have you ever heard the phrase you have to invest money to make money as an accountant with a 2nd degree in economics. It's exactly what they should do. otherwise their entire investment is at risk. Our entire economy depends on that
You realize the proper analogy is a “going concern.” Don’t spend money on items you can’t afford to pay, as operations are in the business of making money. AZ survives from financial welfare from the NHL, State and City. Overspend and the lifeline is cutoff due to its financial mismanagement.
Here is a recent article about their financial state:
“The city borrowed about $180 million to build the arena in 2003 and spent another $45 million to try to keep the team in the arena after the owner filed for bankruptcy and new owners were sought. The city then paid the new ownership $15 million to manage the arena in the first few years. The city is still paying off the arena debt, at about $13 million a year, until 2033.
Phelps said Glendale would need to build a case that shows that, for every dollar the city invests in arena upgrades, there will be a payback.
The city pays AEG $5.6 million annually to manage the arena, which is offset by shared arena revenue.
The city is losing less from the deal in recent years. Its net loss was $4 million two years ago and $3.92 million last year.”
Duchene would be a nice add, but the unstable ownership, financial situation, poor attendance and perpetual rebuild its really unlikely he would want to finish his career with this team.