Quote:
Originally Posted by Kjesse
If you'd like to discuss or PM over why partial citizenship ownership will never, ever be acceptable to the Flames, and that the Flames are totally correct in never, ever allowing it, let me know. I opine that it would become a complete disaster over time.
1/4 citizen ownership would come with minority shareholder rights that would eventually absolutely sink the governance of the Flames, and lead to an uncertain outcome for the majority's share. That 1/4 could rally and wreak havoc in court if they felt they weren't being treated fairly, and it would lead to a major dispute that could wind up the corporation entirely.
Its a really nice thought in principle. Have the citizens part owners, be partners! In reality it the minority rights would tend to drop the value of the team from a marketability point of view with lots of other problems. You could paper the deal as much as you want there would still be too much risk to the majority. Their ability to control a unique asset is part of the actual value of the franchise.
100% ownership by the city could work on the other hand, if one thinks the city should own such an asset. At least then the internal fights could be controlled.
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The Flames entity is a partnership, not a corporation. Which is governed by an LPA and much more flexible than a corp. Limited partners in a situation that Bunk is describing could absolutely have their rights significantly restricted and agree to such, which would alleviate the issues you're presenting.
Edit: I am wrong about this. It is a corp now. Carry on.