Quote:
Originally Posted by Migs
Is your way of life seriously all about numbers? If that was the case then there would be zero stadiums across Canada, no CFL, zero landmarks, zeri museums, zero librairies, zero parks, zero hockey rinks, etc etc (as they rarely if ever make a profit)
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Actually your example undermines your original argument. The only way we can have some of these public facilities is through prudent and sensible use of public funds. If we blow decades worth of money on one giant flop of a project, we risk killing all those many important elements. And for what? Someone's short-term political glory? To crank up our casino take a little higher? To deceive ourselves that someone outside the province will care that we built a cement ring?
Quote:
Originally Posted by Migs
And you once again only mention that what supports your agenda. You failed to mention the millions that would be brought in annually with the sale of coporate boxes, the hunderds of millions that would be brought in with hosting the Grey Cup once every 8 years instead of twice in a century, etc etc.
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I "failed" to mention these because they are sadly based on false hope and unrealistic dreams.
Do some homework my friend. We have a recent market value on stadium sponsorship. Mosaic -the company we sold out our history to - is paying 375,000 annually to essentially own the identity of one of a historic landmark. Even obtaining the 375,000 figure took a fair amount of negotiation and concession.
What makes you think they - or anyone else - is prepare to pony up 100 times the size of that already big deal?
I guess maybe we could find 99 more companies, all of them as rich as Mosaic, and give naming rights to all 100 companies. We'd be briefly famous for having the longest stadium name in the world. Our playing surface would gain world-wide attention for having zero green area and being 100% logo covered. But I do fear that companies 3 through 100 might question the value of their sponsorship dollars spent. And we'd lose thousands of paying customers since these 100 corporate sponsors would want boxes and event tickets for themselves.
No, the fact is Mosaic won't pay 100 times that number. No responsible private business will pay 100 times market value for something.
Unfortunately though, I fear that casino and crown corp monopolies aren't as grounded to reality as real life businesses are. I fear they could cheerfully pay 100 times the fair rate for something. After all, it's not their money they're wasting, it's the guillible public's money.
So to your argument that "millions of dollars" will be "brought in" by corporate sponsorships. It just doesn't hold water. Nobody is paying anything close to that level.
Entertainment money is discretionary and finite, so any gains seen in big events will be at the cost of other small events. Somebody skipped spending $150 at Buffalo Days today because he bought tickets to Aerosmith instead. Except the Aerosmith money largely goes out of town when the band leaves. That's how it actually works. You're not actually creating economic impact, you're just shuffling dollars around under some shells.
The argument that the grey cup brings in "hundreds of millions" is also false. Millions, maybe in gross, but much less net. If 5,000 come for the grey cup, and they spend 1,000 each, that's $5 million. I think the CFL buyout for the event is in the low single millions. If you covet the 1 or 1.5 million profit of a grey cup... then do I have an idea for you! Just stave off building a giant stadium and viola - there's a risk free, tax free guaranteed $350 million right there. Sorry but it's senseless to spend $350 million in hopes of a $1.5 million return every 8 years.
It's also important for people to realize that money being quote brought in unquote is not the same as net profit nor even direct revenue. The Rolling Stones tour promoter pocketed over 90% of the "economic impact" of that concert. The real world benefit to the community is a tiny tiny fraction of the big number that gets touted.
Let's break it down so as to understand it. A Rolling Stones concert comes to town for 2 nights. Some hotels and restaurants go from 80% capacity to 100% for 2 nights. A 20% jump in room bookings for 2 nights. That is a very incremental gain that is here and gone in a flash. The city maybe gets $120,000 in rental revenue for the site booking which is the number everyone talks about. Nobody mentions the overhead and policing and other costs of say $100,000. The real world net impact is $20,000, but people walk around spouting about "hundreds of millions of dollars".
It's human nature to strut and want to put up the big numbers. But let's stay in reality when it comes to the actual economics.