The Official Arena Thread Part 6
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11-16-2012, 09:02 PM
I am the Liquor
Join Date: Oct 2008
Originally Posted by
Found this very interesting in regards to Katz and his arena, and the way the people of Edmonton view him as snake in the grass. There has been much discussion as to why Katz needs a new arena for long term sustainability of the Oilers, and due partly to much of the economics of the NHL changing at a rate that has a lot of teams including Edmonton lagging behind in the near future. Much of those teams have the benefit of being in a large market, while Edmonton has all but reached its peak in profitability from a hockey revenue only standpoint. While it's debatable how much more can be squeezed out of the Edmonton fans moving into the future, what's not is the very real economics of the Oilers and their new arena.
KevFu over on the business boards unwittingly explained exactly why a city-funded arena that reaps all extra revenue from events would leave Edmonton in a hurting position 5-10 years from now:
He is talking about the Florida Panthers, who generate A LOT of money outside of hockey in their arena while conversely, the Panthers usually have not, although last year attendance was up apparently (a winning team will do that) and there were some sellouts.
That really has **** all to do with the Edmonton market. Its like comparing oranges to potatoes.
Besides, the city was willing to let Katz have all the revenues, they just wanted him to be responsible for the operating expenses. They knew from past experience that Northlands had shown a profit with the same arrangement at Rexall, so it is no wonder they are a little confused when Katz comes to them looking for a hand out to help with the operational expenses.
It could be argued that the Edmonton market had reached critical mass twenty five or thirty years ago, yet here they still are, operating with a profit even, despite not playing a home playoff game in over six years.
The people of Edmonton want to embrace Katz and want to see the Oilers prosper. They want to see the team make money so we can keep our good players for a change.
All the negativity towards the people of Edmonton, city council, the mayor, is a bunch of ****ing ignorant nonsense. The only stumbling block appears to be Daryl Katz.
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