At this point it's pretty safe to say that the NHL will be playing in Winnipeg next year...and that's great news for a city that could really use a confidence boost!

Aside from the little matter about the name of the new team (for the record I hope it's Jets), the other big unknown is what the provincial government's involvement will be in the deal.

Yes, according to media reports, the provincial government is considering giving more VLTs to the privately owned True North group in order to help them pay for the mortgage on the arena; freeing up money to buy the team.

Some have already jumped on board, saying 'go for it,' fearing that failure to provide such assistance would kill the deal.

However, let's explore the issue a little bit more before simply handing over a truckload of VLTs and the millions those machines could be providing to the provincial government.


QUESTION 1) Doesn't the True North group include a billionaire?
Answer: Yes, David Thomson. According to this TSN article, his family is worth $19 billion...couldn't he put in the cash?


QUESTION 2) So if taxpayers put in extra money (through additional VLTs) who will get the profits? 
Answer: True North


QUESTION 3) Isn't the arena doing well financially right now?
Answer: Yes, consider this quote from an MTS Centre news release

“True North Sports & Entertainment Limited and the MTS Centre are pleased to announce PollStar Magazine, one of the leading entertainment industry journals, has revealed the MTS Centre has once again finished 19th in the entire world on their Top 100 list of arena venue ticket sales for the entire year of 2008.”


QUESTION 4) Ok, so it's busy. But are they profitable? 
Answer: It's a private company, so their profits aren't reported publicly, but consider this Winnipeg Free Press quote:

“because True North is a private company, the public doesn't see its annual bottom line. But people within the organization have described a very profitable company, both in its operation of the MTS Centre and the Manitoba Moose.”


QUESTION 5) How much have taxpayers put into the arena so far? 
Answer: A ton:

- Approximately $40 million towards construction of the arena back in 2001
- A rebate of entertainment tax dollars for 25 years ($3 million this year alone)
- A rebate of business taxes for 25 years ($250,000 this year alone)
- A special property tax break, taxing it on a lower portion of its assessed value (worth millions)
- Around $1.5 million in VLT revenues each year
- Over a 25 year period, that's likely over $165 million of public funds


QUESTION 6) But VLT revenue aren't really like tax dollars...are they?
Answer: Yes. In fact, the True North group gets a special deal that the small business near your house does not get:

The True North group gets to keep 75% of the profits from its VLTs. The rest flows to the provincial government.
The lounge near your house keeps 25% of its VLT profits. The rest flows to the provincial government.


QUESTION 6) What taxpayer friendly things could the government do to help?
Answer: Lots of things...

- We pay some of the highest income taxes in Canada (see for yourself). Reduce income taxes and people will have more money to buy tickets and support the team.
- Manitoba businesses are the only ones in Western Canada to pay a payroll tax (a tax on a business's payroll once it passes $1.25 million). Reduce the tax across the board and the new NHL team would benefit as well.
- The government could be there to help the group cut through any red tape they may encounter...we all know how bureaucracies can be. One can only wonder how easy it is to relocate a professional sports team.



In closing...I'm sure the return of the NHL will be a great thing for Winnipeg. It'll give the city a much needed morale boost and will create a bit of tourism at the same time. That being said, the arena doesn't need any more financial assistance from taxpayers...it has already received more than its fair share. Especially when you consider the Air Canada Centre in Toronto, Rogers Arena in Vancouver and Molson Centre in Montreal received no tax dollars.    

Simply cutting another cheque to the arena's owners (in this case a truck load of VLTs) could create some resentment towards the deal...and that's the last thing anyone wants during what should be a great news story for Winnipeg.

Hopefully it doesn't come down to that, but either way, I look forward to taking in the NHL first hand next season.