Quote:
Originally Posted by GGG
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.
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Quote:
Originally Posted by Jay Random
On the other hand, as the sole major-league tenant you have a monopsony, and you can offer as little as the seller can stand.
All the team really has to do in a situation like that is pay more than the second-best tenant would be able to offer.
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What I'd likely do is compare what other NHL teams pay in rent to arenas they don't own. Contrast that with the commercial rental market in the city. If the commercial rental market in NYC is X per square foot and the Islanders pay Y% ofor X per square foot you log that. Average the percentage among all teams that rent from arenas they don't own. Whatever that average is you apply that to the Calgary market. Voila.
Again haven't slept in 4 days so hopefully that thought is English.