2013, and $16
million from the county, said Bob Tenenbaum, a spokesman for Columbus casino developer Penn National
Gaming Inc. Franklin County would receive $16 million that year. The amounts are projected to rise
steadily through 2017.
Using casino revenue to help finance an arena purchase is one of the ideas being vetted, said county
Commissioner John O'Grady.
"It's been mentioned," he said, "but I'm not confident it is even a possibility. We don't know
what the casino revenue will be and it won't come in for some time. It's not an easy answer or an
easy fix."
O'Grady said all the pieces to a possible arena deal make it a complex transaction.
"A lot of folks would like us to snap our fingers and make this happen," he said.
"That's not the way we work. We don't get six bites of the apple. We've got to do this right the
first time."
Columbus officials have not discussed how they will spend the casino tax revenue, Dan Williamson,
spokesman for Mayor Michael Coleman, said in an e-mail to Business First.
"It would be premature," Williamson said, adding no solution has been found on how to address the
Blue Jackets' financial problems and preserve the Arena District.
Paying forward
Will OSU's contribution to help the Blue Jackets inspire others
to ante up?
The Other Paper
Published: Thursday, July 8, 2010 10:39 AM EDT
http://www.theotherpaper.com/articles/2010/07/10/cover_story/doc4c35dfdc16d7a530316914.txt
When the university offered to take the financial obligation of managing Nationwide Arena off the
hands of the financially strapped Blue Jackets, it really was done with altruistic intentions said
Xen Riggs, who has managed the Schottenstein Center since its opening in 1998.
"We just wanted to help," Riggs said. "But our hope is that it will be a community effort."
It's the last part of Riggs' statement, however,
where the real truth may lie. Admittedly, the
arena deal, struck earlier this year and
implemented in May, barely puts a dent in the
CBJ's annual debt, contributing a paltry $1
million bandage to a $12 million hemorrhage.
And there are certainly some benefits to OSU
in taking over management of Nationwide Arena.
But it's the notion that someone had to do
something that may be the most important
aspect of the deal. After all, if two powerful
sides who once engaged in arena wars are
willing to come together for the greater good
of the community and save one of Columbus'
greatest financial assets, then maybe others
will follow.
Right?
"We view (the partnership) as helpful," said local attorney John Rosenberger, who's been the point
man for the city of Columbus and the Franklin County Convention Facilities Authority in discussions
between potential private and public entities in an all-out attempt to save the hockey team. "We believe
it's going to be a good foundation to found a transaction on."
There's even a "flexibility clause," in the one-year contract for that very purpose said Blue
Jackets' president Mike Priest.
"(The clause) says that if there's a solution that comes up, a more involved answer to this issue,
this agreement can be set aside and a bigger agreement can be brought together," said Priest.
"If we need to tear this agreement up, we can do that."
< It's a start: Blue Jackets president Mike Priest is grateful forOSU's help
The OSU/CBJ alliance may have started as a quick financial fix for
the Jackets and a bit of charity and good PR for OSU, but perhaps
it's also become the first bargaining chip on the table for others
to discuss.
And if OSU were to bow out of the partnership at the behest of the
CBJ should a better offer come along, then both sides are still golden.
But if no solution comes, what are the other impacts of the deal?
Does it affect the two arenas' ability to remain competitive in the
entertainment business?
In a city that threw a fit about a proposed sin tax to support the CBJ
fewer than two years ago, will the stamp of approval by Ohio State be the ace that finally gives the
Jackets a winning hand at the public monies table?
Is it good for OSU?
Xen Riggs readily admits that the live music business has always made him a little jumpy.
"It's a weird business. It's a business that you can't control," he said. "It's a very
volatile thing."
And it's become more so thanks to the flagging economy, he said. So when the opportunity to bring
one of his biggest local competitors under his watchful eye came along, he jumped at the chance.
"Realistically, if we didn't do this and the entertainment business would collapse, we'd be
screwed. Even worse so (if we weren't partners)," he said, saying that, financially speaking,
eliminating the competition by making it your new best friend bodes better for your bottom
line. In addition, having a second venue for artists and promoters to choose from opens up
the availability and space that's required for arenas to book artists.
The hope, said Riggs, is that by eliminating the competitive factor that defined the relationship
between Columbus's two arenas for more than a decade, the two can now stand united as a
formidable front to other major competitors in the market, such as Cleveland, Dayton, Cincinnati,
Pittsburgh and even hometown competitors like Crew Stadium and Huntington Park, which, to Riggs'
chagrin, got the Dave Matthews concert two weeks ago. "Obviously, we would have loved to have had
that show," he said.
