Bombers to Increase Contribution to New Stadium

http://www.tsn.ca/cfl/story/?id=344827

Winnipeg radio station CJOB is reporting that under a new financing agreement, the Blue Bombers will be responsible of $70 million of the projected $190 million cost to build a new stadium in Winnipeg.

According to CJOB, the team is considering selling shares of the club and adding a facility fee for any events that take place at the University of Manitoba Stadium.

CJOB is reporting that plans could be unveiled by Friday.

...how does adding a service fee to events that will happen in the future get you money that you need now?....by securing a loan hedged against future income that may or may not happen....banks may or may not do this, given the current lending climate I say it's a 50/50 chance, more than likely its another float from the tax payers of Manitoba....

Well I'm no expert but I just hope it happens.

I can't believe they still haven't worked out the financial details for this.

[url=http://slam.canoe.ca/Slam/Football/CFL/Winnipeg/2010/12/10/16510281.html]http://slam.canoe.ca/Slam/Football/CFL/ ... 10281.html[/url]

Watching the Great Stadium Debate lurch towards its inevitable conclusion, one thing has become crystal clear.

These are no longer your grandfather’s Winnipeg Blue Bombers.

Heck, they’re not even your dad’s.

Just 20 years ago, the board of directors of this community owned institution didn’t have the footballs to challenge its own head coach and GM.

Today, it’s ready to commit tens of millions of dollars towards a new stadium.

Easily the ballsiest move this franchise has ever made, this step became necessary when the team’s supposed white knight, David Asper, fell off the horse he rode in on, unable to deliver the $115-million playpen he’d promised, either on budget or with a cheque.

That same stadium is now going to cost $180-$190 million.

The Bombers’ share, an estimated $70 million, is about 12 times the debt that threatened to cripple this franchise a decade ago.

So how in the name of Jeff Reinebold can a mom-and-pop operation like this make a commitment like that?

Obviously, the rules of the game have changed. Mom and pop are long gone, replaced by bigger thinkers on a board that’s barging headfirst into a future of long-term community ownership in a community-owned facility.

“To protect the integrity and viability of the football club is a first priority,? board chairman Bill Watchorn said, Friday. “And that we have done.?

The Bombers are expected to pay off the $70 million, plus interest, over a long period, probably 30 to 40 years. There should even be enough money to create a contingency fund to maintain and repair the new digs, a serious issue in the current stadium.

It’s all spelled out in a business plan some eight months in the making, which we’ll get a peek at early next week, when this deal is unveiled.

A gamble?

Not as much as you might think.

New facilities are like blood transfusions for sports organizations, and you don’t have to look outside Manitoba to see the evidence.

The Moose and Goldeyes have seen huge increases in revenue in their new buildings, and are making money hand over fist. The Bombers, with their history and deep-rooted following, will enjoy the same resurgence.

Of course, the community investment here is on a bigger scale.

Taxpayers picked up almost half the cost ($9 million) of the ball park and close to one-third of the price ($40 million) of the downtown rink.

The new stadium is getting a $15 million grant from the province and around $7 million from the city. The bulk of the funding (approximately $90 million) is being fronted by the province, which will recoup our dollars through taxes from any new development at the Polo Park site, which currently generates no revenue.

Cue the caterwauling from the far right, and those against taxpayer funded anything.

“I saw that at the MTS Centre, I saw it with the Goldeyes, I saw it when they built the Provencher Bridge — there are people who don’t want to do anything,? Watchorn said. “If you accept the fact we need a new stadium, and the Bisons need a new stadium as well, killing two birds with one stone is a good idea. It’s going to be significantly used by the public at large, outside of the Bombers and Bisons.?

That debate will, no doubt, continue.

As for whether or not the Bombers are getting in too deep, it seems they don’t really have a choice. The status quo wasn’t an option.

I say if there's no private owner and it's gonna be paid for by tax-payers then re-design it and make it a dome. then we can host more GC's and its basically smack dab in the middle of all the CFL teams to begin with.

Responding to Grenade's post after mine... We're not going to build a dome in Winnipeg. No way anyone would agree to pay out $600+ million for a domed stadium. Besides, football is supposed to be played outdoors.

I wonder what is the status of Asper with this deal? Is he still in line to take over the Blue Bombers? If so, then in a way, the $70 million that the BB's are now on the hook for is, or at least will be, private money. It's just that I don't hear anything anymore about him taking ownership - is that because it is so well-known as to no longer merit mention or did I just miss the newscast??

The deal for Asper to own the Bombers was always contingent on his paying off the cost of building a new stadium. As it appears he is no longer involved with the stadium construction project, the Bombers will remain a community owned team.

Apparently Creswin may be reimbursed for some expenses incurred and Asper will be offered a seat on the BoD and that's it.

when did Asper stop being involved in the consruction process?

i must have missed that.

