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Phoenix LXIV: Will You Still Need Me, Will You Still Read Me, on Thread LXIV?
Skeete showing projection numbers with and without the team for the next 20 years, which he admits is "foolhardy" at best.
Result is, with or without the team, the city will be in the hole, just different amounts.
That has pretty much been what I have said going back three years. The CoG is screwed either way. The question is do they believe that through growth the CoG will recoup more money, or do they cut their loses and not bet on the come. In other parts of the country, I know communities would look to cut their loses. In Arizona, growth in population and development is like crack; and the economy is based upon that assumption and has been so for the last 75 years.
That has pretty much been what I have said going back three years. The CoG is screwed either way. The question is do they believe that through growth the CoG will recoup more money, or do they cut their loses and not bet on the come. In other parts of the country, I know communities would look to cut their loses. In Arizona, growth in population and development is like crack; and the economy is based upon that assumption and has been so for the last 75 years.
Further to Skeete's projections, he is saying further cuts or tax increases will be required in the future with or without the team.
Correct. Remember the assumption from the CoG was without the team the arena has to be boarded up.
Just incredible how elected people can be so abused... I know, sure it's not their fault, but they could have more support from more specialised peoples... But as I can see, even Alvarez admit she didn't know, and she now realise that she has been BS by all this. But Clark can't play that card, she was awared (her studies as a lawer) of all what is happenning and used it.
Further to Skeete's projections, he is saying further cuts or tax increases will be required in the future with or without the team.
His assumption is that with the team, revenue will fall short of expenses by $17.9M, and without the team, revenue will fall short of expenses by $17.1M. Both assumptions are based on current sales tax revenue and no improvement in the economy. I credit him for making that assumption. In either case, I think his assumptions may turn out to have been very conservation. Perhaps the hole will not be that big after the current sales tax increase expires, but either way the CoG has economic problems that go far beyond the Coyotes.
- Clark is saying that it costs $6M just to keep the lights on in the arena and you still have to pay an AMF to someone above the $6M, so $11M doesn't look all that bad.
Clark should borrow Skeete's Management Accounting 101 notes from DeVry. "Average operating expenses of $6M" means it costs $6M to operate an arena... that implies events, and revenue.
His assumption is that with the team, revenue will fall short of expenses by $17.9M, and without the team, revenue will fall short of expenses by $17.1M. Both assumptions are based on current sales tax revenue and no improvement in the economy. I credit him for making that assumption. In either case, I think his assumptions may turn out to have been very conservation. Perhaps the hole will not be that big after the current sales tax increase expires, but either way the CoG has economic problems that go far beyond the Coyotes.
Agree with you goyotes! Far beyond the Coyotes, but how far?
Clark should borrow Skeete's Management Accounting 101 notes from DeVry. "Average operating expenses of $6M" means it costs $6M to operate an arena... that implies events, and revenue.
Actually, those costs are static costs that do not include costs that may be increased due to the number of events an arena may hold. There are certain costs associated with keeping an arena open, staff, utilities, basic maintenance, etc. The cost would increase if the arena has more events. $6M was presented (I am not saying the number is correct) as the very least it would cost the city because the city is the owner of the asset and has to pay for its operation (unless it wants to shutter the doors).
Actually, those costs are static costs that do not include costs that may be increased due to the number of events an arena may hold. There are certain costs associated with keeping an arena open, staff, utilities, basic maintenance, etc. The cost would increase if the arena has more events. $6M was presented (I am not saying the number is correct) as the very least it would cost the city because the city is the owner of the asset and has to pay for its operation (unless it wants to shutter the doors).
Exactly my point. "Operating costs" normally includes both fixed (non-event) and event costs. If Skeete's $6M figure only includes fixed costs, fine.
Skeete does not support it. He could not re-negotiate enough with GJ and the JSG to make the deal make sense for Glendale. Too many layoffs and not enough services.
Skeete does not support it. He could not re-negotiate enough with GJ and the JSG to make the deal make sense for Glendale. Too many layoffs and not enough services.
I wonder if it's enough to sway Knaack who asked for his answer to the question...
Scruggs, talk to Jamison! This is a business decision! And we need jobs! We are gone pay the bill for the arena. A lot came a little by a little and little and now we stop counting.
Getting closer. Happy Thanksgiving.
