Just as the on-ice product was finally showing signs of getting somewhere we get the off ice bomb dropped on us yesterday that the team has lost over 80 million since the 02-03 season.
Talk about a momentum killer. Better yet try a momentum brick wall.
Honestly could the timing of this be any worse?
The team just made the playoffs after 8 long miserable years. The team will be trying to extend its franchise player. Morale is up. People feel good about the direction of this franchise and then BOOM!
From the Dispatch:
After losing $80 million in the past seven years, Columbus Blue Jackets owners are hoping that selling Nationwide Arena to the county could stave off serious discussions about moving the team to another city.
Asked if failure to approve the plan would force the team to leave Columbus, Priest said:
"The reason we're being proactive and working and talking is to find a solution so that we don't have to go down that road or have those types of discussions. The whole purpose of this is to avoid that. Other teams have been through this and have found solutions."
Translation.
Yes, if we do not find a solution John P. will consider selling the team and that may include moving it.
One has to wonder how much John P. even cares about this franchise. I read earlier that Jackets President Michael Priest was quoted as to saying the financial evaluation of this team has been on going for a year. Seriously, did they even let the dirt settle on John H. before phoning the NHL?
Better yet, if John H. was still here is this even a story?
Well we are where we are but I would hope that at this point if John P. has intentions to sell just come out and say it and get on with it. The last thing any of us need is to be dragged through the mud.
If John P. does plan to see this thing through to the very end and finish what his dad started then I'm one fan who would like to see more public comittment from him to ease tensions amongst a very on edge fanbase.
Here's the scariest part to me about this entire situation. You usually see owners come out publicly like this and put pressure on the politicians when they need a brand new stadium b/c they need new revenue streams. The Jackets have a plush 9 year old gorgeous pile of bricks they play in every night yet here we are.....already!!
I understand they are losing money but I'm baffled how it's as high as they are reporting. Absolutely baffled.
Usually it's just "give me the corporate luxury suites and we'll be fine".
I understand the Jackets don't get all that revenue but you can't tell me that an extra 15 suites, parking and naming rights can make up that much coin.
..and their solution to all this is to install a "sin tax"? Ain't happenin. No way in hell. Everyone in their mother wants new taxes right now due to budget shortfalls. There just isn't enough support for the Jackets yet to get something like that pushed through....especially in economic times like these.
You need more than one good year in nine to drum up that kind of support (thanks MacLean).
Look you, me and the folks that read this blog... we'd pay it without thinkin twice. That's a bubble though. You run this past Joe Schmo workin second shift who could give two craps about hockey, you know the majority of the folks out there, it's not gonna fly (see Dispatch poll here)
...and you know what, I don't blame them. Not one bit. This was billed and built as a privately funded arena - how would expect them to respond?
Personally I'm wondering why we never hear anything about the Fox Sports Television package. I have heard rumblings over the years that the Jackets pretty much give away their television rights (thanks again MacLean).
I think to myself that we are fine.... Nationwide can't afford to lose the Jackets. Not after they dumped 750 mil into a beautiful Arena District that we all love. They can't afford to lose their centerpiece and let their development fail. Then I read the following quotes from the President of Nationwide Reality Brian Ellis:
"Without a broader solution, I don't think anything we can do would be sufficient to fix the problem," Ellis said. "There's no way that just an adjustment to the lease, as it's currently configured, would be sufficient to maintain the long-term viability of the Blue Jackets."
That tells me this problem is much bigger than anything Nationwide can do. I really do believe they will do anything they can to help. They have too much riding on it not too.
This is not good people and is a very serious situation. In fact I'm depressed as hell.
Publicly this is about as bad a time this news could hit. Right now we should be talking about the draft and improvements that need to be made to the roster to take that next step. We should be talking about how Rick Nash should be excited to sign an extension and lead this team to Stanley Cup glory.
Instead this offseason will now be dominated by Arena talk... the folks coming out of the woodwork with the "I told you sos" about Columbus as a hockey market.. and "sin tax". It will be a big cloud hanging over this entire offseason.
I was worried about the viability of this franchise in this market when attendance didn't explode down the stretch... now I'm petrified.
Folks mention bringin an NBA team here. What will that accomplish? There may be more dates on the calendar but now your splitting corporate sponsorships and luxury box sales. That's the big money that keeps pro franchises afloat and I just don't think there are enough of those corporate dollars in this market to sustain two pro teams. I could certainly be wrong.
