: News Article:
New Arena deal agreed to by city and Katz group:mod warning #616
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05-11-2013, 08:42 AM
Join Date: Jul 2010
Originally Posted by
financially, yes. but, this is not a 'business' deal for the City, residents and Oiler fans. this is a cultural deal.. a 'quality of life' thing.. in this God forsaken wasteland for 7 months a year. do pools make money? Rec centres? that would be 'no'. this is what is lost by the naysayers. will Katz make money from the arena? sure; about 20 million on a good year, could lose on a bad year, might average 10 mil/year. Katz will make his money peripherally. the people who will make money from the arena are the players. the Mark Fistrics will make 2 mil a year from the profits that the City does not get.
this is about shoring up NHL hockey in our city for 35 years, and building a spectacular architectural masterpiece in our city for the first time in its history. in fact, there is not one single world class architectural achievement in this province. we can be the first.
Sure but at what cost?
I've said it for quite awhile now but there is a deal to be made here but it shouldnt be one where the city pays for everything and Katz reaps all the reward. Just look at your conservative estimate, Katz averages 10 mil/year in profit and the city has to pay him $2 million a year for the first 10 to advertise? Shouldnt they get free advertising after buying him an arena?
Having the team in the city is a benefit for the city we can agree on that but Katz is getting side benefits off of this as well. He stands to make huge gains on the surrounding developments, likely ones that dwarf what he'll make on the hockey team. I think he has more to lose if he sells the team or moves it than if he ends up paying a bit more on this deal. The city shouldnt cave to his demands and he should be open to paying his share of the $55 million that hasnt been found yet. There are more palatable options out there, like making it contingent on how much the CRL generates.
Everyone gets too polarized about this and want to pick one side or the other but that's not what deal making is about, it's about compromise and finding something both sides can agree on.
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