Owners of Leafs practice facility run out of money

Discussion in 'Fugu's Business of Hockey Forum' started by htpwn, Jun 14, 2011.

View Users: View Users
  1. htpwn

    htpwn Registered User

    Joined:
    Nov 4, 2009
    Messages:
    19,397
    Likes Received:
    859
    Trophy Points:
    139
    Location:
    Toronto
    http://www.theglobeandmail.com/news...eshore-arena-runs-out-of-cash/article2058581/

    Would be nice for the Leafs to cover the costs, but I guess that would be too difficult for one of the most wealthy hockey franchises on the planet.:shakehead
     
    Last edited: Jun 14, 2011
  2. shakes

    shakes Pep City

    Joined:
    Aug 20, 2003
    Messages:
    8,491
    Likes Received:
    103
    Trophy Points:
    156
    Home Page:
    Why should the Leafs do that? I need some money too, but I don't expect the Leafs to pay my bills. They are a only a tenant of the building.
     
  3. Stoneberg

    Stoneberg Bored

    Joined:
    Nov 10, 2005
    Messages:
    3,909
    Likes Received:
    27
    Trophy Points:
    101
    Location:
    Halifax
    Is this a joke? It's not the Leafs fault that the owners planned and ran the facility poorly. I'm sure rental payments were all made on time.
     
  4. No Fun Shogun

    No Fun Shogun 34-38-61-10-13-15

    Joined:
    May 1, 2011
    Messages:
    47,240
    Likes Received:
    1,785
    Trophy Points:
    156
    Occupation:
    Illegal Ill Eagle
    Location:
    An unspecified place on Google Maps, apparently
    Wait, what? It makes zero sense to expect any organization to pay more money than they have to for something. Just because the Leafs have money to spend doesn't mean they should be expected to foot other peoples' bills.
     
  5. DopeyFish

    DopeyFish Mitchy McDangles

    Joined:
    Nov 17, 2009
    Messages:
    3,566
    Likes Received:
    852
    Trophy Points:
    128
    Occupation:
    Engineer
    Expected, when I went to a private fundraiser (with wendel Clark among others in attendance) the Lions guy was telling me they didn't even have enough to cover the costs of building the place
     
  6. hatterson

    hatterson Registered User

    Joined:
    Apr 12, 2010
    Messages:
    19,759
    Likes Received:
    1,080
    Trophy Points:
    156
    Occupation:
    Software Developer
    Location:
    North Tonawanda, NY
    They have a long term commitment and have invested a decent chunk of money in upgrading the building for their needs.

    It's not their fault that the managers of the building can't run their own finances.

    The city will cover the debt payments this summer, get a new management team in there and the rink will be back on it's feet by this time next year.
     
  7. hatterson

    hatterson Registered User

    Joined:
    Apr 12, 2010
    Messages:
    19,759
    Likes Received:
    1,080
    Trophy Points:
    156
    Occupation:
    Software Developer
    Location:
    North Tonawanda, NY
    The article stated that it was built entirely from borrowed money. That's never a good option unless you have significant other capital to cover for payments should interest rates rise (which is what doomed this building)
     
  8. james bond

    james bond Registered User

    Joined:
    Aug 5, 2007
    Messages:
    563
    Likes Received:
    0
    Trophy Points:
    0
    Does anyone know what Mastercard paid for the naming rights to the facility?
     
  9. htpwn

    htpwn Registered User

    Joined:
    Nov 4, 2009
    Messages:
    19,397
    Likes Received:
    859
    Trophy Points:
    139
    Location:
    Toronto
    They were also one of the main forces to get the arena built, along with one of the main benefactors. The fact that Toronto, a city that is saddled with a large debt load and struggles to run surpluses, needs to subsidize their practice arena is pathetic.
     
  10. TheTotalPackage

    TheTotalPackage Registered User

    Joined:
    Sep 14, 2006
    Messages:
    3,287
    Likes Received:
    402
    Trophy Points:
    124
    The Leafs have no reason to foot the bill.

    Why doesn't anyone mention that the Leafs undertake quite a few arena revitalization projects with their own money to improve the arenas in the city? They do more than their fair share in helping out.
     
