{"id":1586,"date":"2010-03-15T10:35:37","date_gmt":"2010-03-15T17:35:37","guid":{"rendered":"http:\/\/www.jameswbreckenridge.ca\/breckenridge\/?p=1586"},"modified":"2011-10-13T03:29:55","modified_gmt":"2011-10-13T10:29:55","slug":"not-another-costly-profit","status":"publish","type":"post","link":"https:\/\/www.jameswbreckenridge.ca\/?p=1586","title":{"rendered":"Not another costly ‘profit’."},"content":{"rendered":"

We need to ban the word and concept of \u2018profit\u2019 from use or even consideration by Abbotsford City Council.<\/span><\/p>\n

Not only can taxpayers not afford to pay for any more Abbotsford City Council \u2018profit\u2019, but the evidence is overwhelming that such a ban would save the beleaguered taxpayer\u2019s of Abbotsford millions of dollars.<\/span><\/p>\n

The agreement between Abbotsford and the Heat and the statements made by the City illustrate just how important it is to the future financial health of the City of Abbotsford that \u2018profit\u2019 be banned.<\/span><\/p>\n

Here are the things council (and taxpayers) need to consider when the agreement is presented to them Monday March 15, 2010.<\/span><\/p>\n

\u201cI use the example of a WestJet 747 parked on the tarmac. It can only make money if you use it,\u201d said Abbotsford Mayor George Peary.<\/span><\/em><\/p>\n

It is erroneous assumptions\/statements like this that have placed Abbotsford in its current dire financial state.<\/span><\/p>\n

A little homework would have revealed that scattered across deserts in Southern California, Arizona and New Mexico are 5 aircraft storage facilities full of a broad assortment of aircraft sitting there in storage in order to save money.<\/span><\/p>\n

I want to introduce Mayor Peary, council and staff to an important piece of financial reality \u2013 \u201ca penny saved is a penny earned\u201d. When it is going to cost you more to use Mayor Peary\u2019s 747 than it will generate in revenue you profit by leaving it parked and saving the expenses (losses) you would incur in operating the plane.<\/span><\/p>\n

\u201cIf we didn\u2019t have a team, then where would we be? We\u2019d be worse off,\u201d Pizzuto commented.<\/span><\/em><\/p>\n

As was pointed out by those with a firm grip upon financial reality when the possibility of an AHL team in the Sports and Entertainment Centre first arose \u2013 if the costs incurred in having a team in the building are higher than the revenue you generate from having the team in the building you save money \u2013 are better off \u2013 not having a team.<\/span><\/p>\n

So Mayor Peary\u2019s statement \u201cThe prospect of no hockey team and an empty arena would be a huge drain on the city\u201d <\/em>is currently inaccurate and untrue. Currently it is having a hockey team that is a drain on city resources, whereas no team and an empty arena would have saved the taxpayers of Abbotsford significant amounts of their tax dollars.<\/span><\/p>\n

But having an empty arena would be embarrassing to council and city hall so one could hardly expect council and city hall to put the financial wellbeing of Abbotsford and its taxpayers above face saving for council and city hall, could one?<\/span><\/p>\n

I could, but then I am accounted as one of those \u2018nay sayers\u2019 \u2013 you know, those citizens who oppose council\u2019s continuing practice of recklessly spending the City into an ever deepening financial black hole. I do admit that I am puzzled as to how being opposed to council and city hall\u2019s financial mismanagement is a negative (nay sayer) thing?<\/span><\/p>\n

On the other hand attacking those who are asking rational questions and demanding full disclosure of revenues and expenses is a time honoured way of avoiding having to disclose embarrassing facts.<\/span><\/p>\n

A way to avoid answering questions that would let citizens evaluate the mayor\u2019s claim that \u201cthe deal had to get done\u201d or whether this was a \u2018deal\u2019 the city should have run away from.<\/span><\/p>\n

Questions any reasonably astute person would ask before agreeing to such a major financial commitment. Questions, the answers to which will undoubtedly give rise to further questions, as undoubtedly would a close reading\/examination of the agreement itself.<\/span><\/p>\n

Questions such as what is the cost, what are the expenses incurred, in operating the Centre for the Heat as tenants? And exactly how are these costs accounted for? Are they included in the Heat budget as part of hockey operations as they should be or are these costs excluded and hidden in other operating costs of the arena \u2013 thus providing a major hidden subsidy to the Heat and its owners?<\/span><\/p>\n

