Critics are expressing concerns about the potential impact on revenue projections for the Lansdowne Park redevelopment if the Ottawa Redblacks were to cease operations before the city’s extended partnership with Ottawa Sports and Entertainment Group (OSEG) concludes in 2075. The updated agreement being presented to city councillors extends the pact with OSEG but only requires the operation of the Redblacks and the Ottawa 67’s until 2032.
The financial success of the redevelopment hinges on the profits from the Redblacks, stadium rent, and ticket surcharges to offset construction costs. There is unease that the Redblacks’ history of instability in Ottawa’s football landscape could jeopardize this revenue stream. Gloucester-Southgate Coun. Jessica Bradley highlighted the risk of potential financial losses if the Redblacks were to fold post-2032, considering the public’s significant investment.
OSEG CEO Mark Goudie expressed confidence in the long-term presence of the teams in Ottawa, emphasizing the contractual obligation for the teