DePaul to receive $300 million McCormick Place Arena

[Jet915]

Not exactly a ringing endorsement:

Marc Ganis, a Chicago-based sports business consultant, said he’s “stunned” by the mayor’s decision. A domed stadium attached to a convention center makes sense, he said. A basketball arena attached to McCormick Place is financial folly, he said.

“There’s not a single example around the country where the two go together, much less go together successfully,” said Ganis, who has worked on two dozen successful sports facility developments, including the new Yankee Stadium.

“Not only is it ridiculous having an 18-event anchor tenant, but it’s an anchor tenant that can barely sell 10,000 seats a game. It’s not like it’s a professional sports team or a well-established college basketball power. It’s neither of those two. That’s why there has to be something else going on. Because on its face, it’s a foolish proposition.”

http://www.suntimes.com/news/cityhall/2 ... swers.html

Creighton's arena is attached to a convention center and has been a HUGE success for the city of Omaha.

[yorost]

Whether he has a point or not, if DePaul is going to pony up funds for the project they have to provide something for DePaul. If it's work with DePaul or do nothing, then they might as well make the most of it.

[Demon22]

Google tells me that Anaheim, California just built an 8,700-seat Arena/Convention Center.

And the Dallas Convention Center Arena is a 7,500-seat arena located next to Pioneer Plaza and the Dallas Convention Center.

Oklahoma City has the Cox Convention Center, with a 15,000-seat arena, home to the Oklahoma City Barons minor league hockey team.

[ljay]

Not exactly a ringing endorsement:

Marc Ganis, a Chicago-based sports business consultant, said he’s “stunned” by the mayor’s decision. A domed stadium attached to a convention center makes sense, he said. A basketball arena attached to McCormick Place is financial folly, he said.

“There’s not a single example around the country where the two go together, much less go together successfully,” said Ganis, who has worked on two dozen successful sports facility developments, including the new Yankee Stadium.

“Not only is it ridiculous having an 18-event anchor tenant, but it’s an anchor tenant that can barely sell 10,000 seats a game. It’s not like it’s a professional sports team or a well-established college basketball power. It’s neither of those two. That’s why there has to be something else going on. Because on its face, it’s a foolish proposition.”

http://www.suntimes.com/news/cityhall/2 ... swers.html

Creighton's arena is attached to a convention center and has been a HUGE success for the city of Omaha.

True about Omaha to a point. The arena has been very successful. The convention center not so much but the numbers are improved there with more hotel space now available in the vicinity.

RE: Chicago...I don't read Chicago papers like I used to. I forgot how blunt folks can be there!! Rahm's boondoggle!!! (?)

[Demon22]

FWIW, there's a far more reliable report that pegs the cost of this at $195 million, with the financing breakdown as follows:

$70 million from DePaul, who would be allowed to sell the naming rights.
$70 million from McPier, though the sale of bonds.
$55 million from the City of Chicago through Tax Increment Financing.

Also, it's being reported that the development will include hotels, restaurants, and some retail.

[MixingBowlSpider]

Are the naming rights really going to be worth 70 million?

DePaul is not Louisville...

[BillEsq]

Are the naming rights really going to be worth 70 million?

DePaul is not Louisville...

DePaul may not be Louisville but Louisville is not Chicago. And the fact is the value of a second level arena in Chicago is potentially worth as much if not more as a top tier arena in Louisville.

Lets face it Chicago is Chicago in this league outside of New York there is no other market/city like it. What you have to realize that Cities like Chicago and New York all the rules are different, they just are that much bigger. I know on this board we at one point were discussing minute differences between the city/markets of Dayton, Richmond, Omaha. Cities like that are average suburbs in Chicago. The economic rationale for a tier 2 city doesn't work for a city the size of Chicago. I really don't know how else to describe it.

[yorost]

Demon22 did not say the naming rights were worth $70 million. His list indicates DePaul would basically cover the difference between the naming rights and $70 million.

[TheDon]

How much interest is there in Chicago for DePaul basketball? That is, of every 100 college basketball fans which is a small segment of Chicago area hoops fans, how many would identify themselves as DePaul? Maybe 5%?

[yorost]

That only matters if this deal is pandering to DePaul, but this is a mutual interest project. The city clearly wants do something in that area, DePaul adds funds to the project. If the project is $120 million more expensive because of DePaul, then you can argue on your point, but if it only got $50 million more expensive then DePaul is a boon for the city and it doesn't matter if anyone cares about them.