Has this happened before, a casino buying an arena? I wonder if they can install slot machines and card game tables in the arena...
Mohegan Sun entered into a 10-year agreement as the naming rights partner of the arena at Casey Plaza, after the Luzerne County Convention Center Authority tentatively approved the agreement Wednesday.
The final contract, which is expected to be approved within the next week, would rename the county's convention center and arena to the Mohegan Sun Arena at Casey Plaza.
"We do have a strong appreciation of the significance of the arena for Northeastern Pennsylvania" Mohegan Sun at Pocono Downs President Bobby Soper said. "Not only because of the tremendous entertainment it has brought to the region, but because of the economic environment it has catalyzed to this area. To be associated with such an important component of this community means a lot to us."
Authority Chairman Pat Judge would not disclose details of the contract, including the amount Mohegan Sun will pay for naming rights, but said the contract was "very favorable to the authority."
After merging with Wells Fargo, Wachovia officials decided earlier this year against renewing their $125,000-a-year naming rights contract. That contract originated as a 10-year-deal with the arena beginning in January 2000 with First Union Bank. The arena was renamed Wachovia Arena at Casey Plaza in August 2003, with Wachovia Bank's acquisition of First Union.
"Of all the companies we negotiated with over the last year, Mohegan Sun emerged as the strongest partner, Judge said. "The revenue from this sponsorship will be reinvested into the building to enhance the customers' experience."
The arena is expected to officially change names in early January. Judge said if the contract and other details are finalized in time, the name change would be reflected on the arena in December.
The arena, which opened in 1999 as the Northeastern Pennsylvania Civic Arena and Convention Center, is celebrating its 10-year anniversary.
Soper said Mohegan Sun at Pocono Downs has tried to be a part of the community since the Plains Township slot parlor opened in 2006.
"We've had interest for several months and we've had discussions with the authority for several months about a possible naming rights partnership," Soper said. "We've always had some interest in this opportunity. Especially with the prospect of table games, we felt the time was right to expand our brand. I think it just fit well. The stars were aligned on this one."
State lawmakers are reviewing legislation that would legalize table games throughout the commonwealth in order to close holes in the state budget.
Mohegan Sun's casino in Connecticut has an arena on the casino grounds. Soper said the company is continuing to make its Plains Township facility an entertainment destination in the region and partnering with the arena would be beneficial for both organizations.
"The fact that you have two premiere entertainment groups coming together, I think there is an opportunity to leverage each other that will benefit both of our respective organizations," Soper said.