Quote:
Originally Posted by Jay Random
I know what you mean. And it's pretty clear that you think he has that kind of money just sitting around. He hasn't.
There are only two ways Murray Edwards could pay for a new arena himself. He could mortgage everything he owns, and risk going bankrupt if the share prices of his businesses crater. That's a real danger: his net worth dropped by round about a billion dollars a few years back.
Or he could sell off his businesses, which means dumping huge blocks of stock on a market that knows he will no longer be involved in running those companies, and getting back a fraction of their current market value.
The only people in the world with the resources and liquidity to simply blow half a billion dollars on a hobby project are Jeff Bezos and Elon Musk, and they have other hobbies – such as building their own spaceships and scaring the staff of Twitter.
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He wouldn't need to liquidate much, if anything. The idea behind financing it is so that he wouldn't have to pay cash. Nobody would pay cash - you get a consortium of banks/lenders to build the thing, and then you make the loan payments out of the future cash flow of the asset.
Flames tickets, concerts, events, food sales - that's what pays for the building over 20 years. Just like any other business decision.