The Official Arena Thread Part 6
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11-18-2012, 07:27 PM
Join Date: Nov 2006
Originally Posted by
If we are as viable as the Panthers then Katz may as well close up shop and be done with it. The Oilers have room to grow revenue with playoff appearances for one thing. For two even if they only keep the gate from a new arena that will mean roughly 1500-2000 new revenue generating seats for 41 guaranteed games. That can't hurt. Even if we aren't the model for profitability we are far from mirroring sun belt teams. If the financial model is that much in trouble Katz should sell the team for a loss and wash his hands of this money pit.
You mean the ~$1-2M per playoff game? We're going to start banking on that now? No business person in their right mind would ever bank on playoff revenue so you can scrap that.
This has nothing to do with the sunbelt teams or their marketability and viability. It does, however, have everything to do with the way their ownership have access to revenue generated from outside sources (Arena events) that has enabled them to operate at their ~$7M loss for so long. Keeping the Panthers in Florida legitimizes the arena as a key destination for many events and without the Panthers that venue would cease to be an attractive option.
Now consider that Katz is planning to keep the Oilers viable using the same system and we come full circle back to my original post. Some people are so far off base from my original point that it's almost embarrassing.
It really doesn't surprise me that much, though. I think this is the same band of rabblers that refuse to fully understand the Katz Arena proposal and instead pick and choose what to believe.
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