The financial details for both the Schott and Nationwide in this deal are unknown-OSU
redacted that information from the contract requested by TOP, calling it proprietary "trade
secret" information.
But when asked about profit-sharing terms with regard to ancillary revenue streams, such as food,
beverage and merchandising, which is where arenas make their money, Riggs said: "All the concert
events that happen, regardless of which building they happen in, are financially neutral. Both
buildings are co-promoting that event."
Riggs would not confirm that it meant the Schott would get a percentage of the profits at
Nationwide events and vice versa.
"It's not as simple as it sounds," he said.
Overall, Riggs said it's a good deal for both arenas. Each arena retained its individual staffs
for bookings, though Riggs now oversees both operations. And each of the event markets that have
come to define the arenas will remain, where Nationwide retains the majority of family shows and
the Schott plays host to more college-friendly shows: "I don't think you'll see a big change in
that," said Riggs.
Under new management: OSU will save the Blue Jackets about $1 million by taking over the
management of Nationwide Arena
And as for speculation that the Schott may try to hoard the best acts from Nationwide, Riggs is
flabbergasted: "What would be the point of doing that? It's not like we own the building. We've
actually been shuffling more shows to Nationwide because of availability," he said.
Still, he admits it is an awkward transition to get both staffs on the same page.
"It's going to take the staff a long time to get their arms around it," Riggs said. "I want
it to work for everybody. I get paid the same whether I make $10 million for the Schott or I
lose $1."
So does Riggs have any concerns about the partnership? A few, he said, but nothing he wanted to
get specific about.
"There are always concerns with everything," said Riggs. "One of my majors in college was theater
and I always remember waiting in the wings before I went on and the more nervous I was, the better
performance I gave. If that's any indication, this should be a great performance."
So what is Riggs' motivation for this performance?
"The whole motivation for doing this is I believe we can make a difference," said Riggs.
"It's been fun working with (Blue Jackets president) Mike Priest and his crew (at Nationwide).
Certainly, we want to keep the Blue Jackets here. Even before the partnership, there's no
advantage to us to not have the Blue Jackets. We've always rooted them for them to
be successful."
Priest is happy to hear that. After years of battling to get a fan base in a town primarily
composed of football fans, he's grateful for OSU's endorsement.
"That in and of itself, to me, demonstrates the importance of what hockey means from an
entertainment standpoint," said Priest. "It's professional sports; it brings a different
element. It doesn't need to compete with Ohio Sate football. I attended Ohio State, so
I'm a fan like anyone else. You don't have to be a hockey fan to understand growth for
a community and understand what it does."
You scratch our backs...: OSU's Xen Riggs thinks a partnership will benefit the local
entertainment industry as well as the Blue Jackets
The coming together of the town's two sports giants is a move that Priest hopes Central Ohio
leaders will see as one thing: The rising tide that lifts all boats.
"One of the six major goals (Gordon Gee) put down was outreach and engagement," Riggs said.
"He wants the university to benefit the community. He wants it to be a good citizen, to be
a part of the team."
"We have two great community assets," Riggs said. "The question becomes, 'How can we
combine those assets to serve the community in even better ways?'"
Dr. Stephen Buser, a professor of finance at OSU, drafted a report in November 2009 that
outlined the financial aftershocks losing the Blue Jackets would cause and included several
options on how public and private entities could work together to save the team for the
betterment of Columbus.
"They're the golden goose of Columbus," said Buser. "Our focus should be: Take care of
the golden goose."
The Midas touch
The Jackets, as the economic drivers in the Arena District for the past decade, have been
largely responsible for a $30 million annual tax boost for Columbus and Franklin County.
But from a business development perspective, said Buser, the longer this community puts off
striking a solution for keeping the hockey team afloat, the less likely it will be that new
business development will occur in the Arena District.
Two key findings in Buser's report-a projected decline in total tax revenues (Blue Jackets
and Nationwide Arena) from 23 percent to 18 percent and a decline in total tax revenues
(existing businesses in the Arena District) from 77 percent to 58 percent-highlight "the
fact that the development and growth of new Arena District businesses is critical for the
projected growth in state and local tax revenue."
"Moreover, insofar as the Blue Jackets and Nationwide Arena are widely regarded as essential
catalysts for any realistic projection of continued financial growth," read the report, "the
retention of a viable NHL team is critical."
And that's not the only timeline to contend with. Priest was blunt about the team's future-it's
short, unless someone steps in to fill that tin cup the team has been shaking.
