Quote:
Originally Posted by Jordan!
Here are some of my opinions:
1) Murray Edwards doesn't really care about Calgary
2) If the Flames win the Cup value will be high, Edwards will look to sell
2) The Saddledome is the new Kingdome, iconic and loved but will have serious issues this decade
4) Construction costs are only going to rise the next 5-10 years, CSEC should've eaten additional costs entirely and ground should be broken by now
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You are entitled to your opinions, of course. But they suggest that you are likely misinformed.
1) People confuse Edwards switching tax jurisdictions for personal gains with his love for Calgary and for the game. Murray Edwards loves Calgary and loves Calgary Flames. This has been proven. We, the plebs, are not privy to private conversations of the rich, but there was significant and serious evidence of Edwards sticking with the club during toughest economic times, when leaving the city would have been easily accomplished and well-understood. He didn't. There is further evidence of the promise to keep the team in Calgary made to Harley Hotchkiss. I have heard about it from Ken King, whom I knew well. Ken was instrumental in helping Harley assemble the new ownership group when the team was in financial trouble. I have seen Edwards watching the games a few times, when I was fortunate to be invited to the owners' box. You can't fake it like this. He truly loves this team.
2) If the Flames do win the Cup, it would be much easier for the municipal politicians to approve extra spending on the new arena. That's it. Selling an NHL team into a different jurisdiction/market is a very complicated affair (and btw, it is different from moving a team to a different market).
3) Saddledome is a fine arena. I don't care much about it being iconic and beloved. It is a fine building. Well-designed and well-maintained. I am a civil engineer and I know what I'm talking about. The crap about poor acoustics and roof issues are all noise intended to generate the urgency with the politicians and the public. The problem with Saddledome is that it is no longer modern and it cannot be renovated to add a larger number of suites, which generate enormous amount of revenue. One club level box generates approx. $400,000 of rent each season plus huge food and beverage revenue. There are about 20 Club level boxes at the Saddledome. This number could be tripled in a new facility.
4) CSEC does not and will not own the new new building. There is a finite revenue to be made in the expected life of a new building assuming that the team stays in Calgary. Expecting CSEC to put a disproportionate amount of funding into it is unreasonable. They will fund an amount, which they can finance with a conventional lender based on the reasonably expected cashflows. City has access to better financing sources and will own the building regardless of CSEC being there or not. A new arena building is still a valuable asset even if a professional NHL team is no longer playing there. The City has lesser degree of risk than CSEC, which should be and will be reflected in the modified funding formula.