What happens financially in regard to the concessions vis-\u00e0-vis the Heat? Does the City get the profit? Does the Heat get the profit? Just who does profit from the concessions during Heat games, how and what are the numbers?<\/span><\/p>\n

Questions about attendance projections as the accuracy and reality of these projections have a direct impact on whether Abbotsford continues to pour major amounts of taxpayer dollars into the pockets of the Heat ownership.<\/span><\/p>\n

Attendance is of particular importance given evidence from the WHL, AHL and NHL suggesting that the first and second years are the best\/easiest years for attendance and that attendance declines after that. Take the case of the WHL Chilliwack Bruins who have suffered a 30% decline in attendance from their 2nd<\/sup> year attendance levels. <\/span><\/p>\n

Is the $5.7 million a) an annual revenue guarantee; b) the point at which the team becomes responsible for expenses incurred; c) the break-even point?<\/span><\/p>\n

Since we are dealing with Abbotsford City Council and City Hall \u2013 exactly how fixed is the $5.7 million fixed? Is the $5.7 million going to remain at $5.7 million or will it, like so many other amounts declared \u2018fixed\u2019 or \u2018guaranteed\u2019 by Abbotsford Council going to balloon ever upwards? Does it seem reasonable that the Heat expect their expenses to remain at $5.7 million dollars over the ten year period?<\/span><\/p>\n

Why is \u201cThe city\u2019s agreement is similar to standard entertainment deals, which ensure a payment to the entertainer, and a profit-sharing equation for any remaining revenue<\/em>\u201d? Since we are talking about a hockey team should an agreement not be similar to standard rental\/tenancy agreements between hockey teams and cities elsewhere? Is it because in other cities professional hockey teams not only pay rent, but pay rent at a level that covers the costs incurred in operating the arena with them as tenants? Is it because in other cities the City does not pay the professional hockey team to play in their arena?<\/span><\/p>\n

What other information is contained in the agreement that city council and staff deems that taxpayers \u2018Do Not Need to Know\u2019? What arrangement has the city put in place so taxpayers read the agreement themselves in order to arrive at an informed opinion on the agreement?<\/span><\/p>\n

To understand why those two questions are important you need only read Mayor Peary\u2019s statement concerning whether of not the city is paying the travel costs for other AHL teams to travel to Abbotsford – \u201cThe city itself is not making cheques out to the AHL for travel. You have to remember, the AHL took a huge leap of faith to come out this far west<\/em>\u201d.<\/span><\/p>\n

It does not matter that the city is not making cheques directly out to the AHL for travel when the city is subsidizing the Heat who are making the cheques out to subsidize travel. Following that logic how long before the city is claiming they did not pay anything to build the Sports and Entertainment Centre \u2013 that it was the lenders who paid for the arena and the fact that the city is repaying the lenders does not mean the city paid for the arena.<\/span><\/p>\n

The truth is that the city, in spite of its promise not to subsidize the costs for other AHL teams to travel to Abbotsford, is subsidizing the travel costs of AHL teams to come to Abbotsford – Reality as opposed to the council\u2019s semantic games.<\/span><\/p>\n

Truthfulness \u2013 a concept that together with financial common sense would have saved the taxpayers the financial pain of the city\u2019s current financial straits. <\/span><\/p>\n

Speaking of semantic games one cannot overlook that Mayor Peary\u2019s ongoing semantic game of \u201cthe decision made by the previous council has given this council a huge challenge<\/em>\u201d is getting old or alternatively could be a sign of a major problem\/worry for Abbotsford taxpayers.<\/span><\/p>\n

Mayor Peary might I suggest at the next council meeting you look around at the faces on council? You will find that this council is pretty much made up of the members of the previous council. So please spare us the disingenuous blaming of prior councils for current problems while ignoring the fact those previous councillors who are current councillors.<\/span><\/p>\n

Finally as regards Mayor Peary\u2019s challenge \u201cThere is an election in a year and a half time. I hope some of the critics come up with better ideas and run for office<\/em>\u201d.<\/span><\/p>\n

Unfortunately by that point in time council will in all likelihood have committed the city to the agreement with the Heat and engaged in who knows what other financial misadventures. As result of which, no matter how much better the ideas new councillors come up with, all the new councillors and council will be able to do is lessen the negative fallout of the decisions and actions of our current councillors.<\/span><\/p>\n

Still Abbotsford and its taxpayers will be much better off with new councillors with financial common sense and who have enough common sense to know that when you find yourself in a (financial) hole \u2013 you stop digging.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

