Dan Friedkin the man behind NHL to Houston

[MMC]

 

[TheLegend]

ESPN reporting....... about as good as their NHL game coverage.


"The NHL ended up putting a team in Salt Lake City, relocating the team from Atlanta to Utah ahead of this season."

 

[hangman005]

ESPN reporting....... about as good as their NHL game coverage.


"The NHL ended up putting a team in Salt Lake City, relocating the team from Atlanta to Utah ahead of this season."

I told the Thrashers.... left at Albuquerque

 

[dj4aces]

Instead of farming out writing to AI, reporters should stick to doing the work themselves.

But it's cool to see that second Houston group now has a name.

 

[StreetHawk]

Instead of farming out writing to AI, reporters should stick to doing the work themselves.

But it's cool to see that second Houston group now has a name.

Technically the Friedkin group could be a tenant at the Toyota Center but I don’t think that is financially viable long term.
He’d have to build another arena privately if it’s going to be in the same county or go to a different one if he’s aiming for government assistance.

 

[TheLegend]

Technically the Friedkin group could be a tenant at the Toyota Center but I don’t think that is financially viable long term.
He’d have to build another arena privately if it’s going to be in the same county or go to a different one if he’s aiming for government assistance.

The article mentions though he was recently in on buying the Celtics and that would have meant playing as a tenant in someone else's arena.

It would all be dependant upon what kind of arrangement Fertitta is willing to do.

 

[aqib]

The article mentions though he was recently in on buying the Celtics and that would have meant playing as a tenant in someone else's arena.

It would all be dependant upon what kind of arrangement Fertitta is willing to do.

Wasn't there already a clause in the Rockets lease that allows an NHL team to be in the arena?

 

[TheLegend]

Wasn't there already a clause in the Rockets lease that allows an NHL team to be in the arena?

Dunno..... but didn't they just update the ice system at Toyota Center??? Would think there's a reason for it.


EDIT: Found the article.....

Toyota Center's $30M renovation underway

The Toyota Center when it hosts the Rockets' annual open practice today will feature “new rings of lights circling the top of the lower bowl,” just the “start of renovations and upgrades underway or planned for the arena." The $30M plan, which includes last year’s “upgrades to the club suites,”...

www.sportsbusinessjournal.com

Only mentions installing an "ice machine". Hope to hell they upgraded the floor piping as well.

 

[Voight]

I can see Fertitta working out an arena deal that results in him having a minority share of the team (maybe around 10% or more).

 

[aqib]

OK I found it. The Toyota Center lease basically requires the Rockets to let an NHL team in the arena. The lease for the NHL team has to coincide with the Rockets lease. Since the Rockets lease ends in 2033, a team that arrives in 3 years would really only have to deal with the Rockets for 5 years and any arena renovation/replacement deal would wind up including both teams:

https://www.houstonsports.org/wp-content/uploads/2020/02/Toyota_Center_-_Arena_Lease.pdf

In the event that an NHL Team not owned or operated by Tenant or any Affiliateof Tenant desires to play its home games at the Arena, Tenant shall, subject to the approval ofthe Sports Authority, and subject to such NHL Team being a Creditworthy Person, negotiate ingood faith to enter into a Use Agreement with such NHL Team, which Use Agreement will beconsistent with the terms and conditions described on Exhibit E attached hereto and made a parthereof. The Sports Authority's approval of an NHL Team that is not an Affiliate of Tenant maybe made subject to the payment of a one-time fee to the Sports Authority in exchange for anannual operating consideration from the Sports Authority on terms to be negotiated when suchapproval is requested. The Sports Authority may not use such one-time fee for any purposesother than to pay the Arena Rent Supported Debt, Subordinated Obligations or Arena Bonds,satisfy its obligations with respect to the Arena under the Principal Project Documents, or forenhancements to the Arena made in accordance with this Agreement . The Sports Authority shallnot provide to any owners or prospective owners of an NHL Team that is not an .Affiliate ofTenant and that will play its home games in the Arena any advantage (determined on a net basis),economic or otherwise, including, but not limited to, monetary incentives, operatingconsiderations, sponsorship or advertising commitments, ticket purchase commitments, expensereimbursement or rent breaks, which it does not also make available to Tenant or any Affiliate ofTenant in connection with their efforts to bring an NHL Team to the Arena .ARTICLE 24

 

[GKJ]

They’re gonna make this guy own the arena.

