City of Norfolk, VA

Norfolk,

Nba Franchise Financial Analysis And Relocation Program Management

In 2001 the NBA’s Charlotte Hornets began to entertain the possibility of relocating to another market. Their consultants’ review of B&D’s MLB market and arena studies led the team to consider the Hampton Roads region as a possible new home, and the city of Norfolk became the lead public entity in discussion with the Hornets. B&D was engaged as the city’s sports facility consultant, responsible for updating the 1995-96 arena financing plan, analyzing and advising the city on the economics of the NBA, and negotiating development and lease terms with the Hornets. We discovered that Norfolk could finance the new arena without assistance from other local public entities because their financing plan hinged on capturing new tax revenues created by the arena, enabling the state to fund a much higher percentage of the total cost. We also assisted in the engagement of IMG as marketer of the arena’s naming rights and major sponsors. Within three months, the team we assembled developed a complete financing plan and project concept for the arena and obtained a naming rights commitment from a Fortune 500 company at a value 25% higher than the current market rate.