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CFL on the verge of construction boom
DAVID NAYLOR
From Wednesday's Globe and Mail
May 6, 2008 at 8:27 PM EDT
Over the past quarter-century, North American sports facilities have undergone a revolution in design, followed by building booms that have swept through every level – from junior hockey and minor-league baseball through the NBA, NHL, NFL and Major League Baseball.
All of which has left the CFL looking a little like the league left behind as it continues to make do mostly with stadiums built for another era.
But after years of Band-Aid solutions to stadium up-keep, the CFL could be on the verge of a construction boom that could change the look of the league and dramatically improve its economics as well.
Five CFL teams – the Montreal Alouettes, Winnipeg Blue Bombers, Hamilton Tiger-Cats, Saskatchewan Roughriders and the ownership of a conditional Ottawa franchise – are aggressively pushing plans to build new stadiums or drastically alter and refurbish old ones.
Factor in the anticipated makeover of Vancouver's B.C. Place Stadium, which could add a retractable roof to the facility, and a potential redesign of Toronto's BMO Field to accommodate the Argonauts, and the CFL could be looking at well over a half-billion dollars invested in stadium infrastructure during the next five years.
Many would suggest it's long overdue.
“This is a league that is primarily driven by ticket sales, so the weakness is when you have older stadiums it's harder to attract people,†CFL commissioner Mark Cohon said. “You can have a great product on the field, but when people go to a stadium where it's not a nice experience to be in – the washrooms are gross, they don't have a seat back, there's limited parking – then they go down to the street to an NHL game with beautiful suites, great concessions and easy to get in and out of, that creates a hard operating environment for our teams.â€
The reason so little has been invested in CFL stadiums over the years comes down to simple economics.
For starters, football stadiums have a more challenging economic model than large hockey arenas since outdoor venues in Canada are only fully usable during some months of the year. In addition, the number of events that require 30,000 seats is relatively few.
That's why the only three CFL stadiums built since the early 1960s were constructed primarily for other purposes: Edmonton's Commonwealth Stadium (Commonwealth Games, opened 1978), B.C. Place (World's Fair or Expo '86, opened 1983), and Toronto's Rogers Centre (home of the Toronto Blue Jays, opened 1989).
Though most CFL stadiums have lacked modern amenities for some time, the league's often insecure financial footing has put stadium redevelopment on the back burner. But by doing so, CFL teams have deprived themselves of the revenue streams that teams playing in more modern facilities enjoy – from such things as suites, better concessions and premium seating, plus the possibility of creating more better demand for tickets and higher prices.
“[Surviving in outdated stadiums] I think is a testament to the fans and the strength and importance of our sport,†said David Asper, the Winnipeg businessman who is promoting a plan in which he would pump $65-million of his own money into a new stadium for the Blue Bombers in a partnership with governments.
“But the dominoes are starting to fall and there's several places around the country where people are coming to that realization.â€
In three cities – Ottawa, Hamilton and Winnipeg – the matter isn't so much one of upgrading stadiums to improve the fan experience as it is about ensuring there is a suitable place to play CFL football.
In Ottawa, part of the stadium was condemned last fall. And both the Bombers and Ticats are arguing it makes no sense to patch up their respective stadiums, and the time has come to look to the future with a new facility.
“Our stadium was built in 1930, and there are going to be big issues with it in the next 24 months,†Tiger-Cats president Scott Mitchell said. “The question is: Do you want to bury your head in the sand and pretend there isn't an issue, or do you want to be progressive about it and look at something new that's good for the community?
“It's ironic that all those other leagues have done it and it's been a great boon for them, but the league that really needs it is the CFL where 70 to 80 per cent of revenue is from the gate. In Hamilton, our bottom line is being challenged by the extreme limitations of how much we can bring in because of the stadium. We're losing opportunities of between $1.5- and $3-million a year because of the limitations of our facility.â€
Jeff Hunt, who heads the group that was awarded an Ottawa franchise in March on condition that Frank Clair Stadium is rebuilt, has seen firsthand what a series of new buildings can do to a league. As owner of the Ottawa 67's of the OHL, Hunt has watched the values of teams in that league skyrocket as new buildings were being built, one after another.
And it is the prospect of a new team playing in a refurbished stadium that drove Hunt's interest in bringing Ottawa back to the CFL.
“[Being in an older stadium] just gives you such a handicap,†he said. “It's like trying to have a five-star restaurant in a strip mall. You're just at such a disadvantage because the stadium is such a huge part of the experience. You should walk in there and feel like you're in a special place in a pro sports environment.â€
There must be some opposite to the phrase, “If you build it, they will come.†Maybe it's “If you don't fix it, they won't come.†But Hunt's group in Ottawa faces the same challenge as several other CFL markets where local and provincial governments are wary about investing in pro sports facilities of any kind, much less for a league that hasn't always managed its affairs in the best possible way.
