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Originally Posted by pylon
I think there is really no more point of debating this whole thing. If the City were to hand the Flames an Arena for free at this point in time, they wouldn't take it. And I have actually heard that. The end game here is relocation. Think about the math:
A) With a new FREE arena, what's the team gonna make? $10 Million a year? $20 million if they hit it out of the park, and we have a good dollar?
Or, option:
B) Relocate, sell and cash out. for +/- $500-600 million.... US dollars. Plus the league gets a nice tidy relocation fee.
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Quote:
The cost of buying an expansion team is now $650 million.
What's the relocate fee? $170 million?
By my math that leaves a $480,000,000 benefit to a current owner to move. You'd think buying a team with a talent core and a very good set of player contracts like the Flames, is going to be worth the same or more than starting from scratch. Albeit the Knights are kinda proving that whole notion wrong. lol
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Your math sucks.
Cost of an expansion team: $650M
Cost of relocation: $670-770M+ (cost of the team PLUS the expansion fee).
But that's assuming the league owners would rather collect $5M each in relocation of a stable and successfully financial team even in the situation where a free arena was on the table, than $20M each with an expansion fee to an owner clearly willing to pay that much.
So like you said, think about the math.