Quote:
Originally Posted by Aarongavey
What a terrible deal. Murray has to pay 40 million bucks up front and the taxpayer pays the other 900 million.
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Out of thanks, but absurd as it sounds, this isn't even an unreasonable way to summarize it.
People seem to forget that pretty much any business has existential operating costs, usually meaning paying rent or mortgage+property taxes for some sort of physical space.
Obviously sports arenas are a bit unique as there isn't really a competitive market for landlords/tenants, but there is no special benevolence here - the Flames are simply paying rent to operate their business.
Quote:
Originally Posted by GullFoss
CSEC also:
1) gets to use city's borrowing capacity and borrowing rate for the owner's benefit rather than use the owner's money or borrowing capacity
2) gets all the non-flames venue revenue associated with the arena
3) gets all the upside on the facility's revenue generation over the next 35-years as the city grows
4) gets land options on land around arena
5) gets infrastructure upgrades on all that land options paid for by the city and province
6) gets use of the "community arena" for further revenue opportunities
It's actually embarassing
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7) immediate 9-figure franchise valuation increase