We need to ban the word and concept of \u2018profit\u2019 from use or even consideration by Abbotsford City Council. Not only can taxpayers not afford to pay for any more Abbotsford City Council \u2018profit\u2019, but the evidence is overwhelming that such a ban would save the beleaguered taxpayer\u2019s of Abbotsford millions of dollars. The agreement between Abbotsford and the Heat and the statements made by the City illustrate just how important it is to the future financial health of the City of Abbotsford that \u2018profit\u2019 be banned. Here are the things council (and taxpayers) need to consider when the agreement is presented to them Monday March 15, 2010. \u201cI use the example of a WestJet 747 parked on the tarmac. It can only make money if you use it,\u201d said Abbotsford Mayor George Peary. It is erroneous assumptions\/statements like this that have placed Abbotsford in its current dire financial state. A little homework would have revealed that scattered across deserts in Southern California, Arizona and New Mexico are 5 aircraft storage facilities full of a broad assortment of aircraft sitting there in storage in order to save money. I want to introduce Mayor Peary, council and staff to an important piece of financial reality \u2013 \u201ca penny saved is a penny earned\u201d. When it is going to cost you more to use Mayor Peary\u2019s 747 than it will generate in revenue you profit by leaving it parked and saving the expenses (losses) you would incur in operating the plane. \u201cIf we didn\u2019t have a team, then where would we be? We\u2019d be worse off,\u201d Pizzuto commented. As was pointed out by those with a firm grip upon financial reality when the possibility of an AHL team in the Sports and Entertainment Centre first arose \u2013 if the costs incurred in having a team in the building are higher than the revenue you generate from having the team in the building you save money \u2013 are better off \u2013 not having a team. So Mayor Peary\u2019s statement \u201cThe prospect of no hockey team and an empty arena would be a huge drain on the city\u201d is currently inaccurate and untrue. Currently it is having a hockey team that is a drain on city resources, whereas no team and an empty arena would have saved the taxpayers of Abbotsford significant amounts of their tax dollars. But having an empty arena would be embarrassing to council and city hall so one could hardly expect council and city hall to put the financial wellbeing of Abbotsford and its taxpayers above face saving for council and city hall, could one? I could, but then I am accounted as one of those \u2018nay sayers\u2019 \u2013 you know, those citizens who oppose council\u2019s continuing practice of recklessly spending the City into an ever deepening financial black hole. I do admit that I am puzzled as to how being opposed to council and city hall\u2019s financial mismanagement is a negative (nay sayer) thing? On the other hand attacking those who are asking rational questions and demanding full disclosure of revenues and expenses is a time honoured way of avoiding having to disclose embarrassing facts. A way to avoid answering questions that would let citizens evaluate the mayor\u2019s claim that \u201cthe deal had to get done\u201d or whether this was a \u2018deal\u2019 the city should have run away from. Questions any reasonably astute person would ask before agreeing to such a major financial commitment. Questions, the answers to which will undoubtedly give rise to further questions, as undoubtedly would a close reading\/examination of the agreement itself. Questions such as what is the cost, what are the expenses incurred, in operating the Centre for the Heat as tenants? And exactly how are these costs accounted for? Are they included in the Heat budget as part of hockey operations as they should be or are these costs excluded and hidden in other operating costs of the arena \u2013 thus providing a major hidden subsidy to the Heat and its owners? What happens financially in regard to the concessions vis-\u00e0-vis the Heat? Does the City get the profit? Does the Heat get the profit? Just who does profit from the concessions during Heat games, how and what are the numbers? Questions about attendance projections as the accuracy and reality of these projections have a direct impact on whether Abbotsford continues to pour major amounts of taxpayer dollars into the pockets of the Heat ownership. Attendance is of particular importance given evidence from the WHL, AHL and NHL suggesting that the first and second years are the best\/easiest years for attendance and that attendance declines after that. Take the case of the WHL Chilliwack Bruins who have suffered a 30% decline in attendance from their 2nd year attendance levels. Is the $5.7 million a) an annual revenue guarantee; b) the point at which the team becomes responsible for expenses incurred; c) the break-even point? Since we are dealing with Abbotsford City Council and City Hall \u2013 exactly how fixed is the $5.7 million fixed? Is the $5.7 million going to remain at $5.7 million or will it, like so many other amounts declared \u2018fixed\u2019 or \u2018guaranteed\u2019 by Abbotsford Council going to