Quote:
Originally Posted by GGG
It depends on how the money spent on the Flames is redistributed. The argument is that all the corporate entertaining would now be spent elsewhere. The season ticket and other monies spent elsewhere would enrich other people and businesses.
So the theory is zero lost in taxes and maybe even an increase. When you give 70 million dollars to people who don't live here you are taking a lot of money out of Calgary. The luxury goods purchased by these rich people again more leaves than lower income people.
So the answer to how much in tax the province and Canada would lose is somewhere between none and a lot depending on how you model the economic value of an NHL team.
You could argue that the TV deals moving from Canada to the states is a direct loss from Calgary and say at a 50% marginal rate you end up with 500/30*.5 which is about 8 million in lost taxes. But it really would need much more advanced modelling to really know the impact.
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Someone I am fairly close with was working quite closely with the rep from the City of Edmonton involved in the decision to invest in the arena on behalf of the City.
He said 1.5 years later they are pleasantly surprised how much more tax revenue they are getting from the arena anf surrounding area...everyone is happy.
While I agree the Flames approach hasn't been good, the City needs to recognize how much money can be generated.