The Hartford Whalers Are Going Going ... :: essays research papers

The capital of computerized tomography Whalers Are Going Going ...The Hartford Whalers are in a very tough situation at this time. WhenPeter Karmanos bought the team in May of 1994, he inherited the worst take onagreement at the sm all(prenominal)est arena in the NHL. The Hartford Civic promenade lease agreement creates profit for private companies however, the leasecauses the Whalers to lose money. The mall is owned and operated by Aetnatherefore it has nothing to do with the Whalers. The city of Hartford owns the coliseum, position garage, and exhibition hall. The state of Connecticut commits a1.6 million dollar annual leasing fee to take control of the coliseum, parkinggarage, and exhibition hall. The state hired Ogden frolic suffices torun the coliseum, and Ogden receives all of the revenue from luxury boxes, thecoliseum club, advertisements, rental fees and the exhibition hall. The statealso hired Kinney Systems to run the parking garage and Service AmericaCorporation to run the concessions. Both companies receive all revenue from theservice they run. After all of this, there is no money left for the HartfordWhalers (Swift & Arace, 1+).The reason why these three companies keep all of the revenue from theCivic Center can be blamed on Richard Gordon, the former proprietor of the Whalerswho did not want the city of Hartford to run the Civic Center. In 1993, thestate decided to negotiate a new lease with the Whalers. The state ofConnecticut did not want to run the coliseum so they hired three privatecompanies to take this job. These companies would only run the Civic Center ifthey could keep all of the revenue from the service they controlled. RichardGordon accepted this lease because this agreement would repay him for anadditional ten million dollars in loses and he sold the team a yr later (Lang53-69).The Hartford Whalers is the only major league team in Connecticut and atthe Civic Center. They currently have a bad lease which causes them to losemon ey. The Hartford Whalers play all exhibition, regular season, playoff games,the training camp, and some practice time rent free at the Civic Center.However, the Whalers get no revenue from concessions, luxury boxes, parking, andthe coliseum club. The Whalers get sixty percent of the revenue fromadvertisements along the boards but no revenue from all other ads around thecoliseum (Swift, 1+). The Whalers can leave Hartford after the 1997-98 seasonif they lose a cumulative thirty million dollars from 1994-95 through 1997-98.They must also pay a five million dollar penalty to leave Hartford.