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Lease Details Between OKC and Prodigal Hockey


The lease agreement between Prodigcal Hockey, LLC and SMG has been posted on the Oklahoma City government website.  SMG manages the Cox Center Arena for the Oklahoma City Public Property Authority.

Details below

 

SMG will collect on behalf of the OCPPA:
• a license fee from Prodigal Hockey, LLC in the amount of $7,500 per game ($300,000 annually plus rent from pre-season and play-off games). The license fee will be adjusted after the first term by the compounded increase in the Consumer Price Index, capped at 3% per year;
• the first $200,000 of annual gross revenue from catering services during Home Games and other Team Events plus 92.5% of all sales in excess of $200,000;
• the first $280,000 of annual gross revenue from food and beverage concessions during Home Games and other Team Events plus 75% of all sales in excess of $280,000;
• 30% of net revenues from the sale of Permanent Advertising within defined Licensed Area (excluding Cox Naming Rights and pre-existing permanent advertising and similar agreements);
• 30% of net revenues from the sale of Loge Box Seat Licenses;
• a facility fee in the amount of $2.00 on all tickets sold for Home Games including single game tickets, season tickets, packaged tickets and group tickets.

 

Prodigal Hockey, LLC will collect:
• net ticket sales from its Home Games;
• 7.25% of gross revenue from catering services revenue after annual sales exceed $200,000;
• 25% of food and beverage concessions revenue after annual sales exceed $280,000;
• 70% of net revenues from the sale of Permanent Advertising within defined Licensed Area (excluding Cox Naming Rights and pre-existing contractual inventory);
• 70% of net revenues from the sale of Loge Box Seat Licenses;
• 100% of temporary game day advertising such as on-ice advertising and dasher board signage;
• revenues from the sale of Team merchandise and merchandise related to other affiliated sports enterprises, sold at Team’s expense.

SMG is responsible for the ice plant as well:

For Home Games, SMG will provide utilities, ice making, event staffing, facility hockey related event equipment, set up services and certain video services. Additional charges may be assessed for games played on holidays, etc

 

I'm not sure how this compares to other AHL leases, but at first glance, it seems like a very nice agreement for Prodigal Hockey if they can draw Blazers-like attendance numbers.  8,000 people per game at the average AHL ticket price of $14 is $112,000 per game at the gate alone.  If the Oilers do indeed work this out, and bring their AHL team to Oklahoma City, it seems that they'll have stability at the AHL level for the first time this decade.  The mayor has plans for the team to be in Oklahoma City for twenty years and in the Cox Center for the next ten and the history of the Blazers run here portends a lengthy stay for the AHL.

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