"We've found a way to buy time. To make this work for the next year. But we can't go through
what we did last year," said Priest. "It has caused us some uncertainty in the fan base. And
the longer it goes on, the less support we have. We cannot do it alone. The commitment from
(team owner) John P. (McConnell) has been incredible, but his resources are limited. We have
to have the assistance of the public sector."
How to use those public monies
The best option for the CBJ is for someone to buy Nationwide Arena, said Priest. But who that
someone is and which pot of money they use is what's being debated, said Rosenberger, though
the fact that OSU has stepped up is a "helpful" tool in the conversation.
"The dialogue is productive right now. The tenor of the meetings are good," he said. "But there
are no agreements in place."
The Franklin County Convention Facilities Authority is a likely first pick as the most viable
candidate to buy Nationwide Arena.
"That's a possibility," said FCCFA executive director Bill Jennison.
Another possibility could involve a team effort, similar to the deal that was orchestrated to
build the convention center Hilton hotel Downtown, where the county, the city and the FCCFA
partnered to get the required financing.
The county commissioners did not return phone calls seeking comment, but previous comments by
Commissioner John O'Grady ("Community Chest" May 13) hinted that the trio is always looking
for a good investment.
"We get involved in targeted leveraged expenditures. If we're investing dollars in projects
it's because we expect there's going to be a return on those dollars," O'Grady said in May.
"We're driving jobs and helping to drive the economy. Those are the kinds of things we want
to get involved in."
Columbus Mayor Mike Coleman is standing firm that he will not use general fund money to help
the CBJ find a solution, said his spokesman Dan Williamson.
But even if one or all of these public entities did find a way to get involved, what monies
would they use? The most talked about revenue stream is what will come from the Ohio casinos
in 2012.
According to the final summary of H.B. 519 that lays down the rules for how the four new Ohio
casinos will operate-including the Hollywood casino here in Columbus-5 percent of the casinos'
gross revenue tax will be allocated to the host cities. Of the percentage allocated to Columbus,
a portion will go to the Southwestern City Schools local school district and Franklin Township
(the township and school district where the casino is now situated). Columbus will also get a
cut, as will Franklin County.
According to Rep. John Patrick Carney, there initially was supposed to be limitations on what
those monies could be used for, but through discussions with the legislative services commission,
it was determined that money can be used for whatever the city and county deem appropriate.
"It doesn't appear that there are any specific limitations," said Carney.
Because of that, said Priest, the idea for funneling a portion of that new, expected revenue
stream toward a financial solution for the Blue Jackets is being batted around.
"Personally, I think there's a lot of merit to that," said Priest. "The fact you could use
those entertainment dollars to protect an entertainment asset makes a lot of sense. And you're
not going to the voter asking them to pay any more."
The irony of the casino as the hero is not lost on many-the same casino that was branded as a
death blow to the Arena District by many city titans when the ballot initiative passed in November,
precipitating another constitutional amendment to move the casino to the West Side, is now being
pegged as the Arena District's savior-from way over there, of course.
Priest said that since the funds won't become available until 2012, Nationwide has stepped up and
offered to bridge the gap, though details of that bridge aren't yet being revealed.
"Nothing has been solidified," said Priest.
The other viable solution being seriously discussed is the purchase of Nationwide Arena by the
FCCFA by selling bonds and using a possible rental car tax (or possibly casino tax revenues) to
pay the debt service.
"Either of those could provide the revenue to service the bonds," said Jennison. "We would sell
the bonds to buy the arena. We would take the ownership. But we would need to know that there's
enough revenue to provide the debt service."
An imagined future
"The right thing to do with public dollars is make an investment," he said. "For me, that's
the whole story. You're getting a lot of services per dollar because of an operation like the
Blue Jackets."
Financial projections in the Buser report show state and local tax revenue combined will double
from $30 million to $60 million annually by 2018-but only with the Jackets in town.
Beyond that, partnering with the likes of OSU and other public entities is already opening up
other doors that never existed. Riggs said he's working with PromoWest and other local venues
to explore local partnerships similar to the one with the CBJ.
"It absolutely helps us, too," said OSU's Riggs. "We've been here for 13 years now and it's
exciting to think in terms of, 'OK, what can we do now to take the live events in Columbus
up a notch?' We're hoping we could all work more closely. I don't know how this is going to
play out but I have great hope and optimism."
Blue Jackets solution is critical to Arena District
LETTER TO THE EDITOR
Saturday, May 22, 2010 2:51 AM
http://www.dispatch.com/live/content/editorials/stories/2010/05/22/blue-jackets-solution-is-
critical-to-arena-district.html?sid=101
the proposed casino site from the Arena District to the West Side. Four out of five voters see
the value that thousands of additional jobs and millions of dollars in tax revenues will bring to
central Ohio but also feel strongly that the existing economic structure in the Arena District is
working well.
