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Back in May there was a bit of a hullabaloo about how the Columbus Blue Jackets could solve their economic issues, which included the idea of having Franklin County purchase Nationwide Arena.
Today, the Columbus Chamber of Commerce released a report that provides their analysis on the situation with the Blue Jackets, and provides nearly 20 different options on how the team can be retained and economic development of the Arena District increased.
“It is important that our community retain this team,” said Dave Blom, President, Ohio Health and Chair, Columbus Chamber Board of Directors. “The Columbus Blue Jackets impact our regional economy, support thousands of jobs, and bring millions of dollars in tax revenue that contribute to our quality of life.”
While no plans are set in stone, the report provides options that include the continuation of the existing ownership, the implementation of public-private partnerships, as well as alternative private ownership agreements.
The report also revealed the total economic impact of the hockey team being worth over $630 million in economic growth for the region, and contributing to the employment of over 5,500 workers with annual wages of over $350 million.
To read the full details of the report, check out the links (PDF) below:
I know a lot of people who were bummed that the Destroyers left. Not because they have some desire to watch arena football, but b/c it was a nice night out with friends having dinner and a drink and going to the games. I’m sure the businesses down there suffered some loss from losing the Destroyers. Imagine what they would lose if the CBJ wasn’t in town 40 – 50 times a year.
I can understand not wanting tax payer money to be spent for a private business. Believe me, I get it. But sometimes you have to give to get. I sort of look at it like an investment. If the AD is going to continue to grow and thrive, thus making downtown grow and thrive, thus getting more businesses downtown, thus getting more people to live downtown…..you get the point…..the city may have to kick in a little dough. We’re spending $20M on a park where CC used to be. That won’t attract nearly as many tax dollars as the CBJ, particulary dollars from outside of Columbus.
There are a lot worse ways that our tax dollars get spent.
When Rick Nash makes seven times what Guillermo Barros Schelloto makes, I have no sympathy for the Blue jackets or their financial woes.
How much TV revenue does the MLS make? Is it close to hockey? Honest question, I don’t know the answer.
The NHL caused this mess by over-expanding in too many cities and paying their players way too much money. Who would doubt that hockey players wouldn’t play for $250K rather than $2 milion per year?
Umm, they probably would, but other teams who value the player more will pay more. Supply and demand
>>>We’re spending $20M on a park where CC used to be. That won’t attract nearly as many tax dollars as the CBJ, particulary dollars from outside of Columbus. There are a lot worse ways that our tax dollars get spent.
Using that logic we should sell off part of Whetstone Park to put in a Dollar General Store and other retail stores. Although I agree that City Center’s demolision should have been paid for by the mall’s owners and not taxpayers.
it’s interesting how sports teams engender that unique mythology that even when they are bleeding money like a oil gusher, they have a contigent of potential mourners far larger than any other similarly sized-business venture that goes down the tubes.
I find it funny that the report was put together by a professor from Ohio State, when Ohio State is partially to blame for the situation the Blue Jackets are in (Value City Arena).
Doug – I don’t think Hamilton has ever had an NHL team, they’re just in the running for a relocation by virtue of being the hometown of one of the guys wealthy enough to afford such a white elephant.
Teams didn’t really “fail” in Winnipeg or QC so much as there were much more lucrative situations waiting in Arizona and Colorado, respectively. Phoenix and Denver are unquestionably an upgrade over Winnipeg and QC in all factors except Hockey Fans Per Capita, and the idea of moving a team to a new city was as much about luring free-agents to sign* as it was about improving the audience size/corporate sponsorship opportunities.
This is less of a factor now than it was even two or three years ago, but the Canadian dollar/US dollar exchange rate is also a handicap because salaries are paid in $USD but the Jets and Nords were earning their money in $CDN.
I’m not sure there’s a relocation opportunity that will pan out like Denver did for the Nordiques. Hamilton has the intense fan base, but as soon as a team moves there they’ll be bitching about the overall market size. Houston has the population but the’re another Sun Belt failure waiting to happen. Seattle is too close to Vancouver for the league to split that market. Portland isn’t big enough yet to offer any more security than Columbus. Same with OKC and I’d put Kansas City in the same basket. St. Louis has done well to support the Blues but can the NHL afford to split a region like that?
*Eric Lindros famously refused to sign after he was drafted by the Nordiques because he didn’t want to move to a small, French-speaking market. (I’m sure it didn’t help that the Nordiques were a lousy team.)
>>>I find it funny that the report was put together by a professor from Ohio State, when in fact Ohio State is partially to blame for the situation the Blue Jackets are in (Value City Arena).
Aren’t both OSU and Nationwide equally at fault for not coming to terms to share an arena?
Bottom line, it’s absolutely nuts to have two 20,000 seat arenas five miles apart in any city. What a waste of resources.
>>>>How much TV revenue does the MLS make? Is it close to hockey? Honest question, I don’t know the answer.
I have no idea what the revenues are for each sport. The NHL is on Versus (I believe) while MLS is on ESPN2, FSC, & Galavision.
