SLAM! Sports
SLAM! Hockey
[an error occurred while processing this directive]
COLUMNS
NHL
The Teams
Full Schedule
Monthly Schedule
Standings
Statistics
Rosters
Injury list
Movement
Trades
Hits Gallery
INTERACTIVE
JUNIOR
MORE HOCKEY
ALSO ON SLAM!
Wednesday, November 10, 1999
Government won't offer further help
Lottery solution makes most sense -- but not to province
In a country with one of the highest tax rates in the world, it's not surprising Canadians aren't thrilled about the idea of giving NHL clubs tax breaks.
Fair enough.
However, a Sun/CFCN poll revealed 57% of respondents believe the various levels of government aren't doing enough to preserve NHL hockey in Canada.
What's more, the same poll found 51% were in favour of directing some of the provincial sports lottery funds back to the teams that essentially drive their sales.
The league estimates half of the $344 million raised annually by such lotteries stems from hockey wagering and suggests a mere $34 million of that would be funneled back the Canadian teams.
As Grant Bartlett and the rest of the Flames owners search high and low for additional revenue streams, this one seems the most logical.
Mayor Al Duerr and team president Ron Bremner also agree, citing the fact such lotteries are voluntary.
"Those are dollars we think we should get some share of and most reasonable Canadians that I talk to seem to think the same thing," said Bremner. "They don't understand why we don't already get a piece of that considering we're the engine that drives it."
In exchange, the league would hand over the rights to use team logos and promote lottery wagers on Pro-Line, Over-Under and Point Spread, thus increasing sales.
Provincial Treasurer Stockwell Day fails to see how sales will increase enough to prevent the NHL's cut from taking money away from organizations that benefit from such funds.
He's dead set against it.
Day said the province is siding with charitable organizations who have argued NHL franchises are offside in asking for lottery money.
"There are too many charitable groups in line for that lotto money and they tell us high-priced hockey owners shouldn't be on that list," Day told the Sun recently.
"It's a tough decision, but if we helped one sport, you'd have others lining up for it -- we'd probably have pro golfers asking for money to keep their sport in Alberta.
"Our position in Alberta has been we have been and will continue to lower taxes, but that's broad-based, for everybody."
Canadian clubs still cling to the belief they should be treated like many other sectors in Canada like the publishing, broadcast and high-tech industries which receive tax subsidies in order to compete internationally.
"In terms of provincial government support, Albertans have told us they don't want tax dollars going to professional teams, which are, after all, businesses," said Premier Ralph Klein.
"Our government has provided lottery grants over the years to the non-profit community associations that operate the facilities in which the teams play, which has helped keep those facilities at the top of NHL standards."
Tax relief truly isn't an issue in Calgary anyway as the club only pays $350,000 in property taxes. Considering the club doesn't even own the building, perhaps there's a legitimate beef there.
Ironically, the low Canadian dollar, which puts the Flames in the hole by $12 million annually (because they pay their players in U.S. funds), has been largely beneficial for most of the Flames owners in the oil and gas game.
However, unless that dollar skyrockets soon, the Flames will still have to look for other ways to cover costs.
Sixty-seven percent of poll respondents believe the NHL isn't doing enough to preserve hockey here, but the league already affords the Flames a generous annual currency equalization handout.
League rules also allow Canadian clubs to match certain free agent offers from other teams in Canadian funds, with the league making up the difference. That scenario rarely comes up, however.
A provincial bond fund has also been kicked around for some time, but if it got off the ground, it would only help the teams long term, not in the interim.
The best thing the Flames can do now to increase revenues is to start winning some hockey games.
That, and continue to work on cultivating relationships with current and future fans and sponsors.
 Bert's back on blades Blue Jays boot game Bombers drop Peterson Felicien rebuilds race | Visit our Polls Archive |