Marc Ganis
Marc Ganis
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The primary reason you're seeing more self funding is that the easy deals with the local governments are pretty much done. We don't have local government budget surpluses any more. It takes more creative financing.
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When you're adding those extra 5,000 seats, you have to build more ramps, more bathrooms, more plumbing, and it gets very expensive to build those extra seats. The number of times you sell the last 4,000 to 5,000 seats and the fact that they're going to be the less expensive seats, does not offset the cost of operating a larger facility.
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When was the last time somebody cheered for T-bill interest rates? But you cheer when your team is on the court, so there is a lot to be said for the psychic value of owning a sports team.
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The teams in smaller markets, like Jacksonville and Cincinnati, got their stadiums first. Then it was the big markets' turn -- Boston, Houston, Philadelphia, and soon New York and Dallas. The disparities between markets have become magnified.
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This actually puts hockey on more news pages, not necessarily in the way you want it, but it still is a cover story. Wayne Gretzky and his beautiful wife are good art, and that always attracts attention.