Potential new Arena for Quebec city?
Yesterday the mayor of Quebec city announced that the city has commissioned a study with respect to the feasibility of building a new arena. He said the city would put up about $50 M of an estimated $400M cost and would seek the rest from the federal and provincial gov'ts. The arena would obviously be owned by the city and leased to any prospective tenants.
The question, what are your thoughts on having your tax dollars used to support a project like this? Be it in Quebec, Pittsburgh, Calgary or anywhere else for that matter?
the tsn story
Devin, your taxes and mine paid for the last one. The Saddledome was built with public funds for about 100M.
VIPhockey, initially I cringe at gov't funding of an arena but if the city could attract and support an NHL, not a given in my opinion, it might make economic sense for the gov't to pay to build it.
If we assume an average payroll of 50M a year with roughly 60% of the teams games played in Canada and players salary taxed in canada at an avg tax rate near 45% that is 50 x 60%X45% or 13.5M in revenue on player salaries.
Value added tax of 13% on total revenue of the team represents another 10 M if revenues are 80M. The federal and provincial gov't would collect about 25M a year in direct tax revenue from another NHL team not to mention the other economic spin offs employee jobs created etc.
LITY, I am one too and yes we like to whine. Now that the big O is paid for I don't need to smoke anymore. Until our cigarette taxes got that thing paid off I felt almost obliged to smoke. Good point the NHL may be creating a bunch of false hope. It is hard to see how Quebec can support a team with payrolls north of 50M when they couldn't do it at 20M
- 1 decade agoFavorite Answer
My fear is that too many cities are taking Bettman at his word. In the last two years Bettman has visited Hartford, Halifax, Winnipeg, Regina, Saskatoon, Las Vegas, and Quebec City...........all with the potential possibility of having an NHL team.
We all know that not all of these teams will end up with a team (if any). We also know that Canadian taxpayers are far more resistant than American taxpayers when it comes to using the money on Arenas (Edmonton taxpayers voted overwhelmingly against using city funds to build an arena according to an Edmonton Sun poll). If it wasn't for the 1988 Olympics, it is highly unlikely the Flames would be in Calgary because in 1981 the city voted against spending city money on buiilding the Flames a new arena...then along comes the IOC which requires municipalities to build for the games, and suddenly the city had a reason.
The reason the Nordiques are in Denver is because the province wouldn't build an arena. Now that there is nobody with a reason to build an arena, suddenly the city and province will do so (and will Molson's complain now because they ONLY received $15MM in government bridge loans to build the Bell Centre when they owned the Canadiens). It doesn't make sense to me for two reasons.
First - because I don't believe Bettman should be going around to cities telling them IF they do this or that there is a CHANCE that you may get an NHL team.
Second - I can see taxpayers complaining like they do in Winnipeg because their city owned arena lost $1.8MM last year because they don't have a huge draw tenant (the Moose draw well, but not NHL well). Nobody whines like the Quebecois (trust me...I'm one of them).Source(s): A skeptical Quebecois!
- viphockey4Lv 71 decade ago
It would largely depend on the economic climate in that regoin. I dont know enough about the economy in general currently in Canada but in most US cities it would be a hard sell to taxpayers given the amount of social economic needs. I suspect the mayor was part hopeful of retuning the NHL to Quebec and part savvy politician knowing the current climate that has engaged a few Canadian cities concerning their desires to bring back teams (Quebec, Winnepeg or add one...Hamilton). Just the idea that he cares about hockey better or worse will get him a few votes so be weary of the politics (semantics). But the idea of a tax supported venue might not be all bad....it isnt just the NHL team but other venue filling events that can tip the scale and make it a financially sound decision. More jobs, increased revenues for business in the arena area and a rally point for the city in general are a few of the things that make something like this viable. The financial windfall seems obvious now with many owners in several sports financing stadium builds with their own money....they only do things that make financial sense so it seems that a new stadium would in fact pay for itself (Jerry Jones spent 1.8 Billion to build a new football stadium....he did eventually ask for small tax revenue because the original cost was projected at 650 million....but obviously he and the city believe it makes financial sense).Source(s): Living in Michigan for obvious reasons taxpayers wouldnt support a tax funded arena but i can see where it makes some sense in other cities (had Pittsburgh taxpayers not ponied up where would the Cup be right now and would the Pens even exist?) . I think they made the city a lot of money last year and continue to do so now.
- ?Lv 61 decade ago
I don't mind... I wish there was enough funds to build a new arena in Portland, but our taxes have to go to supporting each other since the economy changed here so fast that were couldn't replace all the jobs that were lost in Northern Maine when the shoe companies left. Our arena is terrible, the concourses are too small... I dunno who designed it but they were clearly on acid.
This could be easily done if they used the guise of saying that the state university teams would play at the arena and used some of the school money... however one state senator stole a lot of state money (millions and the state estimates 40 years to have it repaid) so his family could go to Disney... I kid you not, to DISNEY... the state school fund is millions short b/c a guy took his family to DISNEY on it. Working class ppl afford Disney...
Ideally I would like a state funding of a new arena to happen, but our tax situation in my state is FAR from ideal. Our ex-state treasurer lost millions of our state fund in a housing deal in Florida, in 2007 AFTER the housing market crashed. He was no doubt helping out one of his friends with our money... lame...
Yeah... so I would like to get a new arena and wouldn't mind if the state funded it but we are a bit completely screwed here. So its not gonna happen, even tho we really need it. So I'm gonna have to drive up to Lewiston to watch QMJHL games there b/c I can't stand the Cumberland County Civic Center.
I see yr point about Quebec, BUT... we have profit sharing now, that's why our Bruins tickets went up so fast, b/c our fans will go, and that will make up the revenue for the fans that aren't going. If I'm not mistaken yr tickets went up too.
Every vacation you Quebec cats take in vactionland is greatly appreciated by us... its all we have now.
- AJLv 51 decade ago
in the long run a city that puts together a good team, it can generate a lot of more than the cost of building an arena. also it gives the cities the opportunity to inspire the youth making them dream and want to play outside, rather than on a computer or game system. if you build it and they will come.
- How do you think about the answers? You can sign in to vote the answer.
- McMoose--RIPYAHSLv 61 decade ago
It looks like Quebec can use a new arena. For hockey or not. I'm pulling for them to get a new arena. Maybe than they can host the Olympics in the future. Far off in the future since Vancouver has 2010.
To answer your question: I'd rather see my tax dollars go to a new arena, then go here-- http://www.englishrussia.com/images/daily_photos/p...
- BobboLv 61 decade ago
Whats the difference from giving it to a sports team than giving it to General Motors? The hockey team would have a lot more chance at success than the auto company.
- Anonymous1 decade ago
It will be good to see the NHL back in Quebec, the Colisee isn't what it used to be.Source(s): <- Frere d'un ostie de fan des Nordzik
- Anonymous1 decade ago
well how many jobs will be created?
If the revenue >= the total wages of the employees
there are a good number of jobs created...it's fine with me.
- FrogdogLv 61 decade ago
I would not want to pay taxes for a new arena in calgary cuz our arena is legendary as it is, and it's pretty big, you can fit 20,000+ in there.