So you want to buy a stadium? Need extra cash?
This is the general idea using round numbers:
Sell 17000 seat shares for $21,000 each. The city becomes the bank here and puts up the $357,000,000, collects payments.
15 years at 6% would be a $178/month payment per seat.
What does purchasing a seat and the rights give you?
First right of refusal to any non CSEC event taking place, from the moment the event is announced up to 30 days before said event, then they become available to the public. You can list your tickets for a few extra dollars, make money to cover your payment. Or just make the monthly payments.
The rights to the seat are an asset that can be transferred/sold.
If every seat is financed and taken to term the city would be repaid $544,680,000 at 15 years.
CSEC pays the rest to build the arena.
EDIT:
EDIT:
Thanks to everyone that read this and discussed.
I'm editing this post to answer some questions that were brought up.
City Financing the seat rights:
With the city acting as the bank here they would create their application requirements and rules that one would need to satisfy to finance or outright buy a seat. Maybe the financing plan is tiered:
Calgary residents can finance a seat with 5% down. Canadian residents outside of Calgary can finance for 30% down. Foreign investors must pay for the seat outright. The payment example I provided was 0% down for reference. Maybe initially there's a limit on how many seats one can buy. Maybe this is initially open to individuals and not businesses.
What the seat rights give you:
The ability so sell the tickets without having to pay for them. It would work like this:
Aimee-Leigh and Baby Billy add Calgary to their Still Misbehavin' Tour 2029. They officially book 6 months out from the concert. You own a pair of seats and the tickets will cost $50 each. You unfortunately cannot make it that night. You list the tickets for sale on the event center marketplace and because you know how much this concert is going to stomp and how many people will try to get tickets, you list them for $75 each. You don't have to pay for the tickets to list them. If they sell, you keep the $25 per seat profit and use this to help make your monthly seat payment. At 30 days out you either pay for them to keep ownership of the event ticket or they are automatically released and listed to the public on the same event center marketplace for $50 each. If you want to sell your seat rights you may do so.
This deal in relation to CSEC:
CSEC events are not part of the seat rights. Any Flames, Roughneck or Hitmen games are outside of the rights to seat ownership. Nothing changes for season ticket holders or anyone looking to buy tickets to Flames, Roughneck or Hitmen games. You do not need to be a season ticket holder to buy a seat. You do not need to buy a seat to be a season ticket holder.
Event center bookings will accommodate all CSEC games and events as needed just as the Saddledome does now. Something like an all star game or draft event or season ticket holder Q&A lunch would be a CSEC event, they would control the tickets.
Fractional Seat Ownership:
Sure, why not? Let the seat be broken into 10 fractures. Each 1/10th seat fracture represents the rights to every 10th eligible event and you pay $17.80/month to the city in your finance plan.
NFT:
Sure, why not? Event tickets is one of the good use cases for NFTs. Would make ticket fraud more difficult.
Summary:
In the round figure example I used there is not enough money raised ($357M) to build the arena but maybe over halfway there. CSEC has always been offering to pay for the other half. Maybe this frees up City of Calgary money instead of using CRLs to pay.
Last edited by karl262; 01-28-2022 at 03:00 PM.
Reason: edit
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