Location, location, (re)location. That seems to be a big buzz around the Carolina Hurricanes lately, and something fans have had to deal with.
With owner Peter Karmanos Jr. looking to sell the team for multiple years and the team operating at a loss every year since 2009, coupled with numerous other “intriguing” developments, these rumors have been picking up lately. The recent news that Karmanos is being sued by his three sons for $105 million because he stopped making payments on a $101 million promissory note has sent these rumors into overdrive.
Yes, Karmanos is looking to sell the team, but he is looking for a succession plan with a local owner, where he remains in control of the team for a period of years as he transitions out. Karmanos has said repeatedly, he will not sell the team to someone who would move it.
The Hurricanes have a very expensive arena lease at PNC that runs through 2024, widely considered to be one of the best arena deals in sports. To buy that out would be unbelievably expensive, to say the least.
Speaking of PNC, Tom McCormick, the chairman of the Centennial Authority, the entity that owns and operates PNC Arena, recently told Chip Alexander of The News and Observer that he has personal confirmation from Karmanos that the team will be going nowhere. Alexander also reported that the Centennial Authority will spend $80,000 in 2017 for a feasibility study for an on-site practice facility for the Hurricanes. Seems like an odd move for a team destined to be packing its bags in the next couple years.
If that’s not enough assurance for you, the NHL itself has commented on the situation. At his media address prior to the beginning of the Stanley Cup Final, NHL commissioner Gary Bettman said, “The Carolina Hurricanes are fine.” Deputy commissioner Bill Daly also recently said on Sportsnet’s Hockey Central that the lawsuit is a family matter and the league is unconcerned with both it and the “entire situation of what’s going on in Carolina,” and that the league knows more about both situations than the public and media.
But even with all that being said, let’s imagine for a moment that the lawsuit is a big issue. Let’s say it hits Karmanos like a ton of bricks, bankrupting him and forcing him to sell the team, but no local buyer steps up. It’s still likely not going anywhere.
The current NHL regime is not a fan of relocation except as a last resort. It is very committed to growing the game in southern NHL markets. Since Bettman took over in 1993, only five teams have relocated, two of which came from Canada, and two from Hartford (who became the Hurricanes) and Minnesota, all four of which were sent to southern markets. In fact, in Bettman’s tenure, the Atlanta Thrashers in 2011 were the only southern team to be relocated to a northern market, Winnipeg. Even if the Hurricanes’ situation became that dire, the NHL has a history in these situations.
In 2009, the Arizona (formerly Phoenix) Coyotes declared bankruptcy. The NHL stepped in and owned and operated the team for several years until stable ownership could be found. History suggests they would do the same for the Hurricanes, who have a better arena deal, and would be the first NHL team in such a situation with a Stanley Cup Championship on its resume. Bettman’s history suggests he would have to be dragged, kicking and screaming before he moved one of his biggest non-traditional market success stories.
While the attendance numbers are troubling, the problem can easily be fixed. The Hurricanes’ poor numbers can likely be attributed to a poor on-ice performance. The team came in last in attendance this past season, but missed the playoffs last year. However, Triangle hockey fans have proven in the past that they will support a winning team, as in 2006-07 coming off the Stanley Cup win the team was 15th in average attendance. The direction General Manager Ron Francis and head coach Bill Peters have the team moving in suggests these numbers will quickly improve.
On top of all these other strikes against relocation is that the League is likely on the verge of expansion, with Las Vegas and Quebec City the two rumored targets. Each expansion team pays a $500 million fee that all 30 current owners split. Why would the League pass that up in favor of relocation when only Karmanos would pocket anything?
While as a southern NHL franchise there will unfortunately probably always be talk about the Carolina Hurricanes finding a new home, these rumors have proven to be unfounded and, frankly, don’t make sense. For a multitude of reasons, it is much more likely the team is here to stay and will continue to call Raleigh its home for years to come.
