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Arena Naming rights agreement with Plains Township casino worth $2.375 million in cash payments over 10 years

By Andrew M. Seder aseder@timesleader.com
Times Leader Staff Writer
Andrew M. Seder on Facebook   |   @TLAndrewSeder on Twitter

WILKES-BARRE TWP. – The deal that places the Mohegan Sun name on the arena at Casey Plaza will net the Luzerne County Convention Center Authority $2.375 million over the life of the 10-year contract.

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Wachovia Arena at Casey Plaza will soon be getting a new name as part of a new deal with Mohegan Sun at Pocono Downs.

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PNC FIELD DEAL

The deal PNC Financial Services Group Inc. signed to put the bank’s name on the baseball stadium in Moosic through this year included a total investment of $1.1 million. An additional seven-year option was included in the original deal, but it’s unclear if the naming rights deal has been extended. Kristen Rose, president of the SWB Yankees, said agreements with sponsors are confidential and declined to release any details. She said that if the PNC name is on the stadium signs next year, you’ll know the option has been exercised for at least one year.

As of Jan. 21, the present Wachovia Arena will have a new name -- Mohegan Sun Arena at Casey Plaza. The convention center authority board of directors on Nov. 11 selected Mohegan Sun at Pocono Downs as the new naming rights partner for the 8,600-seat arena for the next 10 years.

The contract calls for Downs Racing L.P., the legal entity that operates the casino and harness racetrack in Plains Township, to pay $225,000 in each of the first five years of the contract and then $250,000 per year for the remaining five years.

When First Union Bank acquired the naming rights to the former Northeastern Pennsylvania Civic Arena and Convention Center in 2000, christening the facility First Union Arena, the organization was to pay the authority $150,000 annually for two years and then $125,000 annually for eight years. First Union and Wachovia banks merged in 2001, and the arena was renamed Wachovia Arena at Casey Plaza in 2003. After Wells Fargo took over Wachovia earlier this year, Wachovia officials said they were not interested in renewing the naming rights agreement, which expires Jan. 20.

But Naming Rights Committee Chairman Dave Palermo said one big difference between the old and new agreements is that Mohegan Sun will make annual cash payments to the authority, whereas Wachovia Bank made payments in lieu of fees.

Palermo said he believes the deal “is a mutually beneficial agreement between two key destination points in Northeast Pennsylvania.”

“It’s the deal that’s going to guarantee the upkeep of our main attraction in NEPA,” Palermo added.

In addition to the annual contractual obligations, the agreement requires Mohegan Sun to fork over an additional $184,359 to pay for name changes on arena signs, stationery, the ice rink, basketball court, clothing for employees and other items. It also calls for Mohegan Sun to purchase a minimum of $60,000 worth of event tickets per year.

A message left with Mohegan Sun at Pocono Downs President Bobby Soper was not immediately returned.

Andrew M. Seder, a Times Leader staff writer, may be reached at 570-829-7269.