Remember last year around this time, when a new rich guy bought the Carolina Hurricanes and didn’t immediately demand a new or renovated arena and I was all “he has a sweetheart lease through 2024 so maybe he won’t complain for a few more years”? Well, forget all that:
“If you look around the league, for public buildings, we’re at the bottom of the league,” Hurricanes president Don Waddell said. “It’s nothing that anyone did wrong. Those were the times back in the ‘90s. But if we’re going to be a sustainable franchise in this marketplace for a long time, the lease plays an important role. The economics of the deal have to change in our favor.”
Well, that’s a tidy bundle of threat bombs! Without changing the “economics” of the lease — read: giving Hurricanes ownership more and the public Centennial Authority less — the franchise won’t be “sustainable” for “a long time.” (I will skip including here my usual link to the Army Protection Racket sketch. Oh, paralipsis!)
The irony is that, as mentioned above, Hurricanes owner Tom Dundon has an exceptionally team-friendly lease now, where he gets all the revenues from the arena while paying nothing in operating or capital upgrade costs, just a $3 million a year rent that he can deduct a bunch of expenses from before paying. (He’s still probably losing money on the team, but them’s the breaks when you own a hockey team in a small city in basketball country.) But leases can always get sweeter — hell, the Arizona Coyotes used to get paid to play in their arena! — and you can’t get if you don’t ask, right?
There’s also the issue of upgrades to the Hurricanes’ arena, which “is in need of massive renovations that could exceed $150 million,” according to the News & Observer, citing no sources at all. The paper goes on to report: “While the building’s behind-the-scenes infrastructure has been maintained at a high level by the arena authority, public-facing areas from the arena bowl to the entrances have an understandably dated look compared to state-of-the-art arenas elsewhere.” So it really just needs a more modern paint job? A $150 million paint job? I’d think Dundon would do better asking for $150 million to subsidize his annual operating losses, but I guess if you can ask for both, all the better!