Quote:
Originally Posted by DFO
CSEC does not want to own it because they don't want to pay property taxes right? But they also expect to operate it and pocket all profit? In the end they just want the 1/3 handout.
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But how much profit do they really stand to make?
Lets say over the 30 year life of the Arena it generates $650M in net income. CSEC profits $50M with a $200M investment after repaying the city. Not actually a very good return over 30 years. $250M is a much better return over that time span. So if they are worried about how much more they can actually make then it makes sense from their point of view. If the city estimates it generating $1B then yeah I can see them wanting their investment returned and their "profits" are the ancillary benefits of having a pro team, and the team keeping $400M.
There are so many details missing, and for me I think it is a gap in estimates of what each side thinks the benefits will be. I can't blame the owners if they think they will only make 25% over 30 years and I can't blame the city if they think it will be 200%.