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NHL/Quebec City discussion (all QC non-arena talk here)

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Old
09-06-2011, 07:20 PM
  #1
LadyStanley
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NHL/Quebec City discussion (all QC non-arena talk here)

http://www.calgarysun.com/2011/09/06...for-arena-deal

Quote:
Media and telecom giant Quebecor, Inc. will pay $33 million for naming and management rights to an NHL-ready arena in the provincial capital, city officials announced Tuesday.
...
The 25-year deal signed with the city includes a lease for a hockey team, a deal for events and performances and a naming-rights agreement. Quebecor will pay $33 million in September 2015, when the building is scheduled to open. That amount rises to $63.5 million if the city lands an NHL team

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09-06-2011, 07:23 PM
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dronald
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Will they get a team for sure?

And if they do, how will it happen?

These next few years will be interesting.

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09-06-2011, 07:25 PM
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Originally Posted by LadyStanley View Post
Not surprising, Quebecor has been behind so much of a return to QC-nice to see the putting down of money. SO QC is getting an arena done with an arena sponsor with lease agreement. Quebecor and everyone involved probably has an informal checklist provided by the NHL of what all needs to be in place, and they're ticking off the boxes one by one-getting the ducks in a row.

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09-06-2011, 08:37 PM
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Shouldn't QC be paying Quebecor to manage the arena? Perhaps $18 million per year?

 
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09-06-2011, 09:29 PM
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Originally Posted by Fugu View Post
Shouldn't QC be paying Quebecor to manage the arena? Perhaps $18 million per year?
Strange isn't it? It is the exact polar opposite of the situation in Glendale. Say it aint so!

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09-06-2011, 09:50 PM
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Quote:
Originally Posted by Fugu View Post
Shouldn't QC be paying Quebecor to manage the arena? Perhaps $18 million per year?
An unnamed source informs me that agreement will be ironed out and completed within the next two weeks.


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09-06-2011, 09:56 PM
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Kind of short on details. What's the revenue split for the new arena? Yearly payment?

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Old
09-06-2011, 10:17 PM
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Kind of short on details. What's the revenue split for the new arena? Yearly payment?
The arena cost is 400m (200m from the province + 183m from the city + 17m from J'ai ma place (they sold seats priorities to help fund the arena)). The city will own the arena, ready in 2015.

As for Québecor, there are 2 possible scenarios.

If they fail at getting a team:
Québecor pays 33m to the city + 3.15m rent per year + 15% of profits.

If they get a NHL franchise:
Québecor pays 63.5m to the city + 5m rent per year + 10% of profits.

With this contract, Québecor is commited for 25 years with or without a franchise.

http://www.cyberpresse.ca/actualites...est-signee.php (sry in french).


Last edited by Habs05: 09-07-2011 at 12:20 AM. Reason: added more infos
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Old
09-06-2011, 10:53 PM
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Quote:
Originally Posted by Fugu View Post
Shouldn't QC be paying Quebecor to manage the arena? Perhaps $18 million per year?
Oh, you've just been in the desert heat too long, you're hallucinating now

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09-06-2011, 11:43 PM
  #10
Ernie
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Originally Posted by Habs05 View Post
The arena cost is 400m (200m from the province + 183m from the city + 17m from J'ai ma place (they sold seats priorities to help fund the arena)). The city will own the arena, ready in 2015.

As for Québecor, there are 2 possible scenarios.

If they fail at getting a team:
Québecor pays 30m to the city + monthly rent of 3.15m +15% of profits.

If they get a NHL franchise:
Québecor pays 63.5m to the city + monthly rent of 5m + 10% of profits.

With this contract, Québecor is commited for 25 years with or without a franchise.

http://www.cyberpresse.ca/actualites...est-signee.php (sry in french).
I'm assuming that's $5m per year, paid monthly.

Anyone know why teams seemed to be building stadiums about a decade ago for around $200m, and now it seems to be double that?


Last edited by Ernie: 09-06-2011 at 11:49 PM.
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Old
09-06-2011, 11:56 PM
  #11
Habs05
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Quote:
Originally Posted by Ernie View Post
I'm assuming that's $5m per year, paid monthly.

