In April, Premier Danielle Smith – soon-to-be candidate Smith – announced a deal to build a new arena in Calgary with $400 million. in funding from the province
According to the spin, the Calgary Sports and Entertainment Corporation (CSEC), the UCP government, the Calgary Stampede, and the City of Calgary came together to make the deal of a lifetime.
It probably is the deal of a lifetime, just not for us Albertans.
But it certainly is a sweetheart deal for oil billionaire Murray Edwards and the other rich co-owners of the Calgary Flames. The $1.22 billion deal will build a new arena for the Flames and surrounding amenities and improvements.
The costs will be split between the private company CSEC, the Alberta government, and the city of Calgary. The Calgary Stampede joined the deal later but won’t contribute financially.
Edwards, who has an estimated net worth of $2 billion, is laughing all the way to the bank.
The arena deal was first put on the table in 2019. Its initial price tag was $550 million and was to be split 50-50 between Calgary and CSEC.
At more than double the original cost, Calgary will now pay $537.3 million, or 44 percent of the total cost. Premier Smith announced that the province will cover $330 million of the cost. But there’s a catch. To get the province’s millions, Smith says Albertans will have to vote for the UCP when they vote in the Alberta election on May 29.
The big winner in the deal is CSEC. They will only pay $40 million upfront, then $17 million yearly, increasing by one percent annually over 35 years. The arena will cost CSEC a grand total of $356 million.
So who owns CSEC?
The Calgary-based company is owned by a handful of billionaires, most prominently Calgary Flames owner Murray Edward, the oil sands power player who owns Canadian Natural Resources Ltd.
So why is a private company owned by billionaires putting up minimal upfront cash with a laughable annual increase while the people of Alberta foot most of the bill? Good question.
Anyone that’s ever had to mortgage their house to afford a stadium beer knows sports team owners are experts at gouging the Joe and Jane Alberta for every penny they can get.
This isn’t the first time an Edwards-owned company has benefited from a cozy relationship with a Premier.
Edwards helped organize a $1-million private fundraiser in Calgary to help with BC Premier Christy Clark’s re-election bid. Soon after, the Mount Polley mine, owned by Imperial Metals – with Edward as controlling shareholder – spilled an estimated 25 billion litres of contaminated materials into nearby lakes. Despite being one of the largest mining disasters in Canadian history, no charges or fines were levied against Murray’s company.
It sure paid to have a friend in the Premier’s office in BC.
The same apparently is true in Alberta.
Albertans will be stuck with the lion’s share of the arena bill if Smith is re-elected.
While Edwards, who doesn’t even live in Canada, reaps the benefits of this deal, Albertans get the shaft. Nice.
