Newark, NJ (February 2, 2005) Officials from both the city of Newark and the New Jersey Devils, as well as representatives from the architectural firm of Morris Adjmi, today unveiled the design for the long-awaited Newark/New Jersey Devils Arena. The facility is being planned as the centerpiece of the city's Downtown Core Redevelopment Project.
The presentation which was hosted by Mayor Sharpe James and Devils' Chairman/ Managing Partner Jeff Vanderbeek, was held at the New Jersey Performing Arts Center.
"Today is a great day for the City of Newark," said James. "We are seeing for the first time the goal of our dreams the creation of a state-of-the-art sports and entertainment arena that will be the central power that spreads prosperity into every neighborhood and home in our city. We are putting Newark on the world stage and it will be the world's star performer."
"Today's events are another step in the process of building a first-class 21st century facility for our fans, added Vanderbeek. Everyone affiliated with this project is looking forward to the day when we open the arena doors and bring championship hockey to the city of Newark."
Newark City Business Administrator Richard Monteilh served as master of ceremonies and presented the project overview of the Newark Downtown Core District. The highlight of the event was the unveiling of the arena model, including a video presentation of the arena design concept. The event was sponsored by the Prudential Foundation.
Morris Adjmi was one of three architectural firms that created models of the exterior and public spaces for the proposed 17,000-plus seat, 700,000 square-foot arena. The original three proposals were presented on October 21, 2004. The final design featuring large brick columns and an aluminum curtain wall, was selected by the Executive Committee.
Morris Adjmi Architects of New York City, has a history of design achievements that include the Walt Disney Company's Office Complex in Celebration, Florida, and the New York City headquarters of Scholastic, Inc.
Adjmi will work with HOK Sport+Venue+Event, a Kansas City-based design firm, to create the final plan for the arena. HOK, a specialist in sports venue design, has already been chosen to design the interior spaces of the arena.
The Newark Housing Authority, under Executive Director Harold Lucas, will oversee the project. Lucas, who served as city Business Administrator and Federal Undersecretary of Public and Indian Housing for the Clinton Administration, earned national acclaim for his overhaul of the city's public housing stock, turning it from "worst to first" in the United States.
Mark Spivey on the NHL
Glove save and a beaut!
Can You Smell What The Rock Is Cooking?
Sorry, New Jersey Devils fans. You no longer have an excuse to fail to fill up your arena for home games. At least not as of Saturday evening, when the beautiful Prudential Center opens its doors to the hockey-loving public for the first time.
I’ll be the first to admit the Meadowlands aren’t exactly the fabled Elysian Fields (the Greek paradise kind, not the baseball field in Hoboken). Let’s be honest: it’s a series of ugly venues (Continental Airlines Arena, Giants Stadium) in an ugly area (acres of stinking, fetid swamps) nestled in an ugly part of the country (the vast industrial fields surrounding the NJ Turnpike Corridor from about Exits 12 through 18).
Worse still, the Turnpike is the only major transportation artery of any kind to come within a reasonable distance of the complex, meaning those who enjoy using public transit to get to games are more or less out of luck. If you’re not driving in or getting bused in, you’re not getting there.
So to sum things up, the Prudential Center (below) is everything that Continental Airlines Arena (above) wasn’t.
That’s right: Devils fans are experiencing an overnight transition from having one of the ugliest, least accessable arenas in the league to having one of the nicest, most accessable venues. To get to the Rock, you can take your pick of NJ Transit rail, PATH rail, Amtrak rail, I-280, I-78, National Routes 1 and 9, State Routes 21 and 22, or the Garden State Parkway.
Credentials? Yeah, it’s got credentials. The arena was designed by the prestigious HOK Sport firm, which is responsible for some of the finest examples of sports architecture in the world, including virtually all of the best modern baseball stadiums in North America (Baltimore’s Camden Yards, Philly’s Citizen Bank Park, Pittsburgh’s PNC Park, San Francisco’s AT&T Park, and Houston’s Minute Maid Park, just to name a few), a smattering of impressive hockey/basketball arenas of the same mold (Denver’s Pepsi Center, Toronto’s Air Canada Center, Minnesota’s Xcel Energy Center), and countless others.
