Quiet

[npsh]

With approximately two months remaining in the regular season, it has been quiet on the new facility in regards to a contract at least I haven’t heard anything in that regard. Normally about now or in short order, play off packages would be available with confirmation of renewal of the following year seasons tickets so I would assume we will be hearing in the very near future what the situation/offers will be.

[LLL]

It has been quiet indeed.

As far as I know, the formal bid for the 2019 Memorial Cup was due on Jan 15. My question is how can you make a formal bid without a rink to host the tournament?

There are some issues that we are aware. The Cats are going to lose the concession revenues in the new building. This must be a huge loss to them. Another issue is that I would be chocked if they do not also lose the advertising revenues inside the building (boards, ice, wall, clock?? etc...). How about parking, this must be an issue also with how the negotiations are going.

One thing I know for sure, the Cats won't get the sweet deal they had at the Coliseum. I remember that during the negotiations on a previous lease when things weren't going RKI's way he threatened to sell or move the team which is the Irving way of negotiating. Talk to the Kent Homes people in Bouctouche.

Last time the lease was renewed it went smoothly as I recall because RKI was guaranteed priority in the new venue but we are still waiting.

[lirette]

I'm sure the lease will work out fine. The same company that is running the building in Moncton runs the Krock centre in Kingston. The deal they have with the City of Moncton guarantees the building return a certain amount of profit and if it does not then they must pay the city the difference. They will make sure they have a major tenant one way or another.

There was an article that came out regarding the K Rock centre that without the Frontenac's they would not have turned a profit, even though they hosted many concerts & events throughout the year (these events bring other benefits obviously not necessarily on the arena's books).

The scoreboard arrives next month which should be exciting to see how it looks inside the building. The boards have been installed as well and they are beginning to work on the icepad.

I'd imagine they will release some more information when the letters come out regarding playoff packs/renewals.

[leftwinglock]

Jan 17, 2018 16:35:23 GMT -4 LLL said:

It has been quiet indeed.

As far as I know, the formal bid for the 2019 Memorial Cup was due on Jan 15. My question is how can you make a formal bid without a rink to host the tournament?

There are some issues that we are aware. The Cats are going to lose the concession revenues in the new building. This must be a huge loss to them. Another issue is that I would be chocked if they do not also lose the advertising revenues inside the building (boards, ice, wall, clock?? etc...). How about parking, this must be an issue also with how the negotiations are going.

One thing I know for sure, the Cats won't get the sweet deal they had at the Coliseum. I remember that during the negotiations on a previous lease when things weren't going RKI's way he threatened to sell or move the team which is the Irving way of negotiating. Talk to the Kent Homes people in Bouctouche.

Last time the lease was renewed it went smoothly as I recall because RKI was guaranteed priority in the new venue but we are still waiting.

Ask the Kent homes people?

[LLL]

Jan 17, 2018 18:03:53 GMT -4 leftwinglock said:

Jan 17, 2018 16:35:23 GMT -4 LLL said:

It has been quiet indeed.

As far as I know, the formal bid for the 2019 Memorial Cup was due on Jan 15. My question is how can you make a formal bid without a rink to host the tournament?

There are some issues that we are aware. The Cats are going to lose the concession revenues in the new building. This must be a huge loss to them. Another issue is that I would be chocked if they do not also lose the advertising revenues inside the building (boards, ice, wall, clock?? etc...). How about parking, this must be an issue also with how the negotiations are going.

One thing I know for sure, the Cats won't get the sweet deal they had at the Coliseum. I remember that during the negotiations on a previous lease when things weren't going RKI's way he threatened to sell or move the team which is the Irving way of negotiating. Talk to the Kent Homes people in Bouctouche.

Last time the lease was renewed it went smoothly as I recall because RKI was guaranteed priority in the new venue but we are still waiting.

Ask the Kent homes people?

Yes when contract negotiations were not going the way the Irvings wanted them to go and threatened to move everything to Debert NS.

[LLL]

If the new managers want to turn a profit for the City they must be confident that this new venue will bring a lot of good paying events. The Moncton Coliseum/Agrena sure didn’t make any money and this could be due in part to the sweet deal the Wildcats had combined with the low ceiling for the shows that kept some of the acts away.

If any of you are interested, the audited annual financial statements of the City of Moncton are public documents that can be accessed through the City’s web site. Here’s the link to the specific page:

www.moncton.ca/Government/Budget_Information.htm

I did a little bit of digging and here’s what I see. If you click on the link to the 2016 statements and scroll down to page 22 of the statements to see the revenues and page 24 of the statements for the expenses and do some math you’ll see the following numbers under Coliseum - Agrena:


Revenues Expenses Net Operating Loss

2016 $ 582,612 $2,200,577 $1,617,965

2015 519,104 2,432,745 1,913,641


Sorry I can't get the numbers to line up properly.



Someone will have to pay to turn losses over $1.5 million a year to a profit if what Lirette is saying is true. One thing is certain, the Wildcats will not have the same sweet deals they have had so far and we are going to have to pay for it by way of increased ticket prices. Maybe the delay to sign a new lease is due to the fact that the Wildcats are trying to minimize the impact on the price of those tickets.

In any even, I still don’t see how the Cats were able to make a formal bid to host the 2019 Memorial Cup Tournament that was due Monday (Jan 15) if they couldn’t show that they had a proper lease agreement with the new venue. Maybe there is a lease agreement in place and it has not been announced yet but I doubt it. Maybe there is a Memorandum of Understanding (MOU) but would that be sufficient.

