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Quebec says it is willing to pay 45%, approximately $180 million, to build a $400 million arena that is crucial to drawing NHL hockey to the capital.
League commissioner Gary Bettman has said that the city’s existing aging arena cannot support an NHL franchise.
Municipal officials in Quebec City said they would contribute $50 million toward a new facility, leaving Ottawa to fund the remaining $130 million.
Toronto Sun
http://www.torontosun.com/sports/hoc.../15273376.html
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Let's see...
180
130
+50
----
360
Granted, it's been awhile since I did elementary school level math, and so the parties involved may have a lot more on the ball than do I, but there's $40MM missing here by my counting. It may not sound like much, but that's almost the same amount as the city wants to kick in to the deal.
TSN:
Quote:
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According to a study conducted by Ernst & Young, a new arena would bring in $8.4 million a year with an NHL tenant at $7.8 million without a professional club.
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Sounds good? Wait for it:
Quote:
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the cost of financing and maintaining an arena would be between $36 million and $41 million annually, rendering it unprofitable for a private business.
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Does that mean that if it's public money we're talking about, it all of a sudden becomes profitable?
Postmedia news:
Quote:
Charest said the province is going ahead with the project even though there’s no guarantee of either the return of an NHL franchise or an eventual Winter Olympics bid.
“Let’s do it and if it helps to obtain a hockey team, so be it, if it helps us obtain the Winter Olympics, so be it,” Charest said.
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Some sound fiscal planning right there. Remind me not to hire Jean Charest as my financial advisor.
And, my absolute favorite:
Quote:
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The firm Ernst & Young put together a business plan for a new arena and stressed the project would be viable but only if the construction costs are not taken into account.
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And that's from a company hired to put a good face on this plan. Some great stuff there, and he probably even said it with a straight face. I'd like to apply that line of reasoning to my own life:
"I can cover the mortgage payment, but only if the bank doesn't take it from my account."
"That car is very affordable, but only if I don't have to pay for gas or insurance."
"My business was profitable, but only if you my expenses are not taken into account."
Daryl