The Canadian Federal Government yesterday announced a
financial aid package for Canada's NHL teams, which "will be
negotiated on a team-by-team basis," according to Donna
Casey of the OTTAWA SUN. Though "no dollar figure has been
put" on the package, the federal government will
"contribute" 25% of the "financial assistance that depends
on contributions from the NHL, municipalities and provincial
governments," while the remaining 75% is expected to come
from other sources. Senators Chair Rod Bryden, on the
package's impact on his team: "This franchise has had only
one problem -- a crushing burden of public cost. That
burden has been alleviated to a manageable level" (OTTAWA
SUN, 1/19). Also in Ottawa, Kathryn May reports that the
Senators "stand to receive" between C$13-14M annually from
all sources, "enough to keep the team" in Ottawa until "at
least" 2004, when the CBA expires. Bryden said that the
team may receive C$3M annually from the federal government,
but the package "will not take money away from hospitals,
the homeless and hungry children" (OTTAWA CITIZEN, 1/19).
USA TODAY's Kevin Allen writes that for Canada's NHL teams,
the announcement "was viewed as a giant first step toward
easing their burden." More Bryden, after the announcement:
"[The] for sale sign is in the garage" (USA TODAY, 1/19).
HISTORICAL SIGNIFICANCE: Federal Industry Minister John
Manley tells the WASHINGTON POST's Steven Pearlstein, "In
our hearts, we felt that hockey is really part of Canada.
But at the same time our heads are saying, 'What is this all
about?'" (WASH. POST, 1/19). More Manley, on why the
"failure to prevent" the Jets and Nordiques from relocating
to Phoenix and Denver, respectively, "should not stop" the
government from trying to save the six remaining franchises:
"I don't think we can make decisions today based on what
happened four years ago. ... I'd rather be doing something
about six [teams], than coming in a year's time and talking
about whether we can preserve four" (OTTAWA SUN, 1/19).
ONE FOR ALL, ALL FOR ONE: Maple Leafs President Ken
Dryden, on the package: "The way this has been laid out,
it's for all the Canadian teams. There's no qualms at all
in terms of pursuing this." Flames President Ron Bremner
adds his franchise was "encouraged by the fact the
government has obviously been listening" (Toronto GLOBE &
MAIL, 1/19). In Montreal, Hickey, Thompson & Mainville
report that the Canadiens could receive C$10M annually in
tax breaks and "direct subsidies" for a team that "showed a
profit of nearly" C$5M last year. Canadiens President
Pierre Boivin: "We intend to pursue the maximum available"
(Montreal GAZETTE, 1/19). More Boivin: "The Canadiens are
in Montreal to stay" (OTTAWA SUN, 1/19). FSN's Keith
Olbermann, responding to Manley saying "[It's] not about
giving money to rich hockey players and team owners": "Well,
actually it is. But we'll give you a pass on it just this
once" (FSN, 1/18).
TAXING SOLUTION: A Montreal GAZETTE editorial states
that a 2% tax on player salaries "could generate" another
C$20M per year for Canada's NHL teams. The editorial:
"Sixty percent of NHL players come from Canada. They owe
much of their success to this country's hockey system.
Asking them to give something back would not be
unreasonable" (Montreal GAZETTE, 1/19).
