1 2 3 4 Value of national and Value of national and - - PowerPoint PPT Presentation

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Value of national and international media/marketing exposure is priceless! Value of national and international media/marketing exposure is priceless!

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Social Media Carries Us to the World

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Cavs Purchase in 2005 12 Cleveland Businesses 4,000 Jobs in NE Ohio $1 Billion Investment

Urban Focus: Cleveland

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Cavaliers Youth Fund Grants and Donations $21.4 million Additional Community Gifts $8.6M

TOTAL of $30 million +

in Community, Civic and Charitable Giving

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Since 2005, Quicken Loans Arena has been in the top 100 Arenas as listed in Pollstar Magazine

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From 2005 to 2012 The Q’s attendance has risen 57% compared to 6% nationally

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In 2011, The Q reached its highest live entertainment attendance spot at 31st internationally and 12th domestically

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200+ Events at The Q Annually 2 Million Attendees

Most diverse and largest number of unique patrons

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National and International Events at The Q

1995 US Figure Skating Championships 1996 USA Olympic Dream Team Exhibition 1997 NBA All Star Weekend 2000 US Figure Skating Championships 2002 US Gymnastics Championships 2003 McDonald’s HS All American Basketball Game 2006 NCAA Women’s Basketball Regional games 2007 NCAA Women’s Basketball Final Four 2009 US Figure Skating Championships 2011 NCAA Men’s Basketball Second and Third Round 2013 Continental Cup 2013 Senior Games Parade of Athletes 2014 Gay Games Opening Ceremonies 2015 NCAA Men’s Basketball Regional games 2018 NCAA Wrestling Championships

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Private Investments

$153 Million TOTAL $153 Million TOTAL

Significant private investment in The Q since 1994 opening

Cap Ex Repairs and Maintenance Gatew ay Payments $69 million $45 million $14 million Cleveland Clinic Courts $25 million

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2004 Restructured Gatew ay Lease

✓ While both the Indians’ and Cavaliers’ w ere already

paying 100% of their ow n maintenance, operations, venue upgrades/renovations, as w ell as all capital projects, they agreed to a lease re-structuring w ith Gatew ay in 2004

✓ Net result w as, the teams continued to cover all

expenses, w ith the exception of any future major capital projects in excess of $500K (i.e. major structural or core system related, for w hich Gatew ay is obligated to handle) and the teams now share the costs and expenses of Gatew ay’s annual operations. This includes their office, security, common areas, etc. That amounts to approximately $3 million annually.

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NBA Comparable Facilities

NBA VENUE C O MPARISO N

Team Name Arena Name Year Built/Renovated Golden State Warriors TBD 2017 Sacramento Kings TBD 2016 Minnesota Timberwolves Target Center 1990/2014 New Orleans Pelicans New Orleans Arena 1999/2014 San Antonio Spurs AT&T Center 2002/2014 New York Knicks Madison Square Garden 1968/2013 Brooklyn Nets Barclay Center 2012 Oklahoma City Thunder Chesapeake Energy Arena 2002/2012 Orlando Magic Amway Center 2010 Toronto Raptors Air Canada Centre 1999/2009 Boston Celtics TD Garden 1995/2008 Detroit Pistons Palace of Auburn Hills 1988/2006 Charlotte Bobcats Time Warner Cable Arena 2005 Memphis Grizzlies FedEx Forum 2004 Houston Rockets Toyota Center 2003 Phoenix Suns US Airways Arena 1992/2003 Dallas Mavericks American Airlines Center 2001 Miami Heat AmericanAirlines Arena 1999 Indiana Pacers Bankers Life Fieldhouse 1999 Denver Nuggets Pepsi Center 1999 Atlanta Hawks Philips Arena 1999 Los Angeles Clippers Staples Center 1999 Los Angeles Lakers Staples Center 1999 Washington Wizards Verizon Center 1997 Philadelphia 76ers Wells Fargo Center 1996 Portland Trailblazers Moda Center 1995 Chicago Bulls United Center 1994

Cleveland Cavaliers Quicken Loans Arena 1994

Utah Jazz EnergySolutions Arena 1991 Milwaukee Bucks Bradley Center 1988

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Quicken Loans Arena 10 year Lease-Obligated Major Capital Repair, Replace & Update Projection For Years 2014-2023

Architectural/Structural Systems  Roof Replacement  Exterior Precast Concrete Panel Sealing / Painting  Window Replacement  Sidew alks, Steps, and Railing Replacement  Elevator and Escalator Refurbishment  Multi-level Seating Space Replacements, Updates and Reconfigurations Mechanical & Electrical Systems  Building Automation System Control Replacement & Commissioning  Energy-efficient Chilled Water Pump Replacement  Energy-efficient Condenser Water Pump Replacement  Energy-efficient Water Cooled Centrifugal Chillers  Energy-efficient Cooling Tow er Replacement  Air Handler Coil Replacement  Reheat & Variable Air Volume box Replacement  High Volume Cooling/Heating Fan & Fan Coil Replacement  Ventilation Management and Control System Replacement  Energy-efficient Bi-Polar Filters for Seating Bow l Air Handler Units  Energy-efficient Variable Speed Chiller Plant Replacement  Pneumatic Control Systems Update to Digital  Ice Floor and Chiller Plant Replacement  Lighting Control System Replacement  Arena Bow l Lighting System Replacement Event Systems  Arena Bow l Curtain Replacement  Video Control Room Update to HD  Arena Bow l Sound System and Amplifier Replacement  HD Scoreboard System Safety & Security Systems  Fire Alarm System Update and Replacement  Security Command Center Refurbishment and Camera Updates

Estimated expense range: $55 million to $65 million over 10 years.