tk13
03-31-2005, 02:48 AM
http://www.kansascity.com/mld/kansascity/sports/11270637.htm
A TEAM FOR ARENA
Indoor football league plans on being first at Sprint Center
By RANDY COVITZ and KEVIN COLLISON
The Kansas City Star
An Arena Football League franchise appears on track to become the first tenant for the new Sprint Center.
C. Tyler Prochnow, president of a Kansas City-based sports, entertainment and marketing company, has entered into an agreement with the city to place an expansion franchise in Kemper Arena for the 2006 season and for a portion of the 2007 season until the new downtown arena is completed.
In a related matter, a 35-year management agreement for the Sprint Center that relieves the city's financial risk and rewards the profits to its private partner, Anschutz Entertainment Group of Los Angeles, was expected to be approved today by the Kansas City Council.
Prochnow's ownership group, K.C. Arena Sports and Entertainment, has been preliminarily approved by the Arena Football League, pending background checks of its investors — which include former Chiefs star Neil Smith.
Chris McCloskey, the AFL's senior vice president for communications, confirmed Prochnow's application for membership, which needs approval by the AFL executive and expansion committees and ultimate approval by the board of directors. The expansion fee is $18 million, said Prochnow, who expects approval within 30 to 45 days.
The AFL plays a 16-game regular season from late January through late May, plus playoffs, culminating with the Arena Bowl on June 12.
The AFL, which has 17 teams, hopes to operate with 20 teams in 2006. The board of directors is expected to approve Salt Lake City as its 18th franchise this spring, and McCloskey said he was “confident we will add two more teams” when the board meets in June at the Arena Bowl in Las Vegas.
Prochnow announced his pursuit of an Arena League team for the Sprint Center last summer during the election campaign for approving public funding to build the 18,500-seat arena.
“Kemper Arena is not a long-term solution,” he said, “but it is a great option for us in the short term.”
Prochnow is confident arena football will succeed in Kansas City. The league has a national television contract with NBC, and a team in Kansas City would give the league a presence in the Midwest. The closest league cities are Chicago, Denver and Dallas.
“They just signed a deal with EA Sports for a video game that will be introduced as we start playing in 2006,” Prochnow said. “This is the first year the Arena Bowl is being played at a neutral site because the league has grown to the point it can be supported outside the home arena of one of the teams.”
As for a nickname for the team, Prochnow said he'll let the fans decide.
“There are some nicknames we've been kicking around,” Prochnow said, “but we've been on a tour for the last two months of going to cities to see games and met with owners, and the overwhelming message we've gotten is, ‘Listen to your fans.' This is a fan-driven league. So we intend to listen to our fans when it comes to the name of our team.”
The Sprint Center management agreement between the city and AEG, which is investing $50 million in the downtown arena, was endorsed Wednesday by the City Council Finance Committee. The full council is expected to approve the 60-page deal when it meets today.
It is the final paperwork required to cement the partnership between AEG and the city for the project. A development agreement for building the $250 million arena was approved in January. Preparation work already is under way at the site east of Grand Boulevard at 14th Street, and construction is expected to begin later this spring. The arena is expected to open in 2007.
“It's huge, it's very important and I'm excited it's finally being executed,” said Councilman Charles Eddy, chairman of the Finance Committee. “I'm looking to the next 35 years of a great relationship with AEG and the city of Kansas City.”
The management agreement covers issues ranging from the type of entertainment to be allowed — specifically nothing that could be construed as pornographic — to what sponsors can buy naming rights to spaces within the facility. Alcohol and tobacco products are OK, but nothing to do with sex, including feminine hygiene products.
Sprint Corp. already has an agreement with AEG to buy the naming rights for the entire building for 25 years for up to $2.5 million annually, depending on whether the facility attracts a major professional sports franchise.
Most important for the city, the deal requires AEG to be responsible for all operating costs, including covering any losses, and ensures the city will receive $1.25 million each year from user fees to help pay off the construction bonds. For AEG, the deal says the company can keep enough revenues from the arena to repay its $50 million investment and provide up to a 16 percent profit on its investment.
Any potential revenues beyond those belonging to AEG would go toward creating a $3 million capital reserve account for the arena. And, should that $3 million account be filled, any profits above that would be divided evenly between the city and AEG.
“I believe the city and AEG have kept faith with the commitments made to the voters last year by putting the finishing touches on an agreement that is the best interest of the citizens of Kansas City,” Mayor Kay Barnes said in a statement.
