Cougars staying put, agree to 10-year CN Centre lease with City of Prince George
CN Centre was built to house a Western Hockey League team and will continue to do so for at least the next eight years as a result of a long-term lease agreement announced Wednesday.
Securing the Cougars in a long-term deal ensures the city will be able to continue to cover a major portion of the operating costs of its marquee sports and entertainment venue.
The new deal, which expires in 2018, gives the city anywhere from a minimum of two per cent to a maximum of 30 per cent of the team's ticket revenue. The percentage used is dependent on game attendance. The more people who show up, the bigger the cut the city will receive.
"It's going to help us out right now but I'm also really glad that it can balance out at the other end and help the city out," said Cougars vice-president Brandi Brodsky. "I think it's fair and I think it's good the city gets their portion of the good times when we get to that point, and I think we're going to get there. That's why we come to work every morning. We want to put a great product on the ice because I know that will translate into people coming into the building to watch it."
The city will also receive 30 per cent of advertising sales from rinkboards and scoreboards ads as well as 50 per cent of suite rentals during the games.
Having the Cougars as the prime tenant allowed the city to recoup 75 per cent of its CN operating costs in 2009, and that figure was closer to 90 per cent when the team was drawing full houses. By comparison, the city's other arenas require a 50 per cent subsidy from city taxpayers.
"The city does very well by the Cougars, the Cougars have never lost us money -- in fact we've made a great deal of money since 1994," said Andy Beesley, manager of CN Centre and community arenas.
Under terms of the expired contract, the city collected a flat 12.5 per cent of ticket sales. Ticket prices for single games range from $17 (adult) to $11.50 (students/seniors) to $10 (kids 12-and-under). Based on the price of a season's ticket, the 36 individual games cost $13.65 (adult), $8.98 (students/seniors) and $3.76 (kids).
The Cougars have long been the subject of discussions as to their long-term commitment to stay in the city they adopted in 1994 when owner Rick Brodsky moved the team from Victoria. The contract does contain an escape clause that would allow the team to back out of the lease at the end of a season if attendance continues to plummet. The team would have to decide within a few days of a season ending whether to enact that clause.
"We signed the deal for 10 years and we mean it for 10 years," said Brandi Brodsky. "Most leases have escape clauses and our previous one did, but it's not our intention to use it. This is our home and we're going to stay here."
Currently last overall in the WHL standings, the Cougars have been one of the least successful WHL teams in their 16 years in Prince George. The win/loss record, combined with the city's faltering forestry industry, has translated into low attendance at CN Centre. In a building that seats 5,995, the Cougars averaged crowds of 2,385 this season through 16 home games to the end of 2009, which gives the city a five per cent share of ticket revenue.
That puts Prince George ahead of only Moose Jaw, Swift Current and Prince Albert in the 22-team WHL. By comparison, Kamloops ranked ninth in attendance through 20 games, averaging 4,335 per game, while Kelowna drew an average of 6,127 in 18 games, third-best in the WHL. Calgary (7,956) and Vancouver (7,070) draw the most fans for home games.
It wasn't so long ago the Cougars and their rabid fan following were the envy of the league. Crowds of 5,000 were common in the late 1990s and sellouts were the rule for playoff games. The Cougars haven't had crowds anywhere near capacity since the 2007 playoffs.
"We have to hope and assume things are going to get good again, we just have to be patient," said Beesley. "If we didn't come to this deal, then we have nothing. There's no team to root for and the building sits empty for a great deal of time. Our feeling is if we lose the WHL, we'll all be dead before we get the chance for another team. We want a permanent WHL team here."
Lease negotiations started two years ago, but picked up in frequency during the summer.
"Council is really committed to keeping the Cougars here and we know that it's important to the quality of life for our community," said city councillor and acting mayor Brian Skakun.
"The city has a lot of faith in the Cougars rebuilding the organization and it's not all about money. We want a long-term tenant here and having a team the city can be proud of and I believe the Cougars are working toward that. The Cougars have been here a long time and the city has a responsibility to do all we can to keep them here."
