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.”

Brendan Smith still talking to Rangers, ‘trying to make it happen’

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It’s only a few days until July 1 and defenseman Brendan Smith still doesn’t have an extension in place with the New York Rangers.

Not to worry, says his agent. It doesn’t necessarily mean that Smith is going to sign elsewhere.

“No one should read anything into the fact that we don’t have a deal yet,” Anton Thun told the New York Post. “You’re never really close until it’s done, but both sides are trying to make it happen. We’ll have to see.”

Thun told the Post a month ago that Smith, an unrestricted free agent, was “open” to returning to the Rangers.

But there’s also been speculation that the Blueshirts will pursue Kevin Shattenkirk in free agency, which would probably mean less money available for Smith.

It remains to be seen if the Rangers will, indeed, make a big push for Shattenkirk. The addition of Anthony DeAngelo in the Derek Stepan trade may have lessened their urgency in that regard.

“He’s a puck-moving right-handed defenseman that can run the power play and shoot the puck,” GM Jeff Gorton said of DeAngelo, per Sporting News.

Which sounds a lot like Shattenkirk, no?

Smith, 28, was traded to the Rangers from Detroit on Feb. 28.

Sens extend McCormick — two years, $1.3 million

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Looks as though forward Max McCormick has a future in Ottawa.

On Tuesday, the Sens signed McCormick to a two-year extension worth $650,000 annually — and, perhaps most importantly, it’s a one-way deal in the second year.

McCormick, 25, also has a $250,000 guaranteed AHL salary next season.

The deal comes after he set a career high and tied for the AHL Binghamton team lead in goals last year, with 21. McCormick also appeared in seven games for Ottawa — this after playing 20 in ’15-16 — and emerged as a high-energy guy with an edge to his game.

Despite not being overly big (5-foot-11, 188 pounds), McCormick fought seven times for Binghamton last season, and led the team in penalty minutes. The year prior, he scrapped 12 times between the Sens and Baby Sens.

A spot at the NHL level could soon materialize. The Sens have already announced they’re moving on from free agent forward Chris Neil, and the futures of fellow UFAs Viktor Stalberg, Chris Kelly and Tommy Wingels remain uncertain.

Carolina re-signs Chelios, Brown

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The ‘Canes retained some organizational depth on Tuesday, agreeing to terms with defenseman Jake Chelios — the son of Hockey Hall of Famer Chris Chelios — and forward Patrick Brown.

Brown’s contract is a one-year, $650,000 extension, one that will pay $160,000 at the AHL level, with a guarantee of $190,000.

Brown, 25, split last season between Charlotte and Carolina, appearing in a career-high 14 contest with the ‘Canes. The Boston College product scored 12 goals and 28 points in 66 games with the Checkers.

Chelios, 26, has yet to make his NHL debut but is coming off a strong season with Charlotte. He served as an alternate captain and had a strong offensive campaign, with 32 points in 76 contests. That led all Checkers d-men in scoring, and he was the only player on the team to appear in every single game this season.

Like Brown, Chelios’ deal will pay $650,000 at the NHL level. It’s $85,000 at the AHL level.

Report: Sens tried to get Methot back from Vegas

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The Ottawa Senators did their best to make sure they didn’t lose Marc Methot in the expansion draft.

They attempted to get Dion Phaneuf to waive his no-move clause so they could keep Methot, but that didn’t work out.

On Monday, TSN hockey analyst Pierre LeBrun reported that the Golden Knights and Senators had been talking about a potential trade back to Ottawa.

In the end, Vegas GM George McPhee preferred to ship him to Dallas for 2017 seventh-rounder Dylan Ferguson and a second-round pick in 2020.

According to beat reporter Bruce Garrioch, Vegas’ asking price to allow the Sens to protect Methot before expansion was a 2018 first-round pick.

Methot has averaged at least 19:49 of ice time during his five seasons in Ottawa.

In the end, all this means is that the Senators will need to find someone else to play on the top pairing with Erik Karlsson next season.

During training camp, Ottawa put top prospect Thomas Chabot with Karlsson. They opted to send Chabot back to junior, but that could be an interesting combination if they think he’s ready to be a regular in the NHL.