This was written Nov 16
http://www.winnipegfreepress.com/breakingnews/Premier-waffles-on-Aspers-role-in-stadium-108568009.html

If you want to read more
http://www.winnipegfreepress.com/search/?page=2&&pageSize=10&keywords=asper+stadium&sortBy=-startDate

Looks like the status of the stadium might once again be in question;

Winnipeg Free Press
New stadium plan could be blocked at council
By: Bartley Kives

WINNIPEG -- Opposition councillors at city hall have vowed to prevent the stadium deal from reaching the floor of city council on Wednesday morning, meaning the fate of the $190-million deal to complete the new venue is once again in doubt.
At least 11 out of 16 members of city council must agree to suspend council’s rules tomorrow morning to allow a stadium development plan to be debated at council. This afternoon, six councillors signed a letter to council speaker Grant Nordman (St. Charles), warning they will not do that – which means the stadium plan will be short at least one vote.
In the letter, Couns. Ross Eadie (Mynarski), Jenny Gerbasi (Fort Rouge), John Orlikow (River Heights), Mike Pagtakhan (Point Douglas), Harvey Smith (Daniel McIntyre) and Russ Wyatt (Transcona) say they will not allow the stadium report to be walked on to council because the stadium project is now financed entirely by public funds and there was no public consultation about the changes.
Gerbasi, who said she supported the deal on Monday, now said she now has concerns about the viability of residential redevelopment in Polo Park, given that city zoning rules governing land near Richardson International Airport prohibit the practice.
Both she and Wyatt said they do not wish to vote with "a gun to their heads," a reference to Katz’s suggestion the $190-million price guarantee expires Wednesday.
If the plan fails to make it to the floor of council, Mayor Sam Katz could call a special meeting of council for later in the very same day.
Katz has been asked to comment today.
The deal to complete Winnipeg’s new football stadium calls for the province to front most of the $190-million cost of building a new 33,000-seat stadium at the University of Manitoba and also provide a $22.5-million grant. The city would spend $7.5 million, using proceeds from the sale of the existing stadium site at Polo Park.
Both levels of government would agree to forgo property taxes from new developments at the existing stadium site at Polo Park and use those taxes to pay off $75 million of the stadium-building loan.
The province plans to recoup about $85 million from the Winnipeg Blue Bombers. The deal would give the Winnipeg Football club five years to pay off the first $15 million of that loan, without paying any interest.
Then in 2017, the club will hgve 40 years to pay back the remaining $70 million, with interest, according to the deal before council. The City of Winnipeg won’t be responsible if the club fails to live up to its commitments, the report states.
The city, university and football club are creating a new corporation called BBB Stadium Inc. to own the new new stadium. All three entities – plus the province – will appoint one director to the corporation’s new board.
The City of Winnipeg’s appointee will be deputy chief administrative officer Phil Sheegl, the report states.
The report will come before a special meeting of executive policy committee at 9 a.m. on Wednesday and then come before council itself – but only if enough councillors agree to suspend the rules

[url=http://www.winnipegfreepress.com/local/breakingnews/New-stadium-plan-could-be-blocked-at-council-111881704.html]http://www.winnipegfreepress.com/local/ ... 81704.html[/url]

...Winnipegs City Council gave final approval to the new stadium today.....New digs for the Bombers beginning 2012.....FINALLY a done deal....Let the earnest construction begin :thup: :thup: :rockin:

Wow! Very nice there in the Peg! :thup: :thup:

....Thanks Earl.....loooooong overdue :smiley:

Congrats Peg on a beautiful stadium.
Regina you are next with that awesome dome.

We would have gladly given you BC places dome. Maybe nice during the rainy season but was unbearable to be in during the summer months it probably affected attendance ( but great for beer sales).

Good to hear the stadium is go. Although I feel no profits for the Bombers for decades since they will have to pay off an $85 million debt. Hopefully the Bombers will be able to bank some money for a new stadium when this one becomes obsolete in 40 years or so.

http://www.tsn.ca/cfl/story/?id=346390

Summary: Increased ticket prices and facility fees is how the bombers are going to pay for this.

haha maaan, some of these articles.. u guys living outside the peg have no idea.. bartley kives? c'mon man, that right there ruined alll credibility.. dudes a major league d-bag. Has really no clue. Tsn doesnt have a clue either.. ticket prices and facility fees.. ha no..

ticket prices will obviously go up.. better stadium, more expensive tickets.. it is how it is.. the facility fee, ppl whining about it here but fact is, this is nothing new.. U CAN GET TICKETS FOR 20 BUCKS.. no u cant.. 20 dollar tickets now cost 23.50 or so with the current facility fee. its nothing new. so it goes up by 2 bucks.. woopedidoo... people here complain about facility fees but will gladly pay 6.50 for a beer and whine when they arent allowed to have 2 at the same time.. whine about 5 bucks but will complain when they arent allowed to pay 13 bucks for 2 beers..

how willl it be paid off...in all likeliness, over 20 years or so... and thats fine...they have said 10000000 x that the bombers will pay what they can per year... but not enough to cripple them.. with new stadium comes new revenue.. LUXURY BOXES.. anywhere from 40-60 of them im sure.. THATS SOME BIG MONEY THERE.. stadium currently lacks that.. restaraunts at the building, theres some talk of a bar/hotel/vlt area now also... thats big money. concerts, ya beleive it or not.. the current stadium holds quite a few of them per year.. 6-10 id say.. not bad for a stadium.. thats big money too. the grey cup will be here, that will be big time money...

theres alot of ways it will be paid off.. they dont need the money now.. the govts are paying for it.. people here.. its sad sometimes.. they whine about their precious tax dollars going to a stadium yet... dont care if it goes to welfare or something totally pointless.

its kind of funny... people in other towns.. talking about something none of us living here really know about either.

how the heck does tsn know when they havent even told us all the details and they wont.. they dont have too. truly if u look at some bomber msg boards or the webpage or the free press comments section.. ud think wpg had 1000000 architects and 100000 business commerce graduates.. fact is.. People dont know what they are talking about.. Kives, Tait, all of them.. NO CLUE.

i dont either but i do know that obviously with a new stadium... theres new forms of revenue that the current outdated 50 year old dump does not have. DOMES?maan, u see what happened to minneapolis? the metro dome? thats 8 hours south.. first snow fall of any year here.. same would happen here.