Quote:
Originally Posted by FlyingScot
These are interesting, but they are only half of the equation. You need to compare these numbers to the profit the government would have earned if it was operating Sunapee itself. And of course, there are a huge number of details that may make either set of figures misleading...
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The state was often losing money on a P&L basis (which is distorted due to state accounting excluding some huge expenses from ski area books, such as depreciation and interest), as it still does at Cannon in bad years. Not only that, but the state struggled to provide the capital needed to modernize Sunapee and Cannon.
In the end, the Muellers invested heavily in Sunapee (new lifts, new lodge, massive snowmaking improvements), and the lease payments helped to provide capital (along with general fund dollars) for Cannon improvements. Cannon is still lagging, with an aging lift fleet and visible accumulated depreciation.