|ESPN.com: College Basketball Nation||[Print without images]|
|Chicago Mayor Rahm Emanuel asserts the planned DePaul arena project would make Chicago second to none in attracting business conventions, large events and other forms of tourism.|
If very few actual people are coming to the games, there’s no way for these projections of additional spend to come good. With the actual attendance figures in place, there’s no way DePaul basketball will hold up its share of the projection, meaning the arena will lose money unless it can significantly overshoot projections for other events in the building.Explanation
[...] So what’s going on here? Why would a city drowning in budget debt think tossing in $100 million to finance a new arena with a private school as the lead tenant would be a good idea? Why would DePaul, even with the ability to recoup some of its expenditure through a naming-rights deal, want to become a rent-payer in an arena far from campus when the United Center, with its pro amenities, was offered for free? Can DePaul, with its recent basketball track record, correctly rationalize a deal with more risk but more upside, even if the city is helping subsidize that gamble?