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| Re: Move MSG for Penn Station's Sake (1223951) | |||
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Re: Move MSG for Penn Station's Sake |
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Posted by J Trainloco on Tue May 21 18:01:42 2013, in response to Re: Move MSG for Penn Station's Sake, posted by JBar387 on Tue May 21 03:16:12 2013. My opinion is that the 5 year figure is funny money. When you undertake a capital project, you account for how much money the capital project itself will generate. That 5 year payoff period quoted in some articles accounts for MSG revenue from ANY source. But those other revenue sources (primarily from their TV business) would have been in place regardless of whether or not they did the renovation. Therefore, when it comes to recouping the cost of the $980 million renovation, you can really only account for the additional revenue generated by the renovation. Some of the articles have pegged that payoff period as more like 40 years.At any rate, I can't think of any reason why MSG would agree to give up a parcel of land that they own and just sunk $1B into of their own money into rennovating for a piece of land that will probably have poorer accessibility. On top of that, let's not forget that they did this renovation with their own money. In an age of sports teams clamoring for public financing for arenas and stadiums, MSG did this without any taxpayer cash, and I think that's worth something. |
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