Description: If you happen to be one of the fortunate fans to have had a ticket to Wednesday’s NHL season opener for the Leafs and the Habs, you may have noticed the new beer stand where you swipe your way in with a credit card, then AI tracks what you pick up, before charging your card. It beats standing in line, and it’s also one of the highly-noticeable renovations carried out at the Air Canada Centre prior to the Leafs and Raptors embarking upon another season. Unless you have a spare $60,000 though, you may not get to see the new Mastercard lounge, where the patrons can indulge in luxury foods of various sorts. According to management, however, none of the $350 million in upgrades will be paid for out of ticket price increases. Exactly how fans can verify this assertion was not discussed in the Toronto Star article.
Date: October 10, 2023
1) Have you ever been to an event at the Air Canada Centre? What were your impressions, if applicable?
2) If the renovations are not being recovered out of ticket price increases, what method do you think management will use to pay for them?
3) Page 9-6 of Wiley’s Financial Accounting: Tools for Business Decision-Making has a section titled “Expenditures During Useful Life.” Which of the two categories do you believe the renovations at the Air Canada Centre fall into?