Arena gives Dogs boost
If you build it they will come has been a particularly apt expression when it comes to the home of the Niagara IceDogs.
The hockey team has seen a major boost in revenue since it moved into the Meridian Centre in downtown St. Catharines from the old Jack Gatecliff arena in 2014, newly released financial documents show.
In its first season in the Meridian Centre, the hockey club made 50 per cent more in revenues. Those increased from $2.8 million at the end of May 2014 with a net income loss of $103,093 to $4.2 million at the end of May 2015 with a net income of $438,679.
Last year’s playoff run bumped revenues up to $4.6 million with a net income of $643,544
“At the end of the day, nine home games last year in the playoffs is the key to being successful in our league,” said Bill Burke, who owns the team with wife Denise Burke. “When you get a chance for a run, you’d sure like to bank some money for the next year, because if we don’t make the playoffs this year then it’ll be like we’re back in the Jack again. It’s tough. The playoffs are important.”
The Niagara IceDogs financial statements, among those of 42 Canadian Hockey League teams, were released as part of a Calgary judge’s order last month. The documents are being used to determine if a proposed class-action lawsuit against the league — that alleges players should receive minimum wage — should be certified or not.
The financial records obtained by The Standard confirm what many St. Catharines residents could probably infer when they’re downtown on game night — the Meridian Centre has been a draw for fans.
City council approved building the new spectator facility for the Niagara IceDogs’ use in 2011. The $50-million arena was built with $44 million from the city, $1 million from the province and $5.23 million from Meridian Credit Union for naming rights. It opened in fall 2014 with 5,300 seats, compared to Jack Gatecliff’s 2,800 seats, or 3,145 standing capacity.
Revenues at the end of the season in 2015 saw bumps in ticket sales from $1 million in the 2013/2014 season to $2.4 million in the 2014/2015 season.
Marketing and advertising and retail sales in the new arena were also up.
Burke said having more seats to sell has helped, as well as having suites in the Meridian Centre, which weren’t available at the Gatecliff. There is also twice the backlit space for advertising at the Meridian and the team can sell ads on the wall space, which was used by the St. Catharines Falcons at the Jack. Pouring rights money would also be up, he said.
However, Burke said the costs for rent, maintenance and security are higher at the Meridian, which offsets the revenue.
“It’s certainly a proper business model,” he said. “We’re making more than we’re spending.”
But Burke cautioned that the first year in the Meridian would have had strong ticket sales in part due to the novelty. They also hosted the Top Prospects and made it to the second round in playoffs which helped.
Last year’s playoff run was outstanding with those nine extra home games, he said. If the team doesn’t make it to the playoffs, the finances aren’t as rosy and rebuilding years are more difficult.
He said he and Denise do not draw wages.
The financial success of the Niagara IceDogs directly impacts the city, beyond the extra restaurant and bar crowds before and after games.
Under a 20-year agreement with St. Catharines signed in 2012, the city gets 10 per cent of money from gross ticket sales and a $1 surcharge on every ticket sold.
The city also splits the cash from in-house ads, suites, club seats and concession sales 50-50 with the team.
The deal was signed for the use of the Meridian Centre in anticipation of it being built. The team was under a different lease agreement at the Gatecliff.
“It wasn’t a great facility, but there was a great fan base and a loyal fan base,” Burke said, adding now there’s a proper facility with bridges leading into the downtown.
“It’s become a great family night, date night, couple’s night out.
“I guess in the back of my mind we always thought with the proper facility we could fill it. It really helps when you have a playoff run and you’re able to fill it to capacity.”