[News] Seattle arena to be 100% private funded

[GGG]

Originally Posted by powderjunkie

Not certain CSEC actually owns any appropriate land yet...(but could be wrong)




I agree with most of the rest of your points, but I think it would be more accurate to say:

The Flames ownership would contribute 200 million
Users would contribute 250 million
The city would contribute about 900 million.



That would only be true if they raised taxes to pay for CNext...

I like to call the ticket tax part of the flames contribution as demand sets the maximum price the flames can charge and the ticket tax is subtracted from that max price. So the flames lose revenue from the ticket tax.

[Yoho]

Originally Posted by GGG

I like to call the ticket tax part of the flames contribution as demand sets the maximum price the flames can charge and the ticket tax is subtracted from that max price. So the flames lose revenue from the ticket tax.

Poor Flames just give till it hurts.

[GGG]

Originally Posted by Yoho

Poor Flames just give till it hurts.

I don't get this post. It adds absolutely nothing. It does nothing to counter my contention that the ticket tax should be considered a contribution from the flames. It is just inflammatory rhetoric to pit the flames as the rich bad guys. And what's funny is we are probably on the same side on the overall arena issue.

It's unnesscessary debate the issue on the merits.

[Yoho]

Get someone else to pay for over 3/4 of the building then feel like your giving money away in a ticket tax. Sounds about right.

[Plett25]

Originally Posted by GGG

I like to call the ticket tax part of the flames contribution as demand sets the maximum price the flames can charge and the ticket tax is subtracted from that max price. So the flames lose revenue from the ticket tax.

I think you're right about the ticket tax

[corporatejay]

Originally Posted by Plett25

I think you're right about the ticket tax

It's also a way to "hide" revenue from the team so that it doesn't go towards increasing the cap. Flames get every dollar off a ticket tax but only 43 cents on a ticket sale.

[powderjunkie]

Originally Posted by GGG

I like to call the ticket tax part of the flames contribution as demand sets the maximum price the flames can charge and the ticket tax is subtracted from that max price. So the flames lose revenue from the ticket tax.

Yes and No. It lets them keep the face value less ridiculous, which is mktg101. There has also not been any firm details on who would front the ticket tax (obvious benefits to the team in terms of HRR if it's the city). Perhaps they should keep the beers to $9.75 and tack on a $1 tax there too.

Something continually overlooked when we talk about the breakdown of expenses, is the breakdown of benefits - namely the ~$200M NPV increase in the value of the franchise with a new building. Cut the city a stake in the team if you want to talk about mutually beneficial partnership.

[GGG]

I think the NPV value increase of the team shows that they could easily front another 150 million and it would make sense.

The idea of removing taxes from HHR is an interesting one. The NHL could fund much more of arenas by taking it from the players. Essentially you lower the cap by 20 million and you get a new arena in each city every 30 years. so a 50% ticket tax on flames events could probably do this.

[Kavvy]

Originally Posted by Erick Estrada

I don't think that's true. What leverage did the Oilers have? Virtually zero as they were called on their bluff and apologized.

The new downtown arena was much more important to Edmonton then the WV is to Calgary.

WV is a portion of our inner City, in Edmonton, the debate struck a tone that the entire downtown/core was on the line for that arena.

[Kavvy]

Originally Posted by Fire

Yes, it's false. The fact they decided on a very weak hockey market in Las Vegas for expansion proves that.

The NHL felt that Quebec would meet the minimum economic requirements to turn a small profit.

Again, I was responding to a post of where the NHL could relocate the flames and print money.

[homestand]

Russell Wilson involved, http://www.cbc.ca/sports/hockey/nhl/...roup-1.3851029