Quote:
Originally Posted by DeToxRox
Hey Turner, whats the story with CBJ losing money? I just heard about it today but don't know much about it.
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When Columbus was trying to get an expansion team, they went to the public to get the arena built, but was voted down twice. Lamar Hunt (who was supposed to be the original owner) walked out of the deal, but John P. McConnell (the first owner, before he passed away) made it his personal mission to get a pro hockey team in Columbus. So, he went to Nationwide Insurance and had them build the arena and he would lease it from them.
Well, the rumor is that McConnell never really read the lease, and didn't think about the finances, as he just wanted to get a team here. Well, the lease sucks (in respect to other NHL teams), and its the biggest reason that they bleed money (over 10 million a year). So, McConnell's son (the current main owner) is trying to figure out a way to decrease the losses and make them viable. Back in September, they attempted to lobby the city government to implement a 'sin' tax, without a vote, to finance the purchase of the arena from Nationwide. Once the city took ownership, they would provide free rent to the Jackets.
Overall, I'm not too worried about it yet. I'm just glad they're doing something about it now, trying to find a good solution, rather than waiting until its too late. Ideally, the city will buy the arena from Nationwide (who are willing to sell it). However, I'm not sure how well that will go over with the economy in the tank, but similar approaches were taken by Cleveland with Progressive Field and the Q.