Sarver is threatening to move the Suns to Seattle or Las Vegas

[JCSunsfan]

This afternoon on 98.7 fm, they ran an interview with the CEO of the Suns named Jason Rowley. I have never heard this name in my life. I guess his title should include, "Sarver's main ballwasher."

But he brought up an interesting point, which I think is lost on most people in Phoenix. The Suns don't own the arena. They are tenants. In most landlord/tenant relationships, the landlord pays to keep the main infrastructure functional and accommodating to the tenant. The tenant is responsible for leasehold improvements. He emphasized that this fact has been lost on many people.

So why in the world is it lost? You bring this up three days before the Phoenix City Council votes on funding these renovations? You don't think the public has an impact on how these people vote? How about a whole half year's worth of press releases, advertisements, broadsides? It's like they're realizing their dilemma at the 11th hour. And one of their "town halls" was in Paradise Valley? How silly and a waste of time.

Anyways...listen and hear.

http://arizonasports.com/category/podcast_player/?a=992270c1-27f2-4622-9f61-a9dd018b6a58&sid=1005&n=Burns+&+Gambo

A tenant should not have to run a PR campaign to get the landlord to fix the plumbing and electricity. They have been working on this behind the scenes for years. The City of Phoenix needs to decide whether they want to be landlords or not. Sell the building. I am sure Sarver or a private party would buy it. Or fix it.

This is really funny. I am quite conservative, so this is not a normal position for me to take. But I also own rental properties and have for decades. I understand my responsibilities as a landlord. If I want to keep the tenant, I need to make sure the property is what they want and in reasonable up to date condition.

 

[Dback Jon]

A tenant should not have to run a PR campaign to get the landlord to fix the plumbing and electricity. They have been working on this behind the scenes for years. The City of Phoenix needs to decide whether they want to be landlords or not. Sell the building. I am sure Sarver or a private party would buy it. Or fix it.

This is really funny. I am quite conservative, so this is not a normal position for me to take. But I also own rental properties and have for decades. I understand my responsibilities as a landlord. If I want to keep the tenant, I need to make sure the property is what they want and in reasonable up to date condition.

Yes and no. If it is structural (roof, etc) then landlord. But if a tenant wants an upgraded bathroom or office, that is on them.

 

[JCSunsfan]

Yes and no. If it is structural (roof, etc) then landlord. But if a tenant wants an upgraded bathroom or office, that is on them.

Exactly what Rowley said. This is why a shared cost is being discussed. There are a few things to consider.

Tenant improvements. In commercial real estate, it's on the tenant.
Maintenance and care. On the owner. (usually included in the triple net cost of the lease)
Updating obsolescence. Negotiated at lease time. The owner can decide he does not want to update the building, but tenants can choose to go elsewhere or get out of their lease in some cases.

All three of these things are going on here. This is just business as usual.

 

[Superbone]

6-2. Passed!

 

[TJ]

Good. Now renovate the team and front office

 

[Mainstreet]

Great news!

 

[Mainstreet]

Here is what is included:

• Phoenix pays $150 million for arena renovations.
• Suns pay $80 million for renovations and any cost overruns.
• After the renovation, Phoenix will pay $2 million annually for 12 ½ years into a new renewal and replacement fund, which will be used for future renovation needs.
• Suns will pay $1 million into the new fund for 12 ½ years.
• Suns will continue to operate and maintain the building, including booking concerts and other events.
• Suns will continue to pay rent to the city (calculated as a percentage of annual proceeds).
• Suns will build a new practice facility (estimated to cost $25 million-$50 million) somewhere in Phoenix.
• Suns commit to staying in downtown through 2037 with an option to extend the lease to 2042. If the team leaves before 2037, it will face up to a $200 million fine.

By Jessica Boehm, Arizona Republic Published 5:54 p.m. MT Jan. 23, 2019 | Updated 6:01 p.m. MT Jan. 23, 2019

https://www.azcentral.com/story/new...illion-suns-arena-renovation-deal/2648687002/

 

[Mainstreet]

More information can be found at the link below.

http://ktar.com/story/2407997/phoenix-city-council-oks-235m-renovation-plan-for-suns-arena/

 

[AzStevenCal]

6-2. Passed!

Whew. I was afraid I'd have to move to Las Seattle.

 

[BC867]

Whew. I was afraid I'd have to move to Las Seattle.

I thought you already did.

 

[JCSunsfan]

This is actually really good news for the perception of the team and Sarver around the league. It turns out that the threat to move a few weeks ago was fake news with a council member exaggerating a conversation and a reporter eventually retracting.

But the 24 hour sports cycle had to say something, so they piled on.

The teeth have been pulled completely on that now. Now the Suns are going to get a new practice facility too. I expect it to be closer to Paradise Valley, where most of the players live.