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[Report] Seattle to begin season ticket drive, aiming for 2021 entry to NHL

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Trump's Trade War Is Bumping Up Costs for Seattle's NHL Arena

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BloombergAugust 9, 2018

 

Add this to the list of reasons why professional sports stadiums often cost more than expected: President Donald Trump’s global trade war.

 

The backer of a plan to gut and rebuild Seattle’s KeyArena said tariffs on construction materials such as steel, aluminum and rebar are ratcheting up the tab for the soon-to-be-overhauled venue, which will host an expansion team for the National Hockey League.

 

“We have seen a rapid inflation on those costs,” Tim Leiweke, chief executive officer of Oak View Group, which is undertaking the project, said on the Bloomberg Business of Sports podcast released Thursday. “Even when you have manufacturers and suppliers that are within the United States, they know they can charge more now because of the tariffs.”

 

While some U.S. firms have benefited from Trump’s trade war, many have complained about the collateral damage. Companies including Caterpillar Inc., General Motors Co. and Harley-Davidson Inc. have all said that the tariffs will eat into their profits. Real estate services firm CBRE Group Inc. said in a March report that the extra expenses could exacerbate the already climbing costs to build commercial properties in the U.S.

 

In Seattle, at least, taxpayers won’t be on the hook for the extra money for KeyArena. That’s because Oak View is pursuing the project with private money, a strategy that helps avoid the political fights involved with using public funds, Leiweke said. The NBA’s Sonics left town in 2008 after owner Howard Schultz, founder of Starbucks Corp., unsuccessfully lobbied for taxpayer funds for a new facility to replace KeyArena. The team was sold to an Oklahoma City-led group and renamed the Thunder.

 

“Money is reasonably cheap still,” Leiweke said. “If you can go out and borrow it at a decent rate, why not challenge yourself and put the burden on things like naming rights, suites, premium seats and sponsorship?”

 

That could turn out to be a smart move. A plan to devote $180 million in tax revenue for upkeep of Seattle’s Major League Baseball stadium recently drew questions from elected officials who say the region -- which is struggling with a soaring cost of living and homelessness crisis -- needs to prioritize spending on affordable housing.

 

https://finance.yahoo.com/news/trumps-trade-war-bumping-costs-180057817.html

 

Edited by nuckin_futz
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5 hours ago, Shift-4 said:

:huh: That's news to me. I still have to work for it.

Clearly he is referring to interest rates. It's still reasonably cheap to borrow money.

 

Edit:

Immediately after posting that I realized you probably knew that and were making a joke. My bad.

Edited by MattJVD
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  • 4 weeks later...

This would suck for us because we would be in the middle (hopefully) of our ascent to being a top playoff co tender.  Key guys and prospects wpuld be eligible at this point.  The expansion draft this time around could be a lot more difficult for us in whom we decide to protect.  Guys like Pettersson, Lind, Gadjovich, Palmu would be eligible if that were the case amd epuld then need protection.

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1 hour ago, CRAZY_4_NAZZY said:

This would suck for us because we would be in the middle (hopefully) of our ascent to being a top playoff co tender.  Key guys and prospects wpuld be eligible at this point.  The expansion draft this time around could be a lot more difficult for us in whom we decide to protect.  Guys like Pettersson, Lind, Gadjovich, Palmu would be eligible if that were the case amd epuld then need protection.

it also means 2020/21 is likely going to be another lockout year :angry:

 

but yup we're going to lose a good player for sure. As long as we don't pull a Panthers we should be OK. 

 

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32 minutes ago, Jimmy McGill said:

it also means 2020/21 is likely going to be another lockout year :angry:

There is that possibility.  I believe the year eight opt-out is after the 2019/20 season so unless there are guarantees that neither side will use that option, it might be risky to plan on 2020/21 being the inaugural season.

 

What I would like to see, is that they opt-out only so they can sign a new long-term CBA.  But I have a feeling we're headed for another labour dispute.

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Here is a question.

If there is a lockout season and expansion is the following year. Will all of our young guys starting pro this year still need protection as most will still play in the AHL that year adding up to 3 years pro? That would be a big kick in the stones to have to protect players without them having the chance to play that 3rd year in Vancouver as I sort of predict players like Lind and Palmu to be ready to make the jump around that time...

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  • 3 weeks later...

"The NHL executive committee has unanimously voted to recommend expansion into Seattle with the goal of a new team starting play in 2020-21. The NHL Board of Governors will now vote on the matter in December. The expansion fee has risen from $500 million to $650 million, which all other teams besides the Vegas Golden Knights will split. The Knights are also exempt from the Expansion Draft."

Why are the Knights exempt?  They made it to the SCF in their 1st year for Pete's sake.

 

And are they thinking of using Totems as the team name?

Seattle_20Totems_20logo_20R_large.png?v=

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