Bickering over new Flames arena cost is dead, long live bickering over who’ll pay to fix old Flames arena

Two weeks after the Calgary Flames owners walked away from their $600 million arena deal (including about $300 million in public subsidies) over who would pay the last $10 million in cost overruns, the plan has been declared officially dead by city officials:

The apparent fallback plan is for the Flames to remain at the Saddledome, where they have played in 1983. (The arena got an $18 million upgrade courtesy of the city in 1994, after the Flames owners dropped hints that they would move without one.) The Flamesnation fan site helpfully links to a CBC report from 2020 that used a Freedom of Information request to unearth a 2018 engineering report that projected $48 million in needed work over the next decade:

  • Architectural, $33.8 million.

  • Building envelope, $1.7 million.

  • Structural, $3.1 million.

  • Mechanical, $3.5 million.

  • Refrigeration system, $1.7 million.

  • Electrical, $4.9 million.

  • Elevator, $90,000.

Most of that “architectural” work is repair work to the Saddledome’s distinctive saddle-shaped roof, which uses a unique system of concrete panels suspended from cables, making it hard to predict exactly how much work will be needed, since you can’t just go look at how other concrete-cable-suspended roofs have fared at age 39 and up.

As for who’ll pay for it, the CBC noted that the Flames are responsible for paying for building repairs via a maintenance account that’s funded by ticket surcharges. Flamesnation, however, implies that who pays is still up in the air:

So here’s what probably happens next: the two sides will sit down and come up with a plan to determine how extensive the work required for the Saddledome’s extended lifespan will really be. (And how much it will cost.) And then they need to discuss who pays how much of the expected costs.

The Flames have 11 years left on their lease at the Saddledome, so one would think Calgary could just point at that and say, “You agreed to do upkeep, you have the money, you’re only paying us $1 a year in rent, go have fun.” Though it’s always possible that the team and the city will sit down to discuss a lease extension beyond 2033, at which point building upgrades will almost certainly be on the table. It would be nice if somebody would file a Freedom of Information request to get a look at the lease; I can’t immediately tell if you have to be a Canadian to file one (this explainer says you need to be an “interested person”), so maybe some reader or journalist from Alberta would be interested in helping out with this? You know where to find me.

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3 comments on “Bickering over new Flames arena cost is dead, long live bickering over who’ll pay to fix old Flames arena

  1. Skipping on a chance for $300M in subsidies…Am I missing something here?

    What size caliber gun did the Flames ownership use to shoot themselves in the foot? Or are they just the most hard-headed negotiators in Canada and this is just a tactic to weasel out of a $10M (or less) hickey?

    1. As I wrote last time (see first link above):

      “That last bit implies that CSEC is really walking away less because of a dispute over $9.6 million than because it budgeted $275 million originally (plus some money in ticket tax surcharges) for its share of the arena, and now that it turns out its price tag would actually be closer to $350 million, it’s not worth it anymore. Which is possible — remember that it’s really hard for arenas to bring in enough new revenue to pay their own construction costs, or even a large chunk of them, plus there’s no telling whether there could be more cost overruns in store thanks in part to the price of pretty much everything going up right now — or it could be that Edwards is just throwing a hissy fit because hell if he’s gonna be the one to pay for his arena costing more than he projected it to be.”

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