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Wednesday
April 30, 2008
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Hockey Canada Foundation Considering Plan For New Rinks

With many of Canada's 3,000 hockey rinks in "decrepit condition," Hockey Canada's charitable foundation is considering a "proposal that would see the organization's charitable arm ask well-heeled Canadians to fund the construction of rinks across the country," according to Rick Westhead of the TORONTO STAR. The rinks in some cases would "be named after the benefactors." The foundation also is considering an "affinity program in which prospective donors would be rewarded with such privileges as access to premium tickets for Team Canada games at the Olympics or other tournaments." The foundation believes that a basic rink "can be built for roughly $2[M]," and donors "might not have to cover all the immediate cost" due to the potential involvement of the AIG life insurance company and a subsidiary. Several Hockey Canada foundation directors confirmed that they are negotiating with Toronto-based AIG to "introduce a life-insurance tool designed to raise money for new rinks." Under the tentative plan, donors would "purchase a multi-million-dollar life insurance policy from AIG," then an AIG subsidiary would "provide a chosen municipality with a discounted portion of the death benefit immediately to underwrite an arena's construction or refurbishing." The AIG lending arm would "be named as the donor's irrevocable beneficiary." For the death benefit to be "paid out immediately," the municipality would "have to guarantee future premium payments on the policy, should the donor default or die prematurely." Westhead notes an '05 Hockey Canada-commissioned arena census found that a "majority of the arenas across the country have reached the age of 30 to 35 years." View an example of how the plan would work (TORONTO STAR, 4/30).

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