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Businesses would like to save even a third of NHL season
Hockey commissioner expected to announce season cancellation today
Wednesday, February 16, 2005

If National Hockey League Commissioner Gary Bettman announces today as expected that team owners have decided to cancel the remainder of the lockout-bound season, much more than the entertainment of fans will be lost.

In Pittsburgh, as in other NHL cities, a cancellation would add to the already heavy economic cost the loss of two-thirds of the season has put on hotels, restaurants, parking, tax revenues and employees, who either directly or indirectly derive income from professional hockey.

Indeed, the economic effects from the lockout that began Sept. 16 can be felt in concentric circles emanating from Mellon Arena, the home of the Pittsburgh Penguins.

Starting inside the arena, as many as 500 part-time people work at events -- ticket-takers, off-ice game officials, food and merchandise workers, and guest services, among others -- said Jay Roberts, the facility's general manager. Most work for SMG, which manages the arena; Aramark, which handles food and merchandise; the Penguins; and the Civic Arena Parking Corp.

Roberts said there were also employees of Fox Sports Net there for TV games. Then there are the people who drive the delivery trucks with the hot dogs and buns, and the people who publish the Ice Time magazine/program. And then there are the nearby businesses.

"It's a substantial amount of people, so it's a pretty big deal," Roberts said,

Mary Ellen Solomon, spokeswoman for the Pittsburgh Downtown Partnership, agreed: "I think it's safe to say the impact has been fairly significant on restaurants, hotels and parking."

As an example, she said, the Marriott City Center had reported significant declines in restaurant and lounge business as well as in lodging for visiting NHL teams and their fan clubs.

At the Ramada Plaza Suites at 1 Bigelow Square, sales director Jim Sweet said the lockout has thus far cost his facility an estimated $150,000 to $175,000 in food, drink and lodging revenue.

"Thank God for the Steelers," he said, noting that increased revenue generated by the football team's playoff season had slightly softened the blow suffered by the absence of Penguins games.

Feeling a similarly negative impact is The Carlton Restaurant. Owner Kevin Joyce said revenue losses are growing during the post-football period when food and beverage business associated with Penguins home games typically takes off.

"The [negative] impact was there in October, November and December, but in January the impact is like a sock in the face. Every four-week period we're used to having eight or nine home games that boost our top line considerably," said Joyce, vice president of the Pennsylvania Restaurant Association.

As business has decreased, so have the incomes of restaurant workers, he said.

"Every cook is working fewer hours; we either have fewer servers or the same number working fewer hours. There's an impact on servers, hostesses, chefs and, even further, on the meat cutters, on fish purveyors, on the state store because ... we're buying less," he said.

"The effects are far and wide ... I'm crossing my fingers every night that the sport recognizes they have to resolve this."

Pittsburgh city government annually takes in about $750,000 in amusement, parking and wage tax revenues from a hockey season, city Treasurer Rich Fees said. But since the lockout began last year, city officials weren't caught by surprise and therefore didn't plug the annual earnings into the 2005 budget, meaning the city won't be faced with a deficit because of the loss.

Additionally, Fees said, the Steelers' two home playoff games generated more than $300,000 in city taxes, which were not budgeted either.

The hope, of course, among everyone involved is that some portion of the season will be saved. Playing some hockey this year wouldn't make up for the losses already sustained, but it would help both financially and psychologically, Joyce and Sweet both said.

"As far as the season's concerned, we'll take anything we can get. It will definitely help this year. Anything is better than nothing," Joyce said.

"The primary help will be in knowing you have the security of a full season next year. There would be no uncertainty hanging over everyone's heads."

"What's the old saying, a piece of a loaf is better than none?" Sweet said. "We'd certainly be happy if they'd play the remainder of the season because there would be some revenue generated.

The hotel and its restaurant, the Ruddy Duck, are being renovated and will be renamed this summer the Doubletree Hotel Pittsburgh City Center.

"We hoped to draw even more [hockey] patrons next season," Sweet said. "We need to play again, doggone it."

First published on February 16, 2005 at 12:00 am
Staff writers Shelly Anderson and Timothy McNulty contributed to this report. Michael A. Fuoco can be reached at mfuoco@post-gazette.com or 412-263-1968.