THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, November 2, 1996 TAG: 9611020329
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY HARRY MINIUM, STAFF WRITER
DATELINE: NORFOLK LENGTH: 191 lines
In a bid to bring a National Hockey League team to Hampton Roads, the owner of the Charlotte Hornets basketball team Friday hand-delivered an application and an earnest-money check for $100,000 to the league president.
The move by businessman George Shinn marks the area's first official step toward a major-league sports franchise since the Virginia Squires, an American Basketball Association team folded in 1976.
``This is the best chance this region has ever had to play in the major leagues,'' said Norfolk Mayor Paul D. Fraim, who has led the effort to bring a major sports franchise to the region. ``We have been asked to the party. Now we have to see if we can dance.''
Much remains to be done, and done quickly, if the NHL is to drop the puck in Hampton Roads, the nation's largest metropolitan area without a major sports franchise, sources say. Officials must agree on a financing package and an arena site, and complete a formal presentation for the NHL - all in just 12 days. The arena is projected to cost at least $100 million and seat about 18,000 for hockey.
Shinn said he expects the NHL to award four expansion franchises in the next four years.
``Just like the NBA, it depends on the quality of the applicants,'' Shinn said. ``We feel good. We feel good about the market and about our role as marketers, owners and planners. We feel we can do a bang-up job.''
The competition is formidable. Atlanta; Houston; Nashville; Columbus, Ohio; Hamilton, Ontario; St. Paul, Minn.; Oklahoma City and Raleigh all have applied for expansion franchises.
Shinn and local officials will make their case to the NHL on Nov. 14 in New York. The NHL will decide Dec. 12-13 at its board of governors meeting in Phoenix which franchises it will accept.
Shinn traveled to New York on Friday with a four-person delegation from Hampton Roads, including Fraim, to drop off the application and certified check, and to meet with NHL commissioner Gary Bettman. Fraim said the hour-long meeting with Bettman was ``very encouraging.''
``The response (from Bettman) was very good,'' said Fraim, who has represented the Hampton Roads Partnership in negotiations with Shinn. ``We were encouraged to know he has a warm relationship with Mr. Shinn, which was obvious in our discussions with him. We think that's going to be a great plus for us as we pursue an expansion franchise.''
A season-ticket and marketing effort will begin soon, perhaps as early as Tuesday, Shinn said. Officials from NationsBank's Charlotte headquarters, who are allied with Shinn, and the Hornets already have begun work on the presentation and marketing campaign.
Shinn acknowledged that the key factor in making the Hampton Roads expansion effort successful will be completing an arena deal in less than two weeks.
Fraim said the arena should be funded regionally and that he and other regional leaders already have had discussions on how that might be done. Virginia Beach Mayor Meyera E. Oberndorf, who spoke briefly with Fraim on Friday, said: ``If it's affordable then it's definitely something I would want to support.''
``The key now is the arena issue,'' Shinn added. ``If we can put that together, it should all work out in a positive manner. I feel confident they're going to be able to put it together.''
Shinn will select the site, and said he's leaning toward downtown Norfolk: ``I need to talk to some experts around here, but that seems to be the best location.''
Shinn said that both he and regional leaders will be under intense pressure to meet the NHL's timeframe.
``I love pressure. I enjoy it. That's fine,'' he said. ``I feel like this is a great market. We've been interested in this market for some time. It's the largest market in the country without major-league sports. We think it's ready and we think we're the people to bring it here.''
Shinn confirmed that he has chosen a nickname - the Rhinos - for the proposed team.
``Get ready for the Rhinos,'' he said. ``They're hard chargers.''
Fraim said Bettman told the local group that the strength of ownership, strength of the market, the playing facility and strength of support in the community are the four primary factors upon which the Hampton Roads application will be judged.
``We feel like we have an excellent owner in Mr. Shinn, and Mr. Bettman continually referred to that,'' Fraim said. ``We think we have a real advantage there.
``We hope to put forward a solid proposal (to build an arena) in the very near future. Hopefully, the citizens of Hampton Roads will rally to this cause in the next few weeks. We're going to call on all of our friends, the corporate community, civic groups and all of our fans to support this effort.''
Shinn turned to Hampton Roads on Thursday shortly before Raleigh officials announced their ownership group would be led by Charlotte businessman Felix Sabates and not Shinn.