Anyone know why teams seemed to be building stadiums about a decade ago for around $200m, and now it seems to be double that?
Oops, yes it's per year, edited my post thank you.


Last edited by Habs05: 09-07-2011 at 12:12 AM.
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Old
09-06-2011, 11:59 PM
  #12
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Quote:
Originally Posted by Ernie View Post
I'm assuming that's $5m per year, paid monthly.

Anyone know why teams seemed to be building stadiums about a decade ago for around $200m, and now it seems to be double that?
not just stadiums...its everything....in the last 5 years (at least in winnipeg) construction costs have doubled...more than tripled in the last 10.....steel prices, skilled labour shortages....the chinese using all the concrete and steel in the world has something to do with it.

they built the MTS centre right as the costs of construction hit the upswing...had they waited 3 years it never would have been built.....today that $140m would easily be $250- 300m.

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09-07-2011, 09:03 AM
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Originally Posted by peter sullivan View Post
not just stadiums...its everything....in the last 5 years (at least in winnipeg) construction costs have doubled...more than tripled in the last 10.....steel prices, skilled labour shortages....the chinese using all the concrete and steel in the world has something to do with it.

they built the MTS centre right as the costs of construction hit the upswing...had they waited 3 years it never would have been built.....today that $140m would easily be $250- 300m.
That and energy prices, maybe the cost of capital for commercial construction. Then there's just good old fashioned inflation. I think it's been at a higher rate than economists tell us.

 
Old
09-07-2011, 11:27 AM
  #14
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http://www.theglobeandmail.com/news/...rticle2156055/

FYI

Quote:
[...]
“If Quebecor, and this is a hypothesis I don’t believe in, were to obtain a National Hockey League team and sell it or move it in 10 years, they will still have to pay rent for 15 years. And that’s important to retain the club. It’s an incentive not to leave,” Mr. Labeaume said. Quebecor also won a concession in the final negotiations: If the company is unsuccessful in obtaining an NHL franchise, it will pay a lower price for the naming rights – which could top out around $64-million – to the proposed 18,000-seat building,.

The lease also builds different rent schedules into the agreement, one if there is a hockey franchise, and another, lower rate scale if Quebecor doesn’t manage to attract a team.

Over the life of the deal, the media conglomerate will pay between $110-million and $200-million in rent, profit-sharing and naming rights.

In return, Quebecor will have exclusive rights to stage concert events and hockey, and to make its own arrangements for ancillary revenues like concessions and beer sales. The city reserves the right to cancel the arena project, which is to be financed jointly by the city and the province, should a detailed cost study make the price tag prohibitive.[...]

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09-07-2011, 11:52 AM
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So the city and province are willing to subsidize the team to the tune of $300m plus? I thought these things only happened in Glendale.

It'll be funny if it's actually the Coyotes that make the move.

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Old
09-07-2011, 12:51 PM
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Quote:
Originally Posted by Ernie View Post
So the city and province are willing to subsidize the team to the tune of $300m plus? I thought these things only happened in Glendale.

It'll be funny if it's actually the Coyotes that make the move.
If I understand correctly, the city and the province are willing to invest $300M in the arena, not the team - when all is said and done Quebec City will own the building, so its not really a subsidy/handout.

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09-07-2011, 04:35 PM
  #17
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Heh, Quebecor owns the group that owns the Calgary Sun. Of course, they are not going to **** on the deal.

I'm personally for anything that's bringing back another team to Canada, make it 8!

Now I hope to see something tangible...like the ceremonial start of the construction.

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09-07-2011, 04:54 PM
  #18
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Originally Posted by Blitz View Post
If I understand correctly, the city and the province are willing to invest $300M in the arena, not the team - when all is said and done Quebec City will own the building, so its not really a subsidy/handout.
From what it sounds like, of course it's to land an NHL team, however they're also saying about it being multi-use facility as well as another hockey arena for use by other orgs and public-from what it sounds like if they don't have a NHL team by 2015, they're content to operate for other events.

