: News Article:
New Arena deal agreed to by city and Katz group:mod warning #616
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05-10-2013, 03:26 PM
Join Date: Nov 2006
Originally Posted by
Purchasing the team is not an investment in the building unless he wants to put up part ownership in the team as stake in the building. His investment in the building is an agreement to pay rent, does it really make much sense for the city to invest $500 million + dollars to make back $146.5 million over 35 years?
It looks like the city is taking all the risk and making all the commitment to this team for minimal benefit. There is a deal to be worked out here but this looks to be incredibly beneficial to Katz whereas selling or moving looks to be a tricky proposition at best. The city shouldnt let Katz dictate the terms of the deal, if it makes sense then do it but he will still be better off making a deal here than he will elsewhere.
If there's no team, there's no arena. So ignoring the reason behind all this constitutes cherry picking.
There is no risk involved in this project. It's going to make money for both Katz and the City. And of course you assume the city is stealing $500M for the project.
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