Quote:
Originally Posted by Southside
You would be more likely to see a bond issue before they would sell shares.
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In the spirit of Calgarians / Southern Albertan's who would actual use the arena 'paying' for the arena this isn't that bad of an idea.
Buyers would buy $1000 bonds from the flames that pay a return in 10 years (term would be dependent on how fast the arena could be built). The % return on the bond would also have to be structured that it would come out of the profits of the flames that supposedly do not get taken out by the owners. I cant imagine the % return would be comparable to any sort of normal market returns for a comparable term bond / GIC however it would give some financial incentive beyond the idea of the buyer helping finance a new arena.
This way while profits are being taken off the bottom line they would be going back to Calgarians ensuring that the money is staying within the community, same as they would if they just reinvested the profits back into the community.
Plus buyers money would be going into a publicly owned asset instead of into the private owners equity (at least not directly).
Now a big caveat to this is that buyers of the bond would have to prove a Calgary / southern Alberta Residence (no dice Edmonton).