The public has spoken, and it's time to revitalize the West Side, starting with the casino as an
economic driver.
The situation is similar to where we were more than a decade ago, when today's Arena District
was the site of the old Ohio Penitentiary, with no real draw to local and out-of-town consumers.
Since Nationwide Arena's construction was announced in 1998, the area has become a hub for
businesses and entertainment, and property values in the surrounding area have increased
267 percent.
Today, more than $600 million is invested in the Arena District, with 170 businesses driving more
than $1.6 billion in annual sales. More than 5,500 employees with annual wages of roughly $350
million generate $30 million in state and local tax revenues annually. Those tax revenues are
projected to double to $60 million within 10 years. The Arena District is an established, proven
economic driver in the region, and it's on track to deliver even more jobs and additional tax
revenues for years to come.
The Arena District has grown to represent much more than just the hockey team that calls the
arena home, but the Blue Jackets remain central to the district's success and survival. It has
become clear that the Blue Jackets cannot continue to operate under the financial model used
for the past 10 years. A study published by the Columbus Chamber last fall conveyed urgency
to solve this issue. If a solution is not determined soon that ensures financial viability for
the team - and, in turn, Nationwide Arena - we could lose this valuable resource and all of the
progress made in the past decade.
If this becomes a reality, everyone in the region will be affected. Whether you're a die-hard hockey
fan or you've never even been to Nationwide Arena, you have benefited from the region's revitalization
in one way or another. The area's success and reputation have made it a regional and national tourism
destination and a model for other cities, bringing increased foot traffic and dollars into our region.
Perhaps most important, the millions of dollars in tax revenues generated annually by the Arena
District pay for public services, including infrastructure upgrades and education improvements.
The public voiced its opinion with the Issue 2 decision, proving the importance of both spurring new
economic activity and preserving what's already present. Don't let the momentum stop there. Let's all
work together to find a way to keep the Arena District thriving. Thousands of jobs, millions of dollars
in tax revenues and our city's long-term success depend on it.
JACK PARTRIDGE
Board chairman
Columbus Chamber
Much work remains to keep Arena District healthy
Guest Column
Friday, May 14, 2010
http://columbus.bizjournals.com/columbus/stories/2010/05/17/editorial2.html
casino site from the Arena District to the west side of the city. More than three in four voters
see the value that thousands of additional jobs and millions of dollars in tax revenue will bring
to Central Ohio, but also feel strongly that the existing economic structure in the Arena District
is working well.
The public has spoken, and it's time to revitalize the west side, starting with the casino as an
economic driver.
The situation is similar to where we were more than a decade ago, when today's Arena District was
the site of an abandoned state penitentiary with no real draw to consumers. Since Nationwide Arena's
construction was announced in 1998, the district has become a hub for businesses and entertainment,
and property values in the surrounding area have increased 267 percent.
More than $600 million is invested in the Arena District, with 170 businesses driving more than $1.6
billion in annual sales. More than 5,500 employees with annual wages of roughly $350 million generate
$30 million in state and local tax revenue annually. That tax revenue is projected to double to $60
million within 10 years. The Arena District is an established, proven economic driver in the region
and it's on track to deliver even more jobs and additional tax revenue for years to come.
The Arena District has grown to represent much more than just the hockey team that calls the arena
home, but the Columbus Blue Jackets remain central to the district's success and survival. It has
become clear that the Blue Jackets cannot continue to operate under the same financial model used
for the past 10 years. A study published by the Columbus Chamber last fall conveyed urgency to
solve this issue. If a solution is not determined soon that ensures financial viability for the
team - and Nationwide Arena - we could lose this valuable resource and all of the progress made
in the last decade.
If this becomes a reality, everyone in the region will be impacted. Whether you're a die-hard
hockey fan or you've never even been to Nationwide Arena, you have benefitted from the region's
revitalization in one way or another. The area's success and reputation have made it a regional
and national tourism destination and a model for other cities, bringing increased foot traffic
and dollars into our region.
Perhaps most importantly, the millions of dollars in tax revenue generated annually by the Arena
District pay for public services such as infrastructure upgrades and education improvements.
The public voiced its opinion with the Issue 2 decision, proving the importance of both spurring
new economic activity and preserving what's already present. Don't let the momentum stop there.
Let's all work together to find a way to keep the Arena District thriving. Thousands of jobs,
millions of dollars in tax revenue and our city's long-term success depend on it.
