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Old 09-13-2017, 04:02 PM   #198
Enoch Root
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Join Date: May 2012
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Quote:
Originally Posted by belsarius View Post
Yeah, but it's the City that gets the borrowed money and is obligated to repay. Sure it is designed to be repaid through ticket surcharges but if the Flames fold in 5 years the City is on the hook for this amount regardless if the building sits empty or not. Risk of borrowing is on the City so that's why I count it on them. At least that's the way the Edmonton deal worked, surcharges went to the City to repay the loans.
Correct, which is why I compared it to co-signing a loan. If the team folded and the arena didn't generate sufficient revenue, then yes, the city would be on the hook.

But that is very, very different than saying the city is fronting the money. Because they are not.

And in Canada, the idea of the arena not generating money is pretty difficult to imagine.
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