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Are Pacers Positioning to Move?

The Pacers are just one of several (many? most?) NBA losing money this season and over the last several seasons. The reported figure is $7 million the last two seasons, although co-owner Herb Simon says it's more.

The Pacers lease of the iconic Conseco Fieldhouse is not particularly favorable. The team is responsible for the operating costs of the arena estimated at $15 million. In contrast, the arena owner, the Capital Improvements Board, which also owns the colts new home, Lucas Oil Field, pays the operating costs there, $27.2 million in 2008. The Pacers lease allows for renegotiation at the end of the season and the Simons intend to do just that.

David Stern, speaking at All Star Weekend, buttressed the Pacers' case, saying:

"I don't want to make Herb Simon's time too easy here, but I will say I understand what they're trying to get is a small fraction of what was done for the Colts," Stern said Saturday night during his annual address of the NBA at All-Star weekend.

"I don't want to threaten something," Stern said. "I think that to say there's a rich basketball tradition in Indiana -- talk about self-evident -- and the Pacers have been a good booster of the state, played some pretty good ball and hopefully they'll be able to work it out. I sure hope they can."

While Stern struck an appropriate tone and was likely posturing about the potential for movement of the franchise, there is a beautiful new arena designed with basketball in mind opening next year in a town just 110 miles down I-65, and it doesn't have a professional sports franchise tenant. Well, that is if you don't count the University of Louisville basketball team. It will have 22,000 seats, 72 suites and 2,000 club seats. In all, the projected cost of the arena is $238 million. It will stand willing and ready to welcome the Pacers to their new home south of the Ohio River should negotiations breakdown or the Simons decide that the pasture is greener in the Bluegrass.

HT: Indy Cornrows

Full post as published by Sports Biz on February 16, 2009 (boomark / email).