**habacomike**

I don't know how you came to $50m. Estimating the damages due TLH (or Vail, depending on the contracts) is a non-trivial exercise. And you can't use the $25m Vail is paying Talisker as the benchmark because:

1. That is a multi-year deal and the future rental payments are not divorced from the current year rental rate.

2. The lease is for BOTH Canyons and PCMR properties

3. It was established after at lease some of the encroachment by Powdr occurred.

One theory of damages is that TLH/Vail is due the unjust profit earned by PCMR. Who knows what that is, but it likely can be calculated.

Mike

Three years (counting this coming season) of rent due to Talisker. Market rate for rent on PCMR set by Vail at some percentage of $25M a year (rental of PCMR and Canyons). PCMR much higher revenue so 60% is not unreasonable percentage, $15M x 3 = $45M. Then there's the lost revenue of PCMR and then there's damages and legal fees. So $50M is certainly a reasonable number for a settlement. I'd guess Talisker will ask for much more expecting a lower settlement.

As far as future years, those years would be less (future value is lower) so current years would be the $15M. These are the present value years. As far as both Canyons and PCMR, simply take the revenue of both and whatever percentage PCMR is of the total that's the rent and that also answers the lost revenue.

Unless Cummings suddenly comes to his senses and agrees to sell to Katz for reasonable amount or agrees to provide the lifts and ticket offices to Katz for free for 20 years if Talisker agrees to not push for recovered costs, then Talisker will put the hammer down.