How much revenue sharing is there in NHL? Again, I don’t know. There is a huge amount of it in MLS, to the point where the league plays the base salaries of the players. DPs, like Schelloto or Beckham might not get paid by the league. Again, I don’t know.
jimbach Says:
November 5th, 2009 at 3:17 pm
When Rick Nash makes seven times what Guillermo Barros Schelloto makes, I have no sympathy for the Blue jackets or their financial woes.
You can’t compare the two. Rich Nash plays in the NHL which is the best professional hockey league in the world. Of course he’s going to make more than Schelloto who plays in a 2nd tier soccer league.
>>>Teams didn’t really “fail†in Winnipeg or QC so much as there were much more lucrative situations waiting in Arizona and Colorado, respectively. Phoenix and Denver are unquestionably an upgrade over Winnipeg and QC in all factors except Hockey Fans Per Capita, and the idea of moving a team to a new city was as much about luring free-agents to sign* as it was about improving the audience size/corporate sponsorship opportunities.
These are reasons that so many national sports columnists were opposed to the NHL expansion the past 20 years or so. Small market teams can’t pay players near as much as big market teams like Detroit and Toronto which results in unbalanced competativeness between teams and financially struggling teams.
The NHL thought that it could become as popular as the NBA and MLB. But it just isn’t, and probably never will be. The NHL made their bed…..
It might be best if 4 or 5 NHL teams are dissolved.
wow, this is just like the rosendale’s death pool.
Look at Mario Lemieux’s business plan for very recently saving the Pittsburgh Penguins from becoming the Kansas City Penguins, and in turn, creating a profitable organization with a winning team in a city with a very similar economic situation as Columbus. Lots of similarities between these two situations. AND casinos were involved… weird.
It is possible, but I’m not biased or anything…
More on these issues:
http://dispatch.com/live/content/sports/stories/2009/11/05/jackets_study.ART_ART_11-05-09_A1_B1FJ0I3.html?sid=101
Also, Dispatch columnist Michael Arace weighs in on what the mostly unwanted casino could mean to the Arena District and the Blue Jackets:
http://www.dispatch.com/live/content/sports/stories/2009/11/05/arace_11-5.ART_ART_11-05-09_C1_75FJ0O7.html?sid=101
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Thanks Puck Rakers
My good friend (that lives in Columbus ) is a NYC implant and is also a huge sport fan ( hockey, Yankees, Buckeyes, etc) and his opinion was that hockey is not a popular enough sport for Columbus to support–and it didn’t help that the Blue Jackets were such a losing team . He liked the chill-thought the name was cool, and I believe they had alot of support (probably the name thing) He thinks that a better future plan is to have a professional basketball team here.
My only opinion on this is the whole tax-payer bailout issue, let the private investors bail them out-not taxpayers–I mean we can’t even get bailouts to fix up the blight in our neighborhoods—I guess I just don’t believe that it will net out. —I like parks, beautiful places, and as much free entertainment as possible. That is where I want my tax dollars focused.
Perhaps the owners of the arena and the owners of the team can get together and renegotiate the terms of the lease. Easier solution that burying or relocating a team before it’s dead?
The hard part is that I think it’s a waiting game and I’m not sure how much time we have. The Blue Jackets have made some serious improvements and every year they look better. I know the issue isn’t entirely fan-related as it sounds like some financially poor decisions were made from the beginning, but as the team improves, so will the fan following. We’re a young team, but we’re starting to click and attendance has been up 13% from where it was last year.
Being a season ticket holder and a hockey fan, I would be really disappointed if this city was without the Jackets.
“Using that logic we should sell off part of Whetstone Park to put in a Dollar General Store and other retail stores. Although I agree that City Center’s demolision should have been paid for by the mall’s owners and not taxpayers.”
Ummm, no. Again, just like comparing Columbus to Seattle, you’re comparing apples to oranges. My point is that the CBJ helps support dozens of other businesses. The bars, the restaurants, the taxis, the parking garages, etc. Comparing what the CBJ does for downtown’s image, economy and for tax revenue to putting a Dollar General at Whetstone Park isn’t close to the same thing.
” My point is that the CBJ helps support dozens of other businesses. The bars, the restaurants, the taxis, the parking garages, etc. ”
This arguement is the tactic of a terrorist. Nationwide, the Dispatch and the McConnells drew up a business plan that did not involve public financing (although improvements in the area were paid for with a tax break called a TIF–I’d love for my property taxes go to make improvements just around my property). They knew damn well what they were getting into.
Now that they are losing money they seem to be saying “socialize our losses or we’ll blow up the Arena District.”
There are blighted neighborhoods in many areas of Columbus and the city closed several recreation centers. Where’s the bailout there?
As someone else said here, Columbus is just not big enough to support an NHL team. Pro sports teams commonly have 10 or 20 years of mediocre performance in the standings. The arguement that, “if only the Blue Jackets were a winner” is absurd.
Here’s a prediction-
If the Blue Jackets and Nationwide are bailed out, give it a year and the owners of the Crew will be asking the city, county and state government to bail them out too.
I wish the casino was already built and would take my bet.