New Arena Article

[TedBaxter]

Someone mentioned a new arena at the Grand Avenue site. Well, if I use finger measurements on Google maps and try to put the Bradley Center between Wisconsin and Michigan Avenue's and even in the east west direction, it won't fit and that doesn't include drives, sidewalks, etc..

[KMWTRUCKS]

I also thought I read that the NBA has the option to buy back the team if a new arena does not happen. IE if the Bucks get moved the NBA wants to control and profit from the move. This was a smart part of the deal for KOHL and the NBA. So the New owners have a huge interest in getting a new stadium done. My guess is they end up kicking in 200 million plus 100 Million from kohl. I think the Clipper sale cemented that we get a new stadium. Do you think the new owners would let the NBA buy them back at 550 million when another franchise sold for 2 billion over 100 million or so in stadium money?

[Gato78]

NBA won't buy back the team. That would likely be a taxable event. I am sure they would allow the current owners to remain in place and use the buy-back option as a way to direct where the franchise is to be relocated. BTW, Edens and Lasry may well have good intentions but at the end of the day they are tough businessmen. The firing of Larry Drew and hiring of Jason Kidd is Exhibit A. I do not trust the politicians to get this right. The politicians actually looked Lloyd and Jane's gift horse in the mouth. It was infuriating how the politicians, at that time, tried to impact the decision making for a free arena. Now, with the anti-tax sentiment enveloping Madison, I am not optimistic. I really hope I am proven wrong.

[Goose85]

NBA won't buy back the team. That would likely be a taxable event. I am sure they would allow the current owners to remain in place and use the buy-back option as a way to direct where the franchise is to be relocated. BTW, Edens and Lasry may well have good intentions but at the end of the day they are tough businessmen. The firing of Larry Drew and hiring of Jason Kidd is Exhibit A. I do not trust the politicians to get this right. The politicians actually looked Lloyd and Jane's gift horse in the mouth. It was infuriating how the politicians, at that time, tried to impact the decision making for a free arena. Now, with the anti-tax sentiment enveloping Madison, I am not optimistic. I really hope I am proven wrong.

I do know one avenue to obtain public funding that has been discussed, and the one that may gain footing and actually get this thing done, is a type of jock tax. I'd like to see that extended to the Brewers as well to take the place of the .1% sales tax.

This type of tax should be attractive to the state residents that don't care if we have the Bucks too. If the Bucks leave so does that tax income so why should they care if that tax goes to pay for the public portion of a new arena?

Basically, the state provides funding, and that funding is paid back with the income tax of the players who play games in Milw (extends to coaches, staff, etc but the big money comes from the athletes). Add in the Brewers, and now you are talking about at least $160 million in taxable income at the highest income rate.

You could also take it a step further to incorporate state sales tax on sales generated by the new arena as well.

I personally think this is how the state / governor explains why tax payer money is being used. It is tax money that won't be here without a new stadium / team, so why would the people against the stadium object?

[KMWTRUCKS]

Buying the team back at 550 million would not be a taxable event, selling it to an owner in what ever city they pick for 750 Million, would be a taxable event to the tune of 200 million in profits to the 30 owners or 6.66 million each. Why would the NBA pass up that money?

[Goose85]

It sounds like there may be another franchise or two for sale, starting with Atlanta.

[Gato78]

It would be taxable if the NBA bought the franchise back at market--which they would have to do. That "market" has a team purchased for $2 billion, just recently. I am not saying the Bucks are worth $2 billion but Lasry and Edens would turn a nice profit based on the Clippers sale alone dragging up the value of franchises. There would also be some issues with franchise laws if there was a "taking" by the NBA at less than market value.

Buying the team back at 550 million would not be a taxable event, selling it to an owner in what ever city they pick for 750 Million, would be a taxable event to the tune of 200 million in profits to the 30 owners or 6.66 million each. Why would the NBA pass up that money?

[KMWTRUCKS]

My understanding is the buy it back at cost if a new arena is not
Approved in the next 3 years so the new owners have a huge $$ interest to get
The new stadium done. That is why I said they would kick in more then 100 million.

[Gato78]

I do not have any information on this, pure speculation. What if the $100 million pledged by Edens and Lasry is actually money that has to be paid to Kohl if it does not go the the arena? It would be deductible to Edens and Lasry if paid to the new arena so it is some incentive to have the $100 million contribution vs additional purchase price. Otherwise it is payable to Herb. I have tried to figure out why they would make the offer up front rather than let the politicians and Herb thrash it out. They could have made the same offer to push it over the top with the legislature later possibly without having to pay anything. Why are they "invested" in Milwaukee, a place they had seldom visited? Is it a $100million goodwill gesture? I have not been able to answer that unless Herb gave them the incentive to do it. Herb is invested in Milwaukee. BTW, the arena, if it is built, should be named after The Senator, somehow.

[dw3dw3dw3]

http://www.jsonline.com/blogs/sports/274544211.html

Lovell speaks:

"Is Marquette prepared to make a financial commitment toward a new arena?

Said Lovell: "We are more than willing to do that once we know and understand the finances. We don't know the profit and loss. One of the things that we struggle with at the Bradley Center is we just get gate revenue. We don't get parking and concessions."
"I don't want to overcommit the university if there are not revenue streams coming back."
"