Among the reasons the Oak View Group is becoming a powerhouse in the arena and entertainment industries, synergy through the acquisition of key resources might be the most prominent.
On July 12, OVG announced the addition of another impressive asset in the music industry - the concert trade publication Pollstar. The magazine maintains an enormous database of musical artists, venues, and tours of those artists through those venues. Any musician who is anybody is in that database, and any musician who is anybody wants to be in that database.
The following statement was released on Pollstar’s Facebook page.
“We are very excited to become part of the growing OVG family and its vast array of worldwide resources,” Pollstar President and Editor-In-Chief Gary Bongiovanni said. “After 35 years of independent operation, a key factor in our making the deal was OVG’s understanding of the importance of keeping our editorial coverage and services neutral as we speak to, and for, the entire concert industry.”
What do you get when you combine a publication like that with a concert booking juggernaut like LiveNation and a legendary music agent like OVG co-founder Irving Azoff? You get synergy, which is what would uniquely position Oak View to book as many musical acts as they need, and whichever musical acts they want in a council-approved, reconstructed KeyArena.
That ability is what allows the group to obtain the financing needed to build the arena on spec. The ability to build on spec is one factor that would help OVG obtain an NHL expansion franchise for Seattle. Recall that “steel coming out of the ground” helped Las Vegas land the team that will take the ice next season.
But it will take more than an arena, more synergy, to bring the NHL in the very near future, and to hopefully bring the NBA in the next five to ten years. It will also require strong relationships with both winter leagues. Fortunately, the Oak View Group has those in spades.
CEO Tim Lieweke has served on the Board of Governors for both the NBA and the NHL. A minority owner of the Boston Celtics, David Bonderman, was brought into the fold to acquire a hockey team. Movie mogul Jerry Bruckheimer, the other part of the potential NHL group, also has very close ties to his league of choice. Delaware North, which was founded by Boston Bruins owner Jeremy Jacobs, is a partner in the project. MSG, which has a strong connection to both leagues, is providing a financial backstop to OVG of up to a billion dollars to finance the deal.
By most accounts, the NHL is going to be the first to arrive in Seattle, but don’t lose hope that the NBA will return as well.
Some are concerned that the City of Seattle, the music industry, and hockey will take up too much of the financial pie for an NBA ownership group to make a sufficient profit in a rebuilt KeyArena. I don’t share that concern because OVG makes its living on building unique partnerships to get big and complex things done. I simply can’t believe that they aren’t creative and innovative enough to bring together just the right NBA partnership to make this work.
Some are concerned that Lieweke and Azoff have no desire to bring the NBA to Seattle. Believe him or not, but Lieweke offers the following rebuttal.
“Some people want to yell that I’m not passionate about basketball,’’ said Leiweke, who oversaw operations for the Los Angeles Lakers, Denver Nuggets and Toronto Raptors. “That’s incorrect. I’m more passionate about basketball than about hockey, if you look at my tenure in my last 30 years of where I’ve spent my time.’’
Leiweke noted that NBA Commissioner Adam Silver suggested three weeks ago during the NBA Finals that expansion was likely several years from happening. That means, Leiweke added, that OVG can best spend its efforts landing an NHL franchise he suggests would be imminent once he completes a deal with the city.
“I seem to be the only one willing to step up and say ‘Folks, here’s the reality of the situation we face. Let’s be honest here,’ ’’ Leiweke said. “There is no NBA team to be had today.’ And if there is one to be had, we will be the first ones on it and we have an ownership group and partners that have the ability of going and chasing that team.
There is no guarantee, regardless of arena location, that the NBA will return to Seattle, but please note that Lieweke has never said that it’s a hopeless fantasy. He has only said that it isn’t happening right now.
If and when the Sonics decide to come home, however, it’s going to take synergy to make it possible.
Comments
With Carolina selling for 500 million.
That will raise drastically the valuation for all the other franchises. According to Forbes, Carolina had the lowest valuation at 230 million, prior to the sale.
By Otto Rogers on 07.14.17 10:25am
QC fans can't be happy
but at least the Coyotes ownership group will get that when they flip
By Jeff - j1012 on 07.14.17 11:41am
Pretty disappointing that you chose to skip
writing an article about the release of UW’s financial analysis of each project to write an article about OVG’s acquisition of a music publication company.
By itsanospreybich on 07.14.17 10:36am
Not surprising, tho. He likes the "synergy". Paul's pro OVG/KeyArena.
It’s their site, their rules and their choice of what subjects they deem most important to write about. This subject checks those boxes for Paul’s OVG/KeyArena preference.
By kinsesu on 07.14.17 10:49am
I'm not the one you want writing that article
I would have trouble writing it in a meaningful way because arena comparisons for me, at the moment, begin and end with team acquisition. If and when Sodo closes that gap, my interest will return.
Once again, I recognize that I am severely in the minority on this. I don’t mean to offend people. I only mean to write what is on my mind.
By Paul Rogers on 07.14.17 1:15pm
I apologize, by "you" I meant Sonics Rising.
By itsanospreybich on 07.14.17 1:21pm
No apology needed
I think there might be something about it coming down the pike. And rightfully so.
By Paul Rogers on 07.14.17 1:26pm
You didn't offend me at all. . . . I get where you're coming from. OVG/Key is currently your choice due to "team acquisition".
Here’s the deal for me, tho. Using that as a reason for you or the SCC to be on board with OVG and disregard Sodo unnecessarily closes the door and is actually detrimental to negotiations with either group. For me. . . . OVG announcing Bruck/Bonder is great news & pretty optics, but certainly not any kind of deal breaker.
