I would be surprised to see a new arena be paid for with primarily public money. I think Olympia could get a very nice arena built downtown for $200 million, though it might not be palacial like Cowboys or Yankee Stadium or some others. The price of the arena is key, I think if costs are kept down, the debt service could be paid on an arena that is getting half the buisness. If not, the debt will be too high and the building will lose money.
I would think that an agreement could be made where Olympia puts up half of the money, naming rights could be sold for a quarter, and public funding could make up a quarter. That would be a little more fair, because the public would derive some value out of a new sports/entertainment arena downtown. New shows and events would be attracted downtown, and that would be a good thing.
Hopefully, Palace Sports and Olympia Entertainment can merge or come to some kind of operating agreement. Two arenas in the same market can work, but they need to be managed together. Otherwise, one venue is played of the other another and nobody makes money.
I think an arrangement could be worked out where by The Palace would be the primary concert and show venue from November-May, while the downtown arena would keep the ice on the floor for NHL, CCHA, Ice Shows, or convert for other specialty sporting events [[NCAA basketball, for example). If there was a tour date that the Palace couldn't accomodate due to a Pistons conflict for example, it would be held downtown. Then, after hockey season [[June-October), the downtown arena would be the primary indoor concert and show venue, DTE would take some outdoor concerts, and the Palace could go dark for a time. That is what I would want to do if I had control of both venues anyway.
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