You Are the SuckerComments
Rio Rancho is not alone in trying to salvage an arena opened by a growth-hungry town smitten with sports. Global Entertainment, which is based in Tempe, Ariz., persuaded nine other cities, from Youngstown, Ohio, to Hidalgo, Tex., to Wenatchee, Wash., that it could build them an arena, sell everything from tickets to hot dogs, and book enough events to turn a profit. Yet in most cases, Global failed to meet its financial projections and was replaced, leaving the cities to pay for expensive arenas that they often have had no experience running.
In many ways, the arenas were another creation — and victim — of the real estate bubble. But while bargain hunters buy foreclosed homes and governments support insolvent banks, there are few natural buyers for arenas that are unlikely to generate enough money to pay their operating costs, let alone the tens of millions of dollars spent to build them.
Isn’t Rio Rancho supposed to be on the other end of the scam?