- Nov 17, 2011
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Appreciate the breakdown. Yeah, it's still a pricey endeavor to break early even if Viola wants out beforehand. That would have to be factored into a sale to Fertitta or Quebecor if it came to that.
That's what I'm saying....
If losses are 20M a year, then what do you do?
If you leave after 2023, you pay 72M to Broward County, but you forfeit 14M worth of subsidies in the next 5 years. Thus, you are paying out 86M dollars. To save 100M. That looks like a win, and looks better if losses are higher.
Leave after 2024:
Pay 64M, forfeit 10M of subsidies, to save 80M. Less of a win.
Leave after 2025:
Pay 56M, forfeit 6M, to save 60M in losses (this is closer to breakeven)....
And, so on.
Conclusion being that, if the losses continue to be that high, if you can move to a different market where your ancillary income (arena management fees in the lease) are exactly the same as Broward County, and you can break even....then you relocate, because you are going to save some bucks.
However, if you are a potential owner in a different market, thinking of buying to relocate, then you wait, so that you are not on the hook for the lease-breaking fees.