[GGG]

Originally Posted by New Era

There is no confirmation their offer is out there. And if this is the Flames offer, how is it far, far worse than Edmonton's?

The Rogers Place deal was finalized as a $483.5M project, with the Katz Group paying $132.5M, and $112.8M of that as rent over 30 years. A ticket tax would recover $125M over time. So Katz got an arena built with $19.8M of up front funding, and 30 years to pay $112.8M, meaning the Oilers are leasing the arena for $3.76M a year.

The Winter Garden / Ford Hall component was added at a cost of $56.8M, with the city paying $25M of it in infrastructure costs. The Katz Group paying for $31.7M of the costs, but $25M of it in rent over 35 years, or $715K a year. The Katz Groups up front money on this component was $6.7M.

So in a $613.7M deal, the Katz Group had to put up $26.5M dollars, with the City of Edmonton covering the rest directly, through loan guarantees, or cost recovery mechanisms.

Yeah, the purported Flames deal of 50% was far, far worse.

I still believe the deal to be worked out is the 1/3 which both sides mentioned around the time the deal broke up. Both sides mentioned it, and Nenshi even discussed some of the sticking points. There was too much smoke here for this not to be the deal both sides were working on.

Doesn't the Edmonton figure include land?

The upfront cost is a pretty meaningless as you want to covert it to NPV to properly assess future costs. We don't know if the 50/50 deal proposed is worse. Ticket tax is clearly an owner contribution. So the superficial argument that Katz would use is the Oilers paid 250 million and the city paid 230 million so it was a 50/50 deal.

Details matter, right now as proposed the Flames deal could be similar to the Edmonton deal or marginally better but the offer without details is how Katz would frame the Edmomto deal. I do agree that lends itself to the ownership willing to do the 1/3rd deal