Shinn said he ceased negotiations with Raleigh on Thursday morning because city officials there had not provided him with a proposed lease. He called Fraim on Thursday morning to reopen negotiations with the region, which had begun last June but ended about two weeks ago when Shinn publicly expressed his preference for Raleigh.
Shinn spoke twice Thursday night with Fraim, who hurriedly talked with regional leaders Friday morning. Shinn spoke with Fraim for more than an hour Thursday morning, then flew his chartered purple and blue jet with a Hornets' logo on the tail into Norfolk about 12:50 p.m.
He then met for about 45 minutes at the Piedmont Aviation Center with more than a dozen local leaders, including representatives from every Hampton Roads city.
He departed for the NHL's New York City offices at about 1:30 p.m. with Fraim; Barry E. DuVal, chairman of the Hampton Roads Partnership; Hampton City Manager Robert M. O'Neil; and Neal Volder, development director for CBN. Also on board were Hornets' marketing officials and a financing expert from NationsBank.
Shinn acknowledges the average NHL ticket price of around $34 will be a tough sell.
``The NHL unfortunately has the highest ticket for any team sport,'' he said. ``But this is a good market and we'll just have to see.'' ILLUSTRATION: Color photo illustration by John Earle and Craig
Taylor/The Virginian-Pilot
Color photo by Martin Smith-Rodden/The Virginian-Pilot
Norfolk Mayor Paul D. Fraim, left, and Charlotte Hornets owner
George Shinn announce Shinn's bid to bring a National Hockey League
team - the Rhinos- to the area.
[Appeared as a Side Bar]
THE ROAD AHEAD
What are the chances of Hampton Roads getting an NHL franchise?
Despite the excitement created by George Shinn's involvement, the
area still is a longshot. The competition for expansion franchises
is stiff, and Hampton Roads is very late getting into the game.
What are the main obstacles?
No arena, unfavorable demographics and a lack of major
corporations. Scope seats around 9,000 for hockey, about half the
size needed for the NHL. The area's median income is $15,592, below
the national average. And only two Fortune 500 companies are
headquartered here.
If the area did get a team, how soon could it begin play?
Under the most optimistic scenario, an expansion team probably
would begin play in the 1999-2000 season.
Is expansion the only way the area can get a team?
No. It's possible an existing owner could move a franchise to the
area. Or that Shinn could purchase an existing franchise and move it
here. But for a team to relocate here, there would need to be a new
arena.
What does Hampton Roads have going for it?
A large metropolitan area and little competition for the sports
dollar. The area has 1.6 million people (28th in the nation) and no
big-league professional sports or major-college football.
How many teams is the NHL adding?
Nothing is official yet, but the league is expected to add at
least two teams in the next few months. Another round of expansion
could come in two years.
Who are the area's chief competitors for expansion franchises?
Popular opinion has Nashville, Atlanta and Houston as the
leaders. Others are Oklahoma City; Columbus, Ohio; Raleigh; St.
Paul, Minn.; and Hamilton, Ontario.
When will the decisions be made on who gets the teams?
Presentations by the applicants are to be made to the NHL on Nov.
14. Decisions on who will be awarded franchises likely will be made
by the NHL's Board of Governors at its meetings Dec. 12-13.
How much do NHL tickets cost?
A lot. They are the most expensive tickets in pro sports,
averaging around $34.
Which comes first - an NHL franchise, or an arena?
Most likely, they will have to come at about the same time. For
the area to build an arena, a team owner probably will have to
commit to bringing the team here. And before bringing the team, the
owner will want a commitment that the area is building an arena.
How much would an arena cost?
Anywhere from $120 million to $140 million.
How would it be funded?
Probably through bonds. The debt likely would be paid off from
state and local taxes generated by the arena, from contributions
from local governments and from the leasing of the arena to the
primary tenant. There also might be some state money involved.
What about luxury boxes?
They are a key source of revenue. A new arena likely would have
at least 40 luxury boxes; some new arenas have more than 100. The
annual lease probably would be from $50,000 to $90,000.
Where might an arena be located?
Probably either in downtown Norfolk, near MacArthur Center, or
near the Virginia Beach-Chesapeake city line.
KEYWORDS: NATIONAL HOCKEY LEAGUE FRANCHISE by CNB