: News Article:
New Arena deal agreed to by city and Katz group:mod warning #616
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05-12-2013, 06:13 PM
Where's the Hart?
Join Date: Oct 2007
Originally Posted by
Well it is bizarre, perhaps we've just become accustomed to it in the pro sports world.
For an owner fronting zero bucks into a 600M arena, having all revenues from all events and getting stipends on top of that like naming rights, 2M payback per year for advertizing and not paying a dime of taxes on facility because he's not the *owner* is a little bizarre. Considering a hockey and entertainment mad market that promises to keep the arena buzzing with gate revenue and ticket sales of a magnitude seldom seen anywhere on the planet katz is making out like a bandit..
Too bad Katz didn't get the 6M annual subsidy he was demanding on top of this as he wasn't yet satisfied bending the city over. Oh gawd, how will Katz survive this deal..
You can't guarantee that gate revenue for the next 30 years. What happens if in 5 years Trudeau gets in power and thinks its a good idea to shut down the oilfield due to green house gases and pollution? What if all the oil companies feel they can get better deals elsewhere. Especially when you consider the US just opened up a huge part of North Dakota that used to be protected for Oil exploration. If alberta starts investing now in other industries besides Oil we may be able to weather a storm like the above but right now were putting all our bags in one basket and if that basket up and leaves the team and the new arena would have a hard time surviving IMO. Katz wants a good deal on this thing for that reason, sure he'll make money now but if there's ever a downturn then he'll be able to use that money to get by and not lose the team.
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