Phoenix LXXII: Send in the Clowns

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cbcwpg

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May 18, 2010
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Honestly where have these 3 bidders he mentioned been for the past 3 years.

I just don't buy it that we have 3 "new" bidders that have all of the sudden come out of nowhere and are now interested. Really, what would entice someone new to throw their hat in the ring at this point? A feeling that after 4 years the CoG is ripe for the picking?

IMO you will never see a deal better than what Jamison came up with, unless the CoG gives the new owner a free walk if they decide to leave. That might be worth it, if you could get that. Phone the CoG up one day and say I'm done I'm out of here, with no cost to doing so....
 

Killion

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Feb 19, 2010
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Im curious if Dado would consider Penn Station and Union Station as subsidies to the NYR and TML.... Not their entire costs, of course, but if public money being spent on a venue used to play hockey games sometimes is a subsidy then isn't money spent on the public transportation system that gets fans to those games (and literally inside the venue) also a subsidy? or, at the very least, the hallways constructed solely to access the venues from the stations?.. I just want to be clear where subsidies begin and end.

Interesting question, debatable. Classic example would be the 2010 Olympics' out here in Vancouver/Whistler. Massive expenditures made to improve Hwy 99 between Vancouver & Whistler as the IOC had "concerns" about it, as in without improvements you likely wont win the games when the city was bidding, promising upgrades (numerous other examples as well (Athletes Village, Richmond's Oval & land reclamations, roads built etc)...

The costs to upgrade 99 well into the hundreds of millions but not included in the budget for Olympic Facility Construction & Infrastructure. Buried elsewhere. The highway absolutely needed improvements & up-grades & had for years, but under normal circumstances would have been completed gradually rather than hurriedly.

When the sitting government was questioned about it post games, as in "why werent the Hwy 99 upgrades included in the costs associated with securing & executing the games", they of course obfuscated, claiming hilariously at various times that the improvements had nothing to do with the games & access to Whistler, the 100's of millions spent irrelevant to the cost benefits in hosting the games and therefore excluded from the Olympic Games Budget.

When Terrace Investments in Ottawa set their sites on vacant farmland out in Kanata to build Scotiabank Arena & the development surrounding it, no highway interchange or exit, they promised to pay for its construction. Unfortunately they werent able to raise the app $6M required, the taxpayer ultimately picking up the tab so ya, that'd be a subsidy, because obviously without the cloverleaf & ease of access, big problem. Theoretically therefore, you could probably look at just about anywhere, any arena or stadium development, suburban or urban, whereby municipal, state or provincial authorities were indeed required to make upgrades or build transportation infrastructure that one could then point to as being a subsidy.

No offense Dado, but you're clearly better at providing qualitative analysis than quantitative analysis. It seems to me that you don't need the numbers at all to make your general point, and we both agree 100% on the conclusion that Quebecor will be getting a subsidy...

... Well there ya go. Some people just take the road less travelled, winding up at the same place as those who follow more prescribed routes marked on maps. I see no harm in someone wishing to take a more circuitous route, though clearly there are dangers along the way, traps & pitfalls best avoided. :)
 
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Killion

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Feb 19, 2010
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IMO you will never see a deal better than what Jamison came up with, unless the CoG gives the new owner a free walk if they decide to leave...

I agree. The only way theyve' got 3 or 4 prospective buyers hovering around is if; A) Weiers is lying, and he plans to table Jamison like offers or; B) Tables offers that provides for portability short-term, say within 5yrs. Cant see them doing either, nor could I see the NHL selling the franchise to whomever based on portability as even if the buyer is a "chosen one" the league'd lose control. You could argue that I guess, wildly speculating that if Jamison or Reinsdorf, whomever buys the team, side deals in-place to move the franchise to God only Knows in 2016/17 or whatever, like Seattle, Vegas, Houston or wherever. Frankly, it wouldnt surprise me at this point in time to see the league parking it in Glendale for yet another season. It just doesnt get any stranger than this story.
 

Dado

Guest
-Only 180M out of the number will be financed as 200M comes from the provincial infrastructures budget and 20M is from the J'ai ma place program

Quebec runs a deficit budget, so that 200M is also being financed. And $80M "safety belt" is historically woefully inadequate for large construction projects in Quebec.

The $20M I will concede. ;)
 
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Dado

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Quebecor will get a subsidy that will be roughly half of what Glendale would have paid.

Again, as we discussed earlier, Barney, I'm totally fine with your number, as the Glendale subsidy is HUGE and half of a damn big number is still a damn big number.