Jack Partridge is president of Columbia Gas and board chairman for the Columbus Chamber.
Dispatch reports that Management Deal signed between OSU and Nationwide Arena:
NATIONWIDE ARENA
OSU to help guide arenas
University to book nonsports events as part of deal
THE COLUMBUS DISPATCH
http://www.dispatch.com/live/content/local_news/stories/2010/05/12/osu-to-help-guide-arenas.html?sid=101
the Schottenstein Center could be a good one for fans - and part of an eventual plan to rescue
the Columbus Blue Jackets from money problems.
A contract has been signed, but Ohio State officials would not release details of the pact, which
runs through June 30, 2011. They said it's still under legal review.
"Locally, I think this is a big story," said Xen Riggs, associate vice president of OSU's
administration and planning department. "But it's also historic in that no other city has been
able to figure out a similar deal."
Other elements of a solution for the Blue Jackets, the main tenant at Nationwide, could be months
away. Currently, the Blue Jackets rent Nationwide Arena from the Nationwide insurance company and
other owners for $5 million a year. The team pays SMG, a Pennsylvania-based management company,
to run the venue.
The co-management deal was on a fast track because the team's contract with SMG, which has run the
arena since the facility opened in 2000, expires June 30.
"I'm hopeful it serves as a catalyst for further progress," said Blue Jackets President Mike Priest.
"Yes, it's a step in the right direction."
Under the agreement, the university, which already runs the Schottenstein Center, will handle
bookings for concerts and other events at both arenas.
Ohio State won't start comanaging Nationwide Arena until July 1, but it started scheduling and
booking acts this week, Riggs said. However, the university won't book sporting events for
Nationwide, he said.
Priest said the arrangement "centralizes the booking process." But he was adamant that the
Nationwide Arena staff, including its managers, will remain in place.
"We retain control of Nationwide Arena," he said. "What OSU will provide is, essentially,
a consulting service."
Officials said the deal would save the Blue Jackets about $1 million annually because of lower
administrative costs, efficiency savings and better leverage in booking because the two facilities
won't be bidding against each other.
Riggs said the university doesn't yet know how much money it alone would save.
The two buildings will cross-promote concerts, nonsporting events and national tours that aren't
annual, such as Disney on Ice.
By working together as co-promoters, the two facilities can spend more time marketing so they can
attract a larger audience and make more money in sponsorships and suite revenue, he said.
The arrangement also could be good for music fans who face escalating costs of concert tickets,
said Scott Stienecker, president of PromoWest Productions, which operates Lifestyle Communities
Pavilion and four other central Ohio music venues.
"It's a very positive thing. It won't drive ticket prices down considerably, but it'll keep them
in line at least," said Stienecker.
In recent years, he said, tour agents were pitting the two area venues against each other,
sometimes wringing out as much as $100,000 to $200,000 from the winning venue to secure a show.
Those costs, in turn, were heaped on fans.
Stienecker doesn't foresee bands skipping Columbus as a result of the deal, but the "outrageous"
prices to land a show likely will be kept in check.
The co-management deal was forged amid discussions of how to help the Blue Jackets, which have been
losing about $12 million annually, according to team officials.
Nationwide owns 90 percent of Nationwide Arena; The Dispatch Printing Company, owner of The
Dispatch, owns 10 percent. A Dispatch Printing Company subsidiary is one of the minority owners
of the Blue Jackets. JMAC, the private family holding company of Worthington Industries CEO John
P. McConnell, owns about 80 percent of the hockey team.
News of the deal has rekindled rumors that OSU plans to tear down St. John Arena, but campus
officials said the two aren't tied.
St. John's future is one of many things under consideration in a master plan being created for
the school's next half-century, spokeswoman Shelly Hoffman said.
Appears that first step has been made to solve arena issue: more work yet to do
The Columbus Dispatch, Friday, April 30, 2010 2:49 AM
Lease talks: Is there good news for Nationwide Arena?
http://www.dispatch.com/live/content/local_news/stories/2010/04/30/arena-takeover-art-gpg8cd67-1.html?sid=101
Ohio State University and the Columbus Blue Jackets are closeto a deal that would put OSU's Schottenstein Center and the
privately owned Nationwide Arena under joint management. The
agreement would be one piece - and a small one at that, sources
told The Dispatch yesterday - of a larger plan to eliminate the
hockey team's yearly deficit and ensure its future in Columbus.
Under an agreement that OSU and Blue Jackets officials said
could be finalized within two weeks, the university would manage
both arenas and handle bookings for concerts and other events.
That would save at least $1 million annually for each side
because of lower administrative costs and better leverage
in booking.
