The owners of the ECHL’s Newfoundland Growlers and National Basketball League of Canada’s St. John’s Edge maintain those teams provide a significant economic contribution to downtown St. John’s.
The mayor of the city concurs, noting the pro hockey and basketball teams bring “vitality and life” to the downtown.
And so, on that note, after months of sometimes contentious lease negotiations between the teams and Mile One Centre, a 10-year agreement was agreed to in principle Wednesday.
“There has to be pain before there’s gain, and I think there was pain on everybody’s part,” Edge owner Irwin Simon said over the telephone at Wednesday’s news conference at St. John's City Hall.
“We hope the playoffs this year won’t be as tough as these negotiations,” added Dean MacDonald, the Growlers’ owner.
Last week, there appeared to be a standoff in negotiations between the teams and St. John’s Sports and Entertainment, the body that oversees Mile One and the St. John’s Convention Centre, with both sides preparing media briefings to share their sides of the story.
Suddenly, the news conferences were called off, talks resumed and the result was an announcement Wednesday of an unprecedented 10-year agreement to play out of Mile One.
Neither side was getting into specifics, although MacDonald did hint the yearly price tag to use Mile One was still very high in relation to other ECHL and NBL Canada teams.
“They’re not the cheapest leases, not by any stretch,” he said. “We’re still up there on the scale, but the benefit of 10 years gives us a chance to build something, to invest in the team, invest in the infrastructure, invest in staff.
“Most importantly,” MacDonald said, “the fans now know we’ll be here for a long time.”
“Getting this deal,” said Simon, “was key for us.”
According to the city, the total operating grant in 2019 for SJSE was $2.9 million. Of that amount, $1.96 million was earmarked for Mile One.
Under the new lease, the subsidy for Mile One Centre will increase by $440,000 in Year 1, $250,000 in Year 2 and $200,000 between Years 3-10.
Mayor Danny Breen alluded to the negotiations as being a give and take, noting greater revenue can be recouped through greater attendance at Mile One.
“The more people in the building, the better the city, Mile One and the teams do in concessions,” Breen said.
“At the end of the day, we have two teams here for a longer period of time. One of the things we want to do is work with the teams on how we can maximize the revenue we’re getting from the building … working together to improve revenue stream.”
The message being delivered by Breen and Coun. Sandy Hickman, chairman of SJSE, was having two professional sports teams on New Gower Street is critically important to the city.
“It’s a great addition to the community to have professional sports teams,” Hickman said, adding the awareness a pair of FIBA world basketball qualifying games last spring and the Toronto Maple Leafs training camp earlier this month brought to the city and region was invaluable.
“We want those 60 nights of entertainment for the people of the city and those that are visiting the city,” Breen said of the Growlers and Edge home dates.
“We are looking forward to building on the Leafs’ training camp, for example, and working with the ownership to make this work for everybody.”
MacDonald said a study commissioned by the teams showed the economic impact of the Growlers and Edge to the city to be in the $15 million range.
“I think it’s recognized by everyone here,” MacDonald said, “that there’s a contribution (from the two teams) to the economy, particularly downtown.”
MacDonald was particularly “delighted” with the 10-year term because it gives both teams a “long runway” where fans can invest in the team, and the teams can invest in the city.
“We want to have a retail presence with offices, etc.,” he said. “It was kind of tough to do that on a year-to-year basis.”
“Dean and I,” Simon said, “as business people have a global reach. So how do we bring that global reach to St. John’s? How do we get more spectators in the seats? How do we sell more food and beverage?
“With relationships that Dean and I have, what other events can we bring to Mile One? That’s a big part of it, and knowing that we’re going to be here for the next 10 years is a big part to build upon that.
“I commend the mayor and SJSE,” said the Edge owner, “for trusting us that we’re really going to work at this for the next 10 years.”
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