Calgary announces agreement for $1.2 billion dollar arena for the Flames

[MMC]

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[MeHateHe]

So everyone understands the politics of this, there is a provincial election starting in six days and the governing party will already lose most of the seats in Edmonton, so they don't care that Edmontonians will be PISSSSSSSSED about the fact that the Calgary arena is getting provincial money when the Edmonton arena got (checks calculator, pulls out wallet) $0.

 

[MMC]

Any chance Calgary could pursue NBA expansion? Vancouver is bigger but if the NBA wants into Western Canada, this is obviously a much nicer venue?

 

[Iggys Dome]

So everyone understands the politics of this, there is a provincial election starting in six days and the governing party will already lose most of the seats in Edmonton, so they don't care that Edmontonians will be PISSSSSSSSED about the that the Calgary arena is getting provincial money when the Edmonton arena got (checks calculator, pulls out wallet) $0.

Yup. Calgary arena going to get ~330M in provincial funding, along with another 537M from the city. CSEC puts in 356M. Going to be interesting to see how ticket revenues breakdown in terms of distribution.

IIRC, rogers place had a ticket surcharge for all events in the first year (?) so $125 million was from that alone.

CSEC bent the city and province over on this one, IMO. They got exactly what they wanted and used a desperate provincial government to broker the deal.

 

[gstommylee]

Any chance Calgary could pursue NBA expansion? Vancouver is bigger but if the NBA wants into Western Canada, this is obviously a much nicer venue?

I doubt calgary would beat out one of Seattle and Vegas for a NBA team.

 

[MMC]

I doubt calgary would beat out one of Seattle and Vegas for a NBA team.

Yeah I don't expect them to ever receive a team, just wondering if they might try

 

[Mightygoose]

So no timeline on this plan and as others have mentioned it's 6 days before an election will begin in the province.

What happens if Smith loses?

I don't have allot of confidence this will break ground....based on historical events of this saga

 

[Mike Jones]

So everyone understands the politics of this, there is a provincial election starting in six days and the governing party will already lose most of the seats in Edmonton, so they don't care that Edmontonians will be PISSSSSSSSED about the that the Calgary arena is getting provincial money when the Edmonton arena got (checks calculator, pulls out wallet) $0.

Excellent summary. This is vote buying - plain and simple.

What happens if Smith loses?

If Smith loses there's no way the NDP is going to honour this agreement. They will move heaven and earth to get out of it.

 

[Headshot77]

Holy shit the Flames got a LOT of money for this.

 

[MMC]

More than an Event Centre, the financial framework and cost estimates reflect an overall investment to the The District:



1. Event Centre - $800.00 million

2. Attached Parking - $35.4 million

3. Enclosed Plaza - $9.5 million

4. On-Site Public Realm - $28.7 million

5. Community Rink - $52.8 million

6. Transportation improvements, infastructure, and other district benefits - $238.4 million

7. Other Costs - $58.5 million

8. Total - $1,223.3 billion



The cost will be shared among public and private investment partners as follows:

The City:

- $537.3 million to fund the development of the Event Centre, parking structure, the enclosed plaza, and 25% of the community rink.

CSEC:

- $40 million upfront and $17 million per year (increasing 1% per year) over 35 years to offset Event Centre costs, parking, the enclosed plaza, and 25% of the community rink
o $356 million in present value; $750 million+ over the 35 year term

- $1.5 million per year to community sports
o $25 million in present value; $52.5 million over the 35 year term

The Province:

- $330.0 million
o $300 million to fund transportation improvements, land, infrastructure and site enabling costs, including off-site and on-site utility servicing costs, public realm and site clearing/demolition
o $30 million to fund 50% of the community rink

Calgary Stampede:

- Agreed to certain land sales and transfers that will allow for the development of the Event Centre that enables a vibrant entertainment district surrounding the Event Centre

 

[Fenway]

 

[viper0220]

I think this all this maybe tied to an Olympic bid.

 

[MMC]

 

[Fig]

I think this all this maybe tied to an Olympic bid.

Agreed. Olympic bid and/or renovation of Olympic training facilities is more likely than NBA. Oval, McMahon and Nordic Centre already have had odd rumblings around them for the last little bit. Supposedly Winsport as well.

 

[SImpelton]

Any chance Calgary could pursue NBA expansion? Vancouver is bigger but if the NBA wants into Western Canada, this is obviously a much nicer venue?

I wouldn't rule it out completely but the BA is finding it hard to achieve anything like parity with the number of teams they already have. When you have 10-15 teams that go into the season with absolutely no chance to win anything, it's not a good time to expand.

If it wasn't for a whole bunch of new American skaters expanding the talent pool the NHL would be in the same position, but as it is, medium level teams have proven they can secure wins against far more talented squads which is good evidence that there's plenty of talent to go around right now.. The NBA needs to do some serious work to swell their pipelines if they want to get on the same level.

 

[StreetHawk]

Any chance Calgary could pursue NBA expansion? Vancouver is bigger but if the NBA wants into Western Canada, this is obviously a much nicer venue?

No Chance in light of recent NBA sales.

Bucks 2023 - Valued at $3.5 Billion
Suns late 2022 - Valued at $4 Billion

Obviously in USD.

Calgary Market closer to Milwaukee than Phoenix. So, you are talking well in excess of $3 billion to purchase an NBA team.

In 2014 Clippers went for $2 billion. In 2017 Rockets went for $2.2 billion. Both of these are larger markets. Timberwolves had a valuation of $1.5 billion when sold in 2021. Miny and Mil close in market size. Newer arena in Mil vs Min.

 

[MeHateHe]

The two levels of government should have used the $900 million and bought the Flames. At least then any investment in an arena allows them to profit off this.

Or is that socialism? I don't know what words are anymore.

 

[MMC]

 

[LadyStanley]

Agreement, yes. Signatures and binding contracts to come.

 

[mouser]

Yeah I don't expect them to ever receive a team, just wondering if they might try

What’s an NBA expansion team going to cost? $3B-$4B?

 

[Mike Jones]

The two levels of government should have used the $900 million and bought the Flames. At least then any investment in an arena allows them to profit off this.

Or is that socialism? I don't know what words are anymore.

If Saudi Arabia can nationalize an oil company us folks here in Alberta can ... provincialize a hockey team. Didn't a teachers union used to own the Leafs?

 

[Chet Manley]

The two levels of government should have used the $900 million and bought the Flames. At least then any investment in an arena allows them to profit off this.

Or is that socialism? I don't know what words are anymore.

Zero chance the NHL would allow that to happen. They have the ultimate say in ownership and they aren't going to allow the prey into the hunting club.

 

[CokenoPepsi]

Any chance Calgary could pursue NBA expansion? Vancouver is bigger but if the NBA wants into Western Canada, this is obviously a much nicer venue?

I guess they could, but it isn't like Vancouver would be next in line... the only Seattle and Vegas are considered locks for the next teams

 

[Some Other Flame]

CSEC only having to pay 40M upfront for an 800M arena is insane. Like did he ever swindle the city and then some.

 

[MeHateHe]

Zero chance the NHL would allow that to happen. They have the ultimate say in ownership and they aren't going to allow the prey into the hunting club.

Of course it was a ludicrous suggestion. No more ludicrous than giving a billionaire a free arena, but that’s a pretty high bar.