Under scant media scrutiny the NHL’s latest corporate welfare application was approved by the Manitoba government as tax payers are forced take on a franchise they cannot afford.
In another stunning example of Winnipeg’s collective inferiority complex local politicians, in the name of taxpayers, have gifted the NHL with $4M annually in public lottery funds to entice the league to locate in Winnipeg. There is no indication whether the municipal government will get in on the rape of the public treasury although more shady backroom deals are sure to emerge in the coming weeks.
The lottery money will be used to create an NHL money vacuum branch plant situated more closely to the money well in Winnipeg. Since, as knuckle-head fans and the sheepish media and politicians would have us believe, hosting an NHL team somehow makes a city “whole” or “world class”. Never mind the vast majority of Winnipegers who couldn’t care less about professional hockey. Let’s ignore the Winnipeg Jets folding just 15 years ago due to lack luster ticket sales. Let’s set aside the real issues government should be tackling - like soaring taxes, out of control crime, crumbling infrastructure, ballooning structural deficits and the $500M (and counting) provincial debt. But it’s all good – according to local government and the media - since the game is on!
In the run up to the NHL’s return to Winnipeg most lucid taxpayers were bracing for sticker shock- since when don’t taxpayers dole out for these magnificent professional sports deals? Didn’t we recently blow $160M on a stadium for the Bombers? As the media hype wound up and as the politicians started to form a booster line in support the NHL’s triumphant return to Winnipeg, it became increasing clear that the losers would be the majority of Manitobans. And since the media is reluctant – or incapable – of asking hard questions, I’ll take it upon myself to confront the professional sports industrial complex and their legions of beer emulsified fans on my own.
Canadians don’t want public funds spent on NHL teams
One has to ask; if hosting an NHL team is so great and beneficial to society, why do we force the unwilling majority to pay for it? I invite all deniers and group thinkers to research it for themselves but even a cursory glance at the data finds a 2010 Angus Reid poll reported by the CBC that reveals 57% of Canadians don’t want public funds spent on NHL teams. In this same poll just 35% support the idea. Clearly democracy and the greater public good don’t play into the Winnipeg deal.
Presumably the NHL has done a business plan and the projected profits surely justify establishing a franchise in Winnipeg. If not, either the NHL is just plain greedy by accepting public money or perhaps their venture is guaranteed by public funds. Why couldn’t the 20,000 or so hard core Winnipeg fans kick up $200 each and spare their struggling neighbor - who doesn’t watch hockey - the $4M? Couldn’t the millionaire team owners and players scrape enough pocket change together to help Winnipeg Charities by waiving the $4M? I always judge a business proposal on how many people are willing to pay for it and the Winnipeg deal doesn’t pass the stink test.
Since a portion of Lottery Manitoba revenues are, by mandate, directed to local charities either Lotteries Manitoba has been holding out on charities or they plan to take the NHL’s cut out of existing charity funds. Last year Manitoba Lotteries gave $5M to local charities. Should the NHL have the same standing as Manitoba charities? Should the NHL - a single for-profit corporation that’s rolling in money – receive almost the same amount of public funds as all local charities combined? Of course not, but these are the issues that make these public vanity projects so foul. We are seeing a redistribution of wealth – which the provincial NDP usually takes pride in masterminding – but this time the rich players and owners are beneficiaries while charities and tax payers eat cake. The government has no money to give and whatever it doles out has to be taken from someone else, by force if necessary, so you’ll pardon me for lamenting the majority’s loss. I love capitalism but I despise crony capitalism.
The reason why Winnipeg hasn’t been able to support an NHL team is because the market is too small
The reason why Winnipeg hasn’t been able to support an NHL team is because the market is too small. Only so many tickets can be sold and the limited revenue makes it impossible to draw top talent. Once the excitement wears off and the team starts to rack up losses, ticket sales suffer and revenues shrink, further exacerbating recruitment problems. This is exactly what happened fifteen years ago when the Jets abandoned Winnipeg for Phoenix. True North has already announced ticket prices in Winnipeg will be the second highest in Canada averaging $82.00. And at that price it will take consistently sold out games for a decade to successfully float the team. It will be interesting to see if Winnipegers – who are legendary for their frugality – will be willing to continue to pay these high prices, especially if their team turns out to be stinkers.
Advocates to the deal point to a strong Canadian dollar which they argue mitigates the disparate bargaining position that smaller markets have when drafting players. In my opinion anyone making a business case based on wildly fluctuating currency rates is asking for long term trouble. The Canadian dollar could just as easily weaken. But the NHL seems to have a public sugar daddy willing to write cheques, and who can resist a government guaranteed venture? Usually only honest and principled people do.
With personal debts at record levels, lingering unemployment and a stagnant economy, consumer spending on entertainment remains fixed and limited
Moreover, with personal debts at record levels, lingering unemployment and a stagnant economy, consumer spending on entertainment remains fixed and limited. As a result Winnipegers purchasing hockey tickets will spend less on eating out, movies and other entertainment. Local business will have to compete with the tax suckled NHL on an uneven competitive playing field courtesy of government meddling in free markets. Since the NHL is foreign owned the money Winnipegers spend will flow out of the country, and don’t expect the players to spend too much money locally since a vast majority live out of province and country.
If the City and Province provide additional public funds as future incentives to the NHL - which is not inconceivable once the inevitable cash crunch rears its ugly head - other than the entertainment value to a relatively small group, the NHL team will provide little benefit to Winnipeg and its greater population.
As we do with all newcomers to Winnipeg we welcome them with open arms. I love professional sports like the next guy and I’d love to see an NHL team in Winnipeg. But not a penny of public funds should be spent on the venture. In my estimate a local professional hockey team doesn’t make a city great. Rather a great city is one that treats its citizens with respect and dignity. A great society cares for its weak and underprivileged, and provides quality health, education and other critical public services to its citizens. The Provincial government has in this respect failed. And shame on the Canadian media for not offering a lick of thoughtful insight and critique of the Winnipeg deal. Sadly no one is speaking up for the beleaguered silent majority while politicians continue to run rough shod over our private property, liberty and freedom.
