View Single Post
Old
11-02-2011, 05:45 PM
  #210
braindead
Registered User
 
braindead's Avatar
 
Join Date: Jul 2005
Location: The cookie spoke
Country: Tibet
Posts: 2,774
vCash: 500
Quote:
Originally Posted by 101st_fan View Post
-It's $7.8mil or so. $2mil in management fees, $3.8mil or so in Metro's portion of arena operating expenses (capped), and up to $2mil in incentives paid for from a split of arena generated revenues above the pre-sale baseline level.

-The tax payers are going to pay the operating expenses no matter what, and that amount can climb if Metro reduces the incentive or management fees.
-The incentive fee is only paid if the team maximizes use of the building and seems to be working based on the increased number of events since Liepold sold the team.
Exactly. Two points that also seem to be regularly missed:
1. The increased taxes and real (but harder to measure) benefits of having the team and related crowds in Nashville are a huge offset to the "charity" that is implied.
2. The "team" isn't subsidized-- the arena is subsidized. By that, I mean that reverting to the original deal makes it easier and more likely that the team moves. The arena still stays here and not only loses the anchor tenant but loses world class management, which will cause further harm to the arena's economic performance. The arena is here. It stays with or without the team. Metro would be subsidizing a much, much, much bigger number without the team.

braindead is offline