Amenities include an externally-mounted 4,800-square foot LED screen (one of the largest in the world), a new 2,600-foot team store, 750 flat-screen televisions spread throughout the arena, seperate concourses for the lower and upper levels, four LED ribbons extending the length of the rink, an eight-sided scoreboard with high-def video screens, a 350-seat restaurant, three bars, plus the biggest luxury boxes of any arena in North America (76 of them).
And did I mention it’s one of only two NHL arenas with a practice facility attached?
Let’s face it, Devils fans. You’d better fill this thing up to the brim for every game. Even if your team does lay a goose egg like it did last night.
Sure, New Jersey was handed a 2-0 shutout loss by the Rangers last night, but I have a feeling both teams were fairly pleased with what could be interpreted as the lesser of two evils. The Devils lost, but Marty Brodeur finally halted his recent string of miserable performances by stopping 29 shots. The Rangers didn’t get the offensive explosion they’ve been looking for (Nigel Dawes, he of 12 career NHL games, scored both goals), but they stopped the bleeding and earned a win.
Both teams are now 3-5-1, which is the kind of early record which could just as easily end in something like a 46-32-4 as something like a 33-43-8. So we’ll see.
We’ll also see if the Devils can sell out their building tomorrow. I want to see 17,625 butts in those seats on a nightly basis, especially when there are other, much more passionate fan bases out there who would give minor body parts for as nice a place to watch a game.
THE ULTIMATE SPORTS ROAD TRIP
By: Andrew Kulyk & Peter Farrell
| Prudential Center Ranking by USRT |
| Architecture |  | 8 |
| Concessions | | 7 |
| Scoreboard | | 6 |
| Ushers | | 8 |
| Fan Support | | 2.5 |
| Location | | 3 |
| Banners/History | | 8.5 |
| Entertainment | | 7 |
| Concourses/Fan Comfort | | 9 |
| Bonus: Signed Puck | | 1 |
| Bonus: Practice Arena | | 1 |
| Bonus: Arena Art | | 1 |
| Bonus: High School Jerseys | | 1 |
| Bonus: A Taste of Newark | | 1 |
| Total Score |  | 64 |
January 8, 2008 - Plans for a new arena for the New Jersey Devils have been tossed around for years now – there was once a concept to build a new arena in Hoboken. Then came the idea to just do a massive renovation of Continental Airlines Arena, which would be the centerpiece of the mixed-use Xanadu project at the Meadowlands. Eventually they settled on Newark, right in the middle of downtown, amidst gleaming skyscrapers, bedraggled city streets and oceans of government buildings. The Devils contributed $100-million to the construction of their new arena, with the rest coming from the city, via lease fees from the Newark Airport and the Port Authority. By October of 2007, the New Jersey Devils had themselves a new place to call home.
Getting to the Venue
Transportation by car is pretty easy – I-280 cuts through Newark to the north of downtown, while I-78 bisects a couple miles south. Take Route 21 into the city from either direction and follow the signs which will take you right to the arena. The Garden State parkway runs north and south, exit at MLB Blvd.
Public transportation is also a good option, with Newark Penn Station just two blocks away, PATH trains go to several points in New Jersey as well as to Manhattan. NJ Transit offers light rail service with a stop close to the arena.
Parking around the arena runs $25 or $20 depending on the lot and there aren’t many cheaper options available at a farther distance. Some on street parking is available for free but pay careful attention to the prohibition signs as different streets post different days for no parking restrictions. Also be mindful of the neighborhoods as things are a bit rough in spots. One can also buy prepaid parking passes, linked through the Devils website and park in color coded lots. Again $25 plus service charges is the norm - pricey stuff.
Outside the Venue
A lot has been made of the gritty and rough and tumble streets of downtown Newark, and to a point that is a correct assessment. From a distance one sees shimmering skyscrapers, lit up at night, but travel the streets and it’s all a bit dreary and grimy. By contrast, the new Prudential Center shines like a bright new penny. The main streets just west of the arena are full of the hustle and bustle of office and retail and government. Look closely and the stores are not Apple and Urban Outfitters, but rather creaky bodegas and Furniture Liquidators and such. Bars on windows and vacant storefronts abound. If you look hard enough though, you’ll find some nice corner taverns for postgame hangouts. We stumbled on the Arena Bar, one block down Mulberry Street, a Cheers type place with plenty of plasma screens.
