Quote:
Originally Posted by GGG
The issue there is that is effectively an owner contribution and not a city contribution. As the total money the owners will earn over the life of the arena will be reduced by 3%-5% depending the elasticity of the fee vs face value.
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It's only an owner contribution if they allow the ticket price to remain static and the city takes their 5% from there.
However, Oiler's tickets went from $185.43 last year to $207.27 this year (an increase of 12%). I think ticket sales at any new Calgary arena could be increased by 5% without many people squawking about it.
However, even if we want to say 5% is too much and would decrease the number of people attending events, we could probably reduce that ticket tax to something closer to 3%. A 5% tax would allow the city to recoup their invest on Flames games alone, so a 3% tax might still make it financially feasible for the city when you consider all the other events.