[lirette]

Jan 17, 2018 18:34:49 GMT -4 LLL said:

If the new managers want to turn a profit for the City they must be confident that this new venue will bring a lot of good paying events. The Moncton Coliseum/Agrena sure didn’t make any money and this could be due in part to the sweet deal the Wildcats had combined with the low ceiling for the shows that kept some of the acts away.

If any of you are interested, the audited annual financial statements of the City of Moncton are public documents that can be accessed through the City’s web site. Here’s the link to the specific page:

www.moncton.ca/Government/Budget_Information.htm

I did a little bit of digging and here’s what I see. If you click on the link to the 2016 statements and scroll down to page 22 of the statements to see the revenues and page 24 of the statements for the expenses and do some math you’ll see the following numbers under Coliseum - Agrena:


Revenues Expenses Net Operating Loss

2016 $ 582,612 $2,200,577 $1,617,965

2015 519,104 2,432,745 1,913,641


Sorry I can't get the numbers to line up properly.



Someone will have to pay to turn losses over $1.5 million a year to a profit if what Lirette is saying is true. One thing is certain, the Wildcats will not have the same sweet deals they have had so far and we are going to have to pay for it by way of increased ticket prices. Maybe the delay to sign a new lease is due to the fact that the Wildcats are trying to minimize the impact on the price of those tickets.

In any even, I still don’t see how the Cats were able to make a formal bid to host the 2019 Memorial Cup Tournament that was due Monday (Jan 15) if they couldn’t show that they had a proper lease agreement with the new venue. Maybe there is a lease agreement in place and it has not been announced yet but I doubt it. Maybe there is a Memorandum of Understanding (MOU) but would that be sufficient.

The naming rights themselves should bring a hefty yearly sum to help out. The K-Rock Centre got about $220 K per year from Rogers. This building will also be energy efficient & major dollars from the use of the private boxes will provide additional income the coliseum could never generate. Scotiabank charges anywheres between $1000 and $2100 for box rental. 13 private suites in the events centre if fully used would generate potentially $25000 in revenue. Even if say half of those 100+ events have full private boxes & the other half are 50% full you could be looking at nearly 2 million in revenue a year. Lots of ifs here but you can see how the numbers could look & why this is such an upgrade on the existing building in terms of potential.

They also plan on having bigger named concerts and stuff like Cirque means higher ticket priced shows.

[WhiteTyAffair]

I've been told that the annual cost for the naming rights will be just over 500k.

Also, the private boxes, which will hold 8 people, will cost 50k a year with a 3 year commitment.

[LLL]

When I saw the 500k number I thought that it was high for Moncton but then I googled what the Scotia Bank paid for the naming rights in Halifax and it looks like it signed a 10 yr deal in 2014 for 650k per year for 10 years.

thechronicleherald.ca/metro/1218218-scotiabank-wins-naming-rights-for-halifax-metro-centre

Maybe 500k is not unreasonable. How does RBC Centre sound like?

[npsh]

Jan 18, 2018 13:52:52 GMT -4 WhiteTyAffair said:

I've been told that the annual cost for the naming rights will be just over 500k.

Also, the private boxes, which will hold 8 people, will cost 50k a year with a 3 year commitment.

Interesting. Often wondered what the Corporate structure is here in Moncton that would pony up half a million bucks per year to splash their name on a facility outside of JDI and no doubt they will have corporate/ private box for their people.

[WhiteTyAffair]

Jan 18, 2018 15:30:34 GMT -4 LLL said:

When I saw the 500k number I thought that it was high for Moncton but then I googled what the Scotia Bank paid for the naming rights in Halifax and it looks like it signed a 10 yr deal in 2014 for 650k per year for 10 years.

thechronicleherald.ca/metro/1218218-scotiabank-wins-naming-rights-for-halifax-metro-centre

Maybe 500k is not unreasonable. How does RBC Centre sound like?

My bet is on TD Bank. 

[lirette]

Jan 18, 2018 16:34:12 GMT -4 npsh said:

Jan 18, 2018 13:52:52 GMT -4 WhiteTyAffair said:

I've been told that the annual cost for the naming rights will be just over 500k.

Also, the private boxes, which will hold 8 people, will cost 50k a year with a 3 year commitment.

Interesting. Often wondered what the Corporate structure is here in Moncton that would pony up half a million bucks per year to splash their name on a facility outside of JDI and no doubt they will have corporate/ private box for their people.

Most likely a bank, there is a large banking presence here in Moncton that only continues to grow.

The only company(s) I could think of that isn't a bank would be someone like Canadian Tire who has a large presence here in Moncton with 3 stores & has gotten naming rights of arenas before, or Tim Hortons. Same company who owns Tim Hortons in Moncton is opening up the Hyatt place Hotel next door.

[Captain Obvious]

Jan 18, 2018 16:34:12 GMT -4 npsh said:

Jan 18, 2018 13:52:52 GMT -4 WhiteTyAffair said:

I've been told that the annual cost for the naming rights will be just over 500k.

Also, the private boxes, which will hold 8 people, will cost 50k a year with a 3 year commitment.

Interesting. Often wondered what the Corporate structure is here in Moncton that would pony up half a million bucks per year to splash their name on a facility outside of JDI and no doubt they will have corporate/ private box for their people.

It will likely not be a local company...what I mean is not one that is JUST local. having your name on a rink in Moncton gives exposure all over the Maritimes and also to a lesser extent Quebec, Ontario and North easterern US.

[jimmy]

I had heard rumblings in the grapevine that UNI was a possible naming rights option ... no idea the validity of that ...

[Captain Obvious]

Jan 18, 2018 17:14:24 GMT -4 jimmy said:

I had heard rumblings in the grapevine that UNI was a possible naming rights option ... no idea the validity of that ...

makes a lot of sense...new brand trying to make a name for itself...