[Rumour] Capitals moving to North Virginia

[butterfly]

Originally Posted by KelVarnsen

Oy

Oyesteryear...

[skudr248]

As a new Alexandria, VA resident, I welcome this deal. 15 or so min walk from my new place!!

[gvitaly]

Originally Posted by Mightyfire89

Ted Leonsis, the owner of the Capitals has a net worth of around 2.8 Billion. If he spent 800 million, he would still be worth 2 billion. I understand the financial math involved is not quite that simple, but asking for handouts from area taxpayers for a new building still makes him a POS in my mind. That might be just me though. With rare exception, I loathe the Uber rich for their lack of conscience when it comes to giving back to the society that made them wealthy.

I always thought that a good solution would be giving cities partial ownership of a team if the city commits to building an arena. For example if a new building increases the Flames franchise valuation from $1B to $1.5B, then the city should get a $500M share for 33% of the franchise.

That also prevents the team from simply leaving once the arena gets older. That way, the city benefits from a potential sale/move of the franchise.

[butterfly]

Originally Posted by gvitaly

I always thought that a good solution would be giving cities partial ownership of a team if the city commits to building an arena. For example if a new building increases the Flames franchise valuation from $1B to $1.5B, then the city should get a $500M share for 33% of the franchise.

That also prevents the team from simply leaving once the arena gets older. That way, the city benefits from a potential sale/move of the franchise.

Well, losing all the appreciation of the franchise to the city kind of destroys the incentive for having a new building.

[Jiggy]

Originally Posted by gvitaly

I always thought that a good solution would be giving cities partial ownership of a team if the city commits to building an arena. For example if a new building increases the Flames franchise valuation from $1B to $1.5B, then the city should get a $500M share for 33% of the franchise.

That also prevents the team from simply leaving once the arena gets older. That way, the city benefits from a potential sale/move of the franchise.

If the city owned an ownership share would they also have to cut a cheque if the team suffers losses?

[jayswin]

Originally Posted by butterfly

Well, losing all the appreciation of the franchise to the city kind of destroys the incentive for having a new building.

Cool, then build it yourself as an owner and enjoy all the benefits then, right?

[DoubleK]

Originally Posted by Jiggy

If the city owned an ownership share would they also have to cut a cheque if the team suffers losses?

No, they want the upside with no risk.

[gvitaly]

Originally Posted by Jiggy

If the city owned an ownership share would they also have to cut a cheque if the team suffers losses?

Yes, but only after receiving a cheque from the league's revenue sharing.

If a team keeps losing money, that would be an incentive to facilitate a sale, and move the team. The same would work for making money, and I think that most cities would be generating revenue that way.

Again, that's a hypothetical scenario, just seemed like a better solution than just building arenas with taxpayer money.

[jayswin]

Originally Posted by DoubleK

No, they want the upside with no risk.

But the owners want them to get nothing regardless of upside for their contributions (and it's by and large upside in terms of pro sports)?

[DoubleK]

Originally Posted by jayswin

But the owners want them to get nothing regardless of upside for their contributions (and it's by and large upside in terms of pro sports)?

Since when do cities get nothing?

[jayswin]

Originally Posted by Jiggy

If the city owned an ownership share would they also have to cut a cheque if the team suffers losses?

Sure, I think that's fair to make it a partnership agreement where both parties benefit from revenue and accept risk? Do you?

[jayswin]

Originally Posted by DoubleK

Since when do cities get nothing?

What do they get?

[KelVarnsen]

Originally Posted by jayswin

What do they get?

Debt

[DoubleK]

Originally Posted by jayswin

What do they get?

You said they get nothing. I am asking you to define "nothing", not respond with rhetoric.

[PepsiFree]

When someone says “define nothing” instead of naming even one thing, it’s pretty telling.

[jayswin]

Wait, Calgaryboy still posts here!? Love that guy. (just saw he's viewing the thread)

[troutman]

Vintage arenas that lasted a long time:

https://bleacherreport.com/articles/...as-of-all-time

Montreal Forum 70 years
Maple Leaf Gardens 68 years
Boston Gardens 67 years
Chicago Stadium 65 years

[jayswin]

Originally Posted by troutman

Vintage arenas that lasted a long time:

https://bleacherreport.com/articles/...as-of-all-time

Montreal Forum 70 years
Maple Leaf Gardens 68 years
Boston Gardens 67 years
Chicago Stadium 65 years

Those are mostly irrelevant, as revenue generating has changed dramatically. Back in the day you charged $2-$10 a ticket and could keep, cold, cold arenas at 11-15k chumming along in perpetuity as fans just accepted that as what a hockey game experience was and they didn't pay a lot for it.

Once they started moving towards suites and expensive lower bowl seats as a main driver of revenue the "need" (in quotes becuase it should have been a need for owners, but somehow that need was pushed onto cities) became to have 17-20k stadiums with 30-70 box suites.

[Sofa GM]

Originally Posted by KelVarnsen

Yes very much so.

So you would just say “well I should just pay 1/4 of my net worth so taxpayers don’t have too…”

Leonsis is worth $2.4B, the amount of money being talked about is literally 25% of his net worth.

[Winsor_Pilates]

I always wonder why anyone who hates the rich and capitalism so much watches professional sports.
I understand the frustration and concerns with modern wealth inequality, but why support pro sports as a consumer when it's an area that's getting so out of hand?
Do you buy Louis Vuitton and complain about the profits LVMH are making?

Stop feeding these businesses with your support if it's something that important to you.