Quote:
Originally Posted by You Need a Thneed
That's assuming you can sell all of the seats, and again, remember, those seats you are adding are the furthest away seats, and may not give a good game experience. You get more revenue from those seats, but you also have to pay more cleaners, consession workers, ushers, etc, to work the extra seats. The seats you add bring in less revenue, but the cost of servicing them is the same as any other seat.
The big reason why those extra seats cost so much to build, is that the roof spans are bigger, the whole building becomes taller. More stairs are required to get people up higher, and the stairs have to be wider, because they must handle more people. More people wanting concessions and bathrooms means that more of those are going to be required, meaning more space down below is required to handle those things. More entry doors, more ticket checkers, etc.
Your calcuations say $150 million in ticket revenue alone, but it might cost an additional $100 million or more just to build those seats.
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Doesn't the Bell Centre in Montreal have 21,000 seats? And from what I've heard, most of them, including the 'bad' seats have a very good view of the ice. Similar to what the MTS Centre has here in Winnipeg. The seat at the VERY top has a spectacular view. Obviously it is different considering there are only 15,000 seats in total, but I'd imagine you could create a pretty good vantage points.
Of course that has nothing to do with demand, and whether or not the Flames can fill those seats. I'd imagine they have run those numbers and know what they want.
As for the cost, if the total cost of the building is $500 million, isn't it a bit extreme to suggest that the cost of adding 2,000 extra seats would be $100 million? Unless you're talking about $100 million over 30 years. If so, I'd imagine that if you can create a return of $200 million....with ticket revenue and concession sales, wouldn't it be worth it?
I wouldn't be surprised if the Flames go with 18,000 seats and 3x the number of suites. But I also wouldn't be surprised if they go with 21,000 seats similar to the Bell Centre.