Go east beyond the massive Penn Station and you will find a cool ethnic neighborhood called “Ironbound” with a Portuguese flair. Lots of restaurants, shops, little bistros in a much cleaner and safer looking environment. Looked like a cool place to explore, but it’s more of a drive than a walk from the arena itself.
There is a substantial police presence outside the arena, and they are going the extra mile to make patrons feel safe.
Architecture and Seating Bowl
The exterior of the building is a mix of red brick and glass, paying heritage to this region’s bricklaying and railroad heritage, with the most stunning side facing eastward on Mulberry Street. Two tall glassed cupola entrance cylinders mark each corner, and they glow brightly at night. The centerpiece of the façade along this side is a massive dot matrix LED video board which displays cool graphics and can be seen from miles away.
While this side of the arena forms the venue’s signature, the two back sides of the building are very basic and ordinary. That lack of detail is somewhat unfortunate since the back end of the building faces the main part of the downtown core.
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Your seating bowl here comprises four decks, with the upper deck further divided into an upper and lower area. Two levels of suites ring the sidelines, with premium restaurants overlooking the playing surface at this level at each end zone. Seats are colored dark red. Two rings of LED ribbon boards wrap around the seating bowl, and the stacked 8 sided video board is equipped with high definition screens.
Concourses
With bright lighting, grey and white terrazzo tile flooring, and endless displays and things to view, the concourses here at The Rock are a pleasant touring experience. Fans enter at street level through the entrance cylinders and escalators to take you to the main level. Most concession stands are set back from the traffic areas in food court style, lessening congestion. The lower concourse is replete with displays of all the high school hockey team jerseys in New Jersey, extensive artwork and murals showcasing attractions from the region and celebrating icons from the Devils and Seton Hall University. One corner displays the franchise’s history going back to Kansas City and Colorado, with murals of past arenas and old jerseys of the team.
One more note is the ample supply of high tech video advertising/message boards scattered throughout the corridors here.
Concessions
Food items here are about as unique and diverse as you want to get in any sports venue. Yes the standard fare can be found at 7 City Grill and Famous Famiglia Pizza.
But keep walking and you’ll find a group of stands called “A Taste of Newark” in the upper deck. That’s where you’ll find the good local stuff – Jimmy Buff’s hot dogs, which are topped with fried onions, hot and sweet peppers, and yes, home fries. Right next door is the Newark Deli offering hot pastrami or roast turkey with Russian dressing. Move on and you’ll find the gyros, kabobs and falafels and they cut the meat right in front of you. Finally, the stand from Portugal, something you will only find here in Newark. On the menu?
Bifana (a pork steak sandwich), Bolos de Bocalhou (codfish cakes) and Picadinho (pork cubes and potatoes).
We also came across a stand selling fine cigars and accessories, and even a guy there hand rolling the cigars right in front of us. Another stand with hot panini sandwiches, a labeled sushi stand but look closely and the fare was Chinese not Japanese, Habana Grill offering Cuban sandwiches, and On the Boardwalk with cheesesteak sandwiches and freshly squeezed lemonade. Team merchandise shops are in abundance at all levels, with the main team store at street level on the Mulberry side of the arena.
One deduction though – the concession menu panels are tiny and dark; one has to practically be at the counter to see the offerings and prices.
Banners/Retired Numbers
The Devils have retired numbers for two of their players, #3 Ken Daneyko and #44 Scott Stevens. The team’s divisional and conference achievements are grouped in one end zone, while their three Stanley Cup banners (1995, 2000, and 2003) hang at the other end. Additionally, Seton Hall displays a couple banners of their NCAA appearances.
Premium Seating
Club seating here is located on the lowest level of the seating bowl on the sidelines. Fans sitting there have access to two exclusive lounges and bar areas titled the “Fire Lounge” and “Ice Lounge”. Two levels of suites ring the seating bowl. The first suite level has some very nice amenities located at each end zone. At one end is the “Bud Light Goal Bar” and loft style bar area with rail seating views of the action, while at the other end is the arena restaurant, offering a la carte and buffet dining, also with many table seats offering a rail type view. The back end of the nicely appointed restaurant has massive windows overlooking the arena’s practice rink.
