Edmonton denied new arena by city

[killgod]

Actually, what you neglect to note (and the largest contributor) was that the Canadian dollar was worth 60 cents American in the time those teams moved away. Basically, their teams were costing a shit ton more because the conversion rate was so extreme. A 40M US cost to run a club was like 60M CDN. Not feasible.

Teams are coming back because we're at par and if we weren't, Winnipeg would not have happened again.

[wr50l]

Ok, you got me.

'Anything's possible' but I couldn't possibly forecast Edmonton losing its team. Even as one of the worst teams in the league and with an admittedly decrepit arena they still have middle of the road revenue and and are one of the few profitable teams in the league.

[wr50l]

Little bit of maths on this stadium proposal.

From the Oilers perspective ...

Payment to the city -$192.5m (-$192.5m)
Operating costs -$350m (-$542.5m) *
Naming rights +$30m (-$512.5m) *
Additional Payment from city for advertising +$20m (-$492.5m)
Oilers ticket sales +$1.951bn ($1.459bn) *
Concession sales +$700m ($2.159bn) *
Additional income from other events which Oilers will collect (?)

* Inflation not included

And the city never sees a profit on this proposal. Gee I wonder why the Oilers don't mind a long-term commitment.

[killgod]

moving is not going to happen. it won't. Katz is just preparing to sell. He's now got all the numbers and stance for Edmonton and likely Seattle, which he can use in sale negotiations.

[Senser81]

Time for a little history lesson.

Both the Jets and the Nordiques came from the old World Hockey Association, Edmonton is also from the WHA...blah blah blah...Taking a team like the Oilers out of Edmonton would be like moving the Browns out of Cleveland.

Fixed

[Senser81]

Little bit of maths on this stadium proposal.

From the Oilers perspective ...

Payment to the city -$192.5m (-$192.5m)
Operating costs -$350m (-$542.5m) *
Naming rights +$30m (-$512.5m) *
Additional Payment from city for advertising +$20m (-$492.5m)
Oilers ticket sales +$1.951bn ($1.459bn) *
Concession sales +$700m ($2.159bn) *
Additional income from other events which Oilers will collect (?)

* Inflation not included

And the city never sees a profit on this proposal. Gee I wonder why the Oilers don't mind a long-term commitment.

Your math is terrible.

In this day and age, no one is going to pay $30M for naming rights to a hockey stadium located in Edmonton. I think the naming rights ship sailed about 5 years ago.

The money for advertising is just that...its not revenue. It shouldn't be used to offset the actual operating costs.

Why are ticket sales included as a base number? Are you saying that the Oilers would have zero ticket sales at any other stadium, but with the new stadium they will generate $1.95B of "newfound" money?

Where did you come up with the $700M in concession sales? What is that amount based on?

And you are missing another piece of the picture in that if the Oilers are leasing the stadium, they have to get the city to make any renovations/improvements on the stadium. This is always problematic for any team, and is the main reason the Browns left Cleveland. What if 5 years from now the new rage is to have mini plasma TV screens at every seat...who is going to install those? They also wouldn't own the property around the stadium, so they have no way to get any income when they leave.

Again, you are missing the point. If you are paying $54 to lease something, why not just buy it outright for $70?

[wr50l]

All of my math is based on the figures in the article posted worked out over the lifetime of 35 year deal (for example 'up to $3m per year' for naming rights x 35 = would be $105m but I guessed a super conservative $30m just to be moderate. It's just to show what a rip-off this offer is for the city. Of course the Oilers would make their ticket sales in another arena as well, but the point is that's how much they'd make in this arena i.e the one that the public is paying for and it obviously does not represent a fair return for the city.

I get what you're saying though about why not just build it and own it, but I guess Katz is maybe struggling to find the additional $600m that he wants the plebs of Edmonton to pay for him.

[Ravin]

I get what you're saying though about why not just build it and own it, but I guess Katz is maybe struggling to find the additional $600m that he wants the plebs of Edmonton to pay for him.

Katz networth is like $2.5billion

I think he is just living by the motto "why pay for it, when I can get someone else to". These guys become billionaires for a reason.

And fun question. Guess who owns Rexall Sports....the people who have the naming rights to the Arena