 

[aqib]

They’re gonna make this guy own the arena.

So Harris County isn't allowed to fund another arena but there is nothing that says someone can't build their own. Nor does it prohibit a suburban arena. Now I haven't been to Houston in 20 years so I can't say if there is a suburb that could support an arena.

Fertitta could come to a lease agreement to let the NHL team share the arena and they would do a joint venture on a new arena in 2033...

 

[StreetHawk]

The article mentions though he was recently in on buying the Celtics and that would have meant playing as a tenant in someone else's arena.

It would all be dependant upon what kind of arrangement Fertitta is willing to do.

So Harris County isn't allowed to fund another arena but there is nothing that says someone can't build their own. Nor does it prohibit a suburban arena. Now I haven't been to Houston in 20 years so I can't say if there is a suburb that could support an arena.

Fertitta could come to a lease agreement to let the NHL team share the arena and they would do a joint venture on a new arena in 2033...

It really doesn’t make sense for an owner like Fertitia to go from full control over the Toyota Center to half with Friedkin.
That’s why Sarver of the suns had no interest in a brand new arena to share with the coyotes in phoenix. He opted for a renovation instead to keep the coyotes out of the market.

 

[RBH]

Also some recent info from the U.S. Census that put the Houston/Atlanta expansion rumors into context in terms of market size:

Growth in Metro Areas Outpaced Nation

Population growth in U.S. metro areas as a whole was faster between 2023 and 2024 than in the previous year and outpaced that of the nation.

www.census.gov

 

[GKJ]

So Harris County isn't allowed to fund another arena but there is nothing that says someone can't build their own. Nor does it prohibit a suburban arena. Now I haven't been to Houston in 20 years so I can't say if there is a suburb that could support an arena.

Fertitta could come to a lease agreement to let the NHL team share the arena and they would do a joint venture on a new arena in 2033...

After Arizona, they’re not doing that ever with anyone if they can help it.

 

[Kolzilla]

So Harris County isn't allowed to fund another arena but there is nothing that says someone can't build their own. Nor does it prohibit a suburban arena. Now I haven't been to Houston in 20 years so I can't say if there is a suburb that could support an arena.

Fertitta could come to a lease agreement to let the NHL team share the arena and they would do a joint venture on a new arena in 2033...

Houstonian here. There are many, many suburb cities that could be potential sites: Woodlands/Montgomery Co, Katy, Sugarland/Fort Bend Co. Granted it would be ideal to be in Houston proper (at least for me), but here are many options here that I think would be feasible options.

 

[dj4aces]

In 32 Thoughts, Friedman said of Houston "there were some rumors [...] that the league would go there with someone new who would build an arena". He further states that Fertitta may have continued to throw his hatin the ring "as protection against another building coming in".

In short, Friedkin seems like someone who has incredibly deep pockets. If Fertitta is out, the Toyota Center is also out.

The idea of a new building in Houston raises other questions in terms of expansion, but it's definitely cool to see Houston is still in it, and with such a big money guy backing that play.

 

[aqib]

It really doesn’t make sense for an owner like Fertitia to go from full control over the Toyota Center to half with Friedkin.
That’s why Sarver of the suns had no interest in a brand new arena to share with the coyotes in phoenix. He opted for a renovation instead to keep the coyotes out of the market.

Any sharing of arena control would only be to avoid having another arena competing with Toyota Center. It would only be for like 5 years until they either renovate or replace Toyota Center

 

[StreetHawk]

In 32 Thoughts, Friedman said of Houston "there were some rumors [...] that the league would go there with someone new who would build an arena". He further states that Fertitta may have continued to throw his hatin the ring "as protection against another building coming in".