Hat Tricks, Assists, Penalties...
Hat trick - to the ushers, security and game day staff. After the horrible experience we endured at Continental Airlines Arena, and the many stories of abuse and bad behavior we’ve gleaned in conversations with others, wasn’t it nice to see arena employees greeting fans with big smiles, offering to help and providing sincere welcomes.
Hat trick - Jerseys of every high school hockey team in New Jersey on display throughout the main concourse. A special touch which gives this venue its true character.
Penalty - To the fans of New Jersey who have not embraced this team despite its perennial success on the ice and three Stanley Cups. Sellouts here are few and far between, and on the night we were here there were huge yawning gaps of empty seats throughout the lower bowl.
Assist - Not only plenty of merchandise stores, but even an auction area displaying cool memorabilia.
Assist - In one lobby is a giant puck commissioned for Opening Night. Fans in attendance that night were able to sign it, and it is now on display for posterity.
Hat trick - A separate practice rink in the arena, with its own locker facilities, only the second NHL venue with such a set up (the other one being Columbus).
Penalty - Upper deck seats (they call ‘em “100s”) $75 and $100, lower bowls $95 and $115 with the center ice clubs $200. Parking $25 and $20. Prepare to spend, spend, spend to attend a game here. Maybe that’s helping to keep fans away? For the record, the uppermost cheapies were packed, while the pricier seats were readily available.
Summary
It is hard to find any Devils fan complaining about their new digs here in downtown Newark. Their former home, Continental Airlines Arena, was a shabby and substandard venue in a horrible location with few fan friendly amenities, surly and rude game day staff, and little intimacy as a place to watch hockey. While downtown Newark is not the sexiest location for their new venue, it is an area that is trying to find its footing for an urban comeback, and The Rock is central to that goal.
This arena is a superb place to watch hockey. It is bright, comfortable, plenty of things to see and do, good stuff to eat, friendly staff, adequate game day entertainment. Oh yeah, and their hockey team seems to be pretty good year in and year out.
While not breaking the NHL top five, we nonetheless give good marks in most categories and would be glad to pay a return visit.
DEVILS WITHHOLD $800K IN RENT
October 30, 2008
Copyright 2008 MediaVentures
Newark, N.J. - The Devils do not plan to pay the first year's rent on the $375 million Prudential
Center and instead say the Newark Housing Authority owes them nearly $800,000 due to delays in
completing the arena.
The authority, which owns the arena, gave the team until last Monday to make what was
expected to be a multimillion-dollar rent payment, granting the team's requests for two extensions on the Sept. 30 deadline.
On Tuesday, team owners delivered 12 pages of letters and calculations to the authority stating
their lease allowed them to deduct nearly $2.9 million from the roughly $2.1 million rent owed and take a $210,000 credit for next year's rent, due to delays in building the year-old arena and
completing construction on surrounding land.
As a result, the authority owes the team $791,530, according to a letter from Gordon Lavalette,
an executive vice president with the team.
Mayor Cory Booker said yesterday he was "deeply disappointed."
"We are confident that the Newark Housing Authority will pursue the appropriate course of
action to ensure that the city and its residents receive their fair share," Booker said in a statement.
Keith Kinard, executive director of the authority, said the agency plans to declare the team in
default. The authority and the team will have 30 days to resolve the rent conflict or go into
arbitration.
"I operated in good faith, only to have mud thrown in our face," Kinard said. "They're a hockey
team and they're obviously playing games."
Kinard said construction delays did not interfere with the arena's operations and should not
result in a discounted rent.
Team owner Jeff Vanderbeek said the Devils are merely abiding by the terms of the 30-year
lease.
"We have fulfilled our responsibilities under the contract and we will continue to do so," he
said. "This isn't a charity. This isn't a philanthropy. This is a business. So we're going about our business."
The team's lease calls for a base rent of $1 million in the first year; an additional rent payment ranging from $2 million to $6 million, based on a percentage of arena revenues; and $500,000 for sports and jobs programs.