Currently, the Blue Jackets rent Nationwide Arena from the
Nationwide insurance company and other owners for $5 million a
year. The team pays a management company to run the venue
and has said it loses $4 million a year on its operation.
The team's total deficit runs about $12 million annually.
Ohio State manages the Schottenstein Center with its own staff.
"This could be an important step, but it represents only about a 10 percent fix to our problem,"
Blue Jackets President Mike Priest said yesterday. "If we have a $12million problem and we fix it
by $1 million, that's at least a step in the right direction."
Other sources told The Dispatch yesterday that the rest of the pieces of a deal to stabilize the
Blue Jackets are still months from final form. But ideas are emerging:
• Nationwide Arena could become the property of the Franklin County Convention Facilities Authority,
a public agency. The new owner would not charge the Blue Jackets rent.
• Nationwide could cut its asking price for the arena and could pay for naming rights.
• Public money could come from several potential sources, including the taxes to be paid by Ohio's
newly approved casinos or through another attempt to impose a rental-car tax that Columbus voters
rejected in 2002.
The last option could face an electoral hurdle because the city charter says ordinances rejected by
voters can't be reimposed without their approval. City Attorney Richard C. Pfeiffer Jr. said that
appears to require another vote, even if the tax would be at a different rate.
Mayor Michael B. Coleman said ideas are bandied about regularly among those involved in the talks.
But no solution is imminent, he said yesterday. "It's not soup yet."
Brian Ellis, president of Nationwide Realty Investors, said he supports the emerging relationship
between OSU and the Blue Jackets.
"This is a positive step forward," Ellis said. "Nationwide remains committed to working with the
Columbus Blue Jackets and community leaders to identify a solution."
Nationwide owns 90 percent of the arena; The Dispatch Printing Company, owner of The Dispatch, owns
10 percent. A Dispatch Printing Company subsidiary is one of the minority owners of the Blue Jackets.
JMAC, the private family holding company of Worthington Industries CEO John P. McConnell, owns about
80 percent.
The management deal is on a fast track because the team's contract with SMG, a Pennsylvania-based
company that runs Nationwide Arena, expires on June 30.
Xen Riggs, an OSU associate vice president in administration and planning, said the contract would
be for a year but likely wouldn't last that long. Ohio State's management of Nationwide Arena would
essentially represent a partnership between the school and the Blue Jackets, Riggs said.
"We wouldn't characterize this as an OSU takeover," he said. "It simply made sense for us to get
involved since we manage a similar 20,000-seat arena."
Priest said he's confident there are no antitrust issues raised by joint management of two major
arenas. Riggs said that although Ohio State and the Blue Jackets have been talking since the fall,
the effort to forge an agreement intensified in the past month.
Both sides said potential savings wouldn't come from layoffs of workers at Schottenstein Center or
Nationwide Arena.
A solution to the arena problem is now overdue
Video message from John P. McConnell that was sent to season ticket holders addressing the team's current financial situation:
April 9th, Forward Together organizers are expressing serious concern that a solution hasn't been
announced to resolve the financial difficulties that threaten the future of the arena district,
team and community.
Formed at the beginning of the year, Forward Together is using the end of the season as an
opportunity to remind community leaders that the problem won't solve itself.
"We now have more than 9,000 signatures on our petition," said John Bentine, co-chair of the group.
"These aren't just hockey fans either. We've got people in the suburbs, people who live downtown,
people who understand what is at risk for the Arena District and our communit...but we are very
concerned that no solution has been announced and the season is now over. As the Chamber wrote,
'the community is on the clock' and we're afraid time is running out."
Over the past three months, Forward Together has organized a rally at the R-Bar, manned information
tables at local Chiller ice rinks, gathered handwritten petition signatures outside Jackets hockey
games, written letters to the editor and interviewed with a variety of news outlets in central Ohio.
People across the city are beginning to understand that without a successful arena, the risk to local
jobs is genuine and that the money lost in tax revenue would be difficult to replace.
The problem at Nationwide Arena centers on a lease arrangement that is different from any other in
the NHL. Most teams do not pay rent because their arenas are publicly owned. This is similar to the
public ownership for college football stadiums as well as for the NFL, MLB and NBA teams that exist
in Cleveland and Cincinnati.
"We are afraid that it's taking too long and the financial problems must be addressed," said Jan
Wilson, a co-chair for Forward Together and an elementary school principal. "We believe we have
helped raise the visibility of the issue but wonder where this is headed. We want to see a solution."
With season's final game complete, Forward Together's co-chairs are calling upon the various people
who can make a difference to announce a plan to the public, or at least a timetable, to resolve this
dilemma and ensure the continued vitality of the Arena District.
