Quote:
Originally Posted by PeteMoss
One thing I'll add is that owning the arena isn't always the best thing in the world.
If the city owns it, they'll have to pay the Flames or SMG/Global Spectrum/whoever to manage the thing and after those expenses there is limited profit from these arenas for the most part, coupled with the expenses that come with keeping an aging building up to date, the city may prefer the Flames own the place and take on that responsibility.
I was in accounting at an arena with about 10k seats that is/was one of the more successful buildings that size in North America and at the end of the day the profit that got paid back to the city was tiny each year and that's before things start falling apart as it was new when I was there.
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There is literally no benefit to the city owning the arena/flames keeping profits
-No Taxes
-Liabilities for maintenance/upkeep/disasters
-responsible for demolition at end of use