Magic Low-Ball Offer on New Arena Construction is No Slam-Dunk

At a media gathering in his 150,000-sf RDV Sportsplex in suburban Maitland, FL, DeVos said he wants Orange County taxpayers to pay 80% or $200 million of a proposed $250 million Downtown basketball court for his Orlando Magic. DeVos, co-founder of the Michigan-based Amway Corp. retail organization, would pay 4.2% or $10.5 million.

Representatives in the office of Orange County chairman Rich Crotty, tell GlobeSt.com the offer is "totally unacceptable."

In addition to the 80% funding from the city and the county, DeVos also wants the local governments to pay him $1 million a year for managing the arena. DeVos figures his RDV Sports organization can generate $40 million in gross revenue from the new building's concession operations and ticket sales. He wants that amount added to his planned $10.5 million contribution. Government officials also reject that plan as creative accounting.

Most appalling to government and business groups is the DeVos demand for a $121.5 million contribution from the area's tourist tax fund that generates about $105 million a year earmarked for hospitality marketing and promotions. A member of the Central Florida Hotel & Lodging Association tells GlobeSt.com, on condition of anonymity, that proposal won't fly also. "It's off the wall," the trade group member says.

Besides the $121.5 million from the hoteliers, DeVos wants the state to kick in $28.5 million and Orlando, $50 million. He made no proposals on what the city should do with the 12-year-old, 17,250-seat TD Waterhouse Center which currently houses the Magic.

DeVos is adamant in arguing the existing arena's lack of revenue-generating skyboxes and other sales-triggering amenities is causing his team to lose $10 million a year.

Forbes magazine estimates the net worth of DeVos at $1.6 billion and places him among the wealthiest individuals in the United States.