Anaheim will reap revenue from games of new minor-league expansion team.
by Mira Jang
The Orange County Register - Wednesday, April 12, 2006
ANAHEIM - There's another sports team in town - and this one will display only the name Anaheim.
The city and the NBA Development League signed a contract Tuesday after a long negotiation process.
The two sides had hoped to finalize a contract by mid-January. The delay was partly caused by the city's last-minute changes to ensure Anaheim is the only city included in the team name, a lesson learned when the Angels changed their name to the Los Angeles Angels of Anaheim. A costly lawsuit followed.
"We're very proud to have Anaheim, and only Anaheim, in the name," said Roy Englebrecht, a Newport Beach-based boxing promoter and a member of the new team's ownership group.
He said the five-member consortium of owners will choose, within two weeks, from among 150 names that family, friends and others have suggested.
The team hopes to draw 3,000 to 3,500 fans per game to the city-owned Arena, which will host 25 home games starting in the fall.
The convention center is giving priority to the team, holding 70 dates from which the owners could choose, including the most attractive times: Thursday to Saturday nights.
The Arena's booking agent, AEG Facilities Inc., sees the basketball team as an anchor to other family-oriented events that will attract local residents in addition to the many events that draw visitors.
The transformation of the Arena includes a $4 million renovation of its exterior in addition to a new sound system and glass walls, said Greg Smith, executive director of the Convention, Sports & Entertainment Department.
Team owners will pay the city $5,000 to $7,000 per game for labor costs, depending on attendance, and they will keep the profits from sponsorship and ticket sales.
Revenue from concessions and parking will go to the city, which will also receive at least $250,000 in the second year from AEG, based on revenue for all Arena events, and at least $1 million by the fifth year, said David Meek, manager of the Convention Center.
Councilman Harry Sidhu said the team serves a greater purpose than simply fattening the revenue stream.
"It's a great start for us. It'll bring more traffic to Anaheim, increase our visibility as a sports venue, and help fill vacant slots at the Arena," Sidhu said.
Sidhu said the city is involved in talks to bring an NBA team here.