ST. JOHN'S, N.L. — A day after the announcement of a 10-year lease agreement for the Newfoundland and Growlers and the St. John’s Edge to play out of Mile One Centre, the landlord and tenants outlined what they saw as concessions made in negotiations for a new deal.
The City of St. John’s, which operates Mile One through St. John’s Sports and Entertainment Limited (SJSE), issued a press release revealing projected increases in the Mile One operating grant — widely referred to as a subsidy — they say will result from the new lease deal.
It showed the 2019 grant to Mile One will be just short of $2 million, but largely because of what are termed one-time costs, will increase to $2.4 million in 2020 before falling back to $2.21 million in 2021 and $2.16 million in subsequent years.
However, Growlers majority owner Dean MacDonald re-iterated his position that even with projected increases, the contributions of ECHL champions and National Basketball League of Canada’s Edge will make the subsidy less than what would have been had they not been playing out of the building.
And in the release, the city did note the “sport teams are only part of the operation which impact the operating grant. Events such as concerts, ice rentals, and the like … in addition to regular maintenance, utilities and fixed costs, all contribute to the (subsidy).”
The city also said the subsidy could be reduced through higher attendance at Growlers and Edge games, increased food and beverage sales and improvements to the event calendar outside of hockey and basketball.
“If attendance goes up, they should be in great shape. There is no reason they shouldn’t benefit from that,” said MacDonald.
For his part, MacDonald said rental costs the Growlers and Edge pay under the new deal will still be among the highest in their respective leagues.
“But because (the lease rates) are fixed for 10 years, I’m hoping six years from now, I’ll be able to say we’re starting to get the better end of the deal,” he said.
“And right now, even though the rates are still high by league standards, it’s a quid pro quo. Because of the certainty that comes with 10 years, it allows us to get out to the corporate community, to our season-ticket holders and to potential season-ticket holders and get them to invest in the teams knowing they’re going to be here for a while.
“That at least gives us a chance to get us back into the land of the living.”
The Growlers begin their 2019-20 season Oct. 11 at Mile One. The Edge’s new schedule hasn’t yet been released, but NBL Canada recently revealed there will be a delayed start to the new season, relative to 2018-19, with the first league games not coming until after Christmas.