Since the first lease period ran slightly more than two-thirds of a year, from Oct. 21, 2007, until July 1, the payments are pro-rated.
So the team would owe $2.1 million, or slightly more than two-thirds of the $1 million base rent
and $2 million minimum additional rent.
But the lease also allows for steep discounts due to delays in completing the arena and the
amenities around it, according to the team.
According to the team, the authority owes $902,778, for the 26-day delay in getting the arena
ready for the team's home opener last Oct. 27. That delay means the Devils do not need to pay the
first year's base rent and can deduct $209,627 from the second year's rent, according to the team's calculations.
The team also cited a January 2006 agreement between the authority and the Devils promising
all work on Lafayette Street would be complete by May 1, 2006. The street work wasn't done until
March 27, 2007, and because of that the team said the authority owes $20,000 a day up to a ceiling of $2 million for the delay, according to the team.
The full $2 million penalty has been due since Oct. 1, 2007, according to the Devils.
The authority also said that because the entrance plaza at Mulberry Street and Edison Place is
still not complete, the Devils should get $177,831, according to the team.
"None of these things were ever brought to our attention in countless meetings, in countless
correspondence going back and forth with them. Frankly, I'm shocked," Kinard said.
The Devils also owe $1 million for maintenance, although the team made no mention of that,
said Bill Crawley of the Newark Downtown Core Redevelopment Corp., which oversees
development around the arena.
The team did commit to making payments for sports and jobs programs just under $347,000
instead of $500,000, due to the short lease period.
Richard Monteilh, the city's lead negotiator when the lease was signed with the Devils under
former Mayor Sharpe James, said the team were responsible for some of their own financial and
construction delays.
"A good partner in the deal, as we thought we had, would not use that as an excuse not to pay
the rent," Monteilh said. For its part, the city let the Devils off the hook on certain commitments, such as getting a hotel built on a parking lot owned by Edison Properties, he said.
The arena was a joint effort by the Devils and Newark, with the city paying $220 million toward
the cost of the arena construction, and the Devils paying an estimated $156 million. Local and state agencies are spending about $85 million on the plaza, streets and planned parks around the venue, according to city and housing authority records. (Newark Star Ledger)
PRUDENTIAL CENTER SEEKS PROPERTY TAX EXEMPTION
October 30, 2008
Copyright 2008 MediaVentures
Newark, N.J. - Looking for a save that would make Devils goalie Martin Brodeur proud,
Newark city officials asked the state Legislature to deflect a $6 million property tax bill they say was inadvertently assessed on the new Prudential Center.
"This is not a tax break," Paul Sangillo, attorney for the Newark Housing Authority told
members of the Assembly Appropriations Committee as he urged their support for a bill that would
exempt the arena from the tax bill. "This is an effort to correct a technical error at the inception of the development of the arena and nothing more."
Sangillo said officials who crafted the arena plan under former mayor Sharpe James bungled
provisions in the development deal that were supposed to exempt the new arena from property
taxes.
Under terms of the agreement, the arena's owners pay Newark a portion of their concession
sales, suite rentals and other revenues in lieu of property tax payments.
But Sangillo said the agreement as approved fails to explicitly exempt the new arena from
property taxes. Without a change in the law, he said, the Housing Authority, which owns the land
where the arena is built, will have to pay Newark $6 million in property taxes in addition to passing along the revenue payments the authority receives from the arena's owners.
Changing the law, he said, will not save the Devils from paying the tax bill.
"The for-profit Devils will not benefit one iota," he said. "The only one on the hook is the
Newark Housing Authority." (Newark Star Ledger)
NEWARK SEEKS $2.4 MILLION FROM DEVILS
November 6, 2008
Copyright 2008 MediaVentures
Newark, N.J. - The Devils must "immediately" pay $2.4 million in rent for the Prudential
Center, the Newark Housing Authority wrote in a letter to the team.
The team has defaulted on its lease by failing to pay the rent, according to the letter sent by
Ellen Harris, chief legal officer at the authority, which owns the year-old arena.