Forward Together organizers are also continuing to recruit supporters to sign the group petition
at www.forwardtogethercolumbus.org, submit a photo celebrating a favorite memory in the Arena
District, volunteer on behalf of the group or offer their business or residence windows for signage.
About Forward Together
Forward Together is a group of citizens celebrating the transformation of a vacant prison into a
vibrant center for business, entertainment and residential life. Forward Together is a reminder of
how far we've come over the past twelve years as a city. It is also a reminder to each of us that,
without a solution to the current problems facing Nationwide Arena and the Columbus Blue Jackets,
a shadow is being cast on the future of the Arena District and its continued success.
With more than 9,000 signatures advocating a solution to the problems facing the arena, team, district
and city. Forward Together includes more than 50 committee members and 5 co-chairs. We come from all
walks of life: local business owners, residents downtown, suburban residents, hockey fans and people
who care about the economic success of our city. We are committed to coming together as a community.
The bottom line is that we all want to see a solution that works and we need it now.
www.forwardtogethercolumbus.org
VIEWPOINT
Columbus region rewarded by Jackets,
arena development
Business First of Columbus - by Ty Marsh, Friday, March 26, 2010
http://columbus.bizjournals.com/columbus/stories/2010/03/29/editorial2.html
Arena District have had on Columbus and the rest of Central Ohio. Now a key driver in our regional
economy, the area transformed from a vacant penitentiary site to one of the city's showplaces, with
170 thriving businesses driving more than $1.6 billion in annual sales. Since Nationwide Arena's
construction was announced in 1998, property values in the area have increased 267 percent.
Hockey fans or not, all Central Ohio residents have reaped the rewards of the world-class
entertainment venue and new businesses now flourishing in the area. These businesses employ more
than 5,500 employees earning annual wages of roughly $350 million, and the area generates $30
million in state and local tax revenue annually. In the next decade, this tax revenue is expected
to double to $60 million. This funding pays for public services such as education and road repairs
throughout the region.
From families to young professionals to empty-nesters, Nationwide Arena and the Arena District
provide an outlet for high-quality and affordable entertainment and dining options right in our
back yard. Instead of envying other metropolitan areas and having to travel to satisfy our
entertainment needs, the options are right at our fingertips.
We've become a model for other cities - such as Kansas City and Newark, N.J., in the United States
and Edmonton and Toronto in Canada - contemplating urban arena integrations. These cities are hoping
to replicate what Columbus has accomplished in the Arena District.
In addition, this asset is an economic driver, contributing to our overall quality of life, an
important factor in attracting and retaining work force and jobs.
As Stephen Buser, emeritus professor of finance at Ohio State University, found in his November 2009
report for the ColumbusChamber, the Blue Jackets cannot continue to operate under the same financial
model used for the past 10 years. The initial risk in bringing the team and the arena to Columbus
was shouldered by private investors, but now we as a region have seen the economic impact.
Reinvesting in this invaluable resource isn't a speculative bet; the Arena District is a sure thing.
With that in mind, it's imperative we come together and find a solution to preserve this economic
driver. Without it, millions of dollars in state and local tax revenue, thousands of jobs and
property values are at stake.
Whether you're a die-hard Blue Jackets fan or have never been to a game, you must realize this is
not a hockey issue. We received a taste of the Arena District without the team during the 2004-05
NHL work stoppage, when area businesses saw their revenue dramatically slashed. Keeping the team
and the area intact is a matter of economic vitality in our region, and we need to keep the
momentum going in our direction.
Ty Marsh is CEO of the Columbus Chamber.
Jan Wilson commentary: Losing Jackets would
leave hole in community
The Columbus Dispatch, Sunday, March 21, 2010 4:54 AM
http://www.dispatch.com/live/content/editorials/stories/2010/03/21/losing-jackets-would-leave-hole-in-community.html
Financial problems have put the future of the ColumbusBlue Jackets in doubt, and if the team is forced to
leave Columbus, the move will cause harm not just for
local hockey fans but thoughout central Ohio.
According to media reports and a study commissioned
by the Columbus Chamber of Commerce, the Jackets are
losing approximately $12 million annually. The team has
asked for help to lessen the burden of the operation
costs of the arena. No business can continue to operate
with yearly losses that high.
Often we hear people say, "If only I had known ..." It's
usually accompanied by a sigh, followed by an
acknowledgement that something could have and should
have been handled differently.
