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Gaudfather · 01-16-2016, 02:13 PM

Shouldn't there be some sort of linkage between the franchise value and the proposed new stadium.

If it is fair for Calgary Sports and Entertainment (CSE) to ask the City of Calgary for some major help in financing a new stadium proposal, then why shouldn't the City have some of the upside in the resultant increase in franchise value (if there is any).

Forbes put the value of the Flames at US$435 million as of Nov 2015 - so use that as a base. If the city assists CSE in financing a new stadium ( either Calgary Next or some revised proposal) then it seems only fair they should share in any incremental increase in franchise value. Say in 2025 the Flames are sold and then valued at US$735 million - then there should be some mechanism where 50% of the increased franchise value ( in this example US$150 million) would revert back to the City of Calgary.

CSE should not have it both ways in having the City of Calgary finance and own the new arena and yet CSE keeps 100% of any resulting increase in franchise value. And the City would not have to have ownership rights in the franchise to accomplish this - their are other structures such as a modified income debenture that could be used to repay the City part of the increment in franchise value.

01-16-2016, 02:13 PM	#625
Gaudfather Franchise Player Join Date: Oct 2014 Location: Right behind you. Exp:	Shouldn't there be some sort of linkage between the franchise value and the proposed new stadium. If it is fair for Calgary Sports and Entertainment (CSE) to ask the City of Calgary for some major help in financing a new stadium proposal, then why shouldn't the City have some of the upside in the resultant increase in franchise value (if there is any). Forbes put the value of the Flames at US$435 million as of Nov 2015 - so use that as a base. If the city assists CSE in financing a new stadium ( either Calgary Next or some revised proposal) then it seems only fair they should share in any incremental increase in franchise value. Say in 2025 the Flames are sold and then valued at US$735 million - then there should be some mechanism where 50% of the increased franchise value ( in this example US$150 million) would revert back to the City of Calgary. CSE should not have it both ways in having the City of Calgary finance and own the new arena and yet CSE keeps 100% of any resulting increase in franchise value. And the City would not have to have ownership rights in the franchise to accomplish this - their are other structures such as a modified income debenture that could be used to repay the City part of the increment in franchise value.