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?
Sign up for the free weekly Arena Digest newsletter and keep up with the latest happenings! You can sign up here.
