[News] Tentative Agreement Reached! New Arena!

[kukkudo]

Originally Posted by Resolute 14

It's going to be either a bank or a telco. There's really not much else in this country willing to drop that much money. That, unfortunately, is why they are only anticipating $2.5 million in naming rights per year. Scotiabank is paying $20 million in Toronto. Though only $1 million for the Saddledome.

Watch for Telus to make a big bid.

[Resolute 14]

Originally Posted by sleepingmoose

I actually think that Scotiabank pays US$32 million per year in Toronto....

lol, don't mind my math. The deal is $800 million over 20 years, so $40 million annually. Or, yeah, about $32 million American.

[Fuzz]

Originally Posted by SportsJunky

One thing is for sure, it will take less time to build than a garage.

2 years, the clock is ticking!

[Calgary14]

Originally Posted by sleepingmoose

I actually think that Scotiabank pays US$32 million per year in Toronto....

Dumb question - who would get the revenues from the naming rights to a new arena - city or Flames? And are the rights to the dome really only $1M/year?

[sureLoss]

Originally Posted by Calgary14

Dumb question - who would get the revenues from the naming rights to a new arena - city or Flames? And are the rights to the dome really only $1M/year?

Under this deal, the city says they will get $2.5 million over 10 years for the naming rights for the new event center/arena.

Sounds like that is fixed regardless of whatever the naming rights deal ends up to be. It didn't specify what happens after 10 years.

And yes. From the information I can find, Scotiabank agreed to pay $20 million over 20 years for the naming rights of the Saddledome in 2010.

[sleepingmoose]

Originally Posted by sureLoss

And yes. From the information I can find, Scotiabank agreed to pay $20 million over 20 years for the naming rights of the Saddledome in 2010.

So would this deal transfer over to the new arena, or does it end when the Saddledome gets ripped down?

[Resolute 14]

Originally Posted by sleepingmoose

So would this deal transfer over to the new arena, or does it end when the Saddledome gets ripped down?

No, it wouldn't transfer. The City and Scotiabank will certainly terminate the deal when the Flames move. There's no value in holding the naming rights to a closed arena scheduled for demolition.

[ricosuave]

Originally Posted by Domoic

Perhaps a dumb question - but why does the Saddledome have to be demolished in all of this? And what will go up in its place?

Thanks

The Saddledome has to be demolished for a couple of reasons:

- The land it sits on was traded to the Stampede Board for a parcel north of the dome that they currently own (for the new arena), and the dome land is a part of the future Stampede expansion plan.

- Barry Munroe said in the council meeting afterwards that the dome is at the end of its useful life and has significant structural issues that cannot be fixed, not to mention the ongoing costs of keeping a facility like that in good nick. Whether or not that was just a selling point or accurate, I don't know.

[ricosuave]

Originally Posted by Weitz

Has any building in North America been built with the inverted bowl?

I'd be wary of being the first.

I didn't find any reference of any buildings already built with that design, so we certainly could be the first... I'm fairly certain Little Caesar's is not this design.

In the literature and videos, they state a significant reduction in space needed, construction costs, HVAC etc costs with this design compared to a traditional arena, and it looks like the one block parcel of land in the design is meant to accommodate just that design.

I'm personally pumped if it will be this design and look forward to it being a jewel among NHL arenas for that reason. The C of Red will be even more impressive!

[Fire]

Originally Posted by sureLoss

And yes. From the information I can find, Scotiabank agreed to pay $20 million over 20 years for the naming rights of the Saddledome in 2010.

You would think they should be able to get around $5 million per year on the new arena. The Flames/City will make sure to name the new arena something generic. <Sponsor> Arena, <Sponsor> Place, <Sponser> Centre, etc. They don't want the same problem with people just calling the Scotiabank Saddledome the Saddledome or dome.

[PepsiFree]

Originally Posted by Fire

You would think they should be able to get around $5 million per year on the new arena. The Flames/City will make sure to name the new arena something generic. <Sponsor> Arena, <Sponsor> Place, <Sponser> Centre, etc. They don't want the same problem with people just calling the Scotiabank Saddledome the Saddledome or dome.