The central point remains: if requiring a substantial subsidy means a market is non-viable, then both Glendale and QC are non-viable markets <insert George Bernard Shaw story>.

Cheers!
 
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Stanley Cup

Bettman's ice bucket
Jul 15, 2010
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Quebec runs a deficit budget, so that 200M is also being financed. And $80M "safety belt" is historically woefully inadequate for large construction projects in Quebec.

The $20M I will concede. ;)

Deficit until 2014, the project will not be fully paid in the first year ";)".

All I'm saying is don't pull a 1.2B figure out of your hat.
 

GF

Registered User
Nov 4, 2012
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Again, as we discussed earlier, Barney, I'm totally fine with your number, as the Glendale subsidy is HUGE and half of a damn big number is still a damn big number.

The central point remains: if requiring a substantial subsidy means a market is non-viable, then both Glendale and QC are non-viable markets <insert George Bernard Shaw story>.

Cheers!

Well by your logic, the NHL as a whole is non-viable. I remember the Habs asked a tax credit to the city of Montreal a few years back. I don't know how this story ended. But if all subsidy were to be cut to every NHL team, my guess is we would be back to the original 6...

I don't really know what your whole point "really" is, but I enjoy seeing you trying to make one.

One final thought, I do feel there's a difference between a city building an arena and renting it to a tenant (at lower than actual cost) and a city building an arena and actually paying someone (large amounts of money) to use it.
 

Dado

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Well by your logic, the NHL as a whole is non-viable.

It's not my logic, mate. It is the logic of a whole lot of posters who point to subsidies as a litmus test. But - mind you - only selectively. :P

As I have said repeatedly - if the voters of a town or region or province/state all want to chip in and make a team "viable" with tax dollars, it's totally fine with me!
 

CasualFan

Tortious Beadicus
Nov 27, 2009
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That is a gross mischaracterization of what I said.

Not really.

Again, as we discussed earlier, I'm totally fine with that number, as the Glendale subsidy is HUGE and half of a damn big number is still a damn big number.

The central point remains: if requiring a substantial subsidy means a market is non-viable, then both Glendale and QC are non-viable markets <insert George Bernard Shaw story>.

Cheers!

Actually, the point that you posted was that the subsidies were comparable. Clearly, they aren't. You were wrong.

A substantial subsidy for constructing a sports facility is standard. A separate, additional subsidy for operation of the franchise is not standard. It is a definitive sign that the market is not viable.

If a Quebec NHL franchise requires a $15MM per year operational subsidy in addition to the substantial subsidy they enjoy for arena construction, then you'll have a point. Until then, your point is fatally flawed.
 

GuelphStormer

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Mar 20, 2012
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Dado, can you please answer my earlier questions about train stations? im still not sure what parameters you are using to define subsidy. thnx in advance. :)
 

Killion

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Feb 19, 2010
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Deficit until 2014, the project will not be fully paid in the first year ";)"

Arizona's running a deficit of app $2.1B with a population of about 6.5M, while the PQ is running an app $1.5B deficit with a population of about 8M. And yes, quite correct, hoping to have it eliminated by the end of 2014.... and how does one do that in Quebec? Simple. Heap yet more taxes on beer, wine & cigarettes. Damn them all to Hell. Cant even enjoy yourself anymore without paying for it through the nose, and to add insult to injury forced outside into the rain, snow & cold if you wanna light up. Egregious, uncivilized... :rant:
 

Dado

Guest
I just want to be clear where subsidies begin and end.

That would end up being a rat hole of a philosophical discussion that inevitably either ends up at either "Why are we here?" or fulfilling Godwin's Rule.

Regarding your specific question, there are folks that would consider it a subsidy, there are folks that wouldn't. My personal opinion is that the proportion of people who use that service to get to games is exceedingly small, so even if we count it as a subsidy, it has no meaningful impact on the final number.

It can be an interesting exercise to follow the turtles all the way down, though! :)
 

GuelphStormer

Registered User
Mar 20, 2012
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That would end up being a rat hole of a philosophical discussion that inevitably either ends up at either "Why are we here?" or fulfilling Godwin's Rule.

Regarding your specific question, there are folks that would consider it a subsidy, there are folks that wouldn't. My personal opinion is that the proportion of people who use that service to get to games is exceedingly small, so even if we count it as a subsidy, it has no meaningful impact on the final number.

It can be an interesting exercise to follow the turtles all the way down, though! :)
rat hole or turtles, i dont really care about, i was hoping instead that you would better define the specific parameters you use to determine whether a public expenditure is or is not a subsidy. im certainly not the only one confused by your various evaluations. cheers.
 

tarheelhockey

Offside Review Specialist
Feb 12, 2010
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Well by your logic, the NHL as a whole is non-viable.

