Edmonton city council has approved an agreement framework with Darryl Katz and his associates, the owners of the Edmonton Oilers, to build a new arena in downtown Edmonton. It’s not a done deal, but it’s getting close and it’s a deal that says a lot about the NHL returning to Winnipeg.
The new Edmonton arena will cost $450 million. The city will provide $125 million (our city couldn’t provide $1.25) , the Katz Group will pay $100 million, $125 million will come from a user-pay facility fee and the final $100 million must be raised in the community (Bake sales? Lemonade stands?).
In Winnipeg, where it seems more and more likely that the Atlanta Thrashers could be purchased by True North Sports and Entertainment and moved here, one must always remember that MTS Centre cost a mere $133 million to build. It has 15,000-and-a-few seats (depending on who your talking to, on which day) and it’s smaller than the arena that Winnipeggers tore down (although it does have a very, very nice suite level). It’s quite a lovely building, but it’s a boutique arena – absolutely perfect for the American Hockey League and great musical events.
The Oilers owners, playing in a building with 17,100 seats plus standing room (at least 2,000 more seats than here in Winnipeg), claim they can’t make it anymore and have hinted at cocktail parties that they’ve even thought about moving to Quebec City if Quebec builds an arena and Edmonton doesn’t.
Meanwhile, here in Winnipeg, we’ve been inundated with rumours. It’s silly, really. There is the rumour IN Winnipeg that says the deal to buy the Thrashers will be done on Friday and then announced on Tuesday. And then there was the Thursday report in the Atlanta Journal-Constitution claiming that talks between the Atlanta Spirit Group and True North are ongoing, but are not close to a conclusion.
The reality is this: the private owners of True North Sports and Entertainment will either buy or not buy the available National Hockey League team in Atlanta. It’s their business and theirs alone.
But if they buy the Thrashers and move the team to Winnipeg, a city of approximately 700,000 people (the Edmonton Metropolitan Area has a population of 1,034,945) , how long will it be before we hear the cries: “We need a new arena?”
If we’re actually watching what’s going on in a bigger market with a bigger building, then one senses we’ll soon be hearing, “The arena isn’t big enough.”
The NHL is a very expensive proposition. What True North is negotiating is overwhelmingly risky. If they haven’t yet cut a deal to buy the Thrashers, I understand why.
In Winnipeg, hockey fans will not be the problem. However, smart people know that everything else might be.