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05-15-2013, 09:20 AM
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Join Date: Apr 2005
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Country: Canada
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Originally Posted by worraps View Post
No one said it was exactly the same.

If millions of people watched the televised events staged at your home, the bank may have paid you back $2M/yr in advertising.
This is the key point of disagreement in this specific exchange. You stated:
It's the miracle of financing.

Katz will eventually have paid for a substantial portion of the arena just as Replacement eventually paid down his first mortgage.
For one Katz has a below market interest rate to work on in what is a very long amortization period. Neither of which he could obtain from a bank and especially for no money down.
Two, as mentioned Katz is getting a 2M/yr "kickback" for "advertising" on a facility the city owns. Please explain why the city should have to be paying that stipend. Next Katz has naming rights on a facility he doesn't own. Somebody explain that to me. Finally, this is a purported investment of some sort and Katz obtains all revenue from all events at the facility. Again more than "'fair share".

So Katz really isn't paying back anything out of pocket here.

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