It's not such a crazy thing to say that the entire North American sports industry at the moment is non-viable. The whole thing basically exists on a bubble of public funding, which could disappear at any time. If that happened, the contraction of the sports industry would be comparable to the crashes of software, real estate, banks, etc. in the past decade.

Hell, if you define "viable" as "existing without public subsidy", most of the larger economy is non-viable as well. An awful lot of industry is built on public investment, particularly in infrastructure.
 

GF

Registered User
Nov 4, 2012
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It's not such a crazy thing to say that the entire North American sports industry at the moment is non-viable. The whole thing basically exists on a bubble of public funding, which could disappear at any time. If that happened, the contraction of the sports industry would be comparable to the crashes of software, real estate, banks, etc. in the past decade.

Hell, if you define "viable" as "existing without public subsidy", most of the larger economy is non-viable as well. An awful lot of industry is built on public investment, particularly in infrastructure.

I agree. It's how things work in many industries.

However, I was wondering, and I know and drifting far off topic here, but, does the NFL also lives on different types of subsidy from their host cities? I really have no clue.
 

metalfoot

Karlsson!
Dec 21, 2007
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Genuine question: if the major professional sports leagues seem only able to survive in parasitic relationships with their host cities, does that mean the model of pro sports in North America is utterly broken?
 

MNNumbers

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I agree. It's how things work in many industries.

However, I was wondering, and I know and drifting far off topic here, but, does the NFL also lives on different types of subsidy from their host cities? I really have no clue.

Genuine question: if the major professional sports leagues seem only able to survive in parasitic relationships with their host cities, does that mean the model of pro sports in North America is utterly broken?

Well fellows, as one piece of information:

Minnesota Vikings are going to have a new stadium in downtown Minneapolis. Approx imate cost: 950M. Team portion: 50% +/- 5%. That's a 475M outlay by the City of Mpls/Hennepin Cty/State of Minn. All 3 are involved. Hard to say really what the governments get out of it. Use by Vikings: 10 - 12 times a year, depending on playoffs. Subsidy? Yes. Reason: Threat to leave.

Pro sports model broken: In my opinion, yes. Especially when you take into consideration that NFL, which is by far the biggest $$, plays the fewest games and is the most violent. My guess is that in 30 years, because of the head injuries and their effect on the brain, that the NFL as we know it now won't be around in 30 years. There may be some sort of football, but not like that.

Likewise, like it or not, hockey will have to tone down the hitting. This is a commentary on the general move in the culture and our awareness of concussions. It's not a commentary on 'how hockey should be played.' It's just my idea. And, I think it is also fair to say that if you tone down the game of hockey, it will lose a good deal of its appeal, especially in traditional markets, where more revenue is located.

Just my input....
 

barneyg

Registered User
Apr 22, 2007
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Genuine question: if the major professional sports leagues seem only able to survive in parasitic relationships with their host cities, does that mean the model of pro sports in North America is utterly broken?

Personal opinion: in general, yes. Many players end up being overpaid because the teams bidding for their services do not have to pay market value for the infrastructure they use. (market value is the wrong word to use here but you get the point)

Nuanced (and/or cynical) answer: sports fans vote, and many of them would rather see public money spent on stadiums than public schools, tax cuts, social programs, etc.
 

Dado

Guest
Likewise, like it or not, hockey will have to tone down the hitting. This is a commentary on the general move in the culture and our awareness of concussions.

Then it will be replaced by an alternate, but more violent, sport. While everyone has been expressing outrage at NFL concussions, UFC has exploded in popularity.

Humans like blood sport - always have and always will.
 

Mightygoose

Registered User
Nov 5, 2012
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Genuine question: if the major professional sports leagues seem only able to survive in parasitic relationships with their host cities, does that mean the model of pro sports in North America is utterly broken?

Good question.

I see the relationship between league and city and more specifically, the city that either gives in or has big dreams more or less enables the leagues 'behavior'

As long as one city offers the moon and the stars to thier respective team it will just raise the bar and the next owner is going to look at their venue, go to their city/county and say 'I want what X has' threatens to leave and the cycle contines.

It doesn't just happen in the majors, when the new arean cycle in the OHL began in the 90s, cities we're treatents and ponied up to keep their team in town. I was listening to Prime Time sports last week and this even happens among Florida cities/counties for spring training facilities.

So in short, yes it's broken and it's a vicious circle that's tough to break
 
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