The team owes $700,000 in base rent, plus nearly $1.4 million in additional rent and $347,500
for community programs, according to the letter from Harris. The additional rent is based on a
portion of the arena's revenues. The authority plans to audit the team's books to make sure the
calculations are accurate.
If the dispute is not resolved within 30 days, it will go to arbitration, and a panel chosen by the two sides will issue a decision, according to the team's lease with the authority.
"We will exhaust any and all legal remedies to make sure we will receive full payment," said
Keith Kinard, executive director of the authority.
The authority also is considering declaring the team in default for failing to earn a final
certificate of occupancy, Kinard said. The arena has a temporary certificate of occupancy and is
required to post fire watch workers at all events.
The Devils maintain they do not owe any rent, according to Oct. 21 letters from the team to the
authority. In fact, the team argues that the authority owes nearly $800,000 in penalties due to
construction delays, as well as a $210,000 credit on the following year's rent.
The team will pay for sports and job training programs, but it will send the funds to the
community groups running those programs, not the authority, according to the Oct. 21
correspondence.
On Oct. 21, after requesting two extensions on the Sept. 30 rent deadline, the Devils informed
the authority that they would deduct nearly $2.9 million from the roughly $2.1 million rent owed
and take a $210,000 credit for next year's rent. The deductions were due to delays in building the year-old arena and completing construction on Lafayette Street and an entrance plaza, according to the team.
The authority maintains that the Devils were responsible for some of the hold-ups, and that the
delays did not interfere with the arena's operations or profits.
In its first eight months, from opening day on Oct. 25, 2007, until July 1, the arena took in $30.5 million from suite sales, concessions, advertising, naming rights and other revenues, according to calculations submitted by the team to the authority.
According to the Devils' lease, if a dispute goes to arbitration, the two sides will agree on three arbitrators proposed by the American Arbitration Association. (Newark Star Ledger)
OTHERS SEEKING PAYMENTS FROM PRUDENTIAL CENTER
November 20, 2008
Copyright 2008 MediaVentures
Newark, N.J. - More than a year after the Prudential Center opened in downtown Newark, the
Devils and their landlord aren't the only ones haggling over unpaid bills.
City officials say they're still waiting for the hockey team to pay for sewer installation and small businesses displaced by the arena, along with contractors and sub-contractors say they are also awaiting checks for services rendered.
Councilman Augusto Amador said the city should take action if the Devils refuse to pay an
outstanding utility bill. The Devils owe the city $41,625 for installation of sewer lines, according to the Newark Housing Authority, which owns the arena.
"If they continue not to pay, I'm sure we'll consider ... shutting off the water, just like any
normal business entity in the city," said Amador, a commissioner for the authority. "Enough is
enough."
Jeff Vanderbeek, an owner of the team, said he heard nothing about the installation fee until
last week when the authority demanded payment.
"We'll look into it, but that's the first I heard about it," he said.
At the same time, a half-dozen businesses forced out of the arena zone by eminent domain say
they are struggling to get by without reimbursement for their moving expenses. The Housing
Authority and the Devils are fighting over who must pay the roughly $750,000 in relocation costs.
Jorge Aguayo, whose pompom factory was forced out of the zone, is owed $292,000, his
attorney, William Ward, said.
Without those funds, Aguayo said he cannot overhaul his new plant in Pennsylvania to
accommodate his 5-ton machines. Without the machines, he cannot create the specialized yarn he
needs. And without that yarn, he said, business is on the ropes.
The housing authority argues the Devils must pay the relocation costs since the city handed
over $220 million to fund the construction. The city and other public agencies have also spent $85 million fixing up the area around the Prudential Center.
The Devils' 2005 redevelopment agreement with the city requires the team's approval for all
over-budget relocation costs. However, the Devils have repeatedly canceled meetings to discuss
the bills, said Ellen Harris, the authority's chief legal officer.
"There's simply no basis they've been able to articulate to us for refusing to do that, other than sheer bad faith," Harris said.
Vanderbeek said some of the bills are bogus. Some former occupants - like Aguayo - have
moved outside the 50-mile zone eligible for reimbursement, while others have overestimated the
size of their new location or submitted bills for rent they have not paid, Vanderbeek said.
"They want us to just close our eyes and make the payments - not going to happen," he said.