Hopefully they can find a solution to this mess. Although I find myself wondering what's the real end game here? Maybe the thought is to let the Jackets walk and try an NBA team here?
For me I think this, at the very least, is the first step towards John P. unloading the franchise if he can't get favorable terms he seeks --- be it local ownership or not.
It would be a shame as this team was John H.'s gift to Columbus and just like that it could be swept out from under it. That will effect a lot of jobs, a lot of business and would be a major step backwards in terms of the perception of Columbus as a major league market.
I hate to be so negative but you know I try to keep it real in this blog. The real world unfortunately is not all sunshine and rainbows and instead much more dollar and cents.
I do hope my worries are for naught and that a solution is found and we can all put this behind us.
One thing I do know is that this story isn't going away anytime soon.
-LTL
Friday, May 29, 2009
Momentum killer!
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Tuesday, January 6, 2009
Howson given green light
From Puck-rakers:
Permission has been granted from management to spend more money. This should be welcomed by Blue Jackets fans, and it now firmly shifts the pressure toward Howson.
Portzline then proceeds to talk about the teams that appear to be in the mix...most of which we've all covered here....but then he gets to this statement from a source close to the Leafs:
I spoke to a person tonight who covers the Leafs, an old friend and really good guy with tons of Toronto sources. He threw lines in the water and said Antropov makes sense. He has heard, however, that the Blue Jackets and Maple Leafs keep going back and forth, that "the Blue Jackets don't want to give up anything."
This can be interpreted in many ways.
First thought that probably comes to mind is Howson is being cheap and that he should just do what it takes to get deal done already.
My first thought was this is classic Burke trying to bully Howson into making a bad deal. Remember Burke is a veteran GM... if I"m not mistaken he's on his 3rd team (Vancouver, Anaheim and now Toronto) so this certianly isn't his first rodeo and he knows how to milk a cow. He certainly knows Howson's position and urgency but lets not forget that Burke has an agenda of his own (tank, tank, tank!!) that he wants to start working on so there is some urgency for him as well.
I want help now as much as anyone but Howson has to be careful here... the last thing we need is an Atlanta-like deal that maybe gets us into the playoffs this season but back to the basement the following year. Think Atlanta regrets giving up a Brayden Couburn for Alexie Zhitnik back in 2006-2007? Your damn right they do. What about sending Glen Metropolit, 2007 1st/3rd round picks and 2008 2nd round pick for Keith Tkachuk who ended up being a 20 game rental?
Those are the kind of deals Burke is looking to fleece out of Howson because he knows the Jackets are in the exact same situation as Atlanta was then.
Howson can't and won't be that desperate..
Remember Howson has an ace in the hole here...especially with the news that ownership is willing to up the payroll. He's got cap space and lots of it...something most teams in the NHL do not have a lot of. That cap space is trade currency in this NHL and is as good as a draft pick. He must spend it wisely.
Yes Howson needs to add an player or two to bolster this lineup but if he's willing to take on a couple of salary dumps from teams that have fallen out of the playoff race then the price to acquire those assets will be reasonable.
Why?
...because as mentioned there just aren't many team who have the space to absorb them and teams out of it want to save those millions as well as collect assets.
Parting with 1st for a Nik Antropov 20 game rental is counter-productive. Parting with a Filatov or Voracek for a Kubina is a disaster.
Honestly I look for Howson to make a deal like the Caps made with us last season -- taking on a dump in soon-to-be UFA Sergei Fedorov for what was essentially a 2nd round pick in Teddy Ruth is a comparable. Impending UFA Brad Stuart was moved to Detroit for a 2nd and 4th is another comparable in terms of what I think Howson is looking for.
Now obviously if you start getting into younger players like Vermette or Jordan Staal you think a little differently as those players could become part of your core but Howson absolutely cannot get bullied into overpaying for impending UFAs.
I've actually liked most, if not all, of Howson's deals up to this point -- even the Zherdev deal except for the Backman salary dump part-- so I have faith that he can make some smart plays here. I think he's added quality players to this team while discarding the "disconnected" ones. He has not given up much future while adding quality for today.
Its time that trend continues.
The bottom line though is that its a very positive sign for the Jackets and its fans that ownership is willing to do its part to try and bring a playoff birth to Columbus. Now we sit and wait to see what Howson can do to boost this team for now.
Fire away - thoughts on the kind of move(s) you'd like to see Howson make?
