City report supports IG Field game plan

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This article was published 11/06/2021 (1721 days ago), so information in it may no longer be current.

THE City of Winnipeg could soon sever its ties to the company that owns IG Field, and grant an entertainment tax change meant to help make the football stadium sustainable.

A few weeks after the province unveiled a new financing and maintenance plan for the CFL stadium, a city report proposes a key change to support it. If council approves, the city will let revenue from entertainment funding taxes and facility fees on Blue Bombers tickets cover costs other than construction loans for the stadium.

The Winnipeg Football Club could use the revenue to support a capital fund to maintain the facility and cover its operations, among other costs.

Wade Miller, the club’s president, said the change would help support the much-needed capital account.

“It’s part of the ability to help protect this community asset by creating this capital fund that the province is starting for the stadium,” said Miller.

When revenues allow, the Bombers are required to make annual payments to support that fund.

Since the tax revenue payments were made on provincial loans, the report says the change won’t cost the city any money. The process is also similar to grants for other city sports teams, said city spokesman David Driedger, in an emailed statement.

“In providing (the Winnipeg Football Club) flexibility in how it uses the entertainment funding tax grant, it will position (the club) and IG Field for future success,” added Driedger.

Finance committee chairman Scott Gillingham said the changes will help protect an important economic driver for Winnipeg.

“When the Winnipeg Football Club is successful, there are economic spinoffs across the city. People come to the city and stay a night in a hotel to enjoy the game, restaurants do well, people take transit, people shop in local stores. So the activity of a successful football club… reaches into other aspects and parts of our economy,” said Gillingham.

The report also calls for council approval to end a city appointment on the board of Triple B Stadium, which currently includes members of the City of Winnipeg, Winnipeg Football Club and University of Manitoba.

Mayor Brian Bowman has questioned that role and in 2019, he called for a report to explore ending it.

“I’m not sure having political appointments on the board of a professional sports team makes sense at this stage,” Bowman said at the time. “If we can mitigate the financial risks (for) taxpayers, that’s something I’d like to look at.”

Bowman’s office declined an interview request Thursday, stating the mayor is reviewing the new report.

Miller said other members have not opposed the city’s departure from Triple B.

“As part of this definitive agreement, the Winnipeg Football Club will be essentially the only member of Triple B,” he said.

Miller added that change should remove any financial liability for the stadium from the city.

“That removes (the city) entirely from that exposure, for sure,” he said.

The finances of IG Field have triggered plenty of headlines over the years, leading the province to seek a new deal. The stadium opened in 2013, and cost $209 million to construct. By early 2019, the province had provided loan loss provisions to cover $201 million, deeming it unrealistic to expect that amount of loans would be repaid.

While the province has said it “wrote off” its loans, the team is still expected to make annual payments whenever its revenue is high enough.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga