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Home , Ball Arena, Bradley Center

THE FUTURE OF THE NBA IN RETHINKING THE BRADLEY CENTER

MARK L. KASS

sk the average They quickly Milwaukee point to the fact that Abasketball fan the Bradley Center is their thoughts on the tied for the third- Bradley Center and oldest arena in the you are likely to hear NBA, only trailing it’s an average basket- Madison Square , with plenty Garden in New York of useful life left, City and Continental given the clean Airways Arena in appearance and well- New Jersey. maintained state of The Bradley the 18-year-old arena. Center opened in It has wide con- 1988 and its esti- courses, good seats, mated $70 million and luxury suites for cost was paid by the the high-rollers and late Jane Bradley corporate executives, Pettit. Arco Arena in although some of the suites are not leased. The Sacramento and The Bucks generally draw good crowds, but do not Palace at Auburn Hills, where the Detroit sell out most games. Pistons play, also opened in 1988. But to the and Bradley But despite those facts, the Bradley Center Center officials, the and the Bucks have a lot of selling to do to con- entertainment and sports facility is nearing the vince Milwaukee-area residents that a new end of its useful life, given its lack of revenue- arena is needed. generated amenities such as club seats, along “There's not much more juice left in the with restaurants and retail stores that could be orange,” said Ulice Payne, chairman of the open year round. Bradley Center’s board of directors, told the Bradley Center officials contend the Bucks Milwaukee Press Club in November 2005. need more revenue to compete against the You go to your house every day, and it's larger cities in the National Basketball great. Then you go to someone else's house Association, such as Chicago, Philadelphia, and you say, man, my closets are small. and . In the last seven years, they say, You look around the league and you see twelve NBA teams have moved into new are- what you're missing. nas that provide more revenue streams than the Bradley Center offers. Mark L. Kass is Editor of The Business Journal Serving Greater Milwaukee.

Wisconsin Interest 49 “The saving grace right now is that we is leading the call for the community to begin have a homegrown U.S. Senator who loves his debating the need for replacement for the state,” Payne said of Senator (D- Bradley Center. Wis.), the owner of the Bucks since 1985. “We “It may be old by NBA standards, but to can't rely on that. It's a bit risky. In the NBA, the average person, it looks like it is in pretty it's a dollar and cents game.” good shape,” said Milwaukee County Payne said the new generation of arenas Executive Scott Walker “It is not falling apart have been built as destinations where people or in need of any major repairs.” come for more than a game. Every seat and A recent poll by The Business Journal on its every available space throughout the building Web site, which generated nearly 1,000 is designed to produce as much revenue as responses, found that 50% want to renovate possible. The Bradley Center is not set up that the 18-year-old Bradley Center, 25% wanted to way. see a new arena built, and another 25% want to None of the main tenants—the Bucks, see nothing done. , or the Milwaukee “The time has come for the pampered, Admirals—have permanent retail stores, and overpaid athletes of this city and country to the concession stands in the building are only stop draining the pockets of the middle class open during events. who can ill afford to subsidize their lifestyles “When you look at other buildings, like any more,” wrote one reader. Conseco Fieldhouse in Indianapolis, they have Added another: “(Jane) Pettit is probably amenities there that generate revenues when turning over in her grave at the suggestion that there is not an event in the building,” he said. the center is inadequate. She might take back “A restaurant there might be open six days a her donation if she were still alive.” week. At the Bradley Center, we've got some months when we're only open one or two days The opposition grows when the topic of a month.” public financing is broached. Community and political leaders are wary of a likely battle over Indeed, building a new arena would fol- a new sports building. low a trend for the past decade in the National Basketball Association. New venues include They remember the bruising debate in the the in Houston, the AT&T mid-1990s over the financing for the $300 mil- Center in San Antonio, and the American lion Miller Park that cost at least one politi- Airlines Center in Dallas. cian—state Senator George Petak of Racine— his job. Even the Green Bay Packers, easily the The issue driving Payne’s call for the com- most popular sports team in the state, strug- munity to consider a new basketball arena is gled to get approval for a $295 million renova- the expected completion of a new five-year tion of Lambeau Field in 2002. lease for the Bucks in the next several months that would keep them in the Bradley Center “It is a process no one is looking forward through the 2009-2010 season. to,” said Patrick Curley, Milwaukee Mayor Tom Barrett's chief of staff. “There is no public But after that time is what Payne is wor- appetite right now for financing a new sports ried about. stadium.” “It may be the last long-term lease we sign Walker, who was a member of the state with an NBA team,” he said. Legislature during the Miller Park debate, was Few supporters much more blunt in his assessment of a pro- posal that would include public financing. But supporters are hard to find on the need for a new arena. No one other than Payne

