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Hey Pete!

"Until Peter Karmanos said, 'No, this isn't going to work,' I always had a belief and a desire that this would culminate in a deal where the Whalers would stay here for a long period of time."

--Brendan Fox,
Gov. John Rowland's chief negotiator

...................

What's the Deal, Anyway?

How does the Hurricanes' arena deal in Raleigh stack up to the package the Whalers were offered in Hartford? Get a point-by point comparison.

 

 

The story so far...

Let us recap.

When last we saw the Whalers, the state of Connecticut had wrapped up two months of intensive negotiations with team owner Peter Karmanos. Both parties agreed that, in order to be fiscally viable in Hartford, the team needed a new arena. The state offered to build a new $147 million complex at the edge of downtown Hartford. The Whalers would take whatever upside they could out of the building, with the exception of University of Connecticut basketball games. The Whalers would receive all concession revenue, advertising revenue and the right to sell the name of the building. The Whalers also would get money from arena parking -- not only for Whalers games, but from other arena events and daily downtown workers. The building, both sides agreed, would have earned the Whalers $50 million a year. The team's operating budget in 1996-97 was $42 million.

The state, with a contribution from the city of Hartford, would cover $14.5 million of the team's operating losses while the arena was built.

Rowland toon

© Copyright 1997 Bob Englehart, The Hartford Courant

In return, the state wanted to collect about $3 million in admission tax on tickets sold in the building, and $2.5 million in rent. That money would have gone toward paying off the state bonds financing the arena. No tax money was to be used. The state also wanted a 20-year lease.

The Whalers countered that they needed the money the state would have taken out of the building in admission taxes and rent; they wanted two years of losses (estimated at $15 million per year, then $43 million for two years) covered while a new arena was built. They also wanted an option to leave after 10 years.

The parties sat down Tuesday, March 25, at what the governor of Connecticut thought was a negotiating session at which Karmanos would make a counter-offer. He thought he had a bargaining chip, as the mayor of Hartford had boosted the operating-loss subsidy to $20 million. Instead, the governor was handed a letter, dated the preceding Friday. Regarding the state's offer, it says: "We have reluctantly concluded that it does not form the basis for a stable long-term future for the Whalers in Hartford."

By that afternoon it was all over. Karmanos was working out an exit agreement with state officials. The team agreed to pay $20.5 million -- including $5 million in contractual obligations for terminating their lease at the Civic Center.

That evening, fans attend a home game vs. the Colorado Avalanche. The game is frustrating; despite tough play that brings the audience to its feet twice in the first period, the Whalers are unable to score on 46 shots, and the team loses 4-0. But spirits are high; rumors have leaked that the state is going to meet the team's demands and build a new arena. Plans are discussed for season tickets for the coming year. The Whalers are still in the hunt for a playoff spot. With this game, the Whalers' attendance reached the half-million mark for the first time since 1989-90. It was very good. And then it was very bad. By the time most of the fans are home, TV stations are carrying the news. The Whalers would announce, at a press conference the next day, that they had been unable to reach an agreement with the state and would leave Hartford, effective the end of the current season.

In Your Face!

© Copyright 1997 Bob Englehart, The Hartford Courant

And now, the thrilling conclusion...

How's it Goin', Pete? // Hall of Shame // Whalers Warehouse // John's Home Page

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