WEDNESDAY APRIL 16, 2014
GAME OVER
Abbotsford Mayor Bruce Banman (left) sits with Calgary Flames CEO Ken King during a Tuesday morning press conference announcing the end of the AHL Heat hockey contract.
ALEX BUTLER Abbotsford News
City pays $5.5M to end deal with Heat Dan KINVIG Abbotsford News
The Abbotsford Heat’s financially challenged five-season tenure in this city is coming to a close. At a press conference on Tuesday morning at the Abbotsford Entertainment and Sports Centre (AESC), Mayor Bruce Banman announced that the City of Abbotsford will pay the Calgary Flames $5.5 million to terminate the remaining five years of the 10-year supply fee agreement signed in 2009 to bring the Flames’ American Hockey League affiliate here. The agreement guaranteed the Heat a break-even annual budget of $5.7 million. Over the first four years of the deal, local taxpayers paid $5.24 million to cover financial shortfalls. The contract-ending payout does not include a projected deficit of roughly $2 million for the current 2013-14 season. Losses totalling $11 million were estimated for the final five
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years of the contract. “There is absolutely no question in our minds that taking this step with the Abbotsford Heat is the best scenario financially for the city and our ratepayers,” Banman said. “This is probably one of the most challenging decisions that council has had to make. However, this cheque is half of what the projected (supply fee) cheques would have been.” The city said the contract buyout will be covered by 2014 operating savings and unappropriated reserves, and there will be no property tax impacts. The Heat will depart at the conclusion of the Calder Cup playoffs. Upwards of 20 front-office staff members were informed Tuesday morning that June 30 will be their last day of work. Glens Falls, New York has been recently rumoured as a destination for the Heat, but Flames president and CEO Ken King
said there are multiple options. “I appreciate that city administration and taxpayers stood up to their (contractual) obligation,” King said. “And our return for that was not extending the pain or anxiety with that. That’s as good as we could do ... to essentially permit the agreement to be terminated. “It’s not a profit centre for us. The relocation process for a team is exceedingly expensive, and it’s going to take that and more to do it.” As part of Tuesday’s announcement, the city unveiled a Continued on A3
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