The Winnipeg Blue Bombers have announced that they have chosen David Asper's plan for a new football stadium. The plan calls for taxpayers to contribute $80 million to complement Asper's investment of $40 million. In an interview on 92 CITI FM Asper claimed he needs the money to "manage the risk of his investment" while stating in the very next breath that the stadium "is a great investment". If it's a great investment, then why the risk?
Asper will get a $120 million stadium for $40 million. That's a 67% discount! Or, if you look at it another way, Asper will receive an asset worth $120 million on an investment of $40 million. That's a 200% immediate return on investment. To put it in perspective, this deal is like the government saying "for every dollar you put in to your RRSP, we'll give you two". That's one hell of a retirement plan! Good luck trying to get it though, the government only gives those kinds of deals to people who need it the most: rich businessmen like David Asper.