Friday, 16 March 2007

If You Build It, They Will Come

I have been searching the good ol'Interweb thingy to see what I can find in regards to the deal agreed to by the Penguins and the government. Basically, I wanted to see who agreed to pay what, and how much. I know that it's probably a pipe dream to think that I'd find the actual legal documents, so I set out looking for an overview of what is covered and by whom. As the picture to the left indicates, it's time for the Penguins franchise to start adorning their uniforms with rhinestones because they got themselves one helluva deal. Now, I'm not saying they got off rent-free like they would have if they had moved to Kansas City. In fact, the Penguins are going to be paying their fair share of the costs, and possible overrun costs if that's what comes to fruition. So who is paying what, and how much does each entity have to contribute to keep the Penguins in Pittsburgh?

According to the Pittsburgh Gazette, it breaks down as follows:

- $7.5 million a year for 30 years from Pittsburgh casino winner Don Barden.

- $7.5 million a year for 30 years from gambling-financed state economic development fund.

-$4.2 million a year, including $2 million annually in naming rights, from the Penguins. Also included in the $4.2 million team share is $400,000 a year from a parking surcharge once the new arena is opened and $200,000 a year from parking once Mellon Arena is demolished.

-The city-Allegheny County Sports & Exhibition Authority will pay the Penguins $8.5 million for the team-owned old St. Francis Central Hospital.

-$10.5 million from the state, including $8.5 million toward construction and $2 million for marketing.

-$15 million credit to the Penguins as part of an agreement on development rights to 28 acres of the Mellon Arena property. The Penguins must develop 2.8 acres a year or lose the rights.

-Construction cost estimated at $290 million. If the guaranteed maximum price for the arena ends up between $290 million and $310 million, the Penguins and the state will split the cost. Penguins will cover any cost overruns beyond the guaranteed maximum price.

More info, as released by the governor's office, can be found here, in .pdf format. If you need a free Adobe reader to view it, please click here.

Just so you know, the Penguins average attendance this year is 16,302 people per game, or 96.1% capacity. For the season, they have drawn in 570,603. If they charge $5 per car to park, and there are 4 people per car at the game, the Penguins have taken in a total of $713,253.

I think this deal will certainly work out for the Penguins.

Keep your sticks on the ice!

1 comment:

Anonymous said...

Have you caught any of the last three Pens games? It is hard to not get your hopes up - they look good! On the FSN Pittsburgh TV feed, I listened to an explanation by that lovable Canadian Bob Errey of the reasons to keep your stick on the ice. Now I know the true value of your signoff! The blog gets better every time I read it - good for you! I would like more emphasis on the pokecheck, of course!