Putting arena renovation costs into context
With the recent announcement that Seattle is getting a new NHL franchise there's interesting news about their arena.
http://www.espn.com/nhl/story/_/id/2...ttle-nhl-arena
Quote:
With team secured, Seattle begins work on arena
The cost now is $850 million for the new arena at Seattle Center, according to Oak View Group CEO Tim Leiweke, with construction expected to get started almost immediately. That's an increase of $200 million from the initial projections for the privately financed project, but the principals involved believe the increased investment is part of making the new building one of the top arenas in the country.
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This is a total renovation to the old Key Arena where the Seattle NBA team played before moving to OKC. Their expansion fee to the NHL is $650 million. They also plan to build a separate practice facility which Sarver has indicated he also wants to do. Admittedly this is all owner funded.
Quote:
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By the time the entirety of all the projects and investments in the franchise is realized with the team's first game -- arena, expansion fee, practice facility and other costs -- bringing the franchise to Seattle could end up running in the neighborhood of $2 billion.
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I'd say Phoenix is being presented with a more than reasonable deal. The only thing better would be for a 'rich uncle' to own both the NHL and NBA franchises and pay for their own new arena. Not happening.
And yes Greta gave me my laugh of the day.