In all fairness, the economics of the deal were always marginal at best, both for CSEC and The City of Calgary. The saddledome is less than 40-years old and has one of the highest capacities in the league. The incremental benefits of a new arena are not that large.
From the CSEC perspective, even with the subsidies, the incremental cash flow from a new arena is probably in the mid-single digits in terms of return on investment. The metrics are probably worse now given the cost overruns and lower revenue projections due to COVID and continued consolidation of the energy sector (less demand for boxes and premium seats)
From the City of Calgary perspective, the public benefits were always dubious.
Maybe this is political - Murray Edwards has an axe to grind. But it might also be that the deal didn't make sense for CSEC and the flames were looking for a way out. It's probably a bit of both.
|