Hartford Business Journal

16 Hartford Business Journal • March 16, 2015 www.HartfordBusiness.com from page 1 UConn hockey draws well for Hartford single night thousands of ticketholders and cus- tomers for XL Center and local bars and restau- rants, and generating the type of buzz the city hopes to have on a more consistent basis. CRDA thought a deal was so close that it mentioned a new five-year agreement with UConn in its annual report, which was released in October. But no such deal was ever signed. UConn says there's no question that it will continue to play at XL, which offers the largest indoor seating capacity in the state, but it's not clear how many games the school is willing to commit in the coming years. UConn hasn't signed a multi-year lease at XL Center since its last deal with AEG Man- agement expired in 2013. Currently, UConn and CRDA are operating on an unsigned one-year lease that expires in June. That shorter agreement too has been held up, mostly by language regarding how XL Cen- ter and UConn will split up advertising signage revenue on the venue's new digital signs, both Freimuth and Michael Enright, UConn's asso- ciate director of athletic communications, confirmed. However, both sides said UConn's trustees have signed the one-year lease, which is going through legal approvals and could be finalized by the end of this month. Hammering out terms With the regular seasons for all three teams now over, UConn and CRDA are back at the bar- gaining table trying to hammer out terms for the 2015-2016 season that kicks off this fall. If CRDA has its way, the agreement will be for five years. CRDA is pushing for upwards of 25 regular season UConn games a year in that agreement, according to Freimuth, which is the same number the school's three teams played in the recently concluded season. The good news is UConn sports saw increased activity in Hartford over the past year, thanks to men's hockey playing 11 of its games at XL Center — the result of it joining the pres- tigious Hockey East conference, in which the team played home games against such powerhouses as Boston University and Providence College. Those 11 Hartford hockey games aver- aged 5,814 attendees; the team finished with an overall record of 10-19-7. "The hockey was great this year. We were thrilled with the attendance," Enright said. Enright said UConn also needs to ensure it holds enough games on-campus in Storrs, where its growing student population can walk to cheer on their teams. Despite the snail's pace of the XL Center lease talks, Enright sought to reassure those concerned with UConn's future in Hartford. "I don't think there's any doubt we'll be playing games there for a long, long time," Enright said. Bargaining power The lease talks are occurring against a backdrop of UConn's two basketball champion- ships last year and its hockey team joining one of the highest-profile Division I conferences. Does that give UConn more leverage? Freimuth wouldn't go that far. He said the dispute over digital signs at the XL Center is a complex one that involves IMG Sports, which holds marketing rights for UConn athletics. Freimuth also understands UConn's desire to spread its brand across the state as much as possible, as evidenced by the school mov- ing several hoops and hockey matchups to Bridgeport's Webster Bank Arena and Mohe- gan Sun in the past two years. At the same time, XL's operating costs continue to rise, and CRDA is concerned that the state's tight fiscal situation could make it harder to cover the arena's operat- ing shortfall, which was $1.5 million in the most recent year. "It's not so much that one side is in a differ- ent position than the other side," Freimuth said. He said CRDA is looking for some longer- term certainty because it would allow the agency to price its events more favorably and possibly attract new, high-profile events. "There's certainty in planning," Freimuth said. "Doing one of these [leases] every year is painful. I'll be straight up." the Long Game A persistent hope among some local sports fans is that a rebuilt XL Center might draw a professional hockey team back to Hartford. But prospects could be called uncertain at best. CRDA would love for an NHL team to relocate to Hartford, but it knows the stron- gest and most certain play is to forge a stron- ger bond with UConn sports. Fresh off a $35 million XL Center renova- tion that CRDA estimates extended the ven- ue's life for five years — and in the midst of an ugly state budget cycle — the quasi-public CRDA doesn't plan to ask the legislature this year for the estimated $250 million to $500 million it would take to renovate or rebuild XL Center, Freimuth said. But it will likely make a formal request next session, he added. If and when the money does come through, Freimuth said CRDA wants to ink a 20-year agreement with UConn that he said would mean more revenue sharing for the state's flagship university in exchange for a greater commitment to play in Hartford. CRDA wants that long-term deal — which would be separate from the ongoing lease negotiations — to guarantee 30 UConn games a year in Hartford. But XL may not have as big a piece of UConn hockey for long. Under its member- ship agreement with Hockey East, UConn is required to put a shovel in the ground for a new on-campus arena in the 2016-2017 aca- demic year, Enright said. Early estimates peg the size at 185,000 square feet, with a mini- mum cost of $20 million. The arena would replace the 2,000-seat Freitas Ice Forum. If UConn plays more hockey games on campus, more XL Center basketball games would be needed to get to the 30 games CRDA wants in a long-term arrangement. n XL Center User Fees The facility fee is what UConn sports teams pay per game to play at XL Center. XL Center also levies a per-ticket surcharge. Team Facility Fee Surcharge per ticket Men's Basketball $39,000 $2.50 Women's Basketball $39,000 $2.50 Men's Hockey $19,000 $2 S O U r C e : C a P i T a l r e g i O n d e v e l O P M e n T a U T H O r i T y UConn hockey's Nov. 5, 2014 game against Boston College drew nearly 8,100 people — the highest attended game of the regular season. Right: XL Center hosted the American Athletic Conference championship over the weekend. You'd be surprised how much more your staff can do when they're not driving to work. Your Commuter Connection Teleworking can make your staff more productive. Plus, it reduces the number of cars on the road, reducing traffic congestion and improving air quality for everyone in Connecticut. CTrides helps businesses throughout Connecticut build and formalize teleworking programs for individuals, teams or an entire staff. Let us help you – absolutely free. Visit CTrides.com or call 1-877- CTrides. A service of the CT Department of Transportation. CTRD-0172 TeleworkAd10x3.375R2.indd 1 3/11/15 10:52 AM P H O T O | S T e v e S l a d e , U C O n n a T H l e T i C S H B J P H O T O | M a T T P i l O n

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