Quote:
Originally Posted by Street Pharmacist
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
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My statement was explaining that even if the city gets the profits - they very likely won't be very high (i.e. likely not even enough to cover the property tax they could collect otherwise if the Flames owned it).
The Flames and/or arena manager/food services company will get all or a very high majority of most of the revenue:
Ticket revenue for all their events
All the in-building advertising
Concession sales
Merch sales
The city will have to pay the Flames (or another company) to manage the arena which isn't cheap. Concerts and most events don't generate a ton of profit for the arenas, unless you get lucky with some cheap concert selling way more than expected. Anything that is going to sell-out the place is going to take a huge portion of ticket sales (i.e. you aren't making much money off Taylor Swift being there despite the huge ticket sales).