: News Article:
New Arena deal agreed to by city and Katz group:mod warning #616
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05-11-2013, 10:51 PM
Up the Irons
Join Date: Mar 2008
Originally Posted by
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.
well, fair enough. i agree it is distasteful to see Katz continually trying to squeeze a public the way he would handle a takeover with London Drugs.
His needing all the profits from the arena is probably the part that bothers most people. I believe he needs this to compete in the NHL. this is more a function of the messed of economy that is pro-hockey then anything else. I don't believe katz is trying to bamboozle us, he is in a league inwhich many owners take monies from their other businesses and over-pay players with said monies. the actually revenues of the NHL do not warrant 2mil/year for the Mark Fistrics of the world.
sadly, if we want NHL in our outpost, small city (Edmonton is the Omsk of North America) we will have to give Katz a sweet deal. we can haggle a bit and try the best we can, but in the end, we will not get a 50-50 split. just my opinion
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