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Old 09-16-2017, 08:53 PM   #1404
Backlunds_socks
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Quote:
Originally Posted by Ducay View Post
Again, you're looking at this in an apples to apples approach.

What makes it work in Winnipeg isn't the arena itself. Lets say it cost $500m for either arena. Winnipeg pays for it all and makes it work and only earns 1% return on the new arena (bear with me), assuming you could see arenas return alone. So CSEC says, nope, 100% doesn't work, nor does the 1/3 model, because they need to earn 10% return.

From your perspective, Winnipeg made it work at 1% and CSEC is being greedy because they want to hold out to 10%.

Ignoring the fact that they may have different risk profiles and costs of capital, the value in Winnipeg isn't from a new arena, it was from the ability to get the team at all. Winnipeg (TNSE) may have sacfiriced to make only 1% on the arena, because the real return for that ownership group comes from the value of the franchise as a whole and its increased value. So they either ate a lower return or got no team at all. CSEC isn't in the same position.
When does it become public duty to make their business successful?
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