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Canadian media giant Quebecor is making public its financial commitment to a new Quebec City arena, and it’s pretty substantial: between $110 million and $200 million, depending on whether the facility lands an NHL team.
The funding commitment is in two areas and on two levels. First, there’s a baseline commitment of $33 million for arena naming rights; if an NHL franchise moves in that rises to $63.5 million. Second, Quebecor will manage the building, paying $3.15 million annually if there’s no NHL franchise and $5 million annually if there is. Third, Quebecor will pay 10 percent of the management profits if there’s no NHL franchise and 15 percent if there is.
The new arena is expected to cost $400 million or so. The commitment from Quebecor gives the city and provincial governments a little breathing room for coming up with the money for the project: previously it had been announced the pair would split the costs of construction. The Quebecor revenue will land on the city’s side of the equation.
This commitment from Quebecor would run for 25 years.
One issue remaining: whether the federal government will step up with any funding. There’s been little movement on any federal plans for funding, and it’s been suggested the way for the fed to contribute would in the way of infrastructure (roads, sewer, etc.) needed for the new arena.
The 18,000-seat arena is expected to open in in 2015.
RELATED STORIES: City, province to split cost of new Quebec City arena; New Quebec City arena a go?; Quebecor stepping up to fund Quebec City arena; Quebec City ready to move ahead without federal arena aid; Harper: No federal funding of arenas — unless Olympics are involved; Backup plan in works for Quebec City arena funding; Fallout from NHL to Quebec City could affect Remparts; Harper backtracks on federal funding of Quebec City arena; Could new Quebec arena open doors for federal spending on arenas? ; Province will pay up to 45 percent of new Quebec City arena; Quebec City on verge of new arena, return of NHL?
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