That's why Asper's plan – similar to the ideas under consideration in Hamilton and Ottawa – calls for a mix of private and public money with year-round recreational use and commercial development of surrounding real estate.
“Governments are increasingly less interested in paying the freight, so that's the challenge,†Asper said. “But the real estate part of it creates a different business model that takes some of the pressure off the public to build it.
“You wind up with a facility that gives the fans all the aesthetics and can have year-round use. And by intelligent use of contiguous real estate, you can give the private investor a hope of a return.â€
*****
What's ahead for existing stadiums
From Wednesday's Globe and Mail
May 6, 2008 at 8:31 PM EDT
Of the nine cities with a CFL franchise, or conditional franchise, seven are considering upgrades or replacement of their existing stadiums:
Montreal
Percival Molson Stadium
Built: 1919.
What's ahead: Proposed $24.4-million expansion of 5,000 seats, bringing capacity to roughly 25,000.
Ottawa
Frank Clair Stadium
Built: 1908, 1960 (south stands), 1967 (north stands).
What's ahead: Proposed demolition of the south-side stands, to be replaced with a new structure.
Hamilton
Ivor Wynne Stadium
Built: 1930.
What's ahead: Team is exploring replacing current facility with a new structure tied to local development and investment by governments.
Toronto
Rogers Centre
Built: 1989.
What's ahead: The team is staying put for now, but will get feedback on whether relocating to an expanded BMO Field (currently a 20,000-seat soccer-specific facility) is worth consideration.
Winnipeg
Canad Inns Stadium
Built: 1953.
What's ahead: Proposed $165-million stadium and retail project, funded by private and public money, would develop commercial space and include year-round stadium use.
Saskatchewan
Mosaic Stadium
Built: 1927, expanded in late 1970s.
What's ahead: The team is considering options for an onsite overhaul of the existing Regina stadium.
Vancouver
B.C. Place Stadium
Built: 1983.
What's ahead: Stadium refurbishment will take place before the 2010 Winter Olympics, but addition of a retractable roof unlikely until afterward.
Link to article
CFL on the verge of construction boom
DAVID NAYLOR
From Wednesday's Globe and Mail
May 6, 2008 at 8:27 PM EDT
Over the past quarter-century, North American sports facilities have undergone a revolution in design, followed by building booms that have swept through every level – from junior hockey and minor-league baseball through the NBA, NHL, NFL and Major League Baseball.
All of which has left the CFL looking a little like the league left behind as it continues to make do mostly with stadiums built for another era.
But after years of Band-Aid solutions to stadium up-keep, the CFL could be on the verge of a construction boom that could change the look of the league and dramatically improve its economics as well.
Five CFL teams – the Montreal Alouettes, Winnipeg Blue Bombers, Hamilton Tiger-Cats, Saskatchewan Roughriders and the ownership of a conditional Ottawa franchise – are aggressively pushing plans to build new stadiums or drastically alter and refurbish old ones.
Factor in the anticipated makeover of Vancouver's B.C. Place Stadium, which could add a retractable roof to the facility, and a potential redesign of Toronto's BMO Field to accommodate the Argonauts, and the CFL could be looking at well over a half-billion dollars invested in stadium infrastructure during the next five years.
Many would suggest it's long overdue.
“This is a league that is primarily driven by ticket sales, so the weakness is when you have older stadiums it's harder to attract people,†CFL commissioner Mark Cohon said. “You can have a great product on the field, but when people go to a stadium where it's not a nice experience to be in – the washrooms are gross, they don't have a seat back, there's limited parking – then they go down to the street to an NHL game with beautiful suites, great concessions and easy to get in and out of, that creates a hard operating environment for our teams.â€
The reason so little has been invested in CFL stadiums over the years comes down to simple economics.
For starters, football stadiums have a more challenging economic model than large hockey arenas since outdoor venues in Canada are only fully usable during some months of the year. In addition, the number of events that require 30,000 seats is relatively few.
That's why the only three CFL stadiums built since the early 1960s were constructed primarily for other purposes: Edmonton's Commonwealth Stadium (Commonwealth Games, opened 1978), B.C. Place (World's Fair or Expo '86, opened 1983), and Toronto's Rogers Centre (home of the Toronto Blue Jays, opened 1989).