-LTL
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Monday, August 25, 2008
McConnell "no guarantees"
In case you missed it the Dispatch had a Q&A session with the Jackets new majority owner John P. McConnell.
There were the typical break the ice questions on how the team is progressing, what kind of owner will you be and how he has been dealing with the loss of his dad and business pioneer John H. McConnell.
After that though Portzline hits the good stuff and that's essentially are you going to sell this franchise or not?
Q: What assurances can you offer fans that the club won't be moved or sold?
A: I can tell them that we bought the team to have it here in Columbus. We're dedicated to keeping it in Columbus. But I can't offer guarantees. I am reasonably comfortable that we'll be here for a long time. Certainly, every fiber of what we try to do is to fulfill that original thought. My father worked on various sports commissions for probably 35 years to get a pro team for this town. It was one of his dreams. Now, sometimes in life you have to do what you have to do, but I would consider it a personal defeat if we ended up in that situation.
Q: Did you make any promises to your father that the club wouldn't be moved?
A: No. For one, he would never do such a thing. Over the last year, we never got into any discussion with the club other than "what do we do to get this team to the other level?"
I give John P. a lot of credit for being frank and not blowing smoke. As a fan its not exactly what I wanted to hear but but I do appreciate the honesty.
From an outside point of view I think the big difference here is going to be that John H. viewed this team as a gift to the city of Columbus -- a way to give back to a city that had given so much to him. John P. on the other hand is going to view this team as a business and if continues to hemorrhage millions then he may get out.
Whether or not that means he and the other owners would just sell it to investor(s) who would keep the team here or relocate it is a very good question.
The bottom line right now though is I think everyone, including the owners, want to see what kind of support a winning hockey team generates in this market. I don't care if your the Ohio State Buckeyes football team -- if you have 7 straight losing seasons fan interest is going to collapse.
As I've stated before if this team starts winning and fans support continues to dwindle then that is the point I really begin to worry about the viability of pro hockey in this market.
That was another fantastic read by the boys at the Dispatch though. Nice work again fellas!
CNNSI.com's Allan Muir thinks Mike Commodore will be one of the UFAs most likely to bust this offseason:
4. Mike Commodore (five years, $18.75 million)
Go ahead. Roll those numbers around a bit, see if you can figure out exactly what the Blue Jackets hope to get from a deal that essentially makes a No. 1 blueliner out a guy who's better known for a wheels-off hairdo and wearing housecoats than for anything he's done on the ice. It's not just the nearly $4 million per year -- the fourth-highest salary on the team -- but the term. This is the sort of deal that will hamstring Columbus GM Scott Howson when he gets serious about building a playoff-worthy defense.
We get it Allan - the Jackets overpaid for Commodore. Oddly enough 4 out of his top 5 selections are d-men. Translation -- there is a huge premium that is paid for d-men in unrestricted free agency.
The Jackets did overpay - I don't think anyone questions that (heck Commodore has even admitted he got a very nice contract). If he's looking for Commodore to put up great offensive numbers, QB a powerplay and eat 30 minutes and game playing in all situations then yes he will be a bust in his eyes. However if your looking for Commodore to be a shutdown d-men, play tough minutes against the opponents best players, chip in a little offensively, be a leader on and off the ice and stand up for teammates which is exactly the role I see Hitch using him in then the Jackets will get what they expected when they dished out that contract.
For the record both Ron Hainsey and the Jackets #1 target Wade Redden were ranked higher than Commodore.
..and where in the heck is Jeff Finger? Are you kidding me -- this guy has played one year of pro hockey and doesn't make this list with the contract he got? Erroneous!
I love Nikita's blog (I mean who doesn't like bloggers *har har*) but I think the latest development of Howson pulling the plug on him playing exhibition games for CSKA-2 was a direct result of the Jackets blue chipper posting that he was playing on his blog.
"We knew (Filatov) was working out with the (Russian) team, but we were not aware he was playing," Howson said. "When we became aware of it (last week), we asked him to stop and he said he would."
If you recall last season the news that Alexander Svitov was "working out" with a Russian team also came out around this time. Unfortunately for the Jackets he ended up staying in Russia despite signing a two year contract extension with the team.
The good news is that Filatov didn't seem to have a problem with the request.
