Saturday, May 17, 2025
THE SOARING COSTS TO MAINTAIN O.H.L. TEAMS ** HOW MUCH CAN TAXPAYERS KEEP CONTRIBUTING? **
THE SOARING COSTS TO MAINTAIN O.H.L. TEAMS
** HOW MUCH CAN TAXPAYERS KEEP CONTRIBUTING? **
IT HAS BEEN REMARKED that the quality of civic life within any community will, out of necessity, require ongoing financial support for various sporting venues, in addition to arts & cultural institutions. Municipal governments transmit those costs onto local taxpayers, compelling them as individuals to take on the responsibility of paying for facilities and programs they may never use.
Residents of Oshawa are by now fully aware of the significant commitment made by Mayor Carter and councillors to offer further financial support for the Oshawa Generals Hockey Club – to the tune of $50 million. This newspaper was the first to inform local citizens of the deal negotiated between the City and other stakeholders that will see major renovations to the Tribute Communities Centre completed by late 2027.
In a press release posted on the City’s website, the renovations are offered up as a necessary ‘modernization’ of the existing facility, including a main entrance expansion, interior alterations with seating for up to 7000 fans, and an updated concession area.
Research into this topic shows a marked trend among a growing number of municipalities choosing to invest significant taxpayer resources into attracting or maintaining Ontario Hockey League franchises, with some communities having done so for decades.
To its credit, the OHL has an impressive track record as a leading supplier of talent for the National Hockey League. There are 20 teams in total, with 17 of them based here in Ontario, and the league is well regarded for providing hockey scholarships.
At that same time, there is a strong desire within today’s OHL landscape to run individual franchises like Supercentres, in large state-of-the-art venues. Beleaguered taxpayers are right to question whether the practice of supporting OHL teams and their owners’ ever-increasing demands has, over time, grown to be far too expensive.
Prior to the $50 million announcement at the Tribute Communities Centre, an endorsement for an even larger investment was offered up by city councillors in Brantford, to the tune of $140 million for a new sport-entertainment centre. This, in a community that only a few years ago saw fit to sell a municipally owned golf course to better enable funding for local affordable housing. One Brantford councillor raised a concern that the funding was not being allocated towards a new hospital in partnership with the provincial government, telling his colleagues, “A hospital would serve 100 percent of the constituents, versus the five percent that could attend a hockey game.”
In Kitchener, home of the successful Rangers hockey team, the municipality is moving ahead with $2 million in renovations to the Kitchener Memorial Auditorium that will see a new restaurant built opposite an existing sports bar.
Unlike the Oshawa Generals, the Kitchener Rangers team is publicly owned by season ticket subscribers. The team itself will be footing the bill for what they see as ambitious changes necessary for their club to “remain competitive” in the rapidly changing world of OHL hockey.
Being a historic club isn’t good enough anymore, especially after the National Collegiate Athletic Association (NCAA) south of the border made a landmark decision to allow players with junior hockey experience into its ranks beginning next season. The move gives players more leverage when choosing their destination, and the OHL is beginning to feel the pinch as some players leave the league earlier than expected to head to schools in the U.S.
None of this bodes well for keeping the costs associated with OHL franchises anywhere near affordable for Ontario municipalities. The renovation details to Kitchener’s ‘Aud’ as it is known by fans, sound somewhat familiar to those the Oshawa Generals are now anticipating. The entire Rangers business office will be dedicated to the players, with dressing room improvements, a gym and workout area, players’ lounge and even a pool therapy section, among other things.
Oshawa’s own arena, completed in 2006, has already seen an expanded gym, a new video review room for team members, and an area that offers players better nutrition options by way of a fitted kitchen.
It is known that OHL teams have the ability to boost local economies through revenue generated by games, merchandise sales, and other businesses. With regard to the business of hockey, the value of the top five teams is as follows: The Ottawa 67s at $55.53 million, The Mississauga Steelheads at $44.85 million, the Hamilton Bulldogs at $32.69 million, The London Knights at $23.02 million, and the Kitchener Rangers at $13.78 million. The Oshawa Generals came in 8th place at $9.41 million.
Which brings us to comments made by Generals owner Rocco Tullio during a recent podcast with Mayor Dan Carter, in which he said, “The last thing I wanted to do was take the Generals down the road to the city of Pickering… but, we have to make sure we have the tools and the resources… If you have success, people believe in you. Our next priority is to put a blueprint in place that allows us to host the Memorial Cup here. I want to showcase our fans, we do it every game, but I want to put it on the world stage. I want to show everyone in the world stage that, hey… this is what we get on a nightly basis, and now you get to see it on a major scale.”
Does that sound like someone who simply loves the game of hockey, or could taxpayers be forgiven for thinking their $50 million contribution is a boost, not only to Mr. Tullio’s self-esteem, but to the future value of his franchise?
In answer to a question posed by Mayor Carter as to whether his colleagues in the world of junior hockey were jealous of the $50 million deal that was negotiated, Mr. Tullio had this to say, “Kingston called me already, and they are up for renewal and they want to do the exact same thing…so they’ve called to pick my brain.”
All of which describes a situation where one significant financial contribution inevitably leads to a series of similar negotiations, all of which follow in perfect sequence.
Oh, the possibilities are limitless.
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