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If season cancelled, Magic would owe Orlando $2.8 million

Nov 24, 2011, 8:04 AM EST

Amway-Center

Yes, there are some owners willing to miss the season to crush the union.

But there also are motivations for other owners to get a deal done.

Take the Orlando Magic, for instance. While they would love tools in the new deal to make it more likely they can keep Dwight Howard, they also have some motivations to make sure there is a season — $2.8 million reasons, according to the Orlando Sentinel.

City government officials emphasize that the Magic are obligated to pay the city $2.8 million even if the entire season is canceled, so the city has some degree of protection from the effects of work stoppage, especially as it incurs some expenses in running the building.

“It was one of our lead negotiating points in the contract when we did the negotiations with the Magic,” the executive director of the city’s venues, Allen Johnson, told me in September. “We never anticipated a [lockout]. We never wanted one.”

The city would get more revenue if there are games, but that’s a nice little insurance policy for a municipality that, like every other city in the nation, is facing fiscal challenges.

But it also would be a challenge for the Magic ownership, which will have no revenue coming in but will have to cut checks to cities, sponsors, ticket holders and more. They will be writing checks they don’t want to write. And nobody will be happy.

Better to settle now and be playing by Christmas.

  1. hellinisamoron - Nov 24, 2011 at 9:28 AM

    Cmon Hellin. You think the owners care about 2.8 million? How much did the Magic lose last year? You can’t even get a marginal player like JJ Redick for that under the previous CBA. Keep reaching. The fact that owners are about to crack even though the current deal will not address the major systemic issues that face teams shows you who actually cares about the fans. Your lack of journalistic integriy is not surprising, but remains disappointing.

  2. eaglessuperfan - Nov 24, 2011 at 10:12 AM

    Well they are fighting over numbers that small at this point if you spread it out over a ten or 7 year deal. These “System” issues are really about saving money for small market teams in the money range.

  3. ogre2010 - Nov 24, 2011 at 11:59 AM

    I think the NBA owners knew this way beforehand

  4. firemarshal1 - Nov 24, 2011 at 4:40 PM

    Don’t worry, the American taxpayers will bail them out. That’s the new America.

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