Comment 49319

By sbwoodside (registered) - website | Posted October 12, 2010 at 21:37:46

Here's the latest statement by Scott Mitchell:

The Tiger-Cats could lose $70 million over 20 years if they run the stadium, but the team is willing to take on those costs, Ticat president Scott Mitchell told council this afternoon.

http://www.thespec.com/news/elections/ar...

The article doesn't explain well, but it does note that the expected annual operating cost of the stadium is $2.8 to $3.5 million. $3.5 million over 20 years is $70 million.

This figure is incorrect for many reasons. First, the city is paying $300,000 of that cost per year. Second, the tiger cats commitment is only for 10 years, so their actual maximum loss is $32 million. Third, if they were in fact doing so poorly, it's certain that they would dramatically scale back their operating budget to reduce losses.

Finally it seems again to be nearly impossible for them to lose money, since they get all of the parking revenue, all of the advertising revenue, and all of the naming revenue, which alone is estimated to bring in enough to cover all the operating costs each year, even without the city contribution.

I'd like to see a proper analysis of the operating budget of the stadium, but I don't think we've seen it yet.

Comment edited by sbwoodside on 2010-10-12 20:40:38

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