50 Spring 2006 “I don't know of any politician right now attempts to get a response from the Green Bay with an interest in being reelected who will Congressman. champion this issue,” he said. “It will be a very Big financial supporters difficult process.” The Bradley Center is already providing a One possible financing mechanism that great deal of money to the Bucks. In fact, the has been mentioned by Bradley Center officials Bradley Center provided the Bucks more than would be to extend the stadium district $6 million in direct and indirect payments in authority that oversees Miller Park to a new fiscal year 2004, That number increased to $6.5 arena. That would generate tax revenue from million in fiscal year 2005. the .01% five-county sales tax that's paying off the Miller Park construction debt. State legisla- Under the Bucks’ past lease, the team pays tive action would be required and likely would no rent and receives 27.5% of total gross be opposed by many of the counties involved receipts from concessions other than programs in the controversial tax. and merchandise. The team also receives 13.75% of gross revenue from food and bever- “Any elected official who supported such ages sold in the building's a move could immedi- 67 luxury suites. ately add former to his title,” Walker said. “There The Bradley Center But Payne said the is no public support for Bradley Center cannot such a move.” debate could even keep writing checks to the Bucks. The Bradley Center become an issue in the debate could even become “The reality is we are an issue in the upcoming upcoming governor’s not going to borrow governor’s race, given the money to give to the out-state opposition to race, given the out-state Bucks,” Payne said. most things that are pro- opposition to most On the court, Kohl posed for Milwaukee. has spent money in recent Everyone remembers for- things that are proposed seasons. In 1994-1995, the mer Governor Tommy Bucks' payroll was $16.2 Thompson’s “stick it to for Milwaukee. million. This season, ‘em” line to an out-state according to the Dallas crowd during the Miller Morning News, which obtained team payroll Park debate. figures, the Bucks' payroll is $62.28 million, the For the time being, neither Governor Jim 12th highest in the 30-team league. Doyle nor his Republican opponent, Mark By comparison, the San Antonio Spurs, the Green, would posture as to whether they defending NBA champions, have a payroll of would support public financing or any state $62.7 million. The New York Knicks have the assistance for a new basketball arena. highest payroll at $125.5 million. “Governor Doyle is a great basketball fan Kohl factor and believes it’s very important to keep profes- sional basketball in Milwaukee,” said Dan Walker said the other main reason resi- Leistkow, a spokesman for Doyle. “It will be a dents will not support public financing for a long time before any decisions have to be new basketball arena is because the team is made about what the facility needs will be in owned by wealthy Kohl, who has stated the future and what the financing options are.” repeatedly that he will not move the team. Green and his staff declined to provide a Kohl, who purchased the team in 1988 for comment on the issue, despite repeated $18 million, has talked about selling the team,

