Many of you have called in about
this article by Neil Warner in the Daily Herald. One of the top reasons for the success or failure inside of a sports franchise is the team's arena deal.
The success of that deal is measured by various metrics, but at the top of the list would be the size, number of suites, access to the arena, visibility and cost to the team.
With the economy still locked in lingo we are trying to do everything we can to add revenue and cut costs. We add revenue when we sign new sponsors or new season ticket holders, and we cut costs by looking at our current operation and identifying inefficiencies. If we do things the way we should our customers will not recognize any difference in presentation.
As we have sorted through where we stack up in the league, we found that we are at the very top tier of what teams are paying for arena rent. So, yesterday in an attempt to ensure the team will remain here in Utah County we met with the McKay Events Center board to discuss a reduction in our rent.
The McKay Board consists of the 3 Utah County Commissioners, President Holland of UVU, Val Peterson of UVU, a member of the Orem City Council and the operator of the building. In an effort to help the board understand our position we showed them a number of figures from our first two years.
First, the County collects tax from hotels and tourism. This goes directly to the County and is used by them for whatever purpose they deem relevant. Over the past two years we have rented a total of 2,905 hotel room nights in Utah County. I don't know any other organization other than BYU that might even come close. We have pumped more than $1m dollars into the community for marketing. We have made over $200k in charitable donations and provided several thousand donated man hours through the Flash Family Foundation. We have visited over 70 schools and taught life lessons to more than 100,000 students, with the goal of learning to read and staying in school.
Through the NBA we were able to completely remodel the Rippy Center for Learning in Lehi. If you haven't been down there it is worth the trip.
We have provided unprecedented national exposure that has specifically named Utah County, UVU, and the City of Orem. This list includes special pieces done on TNT, NBA TV, USA Today, the Washington Post and Sports Illustrated.
So we have asked for a reduction in our rent. Most teams in the D League that have been around for a long time pay less than half of what we pay. Many receive additional benefits such as offices and greater concession sales revenue. Most of those arenas sell beer so their concession revenue is substantially higher. We have asked the board to move us to the high end of the lower spectrum. They have said they will try.
Are the Flash moving to SLC? We have spoken with the arenas in SLC and they have made very compelling offers to us. We have until June 30th to give an answer to the McKay Events Center and County letting them know if we are staying or going.
I would encourage any season ticket holder to give a call or email the Commissioner's office and encourage them to get involved. No one wants to leave Utah County.
Brandt Andersen
Larry Ellertson
Commission Chair
larrye@utah.gov
801-851-8133
Gary J. Anderson
Commission
garya@utah.gov
801-851-8135
Steve White
Commission
stevew@utah.gov
801-851-8136