Arena Property Taxes

Discussion in 'The Business of Hockey' started by Roughneck, Jan 21, 2005.

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  1. Roughneck

    Roughneck Registered User

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    I know that many of the American team in the NHL get tax breaks for their arenas (perhaps the franchises themselves as well). I was wondering if anybody would know the figures for all the teams.

    I remember seeing an article that the six Canadian franchises pay far and away the most taxes, with the Habs at #1. Can anybody help me out?

    I bring this up because I wonder how much better off the Canadian teams would be if they didn't have to pay all these taxes and extra costs.
     
  2. missK

    missK Registered User

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    Up until Dec 04, the Lightning arena tax bill was $1 Million a year. In December the arena was transferred under the County's authority which gives it tax-exempt status (all the other pro arena/stadiums in the area do NOT pay taxes).
     
  3. Roughneck

    Roughneck Registered User

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    Do you know why this is? (they are given tax exempt status I mean). The only reasons I can think of are all the jobs an arena/stadium can create. But why does there seem to be less of an outcry than there is up here?
     
  4. Sotnos

    Sotnos Registered User

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    I might not be remembering this correctly, but I believe the Glazers threatened to move the Buccaneers if they weren't given a new stadium and tax concessions, and the local government caved in due to public pressure. This was around the time the team was beginning to actually be decent and gain some public support and attention. Basically, unless I'm way off base, what it boils down to is: owners don't get what they want--->threaten to move the team--->public outcry--->owners get what they want. Why they gave tax breaks to the Yankees (they have a spring training facility and a minor league team in Tampa) I'm really not sure. Obviously, the other guys getting a tax break while the Bolts had to pay taxes caused a lot of grief for Lightning management, they've been fighting for this for three+ years I think. IMO, the team's recent success had a LOT to do with them winning this battle, even a year ago the county commission sounded like they'd reject the Bolts' proposals.

    I think under former state laws, no pro team in the state had to pay taxes. The law was then changed to tax any sports team unless they were under the auspices of a county government, hence the Bolts wanted this transfer. Basically it's a big fat loophole for pro teams to avoid paying taxes. I'm no lawyer, hope that made at least some sense. I can dig up explanatory articles if you like. :)
     
  5. PecaFan

    PecaFan Registered User

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    It's been reported before, here's one article stating it:
    "As [Jean] Beliveau noted on April 3, the Montreal Canadiens pay $10-million in municipal taxes on the new Molson Centre. The Ottawa Senators pay $3-million. As an aside, the $3-million that the Senators pay is more than all 20 U.S.-based teams paid combined . . ."

    http://users.mo-net.com/nixit/part11.html

    Not sure how true the specific numbers are, but the principle is correct.
     
  6. Wetcoaster

    Wetcoaster Guest

    The Habs pay about $11 million a year in property taxes - although that is in Canucks Bucks. That is more than all the US based teams combined.
    http://temagami.carleton.ca/jmc/cnews/22101999/c3a.htm

    As noted the Senators under Bryden had a crippling tax load.

    The Leafs pay $7 million in property taxes (also more than the other NHL us based teams combined).
    http://www.startribune.com/stories/1330/4326407.html

    IIRC the Canucks are paying about the same as the Leafs.
     
  7. Roughneck

    Roughneck Registered User

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    That's okay, I get the idea. Thanks :)
     
  8. YellHockey*

    YellHockey* Guest

    Actually, the Habs, Sens, Leafs and Canucks don't pay any property taxes but the Bell Centre, Corel Centre, Air Canada Centre and GM Place do pay property taxes.

    There's a subtle difference there but why would the Leafs pay the property tax and the Raptors not have to pay any?
     
  9. jratelle19

    jratelle19 Registered User

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    I'm not sure of the taxes they pay. Some may have gotten tax breaks in the return of promising x number of jobs. I do know that the owners of teams like the Leafs, for example, get a lot of money from Air Canada to use their name for the arena. If not for the Maple Leafs hockey team, Air Canada wouldn't poke out that money, that's for sure.
     
  10. Wetcoaster

    Wetcoaster Guest

    If the Leafs make the most profit then you would want to transfer the liability to them for accounting purposes.

    This is one way to reduce the profits showing on the team books.
     
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