dollars that make sense in NFL

Last week gave Edmontonians two more ingredients for our conversation about the financing of the proposed downtown arena.

First, Oilers owner and Katz Group chair Daryl Katz sold two non-core assets, as he called them, for $920 million and some fans drew a link between that sale and the $100 million still missing from the arenaproject funding formula.

Then the National Football League announced it will lend the San Francisco 49ers $200 million US to finalize funding for construction of a new stadium in Santa Clara, Calif. The city is paying $114 million (about 10 per cent of the cost) while another $850 million is being provided as a loan from the city — underwritten by major banks — that will be paid back over 25 years by the team out of ticket revenue, naming rights and $30 million in annual rent. The team has also pledged to cover any construction-cost overruns.

Edmonton’s project is proceeding to the planning stage despite its funding shortfall. Last week’s events have had some people wondering why the city didn’t ask Katz for a larger contribution and why the National Hockey League has not offered financial help. The prevailing wisdom at this point suggests the final $100 million will come from the province rather than the city. Either way, Alberta taxpayers may be envious of the NFL solution in Santa Clara.