Quote:
Originally Posted by Bunk
Sell 150,000 shares at $2000 a piece to people that want to participate - they own a 1/4 of the franchise and have paid for a 1/4 of the building outright. It's an equity share, so they're share price increases with the value of the franchise - it would likely get an instant boost upon completion of the building. (I'd probably by 3-4 shares myself - we could have a Calgarypuck owners group).
City portion - either strike a rent deal if the City owns the building, or a property tax deal if the Flames own the building.
Pros:
- It reduces the capital outlay to each party.
- It shares the risk and up-side more.
- It reduces the amount needed from ticket tax, which in turn keeps ticket prices a bit lower and more accessible
- It gives people who want to participate, a real stake
Cons:
- Risk that not enough shares could be sold, City has to retain unsold shares.
- Owners would need to give up a 1/4 of their share in the franchise and corresponding up-side (probably somewhere between a non-starter and extremely unlikely).
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I like this type of thinking. The 1/4 shares could be set up as a different class of shares (limited voting rights, 3rd in line for dividends (or set at a nominal rate)). Make it like a glorified fan club like the Saskatchewan Roughriders did...give a fancy share certificate, merchandise discounts, behind the scenes tours, pre-sale codes for events.