So you want to buy a stadium? Need extra cash?

[karl262]

This is the general idea using round numbers:

Sell 17000 seat shares for $21,000 each. The city becomes the bank here and puts up the $357,000,000, collects payments.

15 years at 6% would be a $178/month payment per seat.

What does purchasing a seat and the rights give you?

First right of refusal to any non CSEC event taking place, from the moment the event is announced up to 30 days before said event, then they become available to the public. You can list your tickets for a few extra dollars, make money to cover your payment. Or just make the monthly payments.

The rights to the seat are an asset that can be transferred/sold.

If every seat is financed and taken to term the city would be repaid $544,680,000 at 15 years.

CSEC pays the rest to build the arena.

EDIT:

EDIT:

Thanks to everyone that read this and discussed.

I'm editing this post to answer some questions that were brought up.

City Financing the seat rights:
With the city acting as the bank here they would create their application requirements and rules that one would need to satisfy to finance or outright buy a seat. Maybe the financing plan is tiered:
Calgary residents can finance a seat with 5% down. Canadian residents outside of Calgary can finance for 30% down. Foreign investors must pay for the seat outright. The payment example I provided was 0% down for reference. Maybe initially there's a limit on how many seats one can buy. Maybe this is initially open to individuals and not businesses.

What the seat rights give you:
The ability so sell the tickets without having to pay for them. It would work like this:
Aimee-Leigh and Baby Billy add Calgary to their Still Misbehavin' Tour 2029. They officially book 6 months out from the concert. You own a pair of seats and the tickets will cost $50 each. You unfortunately cannot make it that night. You list the tickets for sale on the event center marketplace and because you know how much this concert is going to stomp and how many people will try to get tickets, you list them for $75 each. You don't have to pay for the tickets to list them. If they sell, you keep the $25 per seat profit and use this to help make your monthly seat payment. At 30 days out you either pay for them to keep ownership of the event ticket or they are automatically released and listed to the public on the same event center marketplace for $50 each. If you want to sell your seat rights you may do so.

This deal in relation to CSEC:
CSEC events are not part of the seat rights. Any Flames, Roughneck or Hitmen games are outside of the rights to seat ownership. Nothing changes for season ticket holders or anyone looking to buy tickets to Flames, Roughneck or Hitmen games. You do not need to be a season ticket holder to buy a seat. You do not need to buy a seat to be a season ticket holder.
Event center bookings will accommodate all CSEC games and events as needed just as the Saddledome does now. Something like an all star game or draft event or season ticket holder Q&A lunch would be a CSEC event, they would control the tickets.

Fractional Seat Ownership:
Sure, why not? Let the seat be broken into 10 fractures. Each 1/10th seat fracture represents the rights to every 10th eligible event and you pay $17.80/month to the city in your finance plan.

NFT:
Sure, why not? Event tickets is one of the good use cases for NFTs. Would make ticket fraud more difficult.

Summary:
In the round figure example I used there is not enough money raised ($357M) to build the arena but maybe over halfway there. CSEC has always been offering to pay for the other half. Maybe this frees up City of Calgary money instead of using CRLs to pay.

[Kipper_3434]

10 even 5 years ago, this would be insane. In the age of crypto and NFTs however this actually makes some sense. Although you would have to account for maintenance unless thats all to be covered by concession owners or something.

[Locke]

And here I thought this was going to about crowdfunding to buy the Pontiac Silverdome.

[nik-]

What you're essentially coming up with is a Personal Seat License and they're quite common.

[Jordan!]

Is this an NFT?

[Harry Lime]

Originally Posted by Jordan!

Is this an NFT?

In 10 to 15 years, I think there's a good chance of fungibles growing all over these seats. Ba-dum-dum.

[tvp2003]

Do I have to buy the whole seat or can I just purchase the edge?

[Locke]

Originally Posted by tvp2003

Do I have to buy the whole seat or can I just purchase the edge?

How much you use is up to you but you still have to buy the whole seat!

We're not getting into 'fractions of a seat' here!

[Northendzone]

i wonder here in calgary, how many of these you could sell today in an initial offer.

i would not be putting in $21k to buy one of these.

[Ducay]

Places like Vegas and Green Bay PSL's made sense for different reasons - be it insane demand, disposable income, unique opportunity in a destination city (Green Bay amirite), or a rabid fan base of a perennial contender. I just don't see any of those factors panning out here in Calgary for that amount of cash. Sure there is money flowing, but aside from corporate seats, I can't see 10,000+ Calgarians putting up that amount of cash for seats. We're not a huge market or a crazy hockey city that might offset that; you could probably get $50k in Toronto, but Flames can hardly retain their existing STHs, let alone asking them for $20k each more.

There's a reason it wasn't an option

[Strange Brew]

Don’t almost all NFL teams have PSL’s?

[Manhattanboy]

We actually looked at LA Rams season tix in their new stadium (prior to Covid), thinking that we could take in a couple games a year and sell the others.

It was the seat licenses that were prohibitive.

[ComixZone]

Yeah, PSLs wouldn't fly here.

We don't have the demand/population.

[Enoch Root]

Yes, let's collect more from STHs Why have 1.5 million taxpayers pay for it, when you can get 17,000 to pay for the whole thing?

A couple points:

1) I don't think you can charge the same amount for seats in different levels.
2) what about boxes?
3) why would the city charge 6% interest on people who are paying a voluntary tax? Just charge the fee

[GGG]

The real problem here is that you need to replace CSECs contribution not the cities.

[MrMike]

Originally Posted by Northendzone

i wonder here in calgary, how many of these you could sell today in an initial offer.

i would not be putting in $21k to buy one of these.

I’ve never heard of these before. How does it work? Just allow you to always have first right to anything that sells a seat?

[McG]

Hmmm…if these were treated like a box and included all events, you could probably have a serious conversation about it.

10 years, all events included, 120 months to pay. I guess it depends on how many seats would be financed that way. Different prices of course and maybe not all are done this way. It’s a different model!

[PaperBagger'14]

I would be interested in buying 2 seats depending on a few things.

1) Do I own those 2 seats for the entirety of the existence of that building?

2) What are the financing options? Is it like a house where I can only pay an additional 10% per year or could I finance them on an open loan where I put down 5% and then pay off the remainder one month later similar to a car?

3) What kickback would I receive if/when the city builds a new arena? First choice in seats? Nope. 25% off the price of seat shares for the next 35 years? Done.

[Mephisto]

I would consider this - 2 seats. Option on concerts that come through?

[GordonBlue]

Originally Posted by McG

Hmmm…if these were treated like a box and included all events, you could probably have a serious conversation about it.

10 years, all events included, 120 months to pay. I guess it depends on how many seats would be financed that way. Different prices of course and maybe not all are done this way. It’s a different model!

Except it wouldn't be all events included, just first crack to buy tickets.
That money would only be for rights to your seat.