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Old 09-17-2017, 12:51 PM   #1451
longsuffering
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A case for why revenues provided from a ticket tax is NOT a Flames contribution.

1. The Flames do not have the ability/authority to impose a ticket tax. This authority is granted to the City by the Province. Essentially, this money belongs to the taxing authority - in this case the City. Who collects it is immaterial.

2. The Flames are wrong to consider ticket taxes as their revenue in any case. They will not include in their revenues. For the accountants out there, the proceeds from seasons tickets would be recorded as (using $100 as the base price of the ticket with a ticket tax of $15 for a total cost of $115).

Dr: Cash or A/R $115
Cr: Hockey revenue ($100)
Cr. Ticket tax revenue payable (what was collected) ($15)

3. Let's also consider that no one is forcing the Flames to incorporate a ticket tax in their funding model. They can choose to go ahead without it. Let the free market and the Flames determine what "the market will bear" as far as ticket prices go, charge that amount and record that full amount as HRR then use those incremental proceeds to fund the Flames portion of arena costs.

Of course the Flames don't want this. But calling a ticket tax 'theirs', they want their cake and to eat it too. They support a tax but claim it is from their revenue. They can't have it both ways. It's one or the other. HRR or a liability for taxes collected on behalf of the City.

Considering this, the City is being quite generous by showing ticket tax as a third, independent contribution and not a City of Calgary contribution.

To me it suggests the City respects and recognizes that the arena users are stakeholders in this discussion, not a subset of CSEC.

Last edited by longsuffering; 09-17-2017 at 12:54 PM. Reason: clarity
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