THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, November 3, 1996 TAG: 9611030028
SECTION: FRONT PAGE: A6 EDITION: FINAL
SOURCE: BY HARRY MINIUM, STAFF WRITER
LENGTH: 150 lines
``It's up to the community'' whether the NHL, and a major arena, come to Hampton Roads, George Shinn says. The results of a season-ticket, club-seat and luxury-box sale, scheduled to begin this week, probably will determine whether the region lands an NHL franchise.
``If the community wants this, and they're really excited about it and will embrace it, then obviously it will send a real loud signal to the NHL,'' Shinn said in an interview with The Virginian-Pilot last week.
Shinn, who owns the NBA's Charlotte Hornets, applied for an NHL expansion franchise for Hampton Roads on Friday. He will make a formal presentation to the league on Nov. 14 in New York. Word on whether the region receives an expansion franchise could come in mid-December.
Here are excerpts of the interview with Shinn:
Q. You will announce a season-ticket sale on Tuesday. What kind of reaction do you anticipate?
A. If we could get a real groundswell of support within a week or two, and it can happen that quickly, it would help our chances tremendously. We sold 15,000 season tickets before we went up to make a presentation to the NBA (in 1986, when the Hornets were granted an expansion franchise). We had 15,000 commitments at $250 each. We took a check to the NBA, a huge check as big as this room, which certified that we had close to $2 million in non-refundable money, and it made a tremendous impact. It's really a partnership, and for this thing to be successful the way we want it to, we need the people to step forward and to make this happen.
Q. What are the region's chances of landing a franchise?
A. I think they are very good. I quite frankly have a reputation to protect, and I wouldn't be jumping into this thing if I didn't think we had a pretty good chance to accomplish it. I think you've got an outstanding market, and I personally think you have an outstanding owner representing it. I think a key factor is if we put together a building that makes sense. But the real key comes to support. The building will succeed if you have enough fans to support it.
Q. What do taxpayers have to gain from building a $140 million arena for your team?
A. What the taxpayers have to look at is the benefits that a major-league sports franchise will bring to the area. A professor at the University of North Carolina at Charlotte put together an economic impact survey of what the Hornets have meant to the entire region. In the eight years of our existence there, he estimated the economic impact has been approximately $2 billion. A major-league sports franchise can bring a tremendous amount of benefits to this region. If the team is in Norfolk, everyone in the region will benefit tremendously from it. It's something that everyone needs to embrace, and if they don't embrace it, it won't succeed.
Q. You are financially secure and own one of the NBA's most successful franchises. Why take a risk on an untested market?
A. It keeps my motor running. You know, a lot of people have helped me along the way. When I came up for a visit here (last June at the request of CBN founder Pat Robertson), people started asking me about help. I got involved to the point that I got impressed with the market. Their biggest need is an owner, and I'm one. It just seemed to fit.
Q. You will make a formal presentation to the NHL on Nov. 14. What will be included in the presentation?
A. We'll put together information on demographics, all types of income levels, that kind of thing. We have to submit information on an arena, where it's to be built, and when. We'll also have to put together a nice dog-and-pony show with video selling this area, but this is a great area to sell.
Q. Where do you think an arena should be located?
A. I haven't made a final decision, but my unscientific feeling is that the best place for it geographically would be right in downtown Norfolk. But I plan to get some other advice and opinions from people who are smarter than I am . . . before we make a final decision.
Q. How does this market compare in your eyes to Charlotte?
A. There are a lot of similarities. The difference in this and when I was pursuing Charlotte is that nobody knew where Charlotte was and nobody knew who I was. We have two advantages over that now. When I called on the NBA, I guess they expected me to come in wearing bib overalls and a straw hat, being that I'm from North Carolina. But we showed them something, and we've become a very big asset to the league. This market is primed. It's a great location, and I think it will be a big success.
Q. Will the team be nicknamed the Rhinos?
A. Probably. I think it has great marketing possibilities. I think they're pretty tough characters, and that's the type hockey team we want. It's got great marketing potential. We mentioned the nickname to (NHL commissioner) Gary Bettman, and he asked me if they could skate. I told him we were teaching them now.
Q. Will the team be called the Hampton Roads, Virginia, Virginia Beach or Norfolk Rhinos?
A. That hasn't been decided yet.
Q. Can Scope be used as a temporary home for the Rhinos?
A. Yes, if we have to. The best thing for us financially would be, the season we start, to play in a new building with all of the amenities and the revenue streams. However, if we decide we can have a new building built by 2000-2001, and the league decides we can't wait that long, that if you're going to take a team you have to have it in 1999, then that's fine, we'll play one year in Scope. We have to be creative in our plans to make this thing happen.
Q. Why not put an NHL team in Charlotte?
A. Economically, it just doesn't make sense. We already have two franchises, in the NBA and NFL. Whenever you start dividing revenues in one building when one franchise plays in the same season, unless you're in a market like Chicago, you can't capture all the revenues you need. Let me give you an example. For one franchise, you might sell a suite for $100,000 for a year. If you have two franchises, could you sell it for $200,000? The answer is no. You can in Chicago because they've done it with the (NBA's) Bulls and the (NHL's) Blackhawks. But you couldn't do it here or in Charlotte. The market won't allow it, and you've got to be realistic. The NHL has got a much better chance of succeeding in a market like this which is untapped virgin territory. You'll be the only show in town. You don't even have any major college sports here. It should succeed and do real well.
Q. Do you want to lease the arena year-round, which means you would book events and run the arena in exchange for a fee?
A. That's something we would insist upon. The trend now is for tenants to control buildings. The most successful buildings generating the most revenues are operated by private enterprise rather than by government. The top 10 (arenas) are all privately controlled or owned.
Q. Do you have an estimated arena capacity?
A. That's really a decision that will be made after the support starts coming in. If you start out by saying you want 40 suites, and you start the campaign and get 100 deposits, then you build 120. You do the same thing with club seats. You try to sell as many as you can. Even while the building is being designed, until it's been built you can still change the design.
Q. HOK Sports (a nationally known company that designs and builds sports facilities) has done a rough design of an arena for the Sports Authority of Hampton Roads. Will you use that design?
A. I haven't seen this particular plan. We will hire an architect that specializes in these type buildings. Obviously, to get a franchise you want a state-of-the-art building that would be designed for hockey.
Q. Isn't is true that Raleigh was your first choice, that the reason you're in Hampton Roads now is because Raleigh turned you down?
A. That's not exactly the case. What happened is that in the process of me taking a look at the NHL and having an interest in that area, Max Muhleman, who is one of the top marketing gurus in professional sports and who helped me get the Hornets and helped the Richardsons get the Panthers (an NFL team in Charlotte), asked me to go up there. He suggested that since I was from North Carolina that I work with the group in North Carolina. We leaned in that direction because of that. I continued to ask for a term sheet on a building from Raleigh, which I never received. I just gave them a deadline (Thursday) for receiving the information, so I submitted a letter telling them to take my name off the list.
I'm very pleased with this market and think it will be a great success. The most impressive thing is the people here. The people are sold on their market. (Norfolk Mayor) Paul Fraim is a doer and a go-getter. I'm very impressed with what's going on here. ILLUSTRATION: Photo
BILL TIERNAN/The Virginian-Pilot
Would-be NHL owner George Shinn stresses ticket sales: ``If we could
get a real groundswell of support within a week or two . . . it
would help our chances tremendously.''
KEYWORDS: HOCKEY INTERVIEW by CNB