A big landmark was achieved for proponents of a new Quebec City arena when Quebec Premier Jean Charest committed the province to pay up to 45 percent of the cost of a new arena, which could cost upwards of C$400M.
The commitment came after a revew of a study from the accounting firm of Ernst & Young, which concluded that a new arena could be profitable under the right circumstances; it could also serve as bait for the return of the National Hockey League and the centerpiece of a 2022 Winter Olympics bid.
Quebec City has already committed C$50M toward the project.
Without the revenues from an NHL team, an arena would run at a yearly deficit, generating C$7.8M annually with outlays of C$6.8M; another C$4.5M would be needed for repairs and maintenance. Add in the revenue from an NHL team, and the arena would be profitable.
The final piece in the puzzle: a commitment from the national government to fund the rest.
RELATED STORIES: Quebec City on verge of new arena, return of NHL?
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