A TEAM FOR ARENA
Indoor football league plans on being first at Sprint Center
By RANDY COVITZ and KEVIN COLLISON
The Kansas City Star
An Arena Football League franchise appears on track to become the first tenant for the new Sprint Center.
C. Tyler Prochnow, president of a Kansas City-based sports, entertainment and marketing company, has entered into an agreement with the city to place an expansion franchise in Kemper Arena for the 2006 season and for a portion of the 2007 season until the new downtown arena is completed.
In a related matter, a 35-year management agreement for the Sprint Center that relieves the city's financial risk and rewards the profits to its private partner, Anschutz Entertainment Group of Los Angeles, was expected to be approved today by the Kansas City Council.
Prochnow's ownership group, K.C. Arena Sports and Entertainment, has been preliminarily approved by the Arena Football League, pending background checks of its investors — which include former Chiefs star Neil Smith.
Chris McCloskey, the AFL's senior vice president for communications, confirmed Prochnow's application for membership, which needs approval by the AFL executive and expansion committees and ultimate approval by the board of directors. The expansion fee is $18 million, said Prochnow, who expects approval within 30 to 45 days.
The AFL plays a 16-game regular season from late January through late May, plus playoffs, culminating with the Arena Bowl on June 12.
The AFL, which has 17 teams, hopes to operate with 20 teams in 2006. The board of directors is expected to approve Salt Lake City as its 18th franchise this spring, and McCloskey said he was “confident we will add two more teams” when the board meets in June at the Arena Bowl in Las Vegas.
Prochnow announced his pursuit of an Arena League team for the Sprint Center last summer during the election campaign for approving public funding to build the 18,500-seat arena.
“Kemper Arena is not a long-term solution,” he said, “but it is a great option for us in the short term.”
Prochnow is confident arena football will succeed in Kansas City. The league has a national television contract with NBC, and a team in Kansas City would give the league a presence in the Midwest. The closest league cities are Chicago, Denver and Dallas.
“They just signed a deal with EA Sports for a video game that will be introduced as we start playing in 2006,” Prochnow said. “This is the first year the Arena Bowl is being played at a neutral site because the league has grown to the point it can be supported outside the home arena of one of the teams.”
As for a nickname for the team, Prochnow said he'll let the fans decide.
“There are some nicknames we've been kicking around,” Prochnow said, “but we've been on a tour for the last two months of going to cities to see games and met with owners, and the overwhelming message we've gotten is, ‘Listen to your fans.' This is a fan-driven league. So we intend to listen to our fans when it comes to the name of our team.”
The Sprint Center management agreement between the city and AEG, which is investing $50 million in the downtown arena, was endorsed Wednesday by the City Council Finance Committee. The full council is expected to approve the 60-page deal when it meets today.
It is the final paperwork required to cement the partnership between AEG and the city for the project. A development agreement for building the $250 million arena was approved in January. Preparation work already is under way at the site east of Grand Boulevard at 14th Street, and construction is expected to begin later this spring. The arena is expected to open in 2007.
“It's huge, it's very important and I'm excited it's finally being executed,” said Councilman Charles Eddy, chairman of the Finance Committee. “I'm looking to the next 35 years of a great relationship with AEG and the city of Kansas City.”
The management agreement covers issues ranging from the type of entertainment to be allowed — specifically nothing that could be construed as pornographic — to what sponsors can buy naming rights to spaces within the facility. Alcohol and tobacco products are OK, but nothing to do with sex, including feminine hygiene products.
Sprint Corp. already has an agreement with AEG to buy the naming rights for the entire building for 25 years for up to $2.5 million annually, depending on whether the facility attracts a major professional sports franchise.
Most important for the city, the deal requires AEG to be responsible for all operating costs, including covering any losses, and ensures the city will receive $1.25 million each year from user fees to help pay off the construction bonds. For AEG, the deal says the company can keep enough revenues from the arena to repay its $50 million investment and provide up to a 16 percent profit on its investment.
Any potential revenues beyond those belonging to AEG would go toward creating a $3 million capital reserve account for the arena. And, should that $3 million account be filled, any profits above that would be divided evenly between the city and AEG.
“I believe the city and AEG have kept faith with the commitments made to the voters last year by putting the finishing touches on an agreement that is the best interest of the citizens of Kansas City,” Mayor Kay Barnes said in a statement.