"We're trying to help out, to save the city of Newark and the housing authority vast sums of
money."
Ward said the authority knew where Aguayo was going, inspected the Pennsylvania plant and
approved the move.
The dispute over the Devils' finances began last month, when the team announced it would not
pay the $2 million to $6 million the authority expected to receive in rent. In fact, the Devils said the authority owes them nearly $800,000 this year and a $210,000 credit for next year, due to penalties for construction delays.
The authority has rejected the Devils' claims and ordered the team to pay at least $2.4 million.
The dispute could end up going to arbitration. (Newark Star Ledger)
DEAL COULD RESOLVE RIVALRY BETWEEN NEW JERSEY ARENAS
December 10, 2009
Copyright 2009 MediaVentures
Newark, N.J. - A new deal could position the Prudential Center in Newark as a sports venue
and the Izod Center in the Meadowlands as an entertainment venue under a new plan being worked out between the owners of the two arenas.
The deal reportedly would see the Nets move from the Izod Center to the Prudential Center while the Prudential Center would agree not to bid for entertainment shows sought by the Izod Center. Both facilities, which are only a few miles apart, have been bidding against each for the shows, making it difficult for either to make money.
The Prudential Center is owned by the NHL New Jersey Devils while the Izod Center is owned by the New Jersey Sport and Exposition Authority. To make the deal work, the owners would create a new venture, Jersey Presents, which would schedule events and divide revenues.
The venues would also levy a ticket surcharge of $1 for sports events and $3 for other events. The money would be divided between the venues under a formula still being devised.
The Nets, which have been losing tens of millions of dollars a year, would avoid paying a $7.5 million penalty to the Izod Center for breaking their lease to move to Newark. They would also pay a significantly lower per-game rental fee, and earn a share of suite revenue they generate at the Prudential Center. The Devils and the Nets would also sell ticket packages together.
New Jersey officials hope the move to Newark's newer arena could help keep the Nets from moving to Brooklyn in 2012. A performance clause in the proposed deal would require that the team spend minimum amounts on player salaries and marketing as long as they remain at the Prudential Center.
The Nets say they are focused now on arranging financing for their Brooklyn arena. That must be in place by the end of the month or they will lose state money needed for construction. Team officials say they will consider a move to Newark after that deal is done.
The agreement is also expected to please businesses around the Izod Center which have been working hard to make sure the venue doesnÕt close. As a rule, those who attend entertainment shows at the Izod Center tend to utilize area restaurants and other businesses more than sports fans.
One other constituency may be needed to pull the plan off: the New Jersey legislature.
If the new fee is added by the venues, the money becomes taxable. However, if it is ordered by the legislature, it becomes tax-free. Governor-elect Christopher Christie is opposed to the surcharge, so to avoid his veto, the legislature must act before he takes office Jan. 19.
Legislators have already started arguing about the fee with some calling it a bailout for the Prudential Center and others saying itÕs a state subsidy for Newark.
NEWARK MOVE COULD RESULT IN FINE FOR NETS
January 28, 2010
Copyright 2009 MediaVentures
East Rutherford, N.J. - New Jersey Gov. Christopher Christie will push to fine the NBA Nets
$7.5 million if the team decides to leave the Izod Center for the Prudential Center in Newark.
The suggestion was included in a 20-page document issued by the New Jersey Gaming, Sports
and Entertainment Committee of the governor's transition team. The report, compiled before the governor took office last week, focuses largely on the state's casinos and horse racing, both of which, the committee said, were "broken."
The report identified agreements made during previous administrations that the Christie Administration hopes to revise or undo. One is a plan created last year to allow the Nets to break their lease at the Izod Center two years early and move to the Prudential Center until their new arena in Brooklyn opens.
However, the committee said that the Nets "cannot leave the Meadowlands without paying the waiver amount. The impact upon suites and sponsorship dollars has to be part of the negotiations."
The report did not specify how much the Nets pay to the New Jersey Sports and Exhibition Authority in suite and sponsorship revenue. But according to their Izod Center lease, they do not need to pay a penalty if they terminate their lease early because they would stay in Newark less than five years. The team would need a waiver to break its lease, however.
