Quote:
Originally Posted by kermitology
By that same line, the owners aren't fronting 1/3 the cost either since they get to recoup that cost from ticket sales.
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If there was no ticket tax, the flames would simply charge higher ticket prices. So, the ticket tax is being fully funded by the flames.
Also, its is misconception that the city is putting up the initial funding for a ticket tax. The way a ticket tax works is that the flames take out a loan for 1/3 of the arena cost ($200m). And the ticket tax funds the interest on that loan and the principal repayment over a 30 year period.
The flames might ask the city to guarantee the loan so the flames get a lower interest rate, but the flames are the ones paying the interest and repaying the principal