balloon ever upwards? Does it seem reasonable that the Heat expect their expenses to remain at $5.7 million dollars over the ten year period? Why is \u201cThe city\u2019s agreement is similar to standard entertainment deals, which ensure a payment to the entertainer, and a profit-sharing equation for any remaining revenue\u201d? Since we are talking about a hockey team should an agreement not be similar to standard rental\/tenancy agreements between hockey teams and cities elsewhere? Is it because in other cities professional hockey teams not only pay rent, but pay rent at a level that covers the costs incurred in operating the arena with them as tenants? Is it because in other cities the City does not pay the professional hockey team to play in their arena? What other information is contained … Continue reading Not another costly ‘profit’.<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,54],"tags":[],"class_list":["post-1586","post","type-post","status-publish","format-standard","hentry","category-municipal","category-snafu"],"yoast_head":"\nNot another costly 'profit'. - James W. Breckenridge<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.jameswbreckenridge.ca\/?p=1586\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Not another costly 'profit'. - James W. Breckenridge\" \/>\n<meta property=\"og:description\" content=\"We need to ban the word and concept of \u2018profit\u2019 from use or even consideration by Abbotsford City Council. Not only can taxpayers not afford to pay for any more Abbotsford City Council \u2018profit\u2019, but the evidence is overwhelming that such a ban would save the beleaguered taxpayer\u2019s of Abbotsford millions of dollars. The agreement between Abbotsford and the Heat and the statements made by the City illustrate just how important it is to the future financial health of the City of Abbotsford that \u2018profit\u2019 be banned. Here are the things council (and taxpayers) need to consider when the agreement is presented to them Monday March 15, 2010. \u201cI use the example of a WestJet 747 parked on the tarmac. It can only make money if you use it,\u201d said Abbotsford Mayor George Peary. It is erroneous assumptions\/statements like this that have placed Abbotsford in its current dire financial state. A little homework would have revealed that scattered across deserts in Southern California, Arizona and New Mexico are 5 aircraft storage facilities full of a broad assortment of aircraft sitting there in storage in order to save money. I want to introduce Mayor Peary, council and staff to an important piece of financial reality \u2013 \u201ca penny saved is a penny earned\u201d. When it is going to cost you more to use Mayor Peary\u2019s 747 than it will generate in revenue you profit by leaving it parked and saving the expenses (losses) you would incur in operating the plane. \u201cIf we didn\u2019t have a team, then where would we be? We\u2019d be worse off,\u201d Pizzuto commented. As was pointed out by those with a firm grip upon financial reality when the possibility of an AHL team in the Sports and Entertainment Centre first arose \u2013 if the costs incurred in having a team in the building are higher than the revenue you generate from having the team in the building you save money \u2013 are better off \u2013 not having a team. So Mayor Peary\u2019s statement \u201cThe prospect of no hockey team and an empty arena would be a huge drain on the city\u201d is currently inaccurate and untrue. Currently it is having a hockey team that is a drain on city resources, whereas no team and an empty arena would have saved the taxpayers of Abbotsford significant amounts of their tax dollars. But having an empty arena would be embarrassing to council and city hall so one could hardly expect council and city hall to put the financial wellbeing of Abbotsford and its taxpayers above face saving for council and city hall, could one? I could, but then I am accounted as one of those \u2018nay sayers\u2019 \u2013 you know, those citizens who oppose council\u2019s continuing practice of recklessly spending the City into an ever deepening financial black hole. I do admit that I am puzzled as to how being opposed to council and city hall\u2019s financial mismanagement is a negative (nay sayer) thing? On the other hand attacking those who are asking rational questions and demanding full disclosure of revenues and expenses is a time honoured way of avoiding having to disclose embarrassing facts. A way to avoid answering questions that would let citizens evaluate the mayor\u2019s claim that \u201cthe deal had to get done\u201d or whether this was a \u2018deal\u2019 the city should have run away from. Questions any reasonably astute person would ask before agreeing to such a major financial commitment. Questions, the answers to which will undoubtedly give rise to further questions, as undoubtedly would a close reading\/examination of the agreement itself. Questions such as what is the cost, what are the expenses incurred, in operating the Centre for the Heat as tenants? And exactly how are these costs accounted for? Are they included in the Heat budget as part of hockey operations as they should be or are these costs