  11. Confucius

    Confucius Registered User

    Joined:
    Feb 8, 2009
    Messages:
    14,610
    Likes Received:
    534
    Trophy Points:
    139
    Location:
    Toronto
    With all due respect, you'd think the Leafs would build their own practice facility. Why anyone much less a not for profit organization would build one for them. Is mind boggling.
     
  12. KevFu

    KevFu Registered User

    Joined:
    May 22, 2009
    Messages:
    5,498
    Likes Received:
    230
    Trophy Points:
    81
    Location:
    California from Rochester via New Orleans
    What a horrible hockey market. the Leafs should move to Birmingham.
     
  13. hatterson

    hatterson Registered User

    Joined:
    Apr 12, 2010
    Messages:
    19,759
    Likes Received:
    1,080
    Trophy Points:
    156
    Occupation:
    Software Developer
    Location:
    North Tonawanda, NY
    I know this is hard for people to understand, but the Maple Leafs are a business. There are zero good reasons for them to spend more money than they need to on a practice rink.

    They get the same facilities at this place as they would at their own one and it's millions of dollars cheaper for them.
     
  14. Stephen

    Stephen Registered User

    Joined:
    Feb 28, 2002
    Messages:
    45,525
    Likes Received:
    2,141
    Trophy Points:
    231
    Home Page:
    It's a not for profit rink for the community the Leafs rent out to make economically feasible. I'm pretty sure they didn't built it for the Leafs...
     
  15. mooseOAK*

    mooseOAK* Guest

    Maybe they had the plan to build the facility all along and asked MLSE to join.

    Somethings wrong when it was the first ice arena built in Toronto since the '80's and they can't make a go of it. Mismanagement, most likely.
     
  16. Ozzie Bear

    Ozzie Bear Registered User

    Joined:
    Apr 30, 2010
    Messages:
    129
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Winnipeg, MB
  17. hatterson

    hatterson Registered User

    Joined:
    Apr 12, 2010
    Messages:
    19,759
    Likes Received:
    1,080
    Trophy Points:
    156
    Occupation:
    Software Developer
    Location:
    North Tonawanda, NY
    It was built on 100% borrowed money with about half of that at a floating rate. Even with higher than expected revenue, they couldn't keep up with rising interest rates.

    Classic over commitment. Seeing a market with high demand and figuring that it means you can over-extend yourself to reach it.
     
  18. DopeyFish

    DopeyFish Mitchy McDangles

    Joined:
    Nov 17, 2009
    Messages:
    3,566
    Likes Received:
    852
    Trophy Points:
    128
    Occupation:
    Engineer
    what makes this funny is the old leafs practice facility was on... birmingham street... they moved one block north :P

    now in regards to the initial funding... it was originally going to be lakeshore lions arena, they were desperately trying to build it based on their own money and money from the community. Afterwards.. the Leafs decided to take over the money problems and the name of the building was going to be Leafs Nation Hockey Headquarters. I think somewhere in the whole struggle to purchase/swap the land with the TDSB ended up dooming the Leafs desire to fund it... because the Lions eventually got back control, did their gold/silver puck fundraiser (with Griffin? it's been awhile) and eventually sold the naming rights to MasterCard.

    the whole ordeal is quite funny, because the old lakeshore lions arena was supposed to be LCIs hockey rink, then it was supposed to become a community center. Now it's part of Humber Lakeshore Campus. oops. Anyways as the article notes they were pushing for a restaurant... the Lions guy was so amped because he was sure Boston Pizza was going to be it... would have worked so well for them because of the high school next door and the fact that there is no boston pizza restaurants even remotely close by. It's just been one disaster of a project behind the scenes.
     
  19. vezna*

    vezna* Guest

    because the leafs is already giving welfare money to the american teams
     
  20. saskganesh

    saskganesh Registered User

    Joined:
    Jun 19, 2006
    Messages:
    2,368
    Likes Received:
    6
    Trophy Points:
    96
    Location:
    the Annex
    It's the Lions, who are an old school community service frat. Peeps in charge are essentially volunteers. Results vary, and much demands on the commitment and skill of a greying membership.

    Something similar is happening in Casa Loma, which is run by the Kiwanis.
     

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"