Sports Authority of Hampton Roads
NHL Expansion Franchise Bid Analysis
By 1994,
the localities within the Hampton Roads region
of Virginia — including the cities of
Norfolk, Williamsburg, and Virginia Beach —
formed the largest metropolitan statistical
area in the country without a major league
professional sports franchise. At this time,
the region-wide Sports Authority of Hampton
Roads began considering the development of a
20,000-seat, multi-use arena as a joint venture
with Old Dominion University. The Sports
Authority sought to leverage the proposed
facility to enhance the regional quality of
life and to improve the region's national image
as a major market by attracting a major league
professional basketball or hockey team, while
the University sought to provide a home for its
varsity basketball programs and student
events.
Brailsford & Dunlavey, teamed with HOK Sports Facilities Group, was hired to conduct a detailed market, financial, and architectural feasibility study for the proposed facility. B&D's responsibilities included:
- Determination and refinement of the client's strategic objectives
- Evaluation of the project's market potential, including an assessment of the region's competitive position versus other markets for the attraction of a major league sports franchise, as well as other sports, family shows, concerts, and flat show events
- Analysis of the overall financial viability of the proposed arena, including both development and operating economics
- Recommending financing structures including joint venture configurations, debt instrument mixtures, seat licenses, club seat and naming rights revenues, and tax increment alternatives
- Site selection, including analyzing planning initiatives, parking, and traffic patterns
- Extensive consensus-building between the many different political constituencies of both the Sports Authority and the University.
B&D's early strategic analysis revealed that the project concepts conceived by the Sports Authority and the University were divergent to a degree that they should be treated as separate projects, with each allowed to proceed (or not proceed) on its own merits. B&D's preliminary financial analysis demonstrated the viability of an on-campus University facility at a capacity of 7,000 to 10,000 seats, which was subsequently developed. B&D separately demonstrated the feasibility of a 20,000-seat arena as home to an NBA or NHL franchise. The results of this study later were used as the basis for a 1995-1996 effort by the Hampton Roads region to secure an NHL expansion franchise and a 2001-2002 effort to relocate the NBA's Charlotte Hornets to Norfolk.