The idea of an "Arena Corporation"

[Emma]

Alright, I had a half baked idea. What law(s) is (are) preventing the city from establishing an "arena corporation"/ business entity, then raising startup costs with an IPO?

After initial funding from the IPO the "arena corporation" could set up fundraisers, conduct feasibility studies, raise money through the sale of merchandise, etc... with a small chunk of the money. Conceivably, this could be run by volunteers and public employees could serve as managers. When the startup money runs out, the corporation could move on to other projects or fold, and the total money raised would go towards funding a new arena.

Just jogging the brain. I intend to do alot of research and come back to this arena forum with some cool ideas over Christmas break.

 

[cfechter]

I don't think you know what an "IPO" is.

It's difficult to really analyze what the situation is without understanding the fundamentals of the arena business - i.e., how much could an owner of an arena actually make if one rented space to the Kings, the circus, the Wiggles, etc. on a monthly basis.

My thought is that what most NBA owners want is an arena paid for by the public but that they enjoy the full usage and profits thereof.

 

[Emma]

I don't think you know what an "IPO" is.

Initial Public Offering. I learned only a little bit about it in Macroeconomics (and intro to business). If you know a ton about it, then please divulge.

It happens when a company decides to sell itself to the public. Market trading and interest drives up the value of stock (company worth).

An IPO (or equivalent) would be the first drop in the bucket here. I'm bouncing these around as an exercise. It will not take long for me to find innumerable nuances concerning arena financing, and I hope to come back in a month or so with something more substantial.

Edit: Why would anyone assume that I would use a term while not knowing what it meant? Is there something about an IPO that I'm completely off base about?