I think that's actually the difference between a presenting sponsor and a title sponsor. So, a presenting sponsor would be what we have (Pengrowth Saddledome, Scotiabank Saddledome). Whereas a title sponsor could change the full name (Pengrowth Place, Scotiabank Centre).

So, if they go the title sponsor route, they likely wouldn't name it anything because the sponsor chooses the full name. If they go presenting, they probably do pick an "iconic" name (Saddledome, Coliseum, etc.)

[Weitz]

Originally Posted by PepsiFree

I think that's actually the difference between a presenting sponsor and a title sponsor. So, a presenting sponsor would be what we have (Pengrowth Saddledome, Scotiabank Saddledome). Whereas a title sponsor could change the full name (Pengrowth Place, Scotiabank Centre).

So, if they go the title sponsor route, they likely wouldn't name it anything because the sponsor chooses the full name. If they go presenting, they probably do pick an "iconic" name (Saddledome, Coliseum, etc.)

Is there really a difference?

I thought the move to <sponsor> place/center/whatever was simply to make the sponsor more prevalent as was suggested. No one is paying 5 million a year to have everyone call it the dome (or whatever name). Like how people in Edmonton call it Rogers. Thats what the sponsor is paying the money for.

[Calgary14]

What about the split on:

1) concession revenues
2) parking revenues
3) property taxes (I assume the team won't pay since it's a city owned building)?

[Pellanor]

Does anybody know how this compares to what the flames are currently paying for the dome? I remember a while back reading that they have a pretty sweet deal, but don't remember the specifics.

[Freeway]

Originally Posted by Calgary14

What about the split on:

1) concession revenues
2) parking revenues
3) property taxes (I assume the team won't pay since it's a city owned building)?

1) Flames operate the building, get the money
2) Stampede will share the revenues from event center events with CSEC (share isn't clear)
3) no property taxes

[Slava]

Originally Posted by Calgary14

What about the split on:

1) concession revenues
2) parking revenues
3) property taxes (I assume the team won't pay since it's a city owned building)?

There's no split, and no taxes as far I can see. They're projecting property taxes from other businesses that sprout up around this though.

Which is one thing that I really hope comes to be. One of the major problems with the Saddledome is there's not much convenient to have dinner/drinks before or after the game. I know they have Duttons, but outside of that, there's basically nothing. It would be great if there were a lot of options nearby to satisfy the 19,000 spectators for these events.

[Weitz]

Originally Posted by Slava

There's no split, and no taxes as far I can see. They're projecting property taxes from other businesses that sprout up around this though.

Which is one thing that I really hope comes to be. One of the major problems with the Saddledome is there's not much convenient to have dinner/drinks before or after the game. I know they have Duttons, but outside of that, there's basically nothing. It would be great if there were a lot of options nearby to satisfy the 19,000 spectators for these events.

The bars/restaurants downtown and on 17th hope otherwise.

[PepsiFree]

Originally Posted by Weitz

Is there really a difference?

I thought the move to <sponsor> place/center/whatever was simply to make the sponsor more prevalent as was suggested. No one is paying 5 million a year to have everyone call it the dome (or whatever name). Like how people in Edmonton call it Rogers. Thats what the sponsor is paying the money for.

That's why there is a different cost associated with being a presenting sponsor vs. a title sponsor, AFAIK.

With the presenting sponsor, you don't have a choice, you have to keep the original name but you attach yours on to it. With the title sponsor, you can call the thing whatever you want. Arena, Centre, Dome, whatever. Whatever generic "sounds good" with your corporate entity, presumably.

[sleepingmoose]

The retail businesses on the outside of the new building will pay property taxes, and the Flames will be responsible for the provincial portion of property taxes once the Community Revitalization Levy is up (since it's a City building, it obviously doesn't pay the municipal portion of the taxes at all).

[Weitz]

Originally Posted by PepsiFree

That's why there is a different cost associated with being a presenting sponsor vs. a title sponsor, AFAIK.

With the presenting sponsor, you don't have a choice, you have to keep the original name but you attach yours on to it. With the title sponsor, you can call the thing whatever you want. Arena, Centre, Dome, whatever. Whatever generic "sounds good" with your corporate entity, presumably.

Yah I guess I meant is there ever a new building anymore that isn't a "title sponsor"?