9.5% Ticket Tax/facility fee on all events at the new arena with the exception of Calgary Stampede and City of Calgary events. The 2019 agreement had a 2% ticket tax. The ticket tax will go to the city to help recoup its investment.
This changes the economics of the deal a bit. When this deal was presented to the public, there was no mention of a ticket tax.
https://calgaryherald.com/news/local...tre-ticket-tax
Quote:
When the Calgary Flames’ new arena opens in a few years’ time, a nearly 10 per cent tax will be imposed on nearly all tickets.
A 9.5 per cent ticket tax for events held at the new downtown arena, which will replace the Saddledome, is outlined in agreements released Thursday by the City of Calgary — a nearly five-fold increase from the two per cent proposed in the 2019 deal that failed to cross the finish line.
The city will use the ticket tax, known as a “facility fee,” as a measure to recoup the city’s $515-million tab to build the event centre block. Overall, Calgary Sports and Entertainment Corp. will pay the city $17 million annually — $7 million coming from rent payments and $10 million from ticket tax revenues. (A one per cent escalation cost will be added each year.)
The annual payments from CSEC to the city are guaranteed, regardless of ticket demand, said Michael Thompson, general manager of infrastructure services at the City of Calgary.
“If ticket demand goes up or down in the future, if naming rights go up or down in the future, the city gets that consistent and reliable $17 million escalating at one per cent,” Thompson said.
The ticket tax applies to all events in the new arena, which includes Flames, Hitmen, Wranglers and Roughnecks games, along with concerts and other events, with the exception of Calgary Stampede events and city events hosted at the arena.
The 9.5 per cent tax matches the number Edmonton landed on after pitching in $125 million for the Rogers Centre’s design and construction.
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