Team ownership categorically denies the speculation. "Absolutely not," Magic vice president Cari Coats tells GlobeSt.com. "We have had no dialogue with anyone; we haven't commissioned anyone or given anybody permission to act on our behalf in this matter."

Coats says the information "that has been passed" to GlobeSt.com "is either rumor or somebody thinking we are going to do that (look for new arena sites)." She says, "I wouldn't even know where to start looking" for a new site.

Magic's ownership is on record that it is not considering moving or putting the team up for sale until it resolves a controversial new arena-construction issue, possibly in April.

At the same time, the family of Rich Devos, the billionaire owner of the Magic, is also on record that it can no longer absorb annual losses of about $12 million a year from the club's operations.

"Mr. Devos is a businessman, first, last and always," one of GlobeSt.com's industry sources says. "What he is facing now is a business decision, pure and simple. Either he stays at the same stand and continues to bleed, or he cuts his losses and runs."

To remain in Orlando, Magic ownership wants Orange County to tap its $110 million-a-year hotel tax bank and build a $236 million, 18,530-seat, 750,000-sf arena with a 2,100-car parking garage, 69 corporate sky boxes, two party suites, five food courts, a TV production studio and a practice court.

The new arena would generate an estimated $16 million of additional revenue annually for the team versus annual losses currently of $10 million to $12 million, according to the owners.

Magic officials will suggest the Downtown site for the new arena in March when they will also offer a plan to save the 12-year-old, $110-million, 17,250-seat, 395,000-sf TD Waterhouse Centre from demolition. The team's owners say a $200,000 consultants' study they just paid for shows that even a $200-million facelift of the arena would generate only $8 million in additional gross revenue, the minimum they would accept to stay in Orlando.

According to GlobeSt.com's sources, Orlando joins Charlotte in plans to relocate their NBA teams. Charlotte Hornets' co-owner Ray Wooldrige is already on record saying he plans to ask NBA commissioner David Stern in March for permission to move his team if Charlotte does not build a new $235 million arena in time for the Oct. 1, 2003 league's season openinggame. The Magic's lease expires in 2004.

Like the Magic, the Hornets ownership maintains it is losing $12 million a year from limited revenue operations at the existing coliseum. Stern already has approved a Vancouver Grizzlies' request to relocate from their Canadian quarters. Grizzlies' ownership claims it lost $40 million last year.

Instant Insights /

Magic Looking for New Home Despite Denials, Out-of-State Sources Tell GlobeSt.com

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