Venue Detail
Edmonton Oil Kings
Revenues From Sports Venues Pro Facilities Report
January, 2010
Edmonton Oil Kings
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11230 - 110 Street Edmonton, AB T5G 3H7 Phone: 780-409-3700 Fax: 780-409-3701 URL: www.oilkings.ca Owner: Patrick LaForge League: Western Hockey League Eastern Conference, East Division
Venue
Rexall Place, 7300 116th Ave, Edmonton, AB T5B 4M9 Owner: Northlands Managed by: Coliseum Management Built: 1974 Capacity: 17,503 Permanent concession stands: 19 Concessionaire: Sportservice Suite caterer: Sportservice Beer: Sleeman Brewing Ltd.
Naming rights
Sold to: Rexall Term: 10 years Expires: 2013
Ticket prices
Single tickets range from $10.00 to $38.00
Luxury Suites
Quantity: 66 Term: 3 to 5 years Price: $66,000 to $264,000 Seats: 6 to 24 Includes: Tickets to all events, parking. The party suite seats 24.
Club seats
Quantity: 3,300 Term: 1 to 1 years Price: $4,827 to $5,509 Includes: Tickets, private restaurant, in-seat wait staff and parking with purchase of 4 tickets.
Built in 1974 and renovated in 1994, the Rexall Centre is home to the NHL Oilers and WHL Oil Kings.
Daryl Katz’s successful purchase of the Edmonton Oilers in 2008 comes with a pledge to spend C$100 million on a new arena.
A committee appointed by Mayor Stephen Mandel concluded an inner-city sports and entertainment facility would be a huge shot in the arm for the downtown.
The 18,000-seat building would come with a whopping C$450 million price tag, which doesn't include the cost of the six acres of land it would sit on.
It should be paid for through “a mix of public and private participation,” the committee suggested in its findings.
“We wanted to find a made-in-Edmonton financial solution that will allow for us to have this facility without increasing the (property) tax or redirecting infrastructure dollars,” said Lyle Best, chairman of the arena committee.
In its 38-page report, the committee suggests a minimum 30 percent of the construction cost – roughly C$135 million – could come from the private sector, including the C$100 million promised by Katz.
The remaining C$315 million would have to be borrowed.
A portion of the debt could be repaid through various taxes and levies, including a higher ticket surcharge.
The committee also said the city could look at a community revitalization levy in the area surrounding the new building. That would see a portion of taxes paid by new neighborhood developments set aside to pay for the arena.
If the arena complex included condos, a hotel or a casino, a rental fee could be charged to pay down the debt as well, the committee suggested.
The group's report notes the relatively small size of Edmonton's corporate community and the fact the building would have only one major tenant – the Oilers – makes financing a bit more difficult.
The team's rent is C$800,000 a season. The building earned C$108 million in total revenues in 2003 with a C$3.3 million profit.
In 2003, the Skyreach Centre was renamed Rexall Place following a new 10-year naming rights deal with the drug retailer. Terms of the deal with the Katz Group, owner of the Rexall brand, were not disclosed. The previous deal was worth C$1.2 million a year.
The Oilers signed a new 5-year lease with the arena. The agreement clears the way for the city to give the Northlands an annual payment to help it meet revenue shortfalls. The Northlands regained ownership of the building in a 1998 deal to help subsidize the team. The deal gave the team use of the arena for $1 per year. The payment had been held up until a new lease was signed.
The Oilers have been working to maximize their revenue from dasher board signs by swapping out ads in mid-game while the ice is being resurfaced.
The practice goes beyond rotating signage which changes periodically. At Rexall Place, Oilers staffers replace entire banners over the dasher boards.
As a small market, Edmond cannot charge the prices that other NHL teams often command for prime signage. Among league teams, signs that show up on television can often cost up to $300,000 while on the non-broadcast side, signs will sell for $50,000 to $100,000 over a season. Those prices are out of reach for many potential Edmonton buyers.
By switching out the signs, the team can charge less to each individual buyer while maximizing the value of the signage.
Among the rotated brands on the Rexall Place boards are Cold-FX and Cell-FX, products made by local biotech company CV Technologies. (Facilities, Financial, Ice Hockey, Professional Sports, Venue)