George Santayana in his Reason in Common Sense, vol. 1 said, “Those who do not learn from the past are doomed to repeat it.” The past for us includes Hartford, Connecticut and the NHL Whalers.
In 1994 Compuware CEO Peter Karmanos bought the Whalers. It was the beginning of the end for the team in Hartford. Karmanos would not have bought the Whalers if he hadn’t been confident that he could move them. The team’s low attendance history is likely what gave Karmanos that confidence. Prior to his purchase attendance had dropped to less than 11,000. With low attendance numbers, the Hartford franchise was a prime takeover target for someone looking to relocate.
Efforts by former Connecticut Governor Rowland to keep the team were half-hearted at best. His eye was on the prize and that prize was the New England Patriots’ announcement of proposed relocation. Efforts by the fan base to increase attendance figures were dismissed by Karmanos. The NHL was focused on extending its presence into non-traditional markets in the South and West. It became the perfect storm and by 1997 – in three short years – the Whalers left Hartford.
Fans were angry and felt betrayed. Their feeling was akin to dealing with a death in their family. It was an intangible cost difficult for many to comprehend. Hartford lost its sense of pride and the national recognition that comes with a professional sports team.
The economic impact to Hartford and its Civic Center proved to be substantial. Immediately the Civic Center lost over half of its bookings. Dependent on events to survive, the loss of the Whalers created long-term economic repercussions throughout its downtown and beyond. Loss of the team caused merchants and businesses in the Civic Center mall (home to the arena) and elsewhere downtown to close. It meant cutting wages and losing jobs for hundreds of people and it depressed the city’s commercial real estate market.
The Hartford Town Council poured millions of dollars into the area in an attempt at revitalization only to meet with limited success. The jewel of its downtown, the Civic Center, would never shine as brightly as it had when the Whalers played there.
It’s an instructive tale, isn’t it? Glendale, at this time and in this place, is at a crossroads. It can become another Hartford or it can commit to keep the team. It rests on a simple realization that some of Glendale’s elected officials have yet to accept. Sports venues, in and of themselves, do not make money. Their economic impact is derived from the businesses that locate in and around the venue, the new development that is attracted and the long-term value they bring to adjacent commercial markets. They are job creators and the wages paid have a ripple effect throughout the community.
If Glendale’s leaders will not commit to an investment to keep the team for the next 20 years then Glendale will face sudden economic death of a substantial portion of its community. Chasing a deal with a limited life span of 5 years does nothing to build a committed fan base or to build long-term success for the arena, the area…or the team. It merely turns the death of relocation into a protracted and tortuous one.
Great blog Joyce. This goes to show how much a small market, like Hartford, relied on its “anchor tenant”, the Whalers, to put business into its arena 42+ nights per season. Without this “anchor tenant”, it lost more than its 42+ nights. And this was when the economy was riding high.
Also interesting to note is that just before the Whalers left for North Carolina, the Mohegan Sun Indian Casino opened in October 1996. This casino, operated by the Mohegan Indian Tribe (a sovereign nation… sound familiar?), became competition for the events that were booked in to the Hartford Civic Center. The Mohegan Sun has a 12,500 seat arena that books national touring acts, smaller theaters, 100,000 sq feet of meeting/convention space and 130,000 sq feet of shopping. Where do you think the acts and business that left Hartford went?
Glendale already faces stiff competition from US Airways Center, Ashley’s Homestore Pavilion, and various concert venues across Phoenix for the same national touring acts it seeks to book. Having an anchor tenant and a professional management company would help bring revenue into Glendale.
Don’t let Glendale become Hartford.
Good comments Bill. That reminds me. I haven’t even started on the casino…yet. Look for a series of blogs about that in the near future.
One serious problem with your argument, Jetsy. It’s old….. outdated…. and stale.
Edmonton and Quebec City are about to sink hundreds of millions in government (ie taxpayer) monies into new arenas, yet in the four years or so I’ve been perusing the internet, I have never seen such an uproar from Canadians such as yourself towards these two cities as I have towards Glendale. In fact…… it’s completely non-existant.
Even TNSE is getting a taxpayer subsidy (all be it a relatively small one) to offset operating an NHL team in Winnipeg. Despite all the denials from those certain “fans” who spent months upon months taking Glendale to task for its situation. Yes… they do great… and have great fan support. But the Jets are also carrying one of the lowest payrolls in the league (up to 19th this year because they overpaid for a couple of players). If they ever end up spending to the cap they will become a money loser. That’s the reality of pro teams in small markets like Winnipeg (and Hartford). And if the Canadian dollar ever takes a crap again….. well??
BTW…. GWI is out of the picture at this point despite how much I know you’ve hoped they would jump in. Like I said…. your argument is very dated and stale.
But maybe…. just maybe your arguments would be better served in a setting more local to you??
Then maybe your efforts are needed more there than in Glendale.
Jetsy,
Rather somewhat more complex & problematical than you suggest, though Im certainly in complete agreement with you that past Arena Management Fee’s, the Parking Bond issuance, all bridges too far. That being said, when a building loses its anchor tenant, the facility manager will have to start seriously competing with the other 3-4 venues in the Valley for consumer & trade shows, special events & concerts. This becomes extremely problematical, as one will be required to provide Guaranteed Performance Fee’s for acts, and in some cases the gate, concessions & parking wont cover whatever’s been negotiated, as ruthless promoters & booking agents will play one venue off against another, escalating the GPF’s into the stratospheres. This will hurt & cause harm to all of the facilities in greater Phoenix, not just Glendale Arena.
I also disagree with the author aboves assertion that “chasing a 5 year deal will just draw out and on this tortuous”…. I’m sorry, but I just dont believe that to be the case. Id love to see a 20yr Contract, absolutely, but how has that worked out so far? What more could Glendale have possibly provided, with what surely must be the richest Arena Management Contract ever offered for any facility Worldwide? And still no buyers, no takers? Well, I for one am glad that that deal wasnt finalized, that theres still time to re-write a deal, provide the purchaser with a fair & reasonable market-value Arena Mgmnt Fee structure that is heavily performance oriented, and then if after 48mnths these guys are just completely stuck in the sand then sure, they can notify the City they plan to sell locally within a year or failing that move the team. No ones ever tried in Glendale/Phoenix. Never had astute, creative, intelligent ownership. Give it a chance. I know this can work.
Steve
Good to see you here Legend. Give my regards to hf….
Steve
aka Killion
All is well. Took a “two week” hiatus from there due to a busy schedule. Noticed you’ve been put in purgatory there, but hope you break out of it…..