You care because you keep bringing up your Yale MBA to reinforce your point.
Post a pic, and I’ll donate $100 to the charity of your choice.
So, since it’s important enough to bring up, it’s important enough to prove.
As far as stadium deals for private universities go, you’ve already made a fool of yourself saying a city would pay anything other than maybe donate land, which in itself is a big maybe.
Your only argument is that these deals have complex financing, amortization, etc. Anybody knows that, just like anybody knows you don’t pay for it in one lump sum, like a drug dealer buying a luxury car.
The deals being layered is irrelevant.
Total cost isr relevant, and you’re not building anything decent in Miami for under half a billion or close.
Dream on.
And I can read Latin, you fūcking idiot.
People bring up their alma maters all the time. Look at the thread on Tate Martel - a bunch of people are posting how they went to Ohio State. Are you going to ask them to prove it by posting their diplomas? My guess is they'll tell you to **** off just as I did.
I brought up going to Yale when you accused me of not understanding finance. In that context, it's relevant because getting an MBA from Yale would mean I have some formal financial training from a pretty good school. But you can believe what you want.
You can look at stadium financing in terms of total cost contributed by the university if you want, but then you have to compare it to the present value of all the future lease payments in perpetuity, and you have to consider the PV over the lifetime of the stadium of all opportunity costs such as renting the stadium out for other uses, concessions, parking revenues, etc.
Not to mention all the intangible benefits a stadium would bring in terms of recruiting and in raising the general perception of the university. You would need to model and make assumptions on future revenues based on stronger recruiting, the excitement generated by a new stadium, etc.
You would need to estimate repair costs. You would need some way to measure the risk, however small, that Mr. Ross tells us to **** off after the lease is up and chooses not to renew, or that he jacks up the price.
We would have to know all the detailed lease terms, the university's plans after the lease is expired, details on how the university raises capital, etc, etc etc etc. You would have to understand sponsorship agreements, tax structure, government contributions, etc.
In all, it's a complicated exercise. We could create a "lease vs buy" model based on some reasonable assumptions, but it seems like a lot of work for a message board.
So I'll leave it at this. I think we could build a stadium. The biggest reason I believe this is simply that most universities have their own stadiums, and I'm assuming the scores of university presidents and boards know something. I don't believe Miami's situation is so very different from that of other schools.
More than that, I think it's a perfectly legitimate discussion for our fans to be having, and, given that we have very little information to do a proper analysis, I find it very arrogant of certain fans to dismiss the idea out of hand, when those fans have no more access to Miami's financial or political inner workings than the rest of us.