Beer tax sought for Blue Jackets arena buyout

I just saw this come across the wire:

COLUMBUS, Ohio (AP) - The owners of the money-losing Columbus Blue Jackets want a tax increase on beer, wine and cigarettes to underwrite a county takeover of Nationwide Arena, where the team plays.

Such a move would defy the will of local voters who repeatedly rejected public financing of the facility built by Nationwide Mutual Insurance Co.

The prospect of significant tax hikes also has touched off a battle between financial backers of the Blue Jackets and beer brewer Anheuser-Busch, which operates one of its 12 U.S. breweries in the city.

The company's president flew to Columbus on Thursday for meetings with Gov. Ted Strickland and leaders of the Ohio Legislature. The team wants the proposal inserted into the budget that starts July 1.

Link here.

Well this sure came out of left field. Its the first I've seen or heard regarding any of it. In fact I'm not quite sure what any of it means??

Is Nationwide Insurance trying to unload the arena to the county?

Are the owners wanting more tax to offset their losses?

Most importantly -- how much is a damn beer gonna cost next year?

Need. More. Info.!

UPDATE: More information here from Columbus.bizjournals.

The formula worked in the early years of the franchise, when the team’s player payroll was lower and game attendance was higher, Priest said, but it has contributed to financial losses the Blue Jackets have suffered in recent years.

“We have a building financial issue,” Priest said. “That leads to a team financial issue. If we can fix the building problem, we can fix the team problem.”

Team officials are exploring whether county ownership of the arena could result in favorable changes to the Blue Jackets’ operating terms, Priest said. A county agency – the Convention Facilities Authority – owns the land under the arena and the nearby Greater Columbus Convention Center. The county also owns Huntington Park, the home of the Columbus Clippers in the Arena District.

“The county has not agreed to do anything,” Priest said. “Nothing has been concluded.”

Commissioners are aware of what the Blue Jackets are proposing but have not taken a position on buying the arena, said county Administrator Don Brown. The county could not afford to buy the building unless a revenue stream was guaranteed to retire bond debt that would go with a purchase, he said. Officials also would need to examine the Blue Jackets’ finances, lease terms and revenue from non-hockey events such as concerts.

The club likely would be asked to sign a long-term lease to ensure it remains in Columbus, Brown said.

“Without a covenant or guarantee like that,” he said, “I doubt the county would be interested. It would not make business sense to take on ownership without being assured of an anchor tenant.”

UPDATE: Even more information from the Dispatch here.

Bottom line to me is that the team seems to be losing its ass and is looking for any way to make up for some of those losses.

Not a good situation although this quote from Priest makes sense:

Priest was asked if the Blue Jackets would consider leaving Columbus if the arena issue is not resolved.

“The very reason we are being so proactive,” he said, “is to avoid having to deal with that question and issue. I believe as a community we have the ability to find a solution.”

-LTL