TNSE Economic Impact Study: Executive Summary February 2024

ECONOMIC IMPACT STUDY

ECONOMIC IMPACT STUDY

BACKGROUND AND PURPOSE

True North Sports + Entertainment (TNSE) was founded in 1996 to develop a multipurpose sports and entertainment venue in Winnipeg. Currently, TNSE owns and operates six different business units, including the Winnipeg Jets of the National Hockey League (NHL) and Canada Life Centre, the Winnipeg Jets home arena.

TNSE engaged MNP to undertake an economic impact study to document the economic contributions to the Manitoba economy of TNSE’s operations and capital expenditures, as well as the visitors who attend events at its facilities.

STUDY SCOPE

The scope of the study was to:

• Provide an overview of TNSE and its business units.

• Develop estimates of the economic impacts of the operations of each of TNSE’s business units.

• Develop estimates of the aggregated total economic impacts of TNSE operations.

• Develop estimates of the economic impacts generated by the tourism enabled by TNSE’s operations.

• Develop estimates of the economic impacts of the capital expenditures of TNSE’s business units.

ECONOMIC IMPACT METHODOLOGY

To estimate the economic impacts, MNP employed an input-output methodology that uses multipliers published by Statistics Canada. Inputoutput modeling is a widely-used and widely-accepted approach, making it recognizable by many different stakeholders and audiences. The structure of the approach also facilitates easy comparisons between reported results for different projects and facilities. In general, economic impacts are viewed as being restricted to quantitative, well-established measures of economic activity.

The most commonly used of these measures are output, GDP, employment, and government revenues:

• OUTPUT is the total gross value of goods and services produced by a given company or industry measured by the price paid to the producer. This is the broadest measure of economic activity.

• GROSS DOMESTIC PRODUCT (“GDP”) or value added, refers to the additional value of a good or service over the cost of inputs used to produce it from the previous stage of production. Thus, GDP is equal to the unduplicated value of goods and services produced.

• EMPLOYMENT is the number of jobs created. Employment is measured in terms of full-time equivalents (“FTEs”). One FTE is considered one person-year of employment, as in one FTE is the equivalent of one person working full-time for a period of one year.

• GOVERNMENT REVENUES are the total amount of revenues generated for different levels of government. Tax revenues arise from personal income taxes, corporate income taxes, taxes on products, and taxes on production. Government revenues also include non-tax revenues like Employment Insurance and Workers Compensation Board payments. Please note that because tax revenues can frequently change due to modifications in tax policy, the tax impacts in this report are estimates only and subject to change. They should be viewed as approximate in nature.

Economic impacts may be estimated at the direct, indirect and induced levels.

• DIRECT IMPACTS are due to changes to “front end” businesses that would initially receive operating revenue as a direct consequence of the operations and activities of a facility or industry.

• INDIRECT IMPACTS arise from changes in activity for suppliers of the “front end” businesses.

• INDUCED IMPACTS arise from shifts in spending on goods and services as a consequence of changes to the payroll of the directly and indirectly affected businesses.

TNSE’S TOTAL IMPACTS

TNSE generates economic impacts within Winnipeg, across Manitoba and outside of the province through three separate channels:

• OPERATIONAL IMPACTS are the contributions of TNSE’s direct operations, which generate impacts through expenditures on goods and services, the creation of employment opportunities and the taxes generated for all levels of government.

• TOURISM IMPACTS are the economic activities enabled by the role TNSE’s facilities play in bringing out-of-town visitors to Winnipeg, and the associated impacts of their expenditures.

• CAPITAL EXPENDITURE IMPACTS are the contributions of TNSE’s expenditures on construction and capital upgrades to their facilities.

In 2022-23, TNSE was estimated to have generated $616 million in total output in Manitoba, $377 million in total GDP and $133 million in taxes to all levels of government. TNSE also generated approximately 3,403 FTEs of total employment through their activities.

TNSE’S OPERATIONAL IMPACTS

The operations of TNSE generate economic impacts within Winnipeg, across Manitoba and outside of the province through direct expenditures on goods and services, the creation of employment opportunities and the generation of revenues for the local, provincial and federal government.

In 2022-23, TNSE’s operations were estimated to have generated $360 million in total output in Manitoba, $243 million in GDP and $70 million in taxes to all levels of government (Figure B). TNSE employed approximately 716 FTEs and generated 1,210 FTEs of total employment through their operations.

Total employment generated in Manitoba of 1,210 FTEs, with 716 FTEs of direct employment.

FIGURE A: TOTAL ECONOMIC IMPACTS OF TNSE

FIGURE B: TOTAL ECONOMIC IMPACTS OF TNSE’S OPERATIONS

TNSE’S TOURISM IMPACTS

In addition to the impact of its operations the events at TNSE’s facilities draw out-of-town visitors to Winnipeg. This includes both spectators and those participating in the events (e.g., players, coaches, staff, performers, etc). These visitors create incremental economic activity through spending on food, retail, and/or accommodation.

In 2022-23, the economic impacts in Manitoba of spending by out-oftown visitors attending and participating in events at TNSE’s facilities were estimated to be $240 million in total output, $125 million in total GDP, $61 million in taxes to all levels of government and 2,105 FTEs of total employment (Figure C).

CAPITAL EXPENDITURE IMPACTS

In addition to the expenditure required for ongoing operations, TNSE also needs to maintain its facilities and upgrade its equipment through capital expenditures.

In 2022-23, the economic impacts in Manitoba of TNSE’s capital expenditures were estimated to be $16 million in total output, $9 million in total GDP, $2 million in taxes to all levels of government, and 88 FTEs of total employment (Figure D).

FIGURE C: TOTAL ECONOMIC IMPACTS OF TOURISM ENABLED BY TNSE’S OPERATIONS

TNSE ECONOMIC IMPACT STUDY 2022-23

FIGURE D: TOTAL ECONOMIC IMPACTS OF TOURISM ENABLED BY TNSE’S OPERATIONS