excluded and hidden in other operating costs of the arena \u2013 thus providing a major hidden subsidy to the Heat and its owners? What happens financially in regard to the concessions vis-\u00e0-vis the Heat? Does the City get the profit? Does the Heat get the profit? Just who does profit from the concessions during Heat games, how and what are the numbers? Questions about attendance projections as the accuracy and reality of these projections have a direct impact on whether Abbotsford continues to pour major amounts of taxpayer dollars into the pockets of the Heat ownership. Attendance is of particular importance given evidence from the WHL, AHL and NHL suggesting that the first and second years are the best\/easiest years for attendance and that attendance declines after that. Take the case of the WHL Chilliwack Bruins who have suffered a 30% decline in attendance from their 2nd year attendance levels. Is the $5.7 million a) an annual revenue guarantee; b) the point at which the team becomes responsible for expenses incurred; c) the break-even point? Since we are dealing with Abbotsford City Council and City Hall \u2013 exactly how fixed is the $5.7 million fixed? Is the $5.7 million going to remain at $5.7 million or will it, like so many other amounts declared \u2018fixed\u2019 or \u2018guaranteed\u2019 by Abbotsford Council going to balloon ever upwards? Does it seem reasonable that the Heat expect their expenses to remain at $5.7 million dollars over the ten year period? Why is \u201cThe city\u2019s agreement is similar to standard entertainment deals, which ensure a payment to the entertainer, and a profit-sharing equation for any remaining revenue\u201d? Since we are talking about a hockey team should an agreement not be similar to standard rental\/tenancy agreements between hockey teams and cities elsewhere? Is it because in other cities professional hockey teams not only pay rent, but pay rent at a level that covers the costs incurred in operating the arena with them as tenants? Is it because in other cities the City does not pay the professional hockey team to play in their arena? What other information is contained … Continue reading Not another costly ‘profit’. →\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.jameswbreckenridge.ca\/?p=1586\" \/>\n<meta property=\"og:site_name\" content=\"James W. Breckenridge\" \/>\n<meta property=\"article:published_time\" content=\"2010-03-15T17:35:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2011-10-13T10:29:55+00:00\" \/>\n<meta name=\"author\" content=\"James W. Breckenridge\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"James W. Breckenridge\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.jameswbreckenridge.ca\\\/?p=1586#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.jameswbreckenridge.ca\\\/?p=1586\"},\"author\":{\"name\":\"James W. 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Breckenridge","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.jameswbreckenridge.ca\/?p=1586","og_locale":"en_US","og_type":"article","og_title":"Not another costly 'profit'. - James W. Breckenridge","og_description":"We need to ban the word and concept of \u2018profit\u2019 from use or even consideration by Abbotsford City Council. Not only can taxpayers not afford to pay for any more Abbotsford City Council \u2018profit\u2019, but the evidence is overwhelming that such a ban would save the beleaguered taxpayer\u2019s of Abbotsford millions of dollars. The agreement between Abbotsford and the Heat and the statements made by the City illustrate just how important it is to the future financial health of the City of Abbotsford that \u2018profit\u2019 be banned. Here are the things council (and taxpayers) need to consider when the agreement is presented to them Monday March 15, 2010. \u201cI use the example of a WestJet 747 parked on the tarmac. It can only make money if you use it,\u201d said Abbotsford Mayor George Peary. It is erroneous assumptions\/statements like this that have placed Abbotsford in its current dire financial state. A little homework would have revealed that scattered across deserts in Southern California, Arizona and New Mexico are 5 aircraft storage facilities full of a broad assortment of aircraft sitting there in storage in order to save money. I want to introduce Mayor Peary, council and staff to an important piece of financial reality \u2013 \u201ca penny saved is a penny earned\u201d. When it is going to cost you more to use Mayor Peary\u2019s 747 than it will generate in revenue you profit by leaving it parked and saving the expenses (losses) you would incur in operating the plane. \u201cIf we didn\u2019t have a team, then where would we be? We\u2019d be worse off,\u201d Pizzuto commented. As was pointed out by those with a firm grip upon financial reality when the possibility of an AHL team in the Sports and Entertainment Centre first arose \u2013 if the costs incurred in having a team in the building are higher than the revenue you generate from having the team in the building you save money \u2013 are better off \u2013 not having a team. So Mayor Peary\u2019s statement \u201cThe prospect of no hockey team and an empty arena would be a huge drain on