Sounds pretty seirous to me, our team does not exactly make profit as it is now. This does not bode well for our future, corporate box revenue is huge part of Senators ticket sales, losing all of them and not being able to retain the revenues for them lead us to the chance at folding.
At the very least we would become a salary cap bottom feeders. Not too excited
Would we not raise ticket prices instead of lowering. Its not like we sell out every game as is. Thinking hard about it, we wouldnt fold, just become a smaller market team akin to the Jets
No, the problem is that corporations can buy boxes a write it off for a tax break. If they can no longer do that, then the organization will just lower those prices so corporations still buy them. This probably won't effect the prices of most seats though
Melnyk is a smart businessman and if he has to be ruthless I'm sure he will without any doubt. If he's going to be hurt financially because of the McGuinty changes then I'm sure he won't hesitate to move the team to a more welcoming economy.
The more I think about it, I kind of see where he's coming from.
In theory, the Sens can overcharge the Corporations for those box seats since the gov't will subsidize them in the end (our taxes at work) and keep prices high enough to reduce the overall demand to capacity. This maximizes their return at the expense of the fans (via high ticket prices and taxation).
That said, Ottawa is a relatively small market with a poorly placed stadium. Therefore, who'd fill those boxes without a tax break? Certainly the Corporations would be less reluctant to do so (certainly not at the evaluated price) nor would the local wealthy; therefore, prices would drop for the boxes and depending on the overall demand/elasticity of hockey tickets, the regular tickets too. This would mean less revenue for the team but better prices for us.
Just the kind of story that both helps the Sens put pressure on the government and the Citizen sell more papers.
That is all Folks move on. This team isn't going anywhere
He's definitely blowing things out of proportion by saying they'd fold. That said, there's undoubtedly some substance to the message. The tax break would have little effect on the Maple Leafs, but not the Sens, imo. I understand McGuinty wants to cut a seemingly useless tax break (so would your average Ontario citizen), but there's more to it than meets the eye.
The Ottawa Senators have been saying the same thing since the early 1930's. My goodness how long are these guys going to keep crying wolf. One only need look at the long storied success of the franchise to see it's all bs
The government has the right to stop corporations writing off sports tickets the second they stop government officials from writing off expensive breakfasts.
I remember some story last year claiming a bunch of these retired government workers went out and had a $1500+ breakfast which was covered by the tax payers.
Whenever any of this budget crap comes up I always laugh due to how much money they waste on a day to day basis. An example would be those stupid medals they gave out last month for something to do with the queen that cost them 3mil. Or how about the fact that they are going to extend the 417 past Kanata to three lanes a year after they already had the equipment out there to do the first expansion. I guess noone bothered to consider that the extension should've finished at the SBP to begin with.
The government should look at cutting the cost of things that don't help stimulate the economy like the Senators do.