I don't know the actual details of any agreement or lack thereof between Real and local and state government officials. What I do feel is that what was supposed to be an understanding among several entities has turned into another embarrassing situation for our local political figures.
Checketts calls it an "investment," for which he would expect certain revenue considerations.
Anderson says it was to be an out-and-out gift, sans any such commitments or fiscal strings. Checketts has produced meeting notes and correspondence, supposedly supporting his original set of conditions.
What amazes me is the totally insufficient manner in which these ongoing negotiations over the past two years have been conducted - at least from the local standpoint. Since I've been there and done that many times during my 40-plus-year career, allow me to explain the basics of this process.
Never, and I repeat, never leave any negotiation or even simple discussion of potential terms without having confirmed understandings in writing.
Prepare a memo detailing the dates, content of such meetings, attendees and the caveat that if disagreement exists on the part of the other parties as to their understanding, they should, at their earliest, respond regarding such disagreement in writing.
I would have assumed local governmental officials would have followed that process, considering the rather large sum of local and state tax monies being provided. This is not to disparage Checketts' intent to gain all the revenue streams available. That is the life's blood of all major sports undertakings.
It's well-known in the industry that 65 percent to 75 percent of all expected revenue streams come from six primary wells: concessions, including alcohol; parking; naming rights; merchandising; advertising space; and, where applicable, suite sales.
This is not in defense of Checketts. He needs none. As former head of one of the largest sports franchise and facility conglomerates in the nation including the vaunted Madison Square Garden, he has succeeded in a brutally difficult world.
So when the honorable mayors of Salt Lake City and Sandy and their coterie, including state legislators, sat at the negotiation table with Checketts and his associates, they were, first of all, playing in the big leagues. And even more so, facing individuals who have proven skills in the negotiating process and know what is required to create a fiscally viable arrangement.
Like sheep going to a shearing, they should have heard the hum of the scissors.
Checketts has agreed that, regardless of the apparent evidence to the contrary, he will provide the $7.5 million, sans any conditions. If the city, or another local operating authority, finally obtains this futuristic facility, I sincerely hope they will acquire those whose background and experience can provide the professional management and marketing that will be required to avoid creating another governmental fiscal black hole.
It would have been advisable to have had this type of professional experience sitting with them at that table when they began gambling with taxpayer funds. Recognition of one's ignorance of a subject is the beginning of wisdom.
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* JAMES F. OSHUST is CEO of four sports/entertainment and conference facilities, and principal or team member for over 45 domestic and international facility design, operations and development projects.
