Edmonton rejects Oiler [Arena] bid for more taxpayer dollars
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12-11-2012, 03:53 PM
Join Date: Sep 2005
Originally Posted by
The reason the deal fell apart is that the city would NOT give Katz $6 million/year to manage the arena. In tomorrow's meeting, the Katz group need to be coming back with an offer that does not ask for that $6 million, otherwise they are wasting their time.
Yeah, there is some complications here that (IMHO) aren't coming out very clear. How much does Northland's get today for managing the non-Oiler's days at Rexall? I think it's estimated at $2.4M (Northlands ticket surcharge fee) + $2.4M for "support" fee. For all intents and purposes, the "support" fee is the AMF. The city has an agreement that after a certain amount of profit generated by Rexall that it will pay back some of the support fee. the last few years that has been under $400K, effectively, Northlands makes $2M on the support fee and $2.4M on the ticket surcharge. I personally think you could combine the two and call it an AMF of $4.4M for Northlands.
Now, the question becomes, has Northlands done a poor job and if the City were to pay Katz $6M to manage the new arena would that be fair or good for the city? Unfortunately, this is difficult to tell. I'm not sure how Katz performance of running the Hamilton arena has been to accurately judge if his group replaced Northland's would give us a better bang for the buck. From what I understand, Northland's has been pretty good about bringing acts to Edmonton and filling the arena with shows people want to see. But Katz also has the AEG behind him which could give him more pull for even more quality shows.
Of course, it feels like none of this has come out very well and Katz has done a terrible job selling himself for why he needs these fees and what benefit it would offer the city.
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