A Joke of a Plan by Allegheny Institute
The conservative think tank released a 'plan' so horribly constructed, they must have entertained high schoolers to devise it. Another organization with loose ties to Station Square and Harrah's investors has come out to offer their "Plan B" rooted so deeply in fantasy, where can one begin.
"Here's a better plan: The Penguins or a developer should create an arena corporation or a partnership and sell shares or find investment partners. The group could then sell naming rights to a local corporation. The goal should be $100 million to $150 million. At that point the group could borrow against seat license sales, long-term luxury box rentals, concessions revenue, in-arena advertising, rental fees for events at the new arena, etc., to raise the rest of the needed money."
HELLO McFly, Lemieux has attempted to recruit investment partners since 1999 to help build a new arena and has been unable to attract the needed funding to this project, besides IOC. This is why he's asked for some public money, which was promised to him prior to owning the team. It is also that same public money, Lemieux was told by the Governor, past & present Mayor, and past & present Chief County Executive that was no longer available or an option.
The arena naming rights should net between $50-60 million over a 30-year agreement, this was part of the Isle of Capri plan. Old arena plans from the team did state they would invest $47 million into the project. I am almost certain that money would be a combination of revenues generated by the team and money fronted by the ownership's investors.
How does this "think tank" expect the Penguins to operate a competitive hockey operation, if the majority of its revenues generated at the arena are being used to payoff the arena? Where are the financial projections for the price of each stock, how many would need to be sold? How much revenue would the team need to generate to pay such a price tag? Where are the numbers?
I'd also like to hear how the Penguins will be able to generate enough competition for the required seat licensing sales. The Penguins do not have the same support as the Steelers and most NFL teams. Another non-starter based in fantasy offered by the 'think tank'.
"And what happens to the Isle of Capri's offer to turn over $290 million for a new arena? It simply can amend the proposal presented to the state. Instead of the money being designated for a new arena, the $290 million would be turned over to the Intergovernmental Cooperation Authority (the oversight board) to be held in escrow for city debt reduction and for no other purpose. "
Why should Isle of Capri involve itself in the politics of a region that has failed to do anything right in over 30 years? Yes, that includes both parties. The oversight board receives tax money itself to pay costs of such an organization, government should be eliminating agencies and taxes.
If the Allegheny Institute for Public Policy believes this plan is viable, back it up. Show the numbers and stand behind them. Instead, what the Penguins and many others observe is another attack by a conservative group of people refusing to adequately inform the public of the situation because of its agenda of supporting the Harrah's plan at Station Square.