The day after arena managers AEG pulled out of bidding to overhaul Seattle’s KeyArena on the grounds that it was unfair their competitors hadn’t had to reveal financial details of their bid, lookee what happened: The city of Seattle went and released some of Oak View Group’s financials, including this:
The key lines are under “Sources,” where it’s revealed that OVG would be seeking a $50 million federal historic tax credit (previously reported as $70 million), plus $40 million in “city tax reinvestment of NASC revenues,” which presumably is bureaucratese for “tax money kicked back from arena property, sales, ticket, etc. taxes.” By comparison, AEG was looking at closer to $100 million or so in kicked-back taxes, so this is less than that, and possibly a small enough amount that the city can earn it back by stealing business from entertainment venues outside of city limits, though without a real economic analysis that’s more than one sheet of paper — as well as a lease explanation that guarantees that OVG would pay all maintenance, operations, and future upgrade costs, as the city itself requested — it’s tough to tell exactly how this would work out for the public purse.
It’s at least possibly not a terrible deal, though, which is better than most cases — as I always say, there’s a price point where the value of a new arena and the presence of a team (assuming OVG can get one, which seems a pretty good bet eventually) can make a small enough subsidy worth it. Here’s hoping the city of Seattle can stick to its guns, and be ready to walk away if the fine print on OVG’s plan turns out to make it too rich for their blood.