If Mark Hamister had his way the taxpayers would have given $40 million for HSBC Arena improvements and tax breaks. The tax payers must make the decision of whether the advantages of paying out way the disadvantages. However, in my personal opinion, the Sabres are a private business and should be treated as so. Mark Hamister should not receive aid from the tax payers.
The Buffalo Sabres, along with many NHL teams, are having sever financial trouble. Mark Hamister is trying to make up for this financial situation through subsidy. The Sabres finances have not added up for years. The team’s revenues do not meet the expenses. The Buffalo Sabres have filed Bankruptcy. Scarcity is one of the issues leading to these financial hardships. Another issue is unintelligent financial decisions made by head executives. The Buffalo Sabres do not use opportunity cost methods. Signs of financial trouble are just with in the Buffalo Sabres. The Ottawa Senators have also filed bankruptcy. Financial trouble is overtaking the entire NHL. Teams are not making as much as they are spending. The teams are spending more capital than they are pulling in. Part of the problem is the player’s outrageous salaries. The salaries have almost doubled within the last 5 years. Most players have a disposable income in the millions of dollars. The Buffalo Sabres are not the only hockey team turning to the local governments for help.
The tax payers must ask themselves if this seems like a stable investment. By paying the money, they in turn will be keeping the Sabres in Buffalo, however, is it really worth it? Hamister wants the tax payers to pay for $1 million in improvements to HSBC Arena and for a $7 million parking deck. In my personal opinion this does not seem to directly benefit the public. Furthermore, the tax payers already paid the Lion’s share to build the new arena. Without the Buffalo Sabres, the economy may take a mild hit. However, if the tax payers pay the money, other sports teams in the area will want the same help. The debt of money the tax payers will be giving out to the teams would be phenomenally less compared to the small economic hit of not.