Follow Up: Calgary Flames New Arena Deal Moves Ahead

This is a follow up to an earlier piece on this topic, with news yesterday that the City of Calgary and the Calgary Flames professional hockey team had reached a tentative agreement on a new arena in a blighted section in the downtown area. This arena would replace the Saddle Dome, their current facility, which is about 35 years old it was built for the Winter Olympics that Calgary hosted back in 1988 (believe it or not) it does not seem that long ago.

The deal has been discussed for a few years now, and active discussions began in 2017. The two sides reached a point last summer where the Flames ownership indicated, and senior management began to talk publicly about, relocating the team to another city. They even mentioned U.S. cities as possible destinations. This was seen as an attempt to “strong arm” the political powers in Calgary, but it is not like National Hockey League (NHL) teams have not relocated in the past, which put it inside the realm of possibility.

The framework of the initial deal, back about a year or so ago, had the city paying 33% of the cost of the building, the Flames paying a portion of the building, and the remaining amount would be supplied through a “facilities tax”, essentially a ticket tax paid by fans as well as other visitors to the arena.

However, the math in the current deal announced yesterday has changed, according to local news sources, Calgary will pay 50% of the cost of the proposed $550 million arena, the Flames will pay 22%, and the “ticket tax” will fund the remaining 28%. The city will own the building, the Flames ownership will most likely pay their contribution in some sort of annual payment over a ten year period, and the ticket tax will be paid to the city most likely annually.

The team ownership comes away from this deal well, the clear winners. It also triggers the conversation regarding whether a city should have ownership of an asset like an arena or stadium. It should also be noted that the Flames will be responsible for the maintenance and operational management of the facility, which will have a cost associated with it, especially as the building ages.

It is very similar to the agreement in Edmonton with the Oilers new arena. The structure with the “ticket tax” is similar in that agreement as well. The difference in Calgary is that they are trying to push a deal through by Monday of next week. Many parties involved, including residents, feel that is not enough time to make a decision of this magnitude, one that will impact the city for many years to come.

The proposal is supposed to be put into a public vote on Monday, if it is voted down, the path forward will be very unclear. In the event that it is passed, then the measure will most likely be the source of controversy in Calgary and could prompt certain parties to try to appeal the decision on a national level. The other way it could go is a conditional acceptance or conditional decline that would offer an extension of three months for further review and consideration.

The city officials have to figure out how to change the narrative that looks like they are being “taken to the cleaners” for 50% of the cost of the project. They have to come up with a rationale behind why the expenditure is beneficial for the city of Calgary.

The city and the team ownership also have to address the faction of the public who feel that the funds being used on a hockey arena (events center) could be spent on something with greater impact to the community. The objective being that the new arena will bring jobs, economic development, and investment to an abandoned area of Calgary.

This has happened in other cities with NHL and NBA arenas moving downtown with numerous examples of how the new arena has jump started the economic investment in city areas that were largely forgotten. Edmonton is a good example of this, the new arena brought tremendous financial investments and development to that area of the city.

The residents need to be consulted because the facilities tax is going to foot almost thirty percent of the cost of the proposed new arena. They need to decide if that is the direction that they want to go with their entertainment dollars in the future.

In the end, all parties involved could, in my view, use more time to evaluate this proposal and decide upon the best course of action for the funding of the new arena. The Saddle Dome is an aging facility that is becoming cost inefficient to maintain to NHL standards, which is prompting both sides to understand that a new facility is on the horizon. It just cannot seem like it is being pushed through on a fast track, which is exactly how it appears at this point.

Those deals, historically, have backfired, and the time and effort of so many end up being wasted. The parties involved have to consider that too before moving too fast with this agreement.

Someone To Believe In

This blog has featured articles on a range of subjects from sports, to business, to the environment, healthcare, marketing, and poetry. I thought about some different topics to write about since it has been a little while since I have shared on this blog forum, but nothing was “striking a cord” with me.

I decided that it was a good time to take a break from mergers & acquisitions coverage, or a piece on the media wars, or writing about healthcare (which are all important topics) in order to take a different approach.

I have shared on this blog a few times in the past that I host a podcast on Life Coach Radio Network twice per month titled, “Undivided”, the series just reached the two-year milestone and the episodes focus on social justice issues or wellness topics that impact people. I am hosting the 50th episode this evening on the debate over body image, which is a very big issue with people from across the demographic spectrum.

The episode is going to feature an expert in the area, Suzanne Reilley, and will be a powerful, inspiring program for those dealing with that issue in their lives. I am not an expert, but in my research, at the heart of all of it, there is a root cause just like anything else. That root cause is different in certain people or circumstances, but the common thread is similar to other emotional or psychological issues: it is the lack of someone believing in the individual and/or the lack of someone in their life to provide them with unconditional love.

The underlying fact is that we all need someone to believe in, we need someone we can look up to, and we need someone who believes in us. Many people lack the spiritual connectedness in an increasingly noisy world filled with distractions, to take the time to understand that when we do not have that person in our lives, God fills that role for us. God is always there to provide you with unconditional love and support.

Our society tends to forget that spiritual component very easily. However, anyone who has dealt with substance abuse addictions will tell you that in treatment they teach you to surrender to a higher power and acknowledge the presence of God. That void from alcohol, drugs, gambling, or addiction to working out/body image is all filled by the love of God. The presence of other people: friends, mentors, sponsors, teachers, coaches, or a relative are additional resources that are important and have their place in the process of wellness.

These other support roles do not measure up to the love and peace that come from having a connection with God. It is sadly being largely removed from our societal conversation in favor of worldly possessions and other methods which have proven to leave people still with an underlying sense of unfulfillment.

The pressures of society to look, act, or react in a certain way also confound the situation and can leave the individual eventually feeling adrift or disconnected. The long term emotional and mental anguish that this can cause is also scientifically proven to be a major issue in our society.

In addition to the need for a spiritual connection and other measures of wellness (diet, sleep, exercise) is the need for mentors. Many companies and non-profit community type groups have developed mentorship programs for young people or for young adults entering the workforce. These programs are invaluable and provide stability and support for those who do not have a family or anyone else in their life to provide it to them.

In the end, whether you are struggling with body image, substance abuse, or another type of medical disorder; we all need someone to believe in. We all need someone to believe in us. We all need to remember that those people are out there. We all need to remember that God is with us all always and that He loves us for who we are unconditionally. My hope and prayer are that fact provides comfort to those who feel lost and alone. Please turn it over to God, and let God do the rest.