In short, Friedkin seems like someone who has incredibly deep pockets. If Fertitta is out, the Toyota Center is also out.

The idea of a new building in Houston raises other questions in terms of expansion, but it's definitely cool to see Houston is still in it, and with such a big money guy backing that play.

Fertitta controls the Toyota Center. Logically, no benefit for him to having an NHL team there without any skin in that team. So, what kind of revenue can an NHL get out of being a Tenant? Just game day revenue, I would guess. Is that enough for an NHL team to survive? Nash is a tenant at Bridgestone, but they are the primary tenant so get a pretty favorable deal.

The other options are for Freidkin to privately fund another arena in the same vacinity as the Toyota Center or move further outside the region per the Harris county agreement in order to obtain government funding for a new arena. But, would need to make sure that location works for the NHL and other events as that is going to be competing with the Toyota Center for those non sporting events.

 

[StreetHawk]

Any sharing of arena control would only be to avoid having another arena competing with Toyota Center. It would only be for like 5 years until they either renovate or replace Toyota Center

I was thinking long term once the lease is up. If the nhl club wants to be a tenant, that's going to be limited to game day revenue for them. I'd guess he'd rather have 100% control of an arena and compete with another one rather than share completely with a NHL team. Basically the same play Sarver did and force the Coyotes to try to get an arena deal done in Tempe. Probably would depend on the money he would need to put into it. Suns put in 1/3 of the renovation costs for their arena.

Can't get much better of a market than Houston. No where else that you can move it to and for it to still be worth its current value. No real threat of moving the team.

 

[dj4aces]

The other options are for Freidkin to privately fund another arena

That's pretty much what was said today, that he's (at least rumored to be) doing exactly that.

 

[aqib]

I was thinking long term once the lease is up. If the nhl club wants to be a tenant, that's going to be limited to game day revenue for them. I'd guess he'd rather have 100% control of an arena and compete with another one rather than share completely with a NHL team. Basically the same play Sarver did and force the Coyotes to try to get an arena deal done in Tempe. Probably would depend on the money he would need to put into it. Suns put in 1/3 of the renovation costs for their arena.

Can't get much better of a market than Houston. No where else that you can move it to and for it to still be worth its current value. No real threat of moving the team.

I think Sarver was hoping that he would force the Coyotes out of town. Which is what wound up happened but of course it was after it was after he sold the team. Also, the renovation deal was done right around the time Meruelo bought the Coyotes so the negotiations were happening the team was still owned by Barroway so he probably thought he locking them out would push them out the door.

 

[BKIslandersFan]

That's pretty much what was said today, that he's (at least rumored to be) doing exactly that.

Fertita won't be thrilled, but I think Houston can support two arenas.

 

[StreetHawk]

I think Sarver was hoping that he would force the Coyotes out of town. Which is what wound up happened but of course it was after it was after he sold the team. Also, the renovation deal was done right around the time Meruelo bought the Coyotes so the negotiations were happening the team was still owned by Barroway so he probably thought he locking them out would push them out the door.

Also because Sarver didn't want to go from 50% control/revenue of Footprint down to 50/50 with the NHL team on a new arena.
From what I have seen of Toyota Center, they have the square footage (though the playing surface is like Seattle where it's like 20 feet or something below the ground as Alexander didn't want the fans to walk up stairs to the arena like most other places. But, as long as you have the square footage, you should be able to renovate to accommodate the latest revenue trends/sources. Another factor is also transit/parking of the current facility to wherever other option you may have in mind.

if this Friedkin person is looking to build another arena in the same area with private money, it's probably going to be a new Entertainment District, like LA Kings arena was or what the GS Warriors did with Chase and redevelop the blocks around the arena.

 

[dj4aces]

Fertita won't be thrilled, but I think Houston can support two arenas.

Something tells me he'll be too busy to care a whole lot sometime in the near future.