Quote:
Originally Posted by Parallex
It lost me the the second it falsely characterized the cost of the project as a 50-50 split rather then the more accurate description of 80-20 (before you even add in the cost of the environmental cleanup, loan interest, municipal infrastructure, and opportunity cost).
That is basically just a big steaming pile of bull#### that he serves up on a plate and tries to tell you it's steak.
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I hate the incomplete nature of the funding model as much as anyone, but it is accurate to portray it as close to 50/50. Ticket tax is money out of the owners pockets. It is effectively a tax on their future revenues.
For example, let's say a base ticket cost was $100 and the ticket tax was $10 for a total cost to the consumer of $110. Now take the ticket tax away. It's not like the owners would benevolently keep the price at $100. They would keep it at $110 and keep the difference. The demand curve is set by the total net cost to the consumer.
So on an $890M project (yes, excluding the fact that that's a ridiculously underscoped cost), $200M of owners money + $250M in ticket tax represents about a 50/50 split.