the city\u201d is currently inaccurate and untrue. Currently it is having a hockey team that is a drain on city resources, whereas no team and an empty arena would have saved the taxpayers of Abbotsford significant amounts of their tax dollars. But having an empty arena would be embarrassing to council and city hall so one could hardly expect council and city hall to put the financial wellbeing of Abbotsford and its taxpayers above face saving for council and city hall, could one? I could, but then I am accounted as one of those \u2018nay sayers\u2019 \u2013 you know, those citizens who oppose council\u2019s continuing practice of recklessly spending the City into an ever deepening financial black hole. I do admit that I am puzzled as to how being opposed to council and city hall\u2019s financial mismanagement is a negative (nay sayer) thing? On the other hand attacking those who are asking rational questions and demanding full disclosure of revenues and expenses is a time honoured way of avoiding having to disclose embarrassing facts. A way to avoid answering questions that would let citizens evaluate the mayor\u2019s claim that \u201cthe deal had to get done\u201d or whether this was a \u2018deal\u2019 the city should have run away from. Questions any reasonably astute person would ask before agreeing to such a major financial commitment. Questions, the answers to which will undoubtedly give rise to further questions, as undoubtedly would a close reading\/examination of the agreement itself. Questions such as what is the cost, what are the expenses incurred, in operating the Centre for the Heat as tenants? And exactly how are these costs accounted for? Are they included in the Heat budget as part of hockey operations as they should be or are these costs excluded and hidden in other operating costs of the arena \u2013 thus providing a major hidden subsidy to the Heat and its owners? What happens financially in regard to the concessions vis-\u00e0-vis the Heat? Does the City get the profit? Does the Heat get the profit? Just who does profit from the concessions during Heat games, how and what are the numbers? Questions about attendance projections as the accuracy and reality of these projections have a direct impact on whether Abbotsford continues to pour major amounts of taxpayer dollars into the pockets of the Heat ownership. Attendance is of particular importance given evidence from the WHL, AHL and NHL suggesting that the first and second years are the best\/easiest years for attendance and that attendance declines after that. Take the case of the WHL Chilliwack Bruins who have suffered a 30% decline in attendance from their 2nd year attendance levels. Is the $5.7 million a) an annual revenue guarantee; b) the point at which the team becomes responsible for expenses incurred; c) the break-even point? Since we are dealing with Abbotsford City Council and City Hall \u2013 exactly how fixed is the $5.7 million fixed? Is the $5.7 million going to remain at $5.7 million or will it, like so many other amounts declared \u2018fixed\u2019 or \u2018guaranteed\u2019 by Abbotsford Council going to balloon ever upwards? Does it seem reasonable that the Heat expect their expenses to remain at $5.7 million dollars over the ten year period? Why is \u201cThe city\u2019s agreement is similar to standard entertainment deals, which ensure a payment to the entertainer, and a profit-sharing equation for any remaining revenue\u201d? Since we are talking about a hockey team should an agreement not be similar to standard rental\/tenancy agreements between hockey teams and cities elsewhere? Is it because in other cities professional hockey teams not only pay rent, but pay rent at a level that covers the costs incurred in operating the arena with them as tenants? Is it because in other cities the City does not pay the professional hockey team to play in their arena? What other information is contained … Continue reading Not another costly ‘profit’. →","og_url":"https:\/\/www.jameswbreckenridge.ca\/?p=1586","og_site_name":"James W. Breckenridge","article_published_time":"2010-03-15T17:35:37+00:00","article_modified_time":"2011-10-13T10:29:55+00:00","author":"James W. Breckenridge","twitter_card":"summary_large_image","twitter_misc":{"Written by":"James W. Breckenridge","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.jameswbreckenridge.ca\/?p=1586#article","isPartOf":{"@id":"https:\/\/www.jameswbreckenridge.ca\/?p=1586"},"author":{"name":"James W. Breckenridge","@id":"https:\/\/www.jameswbreckenridge.ca\/#\/schema\/person\/5e8aac012477fbd6782de6641b564730"},"headline":"Not another costly ‘profit’.","datePublished":"2010-03-15T17:35:37+00:00","dateModified":"2011-10-13T10:29:55+00:00","mainEntityOfPage":{"@id":"https:\/\/www.jameswbreckenridge.ca\/?p=1586"},"wordCount":1509,"commentCount":0,"articleSection":["Municipal","Snafu"],"inLanguage":"en-CA","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.jameswbreckenridge.ca\/?p=1586#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.jameswbreckenridge.ca\/?p=1586","url":"https:\/\/www.jameswbreckenridge.ca\/?p=1586","name":"Not another costly 'profit'. - James W. 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