Nationwide Arena

Columbus officials release arena lease proposal to help keep Blue Jackets in town

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With the Columbus Blue Jackets reporting record financial losses over the past few seasons, totaling over $80 million in the last six years and $25 million last year, they’re an organization that’s in desperate need of help to get out of their money woes. With so much money bleeding from the Blue Jackets, owner John P. McConnell has said that if things aren’t turned around that he’ll have to move the team.

While wins haven’t been easy to come by and they’ve made the playoffs just once in franchise history, there’s a plan on the table to try and ensure that the Blue Jackets can stay in Columbus.

This afternoon, a proposal was announced that would see Nationwide, the insurance company that owns the naming rights to the Blue Jackets arena, as well as Franklin County, Ohio and the City of Columbus would team up together along with revenues from a proposed casino to buy the arena.

Doug Caruso of The Columbus Dispatch outlines the plans to help keep the team in Columbus.

Franklin County and Columbus would pledge up to a third of the tax revenue they collect from the Hollywood Casino on the West Side through 2039 to finance the $42.5 million purchase of the arena from Nationwide Realty Investors and pay to operate it, said John Rosenberger, a lawyer hired by Columbus and the county in 2009 to negotiate an arena deal. The Franklin County Convention Facilities Authority would own the arena.

Under the agreement, Nationwide would invest $52 million in the Blue Jackets and would take a 30 percent ownership interest in the team. It would have naming rights to the arena for 10 years.

It’s no secret that money is tight in America and using public money to finance the purchase of an arena, even split up over many groups, raises a giant red flag. While the arena would then belong to the county, the fact that it’s money from the people and not a private firm or even the Blue Jackets owners, is the part that makes this deal seem very curious.

We’ve seen proposals using public money land with a thud in Glendale and on Long Island and those were deals that would’ve secured the location of the Coyotes in Arizona and the Islanders on Long Island for years to come. Those matters were shot down either by government watchdogs or via public vote.

In Columbus, this deal would need to be approved by a vote of the Columbus City Council and Franklin County commissioners to make it work. As for what the deal will do to slow down the losses, Caruso breaks down the numbers.

The deal is expected to save the team $9.5 million a year. The team would agree to remain in Columbus through at least 2039.

The $42 million purchase price for the arena is slightly lower than the $44 million value Nationwide placed on it during court proceedings to set the taxable value of the building in 2006, a case in which it was in the company’s interest to set the price as low as possible. The county auditor had valued the arena at $129.7 million. It cost $147.1 million to build in 1999, Nationwide said at the time.

The state of Ohio would help out with the purchase through a $10 million loan, half of which can be forgiven by the state.

The part that makes the use of public money more irksome is the fact that people in the area voted against using public money to build the arena in the first place. Using it now to make sure the lead tenant can stick around seems like an end-around way of getting what they wanted in the first place.

We’re all for doing the right thing to keep a team in place, but the use of taxpayer money is what will always make us feel awkward. If it’s money that had no other destination for usage that’s fine, but burning public bucks during tough financial times makes the situation feel nervous. The Blue Jackets are the only major professional team in Columbus and letting the arena go vacant would be a tough blow to the city and the community so this move could be viewed as one meant to keep the economy rolling until 2039, it just feels a little bit uncomfortable going all in on supporting it.

Update (5:37 p.m.): Blue Jackets team president Mike Priest issued a statement about the deal on the team’s website.

“We are appreciative of the comprehensive work and due diligence delivered in this report. Mr. Dorrian, Bill Jennison and John Rosenberger each understand the issues and this report offers a solution that will provide a long term sustainable business model for the organization. We are encouraged by the report’s findings.”

Watch the Blackhawks’ Patrick Sharp tribute video

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Over the years, the Chicago Blackhawks have been forced to let some important players leave to keep their core together, which ultimately meant parting ways with Patrick Sharp.

The talented winger now wears a Dallas Stars jersey, so Blackhawks fans must face the reality of watching Sharp ply his trade for a formidable Central Division opponent.

Even if that might feel awkward, Blackhawks fans gave Sharp (and Johnny Oduya) a warm reception in Chicago on Thursday.

CSNChicago.com provides video of that ovation, which you can see in the clip above.

The Stars currently lead the Blackhawks 4-2, thanks in large part to Patrick … Eaves.

Wild must overcome Alex Ovechkin’s 14th career hat trick

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Death, taxes and Alex Ovechkin winning the Maurice Richard Trophy.

OK, the third thing on that list isn’t technically inevitable. It just feels that way lately in the NHL.

It’s unclear if the Washington Capitals can hold on against the Minnesota Wild, but we know for certain that Ovechkin already has a hat trick, the 14th of his high-scoring career.

This propels Ovechkin to the goals lead as of this writing, as he already has 34. As impressive as Patrick Kane has been, No. 8 is heating up, and may just edge No. 88 if Ovechkin can remain healthy.

One has to feel a little sympathy for the struggling Wild. They played well but lost against the Dallas Stars earlier this week and now must deal with Ovechkin and the just-as-hot Capitals.

Bylsma believes league will look at Gudas’ hit on Catenacci

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Rugged Philadelphia Flyers defenseman Radko Gudas may get in trouble with the league once again.

At least, it will be that way if Buffalo Sabres head coach Dan Bylsma has his way regarding Gudas’ five-minute charging major hit on Daniel Catenacci.

“I think there’s no question it’s head hit,” Bylsma said, according to the Buffalo News’ John Vogl. ” … I know the league will look at that hit and deal with it.”

As far as the injury portion of possible suspension considerations go:

Marcus Foligno‘s analysis of Gudas was … well just check it out.

The Flyers ended up winning 5-1. Gudas was a busy man overall, racking up 17 penalty minutes.

Fight video: Patrice Bergeron vs. Blake Wheeler (seriously)

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Regular Selke winner Patrice Bergeron can do it all on the ice, it seems. Apparently that means he’ll even drop the gloves.

That was the unlikely scene during Thursday’s Boston Bruins – Winnipeg Jets skirmish, as Bergeron fought fellow finesse forward Blake Wheeler.

Perhaps unusual feisty behavior was just in the air, as Tyler Myers squared off with Matt Beleskey.

(Not as unlikely, but still.)