We all know that there is a new arena planned to be built in Calgary (north of the Saddledome) for the Calgary Flames team, after a tumultuous start to the project (hitting several snags that we discussed with Jeff Davison, on our podcast in Season 3). We also know the rollercoaster of issues surrounding the Arizona Coyotes organization and their search for finding a spot to build their new arena, after the recent failed vote in Tempe. Certainly we want to see the Coyotes find a new home, and help establish themselves long term in that market (although Mullet Arena looks pretty cool on tv). But there is also talk about a new arena being built in Ottawa, as the new ownership group just took over. This is because there is something inherently valuable in having a new rink developed, and the value it brings to that city and community.
I wanted specifically to look at two recent examples (Edmonton and Detroit), which recently saw new arenas built (2016 & 2017 respectively). Both teams (and cities) needed upgrades to their previous arenas, and realized that the longer they delay the higher the costs would continue to be. First off, I want to emphasize that the hockey arena itself will not be the best revenue driver (as ticket sales can vary depending on how well the team is doing and the fact that there are only 41 games per year one can host). But when organizations, like the OEG and the Ilitch Holdings, built a complex with multiple features and amenities (restaurants, shops, hotels, apartments and other businesses), this helps that communities better its economic standing. This is because it brings in new opportunities for big and small businesses to expand and encourages people to visit or move to the core. They aren’t just trying to build an improved entertainment experience on the ice, but also a welcoming and fun atmosphere off.
This starts with multiple partnerships, as the arena can host many other different events such as: Detroit Pistons basketball, combat sports like the UFC 218 and the 2022 NCAA Division I Wrestling Championship), the 2019 U.S. Figure Skating Championships, Professional wrestling (WWE) and many concerts from a wide variety of musical artists, and for Edmonton, the Oil Kings junior team. This not only brings in additional activity and revenue to the arena, but it keeps it busy and operational beyond the NHL season, providing work for those in the city (from concession, guest services to security). It utilizes its facilities more frequently, generating revenue both for the organizers and the teams. It also encourages visitors to come and visit the cities to experience international events (like 2016 CHL Canada/Russia Series and Cirque Du Soleil or public keynote speakers like Oprah Winfrey or Michelle Obama) to showcase the city. This brings in lots of dollars as people come in to spend money on accommodations, food, drinks and entertainment. In the case of Edmonton, it helped revitalize their downtown, as new buildings (apartments) and commercial spaces began opening up and more people came downtown for more events with friends and family. This is because people like to be active and when there are such world class amenities, people will support it by going to events. It’s also because people want to be proud of their cities and this is just one way to showcase or promote themselves.
Another benefit to having these newer arenas is that it also allows for organizations like the OEG and Ilitch Holdings to invest and donate back into the local community, specifically the local sports organizations, which help kids be active in their communities and helps grow the game. They will partake in charities (50/50), alumni events and local practice camps for youth. This is a great way to give back.
But you also want your NHL players to be proud of playing in that arena with a full crowd. You want to have the best quality ice, facilities, locker rooms, and equipment, because not only will it make it fun for players to get excited in playing in these cities, and get them to put on a show. It also helps organizations attract quality free agents, as we have seen some big names come to Edmonton (Evander Kane, Zach Hyman) as well as to Detroit (Alex Debrincat). Players want to play in these markets, probably do look at the amenities, because this is the NHL. You cannot have a 5000 arena rink (like Mullet Arena) to promote the best of the best (I’m sorry Arizona). You want to watch the best of the best; Connor McDavid play against Clayton Keller at capacity. But teams also want to be able to host fun events like the NHL Draft and the All Star Game, which brings in an array of fans into your city and again promotes that city and community. Players do chat and will say their favourite arena’s and there has been rumblings out of Calgary how the players would like to see a new rink.
With all that being said, I will share that there will always be ongoing issues and concerns (displacement of homeless people, faulty facilities, traffic jams before and after games, etc.), that can emerge with any big project such as this.There is also the debate about how (or whether or not) public dollars should be used to fund such large projects. These are valid issues that do need to be addressed properly and directly, and consulted with the public, as some people may not believe or attend these facilities. But there is also an argument to be made for the cost of operating and maintaining an older building like the Saddledome. Although it has a rich history, there is a great cost to fixing and upgrading that type of arena, especially since most NHL rinks have a shelf life. It might be better to invest in a new development that continues to funnel money into a rink (repairs, upgrades, structural integrity) that may not be able to be sustained long term.
Therefore, I think with the right leadership, development plan and buy-in from the communities, and a detailed proposal of the benefits, a new arena will be good for all parties. This is why, we here at Two Guys believe that organizations such as Calgary, Ottawa and Arizona would be beneficial for these cities, for the NHL and the communities in which they reside. We then look forward to checking out and seeing these arena’s once they are complete, and wonder who will be next for a revitalized project. It just has to be done right.
Fun fact: The Little Caesars Arena received a Sports Facility of the Year Award in 2018 for being one of the busiest arenas in the world with 2.3 million guests attending more than 150 ticketed events.
Thoughts?
Pawel ‘The Cat’
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