Now is the time to do things differently in central Ohio,
because if we don't, we may very well lose a major
economic benefactor for our city and county. Then we'll
be forced to read bold-faced headlines about businesses being shut down and leaving, residents
moving and tax revenues dwindling, and about a dampened sense of pride in our city. I can only
imagine what the national storyline would be if we don't do something.
The 2004-05 NHL lockout gave us an example of what might happen to businesses in the Arena
District. This is not just a couple of restaurants and bars. The Arena District, an area of
the city that only 10 years ago was an abandoned state penitentiary, is home to 170 businesses.
I have experienced firsthand the Jackets' impact on the central Ohio educational community,
as well as their generosity toward Nationwide Children's Hospital patients and families.
As an elementary-school principal in Grove City, I have been able to offer my students
incentives for reading and for making healthy lifestyle choices. Based on the number of minutes
read outside the classroom, the Book Jackets program provides students with prizes such as game
tickets and player-signed mementos. The #61 Club, sponsored by Blue Jackets player Rick Nash,
rewards students with game tickets and a T-shirt for making 61 healthy choices in a month.
I am the parent of a multihandicapped daughter who spent 97 days in Nationwide Children's
Hospital in the past year. While there, my family benefited from another Blue Jackets Foundation
community project. The Blue Jackets Family Resource Center is a refuge for families to relax and
escape the stress of having a child hospitalized. Chair massages, a family movie night, laundry
and kitchen facilities are just a few of the things available, none of which would exist without
our team. I am fortunate not to have firsthand knowledge of all the team has done for pediatric
cancer, but I do know the Jackets have been involved in this issue, raising money for research
and making friends with many patients and their families. The Blue Jackets Community Foundation
has contributed more than $2.5 million to our community since inception.
In the 1990s, my family regularly purchased tickets to Cleveland Indians games and spent a good
portion of our entertainment budget in Cleveland.
When the Blue Jackets arrived, however, we shifted our allegiance and entertainment dollars to
the Jackets and the Arena District. I'm sure there are other families that have done the same,
just as I'm sure there are families that don't live in central Ohio but travel here for games,
spending money at our hotels, restaurants and shops.
According to a study by the John Glenn School of Public Affairs at Ohio State University, the
Arena District generates more than 5,500 jobs and $30 million in tax revenues annually for the
city and county. We have something valuable right now, and it's too important to let go.
If we lose the Jackets, what will replace the $6 million to $7 million in taxes the team and
arena pay each year? This money will disappear, and then we'll say, "If we had only known ..."
Help those of us who love our city and our team get the word out and get a solution in place
before it's too late. Several thousand of us have already raised our voices on this issue by
signing a petition and urging action.
We want our leaders in Columbus and Franklin County to know we want them to find a solution
because there's too much at stake not to.
Jan Wilson is co-chairwoman of the Blue Jackets fan group Forward Together.
IT'S NOT JUST ABOUT HOCKEY.
we have here. As a business owner in the Arena District, my success is due in large part to the hundreds
of thousands of people that come to the arena each year for hockey games and other events."
Tim Hobart
Owner, BDs Mongolian Barbeque
"As an elementary school principal I have seen firsthand the impact that the Blue Jackets educational
initiatives have had on my students. Reluctant readers inspired to read nightly because of the Book
Jackets program, students taking part in #61Club healthy lifestyle activities, and teachers engaging
students in Ohio Standards based lesson plans from the Blue Jackets at School website."
Jan Wilson
Principal, Buckeye Woods Elementary
"The presence of an NHL team in Columbus, not to mention the unprecedented support the Blue Jackets provide
to not only our program, but to all the youth players and hockey programs in town has had an overwhelmingly
positive impact on the growth of youth hockey in the area. Central Ohio is now home to the largest youth
hockey association in the state and offers hockey development and personal enrichment opportunities at the
recreational, special needs, girls and competitive levels."
Mike Rose
President, CCYHA
www.ccyha.org
SIGN OUR PETITION, GET INVOLVED
vacant for more than a decade; yet another example of blight in downtown Columbus.
Fast forward to 2010 and the remarkable transformation that has occurred. Property values have
skyrocketed, thousands of jobs have been created and the Arena District is the bustling pride of
our city.
Forward Together is a group of citizens celebrating this transformation while reminding each of us
just how far we've come over the past twelve years as a city.
It is also a reminder that, without a solution to the current problems facing Nationwide Arena and
the Columbus Blue Jackets, a shadow is being cast on the future of the Arena District and its
continued success.
You can help. Sign our petition and get involved.
Sincerely,
John Bentine, Brian Garvine, Tim Hobart, Mike Rose, and Jan Wilson
Co-Chairs, Forward Together
