Quote:
Originally Posted by OptimalTates
You mean after being given the keys to the tax-funded building and then told don't worry about the cleanup as the taxpayers got'em?
The Flame owners aren't charity cases, they aren't doing anyone a favour without getting what's theirs. Between revenue, which includes massive TV deals and the increase in valuation of the team, there is certainly worse investments out there for them.
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My point is the same, regardless of where the money comes from, tax payers, the owners, some other source, combination. Your comment proves my point.
If it costs $700M to build the rink...........and after you are done that investment, on top of all the other expenses (we know they spend close to $80M on player salaries alone) and your evaluation is $1B dollars...........that's hardly anything to get excited about. 70% of your evaluation on that is tied to the land and the rink you built (and an increasing land evaluation likely........not much there left in the evaluation tied to a growing business).
I'm not saying they are charity cases, but as a direct investment, the Flames are a bad one. It's why it requires (in all small Canadian markets btw) a multitude of interested parties to get big Capital Projects for new arena's built. Leave it to the owners alone to front the build, it's just not going to be manageable, it makes the poor returns on investments prior to having to shell out $700M on a rink (BTW, the last Forbes evaluation on the Flames was $680M.......so the new rink literally costs more than the Flames are worth in their mind) not worth it. Ask the city and the tax payer to do it all, well that certainly doesn't make sense either. So you need them all to come together to make it work.
If the Flames were a money making machine, things like the arena deal wouldn't take so long to come together.....when there is good money to be made, #### gets done. When return on investment sucks, but people want it for other reasons, the process slows down, and things get messy. It's that simple.