"Defunct" Decade-Old Arenas? It's a Common Cry - voters approve a new sports facility for the Houston, Texas, Rockets and Comets - this and other stadium news is discussed

Basketball Digest, March, 2001 by David Stone

ONE YEAR AFTER VETOING plans for a new stadium to replace the Compaq Center, Harris County, Texas voters approved a new, publicly-financed arena in Houston for the Rockets and Comets. The new 19,000-seat facility will ensure that the two teams, both of which ensure that the two teams, both of which are owned by Les Alexander, remain in town for another 30 years after their lease at the Compaq Center expires, prior to the November 2003 NBA season.

While the 1999 referendum failed, the amended version passed by a 65% land-slide on Election Day last November. The key difference seemed to be the absence of new user taxes, such as a ticket surcharge and parking fees, that would have been paid primarily by local residents attending basketball games.

Under the terms of the deal, the Harris County-Houston Sports Authority, which is a public sports promotion and development agency, will finance all of the $175-million arena's construction, and the city of Houston will spend as much as $20 million to buy land for the arena site. Alexanders's annual rent payment, totaling $105 million over the life of the lease, will help to pay back the bonds.

The Orlando Magic, who play in the 11-year-old TD Waterhouse Centre, are also looking to move into a new, publicly-financed facility. The team says it has lost an average of approximately $10 million per season over the last four years as a direct result of the arena's perceived obsolescence. The Centre, which was 100% publicly-financed in the late '80s, has 26 luxury suites, but the team feels that it needs more modern, revenue-producing amenities to remain competitive in the NBA. The Magic have said that owner Rich DeVos may be willing to contribute as much as 30% towards the cost of a new arena, which is projected to cost $250 million or more.

The Charlotte Hornets, whose Charlotte Coliseum is one year older than the TD Waterhouse Centre, are pushing for the city to help build a new arena, too. The 19,925-seat Coliseum has been filled to capacity for years. However, although the Hornets are one of the Eastern Conference's best teams, attendance has plummeted to the bottom quarter of the league, and with just 12 luxury suites, the team says it needs a home that produces more revenue.

As much as the team has pushed for a new arena over the last few years, the Hornets have been reluctant to invest their own money. Late last year, city leaders proposed a master plan to spend as much as $280 million on several public projects--including a new arena--without contributions from the Hornets. The plans that were unveiled departed from the city's earlier stance, which called for upfront money from the team. Instead, the city proposed using fund,; from a local hotel-motel tax, ticket taxes from arena events, increased car rental taxes, and income taxes collected by the state from player salaries.

Looming over the Hornets' hopes for a new arena is the possibility that the team will leave Charlotte for a city that is willing to build the arena file Hornets want. A Louisville attorney that represents the Kentucky city has negotiated with multiple NBA teams, and one is likely the Hornets, although the team has denied reports that it has been courted by Louisville. Earlier in 2000, before Houston received voter approval to build a new arena, Louisville bid unsuccessfully to bring the Rockets to Kentucky.

Two more of basketball's "alphabet" leagues, the IBL and ABA 2000, planned to merge before major differences between the league's long-term visions became evident. The IBL, which began play in 1999 as an eight-team league but is down to six this season, views itself as another potential development league for the NBA and wants to build an official relationship with the league. The eight-team ABA 2000, on fire other hand, sees itself as a reincarnation of the original, maverick ABA and wants to become a serious competitor to the NBA as the "anti-NBA." The merger was officially announced, then called off, in the space of a week. Both leagues originally wanted to merge by the start of their seasons last December, but as of now negotiations have been put on hold. It's an indication of just how haphazardly the two leagues have been run that their key differences weren't unearthed before sitting down to discuss a merger, much less announcing one.

The NBA's "minor" league has been busy recently. The CBA, which is the NBA's official developmental league, has been on the selling block since Isiah Thomas took over as the Pacers' head coach this season. Thomas bought the league in 1999 and reorganized it as a single entity, but was forced to sell once he entered the NBA's coaching ranks. Because a buyer wasn't immediately secured, the CBA was placed into the hands of a trustee who was charged with selling the league. In late 2000, a potential ownership group of former NBA players and assistant coaches, backed by Wall Street bankers, signed a letter of intent to buy the CBA. Ivan Thornton, the CBA's trustee, had hoped to finalize the sale by early December, but as of the end of the year a deal had not been made.