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Alberta bid targets $18 million in profits
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Alberta bid targets $18 million in profits

Dan Barnes, Canwest News Service

Published: Thursday, August 28, 2008

EDMONTON - Best world junior hockey championship ever, guaranteed.

That's what members of the Alberta bid committee essentially promised Hockey Canada, now all they have to do is deliver it in late December, 2011, and early January, 2012. And if you want to measure their success in dollars, that's a fine place to start, but it truly is just the beginning since the player experience and community involvement also helped form the foundation of their winning bid.

Bid co-chairman Lyle Best of Edmonton said they actually guaranteed a profit of only "eight or nine million" in their formal presentation to the site selection committee in June. But at a media conference held here Thursday to announce Alberta's bid had beaten Toronto's, everybody in a suit was talking about $18 million, which would become the new tournament standard.

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In essence then, it is the de facto guarantee. It is also the most obvious upside inherent in holding all 31 games in two National Hockey League venues for the first time in tournament history. Rexall Place seats 16,839 and will host Team Canada's early-round games, while Pengrowth Saddledome, site of the medal round games, holds 19,289. Best predicted a total sellout of more than 475,000 tickets, which would set another tournament record.

"We said we believe we can get to $18 million based on what we have going on with our ticket model and our sponsorship and our other commitments," said Best.

So far, Ottawa has set the bar with a $12 million guarantee for the 2009 championship, which begins in December of this year, and since they have sold every single ticket months in advance, they are likely to hit their mark. Saskatoon and Regina will co-host the 2010 tournament, but they're working in smaller buildings and simply cannot sell as many tickets. The 2011 tournament goes to either Buffalo, Grand Forks, N.D., or Minneapolis-St. Paul and attendance will drop off dramatically. USA Hockey estimates economic impact of the tourney at $6 million US. The Alberta bid estimates that number at $45 million CADきゃど for the 2012 championship here.

So Ottawa still ought to be the standard by the time Edmonton and Calgary step to the plate together.

"We won't be going backwards from Ottawa," Best promised. "Many of us have done this, we worked the economics inside and out and we're confident."

Hockey Canada shares that confidence in the bid's business plan and that was a key in awarding the tournament to an Alberta committee that failed in its first attempt to win the 2009 tourney.

"The business plan is better this time," said Hockey Canada President Bob Nicholson. "And the connections at all levels this time were unbelievable. There are major junior teams in each city now. But the overall business plan was at another level."

Hockey Canada was particularly pleased with the fact all 10 teams will skate on NHL ice and with the ticketing structure, since 42 per cent of the ducats will be priced between $12 and $40, ostensibly opening the tournament doors to families and kids. This event is a massive economic engine for the game's grassroots in Canada and it would also be nice to think young hockey players could benefit first hand by seeing the games.

And if Edmonton members of the bid committee were disappointed that the medal round will be held in Calgary, they have learned to spin it in their favour.

"In some respects Calgary is taking a chance because we're getting all the Team Canada pool games," said Best. "I can't imagine under what bizarre circumstances Canada isn't going to make it into the medal round, but there is always that risk. I think it was a good compromise.

"The other thing is Calgary's building is bigger and probably better located to get more Albertans to the final game. Medicine Hat, Lethbridge, Red Deer, where there are other junior hockey franchises. We thought that might have been another deciding factor."

Nicholson spun it in Edmonton's direction as well.

"Yeah, you miss out on one or two big games. You get to see the journey. It's about winning at the end, yes, but every journey is different."

This one certainly has been for provincial rivals that often compete against one another in sport and business. Edmontonians and Calgarians have worked together on every aspect of the bid and their compromises and forward thinking have been rewarded with the first Alberta-based tournament since 1995. Red Deer hosted while games were also played in Edmonton, Calgary and some small towns.

"That event set the bar. By the year 2012, Alberta will have raised that bar considerably," said Hockey Alberta president Terry Ledingham.

Every stakeholder, and they include Northlands, the Oilers, Flames, Oil Kings and Hitmen, is banking on it. Hockey Canada scores 50 per cent of the net profits while the Canadian Hockey League receives 35 per cent and the remainder is split between the host committees, Hockey Alberta and 12 other branches of Hockey Canada.

"I don't think the NHL teams are going to realize anything (financial) other than help develop a future fan base," said Best. "Hockey Alberta is going to have a legacy piece on this. They're going to obviously get some money. Hockey Canada gets half of that net guarantee. The IIHF gets money. All the way round it has become a great engine of funding for junior hockey."

In that case, gentlemen and ladies, start your engines. Only 40 months until puck drop.

Edmonton Journal

dbarnes@thejournal.canwest.com



 
 
 

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