Quote:
Originally Posted by Maritime Q-Scout
Well I would assume the arena would be run independently, as I assume the Flames, Hitmen, Roughnecks are run independently despite the same owner.
It's not relevant if the Flames make a profit, and the Hit men make a profit and the Roughnecks break even. It wouldn't matter that they're owned by the same holding company.
You determine the arenas expenses and revenues and base on that, with an independent auditor applying a market value for rent.
Kind of like how Presidents Choice, Loblaws, and Shoppers are owned by the same person but run independently.
Arena charges rent to the teams (who cares what their balance sheet looks like), vendors, concert promoters, conventions, parking, etc. Costs out its expenses, and there are your numbers.
Basically imagine if the arena was owned by a company other than Calgary Sports Entertainment.
Even if it's run as one an independent auditor could construct books as if he arena was run 100% separately.
|
The interesting question would be what is the market value of the rent to the flames. How much could you charge them before they moved out of Calgary. Because as the arena owner you have a monopoly you can charge as much the market will bare.
The flames have already put that at 450million plus op costs in today's dollars.