The Charlotte city council voted 9-2 last night to spend $34 million on renovations to the Hornets‘ Time Warner Cable Arena, which opened in 2005 and is the third-newest building in the NBA. Of course they did, because they (or their predecessors nine years ago) included a “state-of-the-art” clause in the Hornets’ (then Bobcats) lease, which means the city must go on spending indefinitely to keep the arena as up-to-date as the newest NBA arenas:
“It is a contractual obligation,” said council member Claire Fallon, a Democrat. “If we break the contract, who will believe our word anymore?”
At this point it’s worth asking — not that any of the media outlets who were actually at the council vote seem to have asked it, but I’ll ask it to the winds, anyway — how much Charlotte will likely have to put up for renovations over the life of the arena, whatever that may turn out to be. You have to expect that the Hornets will come back for more upgrades in another nine years or so — it’s in their contract, why wouldn’t they? — and that those will be more expensive, since by then there will be even more new arenas to keep up with. And nine years after that … well, by then the arena will be 27 years old, so you have to expect the Hornets will be looking to tear it down and build a new one.
As a reminder, the Hornets are owned by the billionaire most famous former athlete on earth, and got the arena scot-free when Charlotte covered all $260 million in construction costs. Add in the gift-that-keeps-on-giving state-of-the-art clause, and this is a serious contender for “worst arena deal ever,” though at least Michael Jordan isn’t getting negative rent. Yet.