Wisconsin Interest 51 but backed off a couple years ago from a deal said city officials would not support any public with former NBA star Michael Jordan. financing for a new basketball arena. The Milwaukee Brewers were barely suc- “A renovation may be able to bring more cessful in getting public financing for Miller people downtown from the region and gener- Park even with a threat that the team would be ate more income from the existing building,” moved without a new stadium, Walker said. he said. “The fact that goes unsaid is most people Several political observers said a restau- know Herb Kohl is not going to move the rant, coffee shop, retail store and other new team,” he said. “Residents in this area are attractions could be added to the building on pretty frugal and they have a hard time sup- the public plaza at North Sixth and West State porting paying for a new stadium for a streets or on land the Bradley Center owns to wealthy owner and rich players, especially the north. to these could also be with no threat to move the team.” sold, as has been done in other cities. This would result in additional revenue for the Renovation possible Bucks and a reason for fans to come to the One option being discussed in some circles arena even when there is not a game going on. in recent months is a renovation of the Bradley But Payne said completing a renovation Center, something that would be less costly would be difficult without major disruptions and easier to accomplish. to the building's three main tenants. He said About $6 million in renovations are cur- the concrete bowl that's the foundation for rently underway at the Bradley Center, includ- seats would need to be demolished and rebuilt ing new concession stands, new retail areas to support any additions to the arena, which and an expansion of a club seat area in the would be very time-consuming. location of several former luxury suites. “From a logistical standpoint, it would be In 2004, Bradley Center officials proposed very difficult to do,” he said. “It would put the a $75 million renovation plan that included Bucks at risk for a season and right now, we adding a retail store and club seats. Tapping are not willing to do that.” into tax revenue that the adjoining Wisconsin Payne agrees that public financing would Center District collects was considered as part be difficult to win. Instead, he would prefer of the funding plan. The plan was tabled dur- that the private sector seek development of a ing merger discussions with the Wisconsin new building as part of mixed-use commercial Center District and never pursued. development around the Bradley Center site. Several teams have renovated existing are- Public financing would be necessary to pay for nas in recent years. For example, a $70 million the infrastructure through a tax incremental renovation of the U.S. Airways Center in financing district or other city or county funds. Phoenix is receiving rave reviews. The Suns Development sites could include the park- were able to add additional clubs seats, restau- ing lot the Bradley Center owns at North Sixth rants, team store, and other amenities that Street and West Highland Avenue, the have increased the revenue generated in the Milwaukee Area Technical College parking 14-year-old U.S. Airways Center. The $70 mil- structure and the Bradley Center's public plaza lion project included a $50 million contribution at North Sixth and West State streets, and land by the Suns. to the north of the arena that the Bradley “I don't think we can afford not to look at a Center controls, Payne said. The board has renovation,” Walker said. retained The Polacheck Co., Milwaukee, and Milwaukee Economic Development Corp. to Rocky Marcoux, commissioner of the determine the best use of the property. Milwaukee Department of City Development,

52 Spring 2006 At one point in 2005, Payne had discus- opment potential in the Park East and the sions with the Forest County Potawatomi growth of our downtown corridor,” Taylor about the possibility of developing a casino said. near the Bradley Center. Franklyn Gimbel, a Milwaukee attorney Payne held “preliminary discussions” with and chairman of the Board, the Potawatomi, which already operate a which runs the adjacent casino in the Menomonee Valley, about locat- Center, said time and circumstances might ing a downtown casino on a parking lot adja- change public sentiment for a new basketball cent to the Bradley Center. He said the tribe arena. could lease the 3-acre lot on the northeast cor- “I think that after the 2006 gubernatorial ner of North Sixth Street and West Highland election, there may be a different view of Boulevard or consider combining the parking whether or not having an NBA franchise is of lot with other parcels that are also owned by such significance that it's worth a public the Bradley Center to assemble a site. investment in the property,” he said. However, an opening of a downtown “If you view our properties as being eco- casino would need the approval of the city of nomic drivers for having quality-of-life attrac- Milwaukee, the state and the U.S. Bureau of tiveness to people to come to Milwaukee and Indian Affairs. Most political observers call it a live in Milwaukee and develop your employ- long shot at best, with the Potawatomi likely to ment-generating businesses, there are many, instead expand their current casino in the many economic benefits that spill out to the Menomonee Valley. public,” Gimbel said. “That makes it reason- Wider development able to consider some level of public support for that in the form of user taxes that we're Julia Taylor, president of the Greater now collecting. But we will have to collect Milwaukee Committee, said any redevelop- them at a higher rate.” ment of the Bradley Center needs to include the adjoining land and the nearby Park East For his sake, Payne said he is just trying to corridor. get the conversation on a new basketball arena started so a decision can be made in a timely Taylor said financing for remodeling and matter. He admits he does not have a lot of reconfiguring an existing arena “is a difficult company in his efforts right now. equation to make work.” Discussion on the Bradley Center's future should not focus only “I'm an eternal optimist and know that the controversial approach of public funding, most major changes do not come easy,” he she said. said. “As a community we have to have the discussions on what we want to do.” “We need to think strategically as a com- munity about how we leverage a great down- town anchor facility with our economic devel-

Wisconsin Interest 53