I’m in the camp that NHL partners will emerge from the shadows if street vaca gets approved. That’s why approving street vaca while continuing to negotiate with OVG just makes total sense. . . .let the market decide. That’s also why the UW financial comparison is important and why Hansen’s been saying: "Let’s compare the numbers".
I understand what your bias/preference is and why . . . . but, I just think it’s premature to the process.
By kinsesu on 07.14.17 1:47pm
So you're basically saying you are like Geoff Baker
Only able to write about this situation from one perspective and allowing that to cloud your judgment. I feel like I would find that concerning…
By blykmyk44 on 07.17.17 11:15am
"If and when the Sonics decide to come home..."
"…in the next five to ten years…"
Glad it’s going to work for you, Paul, wish it were true for the majority of fans who are following this saga.
I feel sick.
By cortone on 07.14.17 11:05am
You know that I wish it was happening sooner right?
By Paul Rogers on 07.14.17 1:27pm
I do, I don't hold that time line against you.
I don’t necessarily believe it, either, because I think shovel-ready will make it happen. But I can easily follow the logic that the Key will never get the NBA as well (also not held against you).
By cortone on 07.14.17 1:52pm
I'll pass on the synergy
Sodo is quickest path for hockey and sonics.
By rtallmadge on 07.14.17 11:22am
not without an NHL partner
I’m still waiting for Hansen to announce an NHL partner.
By John Barr on 07.14.17 11:30am
I think Sodo will need that boost when the street vacation vote is redone
By Jeff - j1012 on 07.14.17 11:39am
I think having an NHL partner before hand
Would help with a potential vacation vote.
By Otto Rogers on 07.14.17 11:58am
Hansen announcing an NHL partner now
only makes the opposition point to another hurdle they think Hansen hasnt leaped over yet. They will continue to move the finish line until Key Arena group can catch up.
By Seattle_Fan1980 on 07.14.17 5:44pm
What?
. Having a NHL group in hand at SODO might be the difference between a Yes vacation vote and a No vacation vote. This is a hurdle that Hansen has to leap over, not because OVG says so
By Otto Rogers on 07.14.17 11:36pm
Why would it change anything?
Not having an NHL investor is not any of the reasons why it was voted down before, why is that all of a sudden a requirement or to make a difference between a Yes vote?
By Seattle_Fan1980 on 07.15.17 6:26am
Because the dynamics have changed?
The realisation that the NHL continues to be much closer to a reality, than the NBA for one.
With OVG having the Hockey group ready to go, it helps their position in relation to the SoDO location
By Otto Rogers on 07.15.17 8:04am
Its a very judge a book by its cover mistake
but whatever floats your boat. Ive said it before, having an NHL investor group now is bonus at best. Hansen has had an NBA investor group for years now, how has that not been a factor? Why does OVG get to claim its NBA investor as an asset and Hansen doesnt?
By Seattle_Fan1980 on 07.15.17 3:15pm
I don't know why people think the Seattle City Council cares about sports.
They don’t. Having (or not having) pro sports teams aren’t a factor in this decision whatsoever.
It’s about money. While SoDo represents revenue for the city down the road in terms of taxes and such, it also creates a much more imminent albatross of "what to do with Key Arena" for the city. That’s why, if Hansen is looking for partners, he needs to find one that wants to manage a scaled-down, profitable, Key Arena for the city. That moves the needle. An NHL partner simply doesn’t.
Same for OVG as well; this project is entirely about money for them. I don’t think anyone is arguing they are anti-NBA. I’m sure they’d love to have the NBA in Key Arena. If the finances work. The NBA is an exceptionally greedy league, and it’s not difficult to see it deciding that being third to the table at Key Arena doesn’t create "health" for the league in the long-term. And OVG is setting themselves up to be in a position to be profitable at Key Arena without the NBA.
By Brad Johnson UW on 07.16.17 8:03am
I agree wholeheartedly agree that the city council doesn't care about professional sports
other than a ex uw jock local like Harrell who grew up a Sonics fan, the council members believe there are more important issues than accommodating professional sports and would like this over with as soon as possible. Our local government is very much unlike city councils in other American "world class" cities that subscribe to the notion that professional sports are a cultural benefit and have no problem brokering private public partnerships for Arena deals provided that the financial responsibility is equally spread out among private and public entities.
That being said, I think that even a Hansen plan to help the city fund a scaled down version of the Key wouldn’t be good enough as long as the city believes that it can get a bigger return from an OVG deal that throws in concerts w/ better sound infrastructure and at least one professional team (NHL in all probability.) I’m coming to believe that Hansen will have a chance if negotiations with the city and OVG were to fall apart if the financial ask from OVG were to be far greater than they could politically give up. He could also have a chance for a street vacation upon NBA expansion if there are grave problems with transportation, parking and attendance, as well as with an insufficient ROI for the NHL investors at the rebuilt Key.
By NWEastcoaster on 07.16.17 10:55am
100% accurate...
Isn’t it funny how no one that supports the Key Arena is saying "well OVG still needs to come up with a detailed transportation plan"? But, by all means, we need to continue to ignore all the things that are involved with the Sodo plan and point to ceremonial hurdles as "the last thing he needs to do"
By blykmyk44 on 07.17.17 11:16am
Oh it will get the NHL. I doubt the NBA follows suit 10 years from now when a renovated Key is 10 years away from "we want a new arena status for the NHL and 2-3 years away for the NBA"
By Trolltossin on 07.14.17 5:41pm