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http://www.kansascity.com/mld/kansascity/sports/16378739.htm

Posted on Thu, Jan. 04, 2007

Kansas City arena operator woos Penguins

STEVE BRISENDINE

Associated Press

KANSAS CITY, Mo. - The Pittsburgh Penguins could play rent-free and be equal managing partners in the new Sprint Center if they move to Kansas City, under an offer unveiled Thursday by the arena's operating group.

Tim Leiweke, president of Anschutz Entertainment Group, said the Penguins would not have to buy into the management agreement. The $276 million Sprint Center is scheduled to open in October.

The Penguins' owners, unhappy with the 45-year-old Mellon Arena, the NHL's oldest venue, have been exploring a move since a new arena deal fell through last month.

"We are not trying to steal the Penguins," Leiweke said. "We have been very respectful of their process. We understand that this is Pittsburgh's to lose, and we respect that."

Anschutz officials, including former Pittsburgh star Luc Robitaille, met Wednesday and Thursday with Penguins owner Mario Lemieux, his partner, Ron Burkle, and other team representatives.

"They have told us they will make a decision within 30 days," Leiweke said. "We will know within 30 days whether they are going to work out their issues in Pittsburgh and get an arena built, or whether they will ask the NHL for permission to move the team to Kansas City."

Pittsburgh has been trying to keep the Penguins in town with a Plan B agreement involving Detroit-based gambling company owner Dan Barden. Lemieux and Burkle were scheduled to meet late Thursday with Pennsylvania Gov. Ed Rendell, Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl.

Finding a permanent tenant, either in the NHL or NBA, has been a priority for Kansas City. Officials are counting on the Sprint Center and an adjoining entertainment district to anchor downtown revitalization efforts.

But so far, the arena has commitments only for the 2008 Big 12 men's basketball tournament, which was once a fixture in Kansas City, and the annual BCE Classic, a four-game tournament sponsored by the National Association of Basketball Coaches.

The association's hall of fame, which will include a 40,000-square-foot interactive exhibit dubbed College Basketball the Experience, is being incorporated into the Sprint Center project.

Last month, the Pennsylvania Gaming Control Board denied a slots contract bid by Isle of Capri Casinos that would have guaranteed the construction of a $290 million arena.

And William "Boots" Del Biaggio III, the venture capitalist who has an agreement with Sprint Center management to own any NHL team that relocates to Kansas City, co-owns a minor league hockey team with Lemieux.

Kansas City has not had an NHL franchise since the Scouts - now the New Jersey Devils - left town in 1976 after two seasons in Kemper Arena.

The NBA's Kings, who relocated from Cincinnati in 1972 and spent three seasons splitting their home games between Kansas City and Omaha, moved to Sacramento in 1985.

End of Article

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Personally, given that I'm a big hockey fan and I live in Portland, Oregon, I'd rather see the Penguins come out here. But, KC seems to be at the head of the pack. As usual, we just drag our feet out here. If the Pens do relocate to Kansas City, one can only hope they have nicer uniforms than the city's other NHL franchise, the woebegone Kansas City Scouts. This may be the single worst looking uniform in the history of professional sports.

SCOU75R09K_W.jpg

Up over and out.

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I still remember the Kansas City Scouts—awful team, awful uniform. But the Canucks' Oh Henry uniforms were worse.

I can't see Kansas City being a great NHL market.

I'm not sure I can either. They do usually have exhibitions games there each year, but from what I understand they never sell very well.

I've yet to meet a hockey fan here.

I miss watching the Lightning play.

Edited by Scott Dolan
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I can't see Kansas City being a great NHL market.

I tend to agree and I live here. Based upon the most recent minor league team we had, there appear to be ~ 5,000 "core" hockey fans in town. There is really no "buzz" about hockey here -- it would take an incredibly sustained marketing effort to make it work. Even then, there is big competition with college basketball in this area.

BUT, Raleigh has the exact same predicament and they seem to pack them in (having a great team helps). Plus there are a lot of Yankees in Raleigh that grew up with the sport in the Northeast.

Should be interesting to see what happens.

Edited by Eric
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I think that it is safe to retire the "everything's up to date in Kansas City" phrase. That phrase is decades old, and in the ensuing decades, Kansas City fell woefully behind in many areas, saw its downtown reduced to a pathetic, abandoned wreck, and now relies on generous tax credits and benefits to lure developers into building anything in the central city.

The Sprint Arena and surrounding development is the latest huge tax writeoff for the developers, and resulted in many downtown blocks being literally destroyed, bulldozed down to the ground, and new buildings and an arena being put up on the huge vacant space. Nothing remotely up to date here--just trying to keep the central city from imploding completely in favor of the massively sprawled out suburbs.

The "everything's up to date" phrase has become ridiculously inappropriate, much like calling New England a witch burning area or Atlanta a city burned by Sherman on his march to the sea.

Edited by Hot Ptah
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I think that it is safe to retire the "everything's up to date in Kansas City" phrase. That phrase is decades old, and in the ensuing decades, Kansas City fell woefully behind in many areas, saw its downtown reduced to a pathetic, abandoned wreck, and now relies on generous tax credits and benefits to lure developers into building anything in the central city.