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Old
09-07-2011, 05:00 PM
  #19
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Originally Posted by Tinalera View Post
From what it sounds like, of course it's to land an NHL team, however they're also saying about it being multi-use facility as well as another hockey arena for use by other orgs and public-from what it sounds like if they don't have a NHL team by 2015, they're content to operate for other events.
Basically, the Colisée needs to be replaced anyway. It's an old building, built in 1949 and hastily renovated in 1979. The structure is mostly sound, but you can't really suspend more weight from the roof. Electric supply for modern shows is problematic. It's hot as hell in the barn in the summer. Basically it's on it's last miles.

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09-07-2011, 08:40 PM
  #20
Ernie
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Originally Posted by Blitz View Post
If I understand correctly, the city and the province are willing to invest $300M in the arena, not the team - when all is said and done Quebec City will own the building, so its not really a subsidy/handout.
A subsidy for the building is still a subsidy. The province and city will be spending almost as much as Quebecor to acquire a team when all is said and done.

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Old
09-07-2011, 08:55 PM
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Quote:
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If I understand correctly, the city and the province are willing to invest $300M in the arena, not the team - when all is said and done Quebec City will own the building, so its not really a subsidy/handout.
Wouldn't that increase the already high taxes in Quebec ?

If so, that affects the Canadiens and not that I'd be against it (seeing as I'm not a resident of Ontario again) the Molsons might. The more taxes would also make it harder for the habs to sign big free agents again.

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09-07-2011, 09:45 PM
  #22
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A subsidy for the building is still a subsidy. The province and city will be spending almost as much as Quebecor to acquire a team when all is said and done.
The province and the city are spending to build a piece of infrastructure, not to acquire a team (well, officially at least). It's not outlandish for a city of Québec City's size to have this kind of building, to attract and host large-scale events (there's also the Remparts, who regularly draw 10K+ crowds). And the Colisée has reached the end of its lifespan. Even amongst junior hockey arenas, it's ancient. Bands who play inside it complain about the facility. It really has to be replaced, at this point.

Admittedly, the mayor and his team have been very vocal about their desire to bring back an NHL team, and I'm afraid it might overshadow the fact that this building would be a part of the city's infrastructure, not just a playground for pro hockey players.

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Old
09-07-2011, 11:49 PM
  #23
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Nothing is forgotten

In that agreement Québecor got the right to display their name (or one of their subsidiaries) on each of the 4 exterior walls covering at least 57 square meters. Inside, they got the rights to display their logo/name on each wall, banner, napkins, plates, menus, toys... etc and it goes on... At least the city will have a say on the logo's look.

I'm not surprised by this but it's still interresting. Guess he's really motivated to get that NHL franchise (if possible).

http://translate.google.com/translat...es.php&act=url (google translator).

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Old
09-08-2011, 12:51 AM
  #24
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It's not a bad deal for the city: they paid $187M to build the arena, and if Quebecor gets an NHL team, they'll have to pay $63.5M for naming rights + $125M in rent (over 25 years) = $188.5M. Plus Quebecor gives a 10% share of profits to the city, which should help the city in paying interest on its loan.

Quebec City should see a lot of concerts every year, which means the city should get a good amount of money.

The Provincial government however doesn't get much of a return on its $200M investment.

If Quebecor doesn't get a team, it's less attractive for the city: $33M for naming rights + $79M in rent. They'll have to hope that the 15% share of profits makes up for it.

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09-08-2011, 01:58 AM
  #25
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As long as this arena gets built, Quebec City will get a team (most likely via relocation imo). The moment the financing goes through and the shovels are in the ground QC becomes viable and an NHL team can play temporarily in the Colisée if need be -- the return of the NHL to QC becomes inevitable. Quebecor is the type of company that can pull this off especially with the backing of the Quebec governments. I'd be surprised if there wasn't already some kind of understanding or "gentlemen's agreement" at the very least in place between QC, Quebecor, the province of Quebec and the NHL to bring an NHL team back to the city.

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