Though most CFL stadiums have lacked modern amenities for some time, the league's often insecure financial footing has put stadium redevelopment on the back burner. But by doing so, CFL teams have deprived themselves of the revenue streams that teams playing in more modern facilities enjoy – from such things as suites, better concessions and premium seating, plus the possibility of creating more better demand for tickets and higher prices.
“[Surviving in outdated stadiums] I think is a testament to the fans and the strength and importance of our sport,†said David Asper, the Winnipeg businessman who is promoting a plan in which he would pump $65-million of his own money into a new stadium for the Blue Bombers in a partnership with governments.
“But the dominoes are starting to fall and there's several places around the country where people are coming to that realization.â€
In three cities – Ottawa, Hamilton and Winnipeg – the matter isn't so much one of upgrading stadiums to improve the fan experience as it is about ensuring there is a suitable place to play CFL football.
In Ottawa, part of the stadium was condemned last fall. And both the Bombers and Ticats are arguing it makes no sense to patch up their respective stadiums, and the time has come to look to the future with a new facility.
“Our stadium was built in 1930, and there are going to be big issues with it in the next 24 months,†Tiger-Cats president Scott Mitchell said. “The question is: Do you want to bury your head in the sand and pretend there isn't an issue, or do you want to be progressive about it and look at something new that's good for the community?
“It's ironic that all those other leagues have done it and it's been a great boon for them, but the league that really needs it is the CFL where 70 to 80 per cent of revenue is from the gate. In Hamilton, our bottom line is being challenged by the extreme limitations of how much we can bring in because of the stadium. We're losing opportunities of between $1.5- and $3-million a year because of the limitations of our facility.â€
Jeff Hunt, who heads the group that was awarded an Ottawa franchise in March on condition that Frank Clair Stadium is rebuilt, has seen firsthand what a series of new buildings can do to a league. As owner of the Ottawa 67's of the OHL, Hunt has watched the values of teams in that league skyrocket as new buildings were being built, one after another.
And it is the prospect of a new team playing in a refurbished stadium that drove Hunt's interest in bringing Ottawa back to the CFL.
“[Being in an older stadium] just gives you such a handicap,†he said. “It's like trying to have a five-star restaurant in a strip mall. You're just at such a disadvantage because the stadium is such a huge part of the experience. You should walk in there and feel like you're in a special place in a pro sports environment.â€
There must be some opposite to the phrase, “If you build it, they will come.†Maybe it's “If you don't fix it, they won't come.†But Hunt's group in Ottawa faces the same challenge as several other CFL markets where local and provincial governments are wary about investing in pro sports facilities of any kind, much less for a league that hasn't always managed its affairs in the best possible way.
That's why Asper's plan – similar to the ideas under consideration in Hamilton and Ottawa – calls for a mix of private and public money with year-round recreational use and commercial development of surrounding real estate.
“Governments are increasingly less interested in paying the freight, so that's the challenge,†Asper said. “But the real estate part of it creates a different business model that takes some of the pressure off the public to build it.
“You wind up with a facility that gives the fans all the aesthetics and can have year-round use. And by intelligent use of contiguous real estate, you can give the private investor a hope of a return.â€
*****
What's ahead for existing stadiums
From Wednesday's Globe and Mail
May 6, 2008 at 8:31 PM EDT
Of the nine cities with a CFL franchise, or conditional franchise, seven are considering upgrades or replacement of their existing stadiums:
Montreal
Percival Molson Stadium
Built: 1919.
What's ahead: Proposed $24.4-million expansion of 5,000 seats, bringing capacity to roughly 25,000.
Ottawa
Frank Clair Stadium
Built: 1908, 1960 (south stands), 1967 (north stands).
What's ahead: Proposed demolition of the south-side stands, to be replaced with a new structure.
Hamilton
Ivor Wynne Stadium
Built: 1930.
What's ahead: Team is exploring replacing current facility with a new structure tied to local development and investment by governments.
Toronto
Rogers Centre
Built: 1989.
What's ahead: The team is staying put for now, but will get feedback on whether relocating to an expanded BMO Field (currently a 20,000-seat soccer-specific facility) is worth consideration.
Winnipeg
Canad Inns Stadium
Built: 1953.
What's ahead: Proposed $165-million stadium and retail project, funded by private and public money, would develop commercial space and include year-round stadium use.
Saskatchewan
Mosaic Stadium
Built: 1927, expanded in late 1970s.
What's ahead: The team is considering options for an onsite overhaul of the existing Regina stadium.
Vancouver
B.C. Place Stadium
Built: 1983.
What's ahead: Stadium refurbishment will take place before the 2010 Winter Olympics, but addition of a retractable roof unlikely until afterward.