Quote:
Originally Posted by troutman
He said the league will bypass the problem posed by the Gift Clause, which prohibits a public administration to make donations to a private company. It will have to establish that the landlord provides a service to the municipality, he says. "If we agree that the team provides a service to the City by managing its arena for $ 17 million per year, while the Goldwater Institute can not rely on the Gift Clause," Mr. Lieberman ahead.
GWI would have to argue that the $17 Million management fee is a farce - it is far above market value for this service, and truly a subsidy (Scruggs called it a subsidy at one point). I think that is the truth of it, but I doubt GWI will risk it.
AEG paid $50 million to Kansas City for the right to manage The Sprint Center (which was opened in 2007) through 2033
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You can't just look at the surface of the deal and make a comparison, there are way too many possible underlying aspects to do so accurately.