Taipei Mayor Ko Wen-je announced the revenue sharing calculation method for Taipei Dome today. Deputy Mayor Vivian Huang was also present to provide more details, but DPP city councilors criticized the calculation formula, saying it was totally anticlimactic for such a large site.
Ko Wen-je, Taipei Mayor："If we go back to seven years ago, I still don't know how to deal with this big dome. I have to solve the problems that were leftover from Taipei's previous issues."
The dispute over the 0 royalties over Taipei Dome has attracted much attention. Taipei Mayor Ko Wen-je held a press conference early in the morning to announce the calculation method of the Dome's revenue sharing mechanism. The revenue share ratio is 0.6 percent to 1.2 percent if the estimated revenue is below 100 percent. The ratio will be adjusted to 0.7 percent to 1.8 percent if revenue exceeds 20 percent of the minimum guarantee. If revenue exceeds 20 percent, the ratio will be 1.4 percent to 3.6 percent.
Vivian Huang, Taipei Deputy Mayor："The estimated revenue is to be reported by Farglory. They can report more, or they can report less. But if they report less, his excess revenue will be high. The more they report, the less they pay in revenue share. So no matter what, the Taipei City Government will not lose in this deal."
Huang added that, for example, for every NT$1,000 in revenue Taipei Dome generates, the Taipei City Government will receive NT$6, which is 0.6 percent. In other words, if the Dome's actual revenue is NT$5 billion, the city government can receive NT$30 million a year. However, DPP city councilors criticized the revenue sharing calculation method. They criticized the deal as "anticlimactic" as it was disproportionate considering the Dome's 10.2-hectare site.
Chien Shu-pei, Taipei City Councilor (DPP)："If the annual revenue of the Dome in the future is NT$5 billion per year, the rent per ping earned by Taipei City is only a few thousand NT dollars. Can Taipei Citizens accept this? This is just Mayor Ko wanting to avoid responsibility as he steps down. This is a hasty approach."
Huang said that the most difficult part of the process is how to find the midpoint of revenue sharing both sides can agree to. The key is to hope that the Taipei Dome will make more money so that the city's citizens can share more. As of the reporting deadline, Farglory Group has not responded, only saying that it will explain more later on.