G-Man
11-11-2005, 05:21 PM
Picture this.
You need to spend 60 million to build a 60 million stadium. That means you need to actually fork out 60 million or get a loan. And until you've actually paid that 60 million off, no matter what you make at the gate or from parking, concessions, etc etc, you still haven't made a profit. And of course think of the property taxes, hydro, maintenance that needs to be paid.
In 20 years that 60 million probably raises to about 80 million.
Now you only have 20 home dates a year in this stadium. With lets say 12000 per game at 20 bucks. Which is 240000K per game. so for a season that's 4800000. 4.8 million into 80 Million is 16 years.
SO basically you don't even pay for the place until 16 years down the road. And of course- you still have to pay about 1.5 million a year in salary dollar and probably about another million in travel and promotional costs.
And when you compare the deal the Argos got which is basically free rent or close to it.
This would be the stupid way to go. And considering a 1989 650 Million stadium complete with roof went for 25 million in the sales. Less than 17 years after it was built. The time this MSL stadium might be paid off... So as you soon as the first dude sits in a seat, you investment devalues like a car.
BUT--- it does work--when you can get the feds to kick in 27 million, The provincial government 8 million, the city 9 million. Then you buy the naming right for 10 million (which you can turn around and sell for whatever you want) and say that it's part of your costs, and then get this:
Have the city to maintain ownership, so NO property taxes, no maintanace costs and still somehow run the place as it's all yours.
If things don't work out- walk away and leave the taxpayers to pay your debts. Talk about low risk for a large corporationlike MLSE.
Sweet deal paid by the good folks of places like Verdun or Newfoundland.
Cause instead of having to pay off 80 million over 17 years they basically have to turn over about 8 million (if they sell the naming rights to someone else) and they get 100% of the profit from MLS games and anything that uses the new corporate welfare stadium.
And this is a good thing for soccer?
You need to spend 60 million to build a 60 million stadium. That means you need to actually fork out 60 million or get a loan. And until you've actually paid that 60 million off, no matter what you make at the gate or from parking, concessions, etc etc, you still haven't made a profit. And of course think of the property taxes, hydro, maintenance that needs to be paid.
In 20 years that 60 million probably raises to about 80 million.
Now you only have 20 home dates a year in this stadium. With lets say 12000 per game at 20 bucks. Which is 240000K per game. so for a season that's 4800000. 4.8 million into 80 Million is 16 years.
SO basically you don't even pay for the place until 16 years down the road. And of course- you still have to pay about 1.5 million a year in salary dollar and probably about another million in travel and promotional costs.
And when you compare the deal the Argos got which is basically free rent or close to it.
This would be the stupid way to go. And considering a 1989 650 Million stadium complete with roof went for 25 million in the sales. Less than 17 years after it was built. The time this MSL stadium might be paid off... So as you soon as the first dude sits in a seat, you investment devalues like a car.
BUT--- it does work--when you can get the feds to kick in 27 million, The provincial government 8 million, the city 9 million. Then you buy the naming right for 10 million (which you can turn around and sell for whatever you want) and say that it's part of your costs, and then get this:
Have the city to maintain ownership, so NO property taxes, no maintanace costs and still somehow run the place as it's all yours.
If things don't work out- walk away and leave the taxpayers to pay your debts. Talk about low risk for a large corporationlike MLSE.
Sweet deal paid by the good folks of places like Verdun or Newfoundland.
Cause instead of having to pay off 80 million over 17 years they basically have to turn over about 8 million (if they sell the naming rights to someone else) and they get 100% of the profit from MLS games and anything that uses the new corporate welfare stadium.
And this is a good thing for soccer?