I know we've all heard time and time again that Filatov has every intention of coming state side but until his butt is over here I will continue to have some doubt. Burn me once....USAToday's Kevin Allen picks his pre-season top 16 in his blog and unfortunately the Jackets aren't in it. His West picks are led by the usual suspects in Detroit, San Jose, Dallas and Anaheim. He's also got Calgary and Chicago in the mix.
The good news is that 8 teams go to the playoffs in each conference and he only ranked 6 in his top 16. That tells me one thing and its that after the top 3 or 4 teams in the west its going to be a dog fight the entire year for those remaining spots as I think both Calgary and Chicago are far from locks this season.
Eric over at Hockeybuzz.com has a great Q&A session with Jackets Vice President of Marketing Marc Gregory.
A couple of interesting tidbits he learned were that the Jackets would retain the "Carry the Flag" and that there would be no 3rd jersey introduced this season as the Jackets would like their new jersey to continue to build in identify -- which makes sense.
He also had this to say about a Mr. Mac tribute:
Yes we will. We will be having a tribute on opening night before the start of the game. There will also be a commemorative patch that will be worn on the jersey this year as well as the same design of the patch will be put into the ice this year. We are doing the patch and the design in the ice to honor Mr. McConnell all year long.
Something else he learned was that the cannon would be featured on the season tickets this year.
-LTL
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Monday, April 28, 2008
Ownership moves on
Its been a couple of days now since Blue Jackets majority owner John H. McConnell passed. The question now turns to what is the state of the Jackets ownership now?
Quite frankly I'm not sure. From my understanding Mr Mac's son, John P. McConnell (pictured right), will now be the majority owner. Questions that I would like answers to are the following:
1. What are his intentions with the team? Does he want to retain ownership or will he look to sell. I've heard rumblings that John P. is not particularly high on Ohio and that when he gets the chance he will unload the team to the highest bidder. I have no idea if there are legs to that rumor - I certainly hope not.
2. Does the short term plan change? We've read quotes from team president Mike Priest about how the franchise plans to spend, spend, spend this offseason. Is that still the plan going forward?
3. Does the Wolfe family, who is a minority owner, do they perhaps take a bigger stake in the team? Or what about Nationwide?
4. Is there any reason Jacket fans should worry about a franchise move? What is Nationwide's lease details? Could they even consider a move?
I'm sure as the days move forward the Dispatch beats will get a lot of these kinds of questions answered.
One thing this franchise really had going for it was a stable ownership group. Of course with Mr. Mac's passing that foundation feels a little shaky.
I do know that its not an easy thing to relocate a franchise and I can't imagine many scenarios where the league, the city or Nationwide would let this team get away. You can't have a multi-million dollar state of the art stadium losing its major tenant. That is not even considering the millions and millions Nationwide has pumped into the Arena District.
Some talking heads out there (ahem ESPN) seem to take shots at the NHL and hockey whenever they get the chance but the bottom line is that pro hockey is a money maker. Its a multi billion dollar industry and cities, lots of cities, would kill for a franchise. Yes OSU is the big dog in this market but pro hockey does a helluva for this town - think there would be an Arena District, a new Clippers stadium, a Nationwide, or a revitalized downtown without the Jackets?
Hell no.
What about the millions the Jackets charity foundations have raised, or the jobs that have been created in this town because of the Jackets? What about some of the events that have happened in this city since the NHL team arrived? ..and I'm not just talking about the hockey related events like men's USA Olympic training camp, the NHL Draft or the World Championship games. I'm talking about some of the world class concerts and events Nationwide puts on every year and even attracting the NCAA Final Four tournament games.
Which brings me to my "many scenarios" comment. We've heard a lot of rumblings that Mayor Coleman would like to get an NBA team in town. This city isn't big enough for two team winter professional sports competing directly with one another for fans and more importantly business revenue. There just aren't enough dollars to go around. So if somehow, someway he managed to lure a NBA team to this market does that make the NHL team expendable?
Yeah I'll admit I'm probably over-reacting here but when you lose the cornerstone of the franchise, its backbone so-to-speak, in Mr Mac you know the vultures are going to start circling.
There are no guarantees in this world but this is one fan who would like some reassurances that ownership is stable and there are no plans to sell or even remotely consider the possibility of a relocation.
I've always held the belief that if the city ever loses this team it wouldn't ever have a major pro sport's franchise again.
We lost a great man in Mr. Mac and I just hope as time marches on that we don't lose one of the great gifts he left us all to enjoy.
-LTL
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