The Sprint Arena and surrounding development is the latest huge tax writeoff for the developers, and resulted in many downtown blocks being literally destroyed, bulldozed down to the ground, and new buildings and an arena being put up on the huge vacant space. Nothing remotely up to date here--just trying to keep the central city from imploding completely in favor of the massively sprawled out suburbs.

The "everything's up to date" phrase has become ridiculously inappropriate, much like calling New England a witch burning area or Atlanta a city burned by Sherman on his march to the sea.

I note you didn't even touch the Truman Sports Complex. The renovations at Kaufmann alone are going to run you folks a fortune.

I did kind of wish they would have voted yes on the rolling roof though. That would have been one hell of a site to see. Did you ever see the little digital video they made of what it would look like and how it would work?

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The deal being offered to the Penguins is rather generous:

KC delivers pitch for Penguins

KC makes tempting offer to team officials, who say they will have an answer within 30 days.

By RANDY COVITZ

The Kansas City Star

Kansas City and the Sprint Center made their best sales pitch to the NHL’s Pittsburgh Penguins ownership on Thursday.

The Penguins officials said they will give their answer within 30 days.

After receiving a tempting offer for a brand-new, cost-free downtown arena from Anschutz Entertainment Group, which will operate the Sprint Center, Penguins owners Ron Burkle and Mario Lemieux and president Ken Sawyer returned to Pittsburgh and met with government officials about a plan for a new arena in Pittsburgh.

Here’s what Pittsburgh will have to come up with to meet or exceed Kansas City’s turnkey offer.

No rent. No up-front fees. No construction costs. A 50-50 partnership with AEG to derive profits from all revenue streams (suites, club seats, ticket sales, advertising, concessions, parking, signage and naming-rights fees).

“Should Pittsburgh and the state of Pennsylvania not be able to work out what is deemed to be a proper arrangement in the eyes of the Penguins and the NHL, we believe the best opportunity for the Penguins is Kansas City,” AEG president Tim Leiweke said at a news conference after he met with the Penguins executives on Wednesday night and Thursday morning and showed them around downtown Kansas City and the Sprint Center site.

“They have told us they will make a decision within 30 days, and we will know whether they are going to work out their issues in Pittsburgh and get an arena built or whether they will ask the NHL for permission to move to Kansas City.”

After meeting with Pennsylvania Gov. Ed Rendell, Pittsburgh Mayor Luke Ravenstahl and Allegheny County Chief Executive Dan Onorato on Thursday night, Lemieux said: “We had two great meetings, one obviously in Kansas City and one (Thursday) night. I’m very pleased with both meetings. We have to evaluate all of our options. That’s why we went to Kansas City and had a look at what they had to offer.

“I’m optimistic with the meeting with the politicians (in Pittsburgh) who were willing to step up and talk about some issues that were a big concern for us going back seven years.”

Before meeting with the Penguins officials on Wednesday night, Leiweke said the hockey team would have to put up $27 million to buy into the 50-50 partnership with AEG, which invested $54 million as part of its 35-year management contract with the arena.

Sometime between Wednesday night and Thursday morning, the two sides negotiated an agreement in which there would be no up-front costs for the Penguins.

But if that was the cost of business, Leiweke said it would be worth it to land the Penguins, who feature some of the NHL’s brightest stars, including 19-year-old center Sidney Crosby, the league’s scoring leader; and high-scoring left winger Evgeni Malkin, who is just 20 years old.

“If you sat down and wrote a book and you looked at the final chapter on how you go out and create a spec arena and then get an anchor tenant to fill it,” Leiweke said, “the last chapter is going to be titled ‘The Pittsburgh Penguins.’ This is the team you would dream to get.”

The Pittsburgh executives did not attend the news conference, but Leiweke said: “The building blew them away. They were fascinated with the tightness of the building, how close the last row of seats in the upper bowl is to the ice, and they were extremely excited we have our suites sold and are about to market premier seats.

“Overall, whatever impressions they had of Kansas City, those impressions grew dramatically.”

Perhaps the biggest impression was made at a breakfast with leaders of the business community who pledged corporate support in the areas of ticket sales and sponsorships. Attorney Herb Kohn was one of about 10 Kansas City business leaders who attended the breakfast, along with executives from Sprint, Farmland Industries and UMB Bank and the Hall family.

“I think they were very impressed with Kansas City, and I think they were blown away by the arena,” Kohn said. “They were impressed with the people they met and the support they would get from the business community.”

Kansas City Mayor Kay Barnes also telephoned Burkle and said the city is ready to work with the franchise.

“They were impressed with everyone they talked with, certainly the arena, the cinergy of the entertainment district with the arena and everything else going on downtown,” Barnes said from Washington, D.C., where she attended the swearing-in of Sen. Claire McCaskill and had other business. “I believe we put our best foot forward and hopefully advanced our cause.”

Leiweke, governor of the Los Angeles Kings and member of the NHL’s executive committee, did not view this as the Penguins using Kansas City for leverage to get a better deal in Pittsburgh, where their lease at antiquated Mellon Arena expires in June.

“If this was about leverage, they’d be visiting other cities,” Leiweke said. “To the best of my knowledge, they’re not taking any other visits, Will they make a deal in Pittsburgh if ultimately they can make the right deal? Yes. I don’t think they want to move that team. But they have owned that team since 1999. Eight years later, they have yet to make a deal.

“We’re not being used here. There is a decent shot they cannot get a deal done in Pittsburgh, and that will result in the team moving to Kansas City.”

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