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

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Value of national and Value of national and international media/marketing international media/marketing exposure is priceless! exposure is priceless! 5

7 Social Media Carries Us to the World

Urban Focus: Cleveland Cavs Purchase in 2005 12 Cleveland Businesses 4,000 Jobs in NE Ohio $1 Billion Investment 8

Cavaliers Youth Fund Grants and Donations $21.4 million TOTAL of $30 million + in Community, Civic and Charitable Giving Additional Community Gifts $8.6M 9

✓ Since 2005, Quicken Loans Arena has been in the top 100 Arenas as listed in Pollstar Magazine ✓ From 2005 to 2012 The Q ’ s attendance has risen 57% compared to 6% nationally ✓ In 2011, The Q reached its highest live entertainment attendance spot at 31st internationally and 12th domestically 10

200+ Events at The Q Annually 2 Million Attendees Most diverse and largest number of unique patrons 11

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 McDonald ’ s HS All American Basketball Game 2003 NCAA Women ’ s Basketball Regional games 2006 NCAA Women ’ s Basketball Final Four 2007 2009 US Figure Skating Championships NCAA Men ’ s Basketball Second and Third Round 2011 2013 Continental Cup 2013 Senior Games Parade of Athletes 2014 Gay Games Opening Ceremonies NCAA Men ’ s Basketball Regional games 2015 2018 NCAA Wrestling Championships 12

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Private Investments Significant private investment in The Q since 1994 opening $69 million Cap Ex $14 million Gatew ay Payments Repairs and Maintenance $45 million Cleveland Clinic Courts $25 million $153 Million TOTAL $153 Million TOTAL 14

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. 15

NBA Comparable Facilities 16

NBA V ENUE 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 17 Milwaukee Bucks Bradley Center 1988

Quicken Loans Arena 10 year Lease-Obligated Major Capital Repair, Replace & Update Projection For Years 2014-2023 Architectural/Structural Systems Event Systems   Roof Replacement Arena Bow l Curtain Replacement   Exterior Precast Concrete Panel Sealing / Painting Video Control Room Update to HD   Window Replacement Arena Bow l Sound System and Amplifier Replacement   Sidew alks, Steps, and Railing Replacement HD Scoreboard System  Elevator and Escalator Refurbishment Safety & Security Systems  Multi-level Seating Space Replacements, Updates  and Reconfigurations Fire Alarm System Update and Replacement  Security Command Center Refurbishment and Camera Mechanical & Electrical Systems Updates  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 Estimated expense range:  Reheat & Variable Air Volume box Replacement  High Volume Cooling/Heating Fan & Fan Coil $55 million to $65 million over Replacement  Ventilation Management and Control System 10 years. 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  18 Arena Bow l Lighting System Replacement