Quote:
Originally Posted by PeteMoss
The Flames are viable now. They don't need a new arena to be viable. I've been to Joe Louis arena in Detroit in the past few years. Sure it was old but it was fine. Hockey arenas used to be able to last 50+ years. This idea that arenas have a 30 year life span is new.
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Your comment had me thinking ... are they?
Best way to look at that is to go back to the franchise evaluation and look at it.
So the Flames are worth 410M, lets call the Saddledome what 110M? making the purchase price 520M
If you roll out 18M in operating income and add it to 30% in non Flames events at the dome, and then add in 5% appreciation on the Flames with 5% depreciation on the Dome.
This gives you a $75M loss in 20 years of owning the team if you bought it today.
That's not a big investment loss, but they're not printing money. Not too many people are happy generating $22M in profit utilizing half a billion dollars in capital.
I agree with others ... the NHL is currently setup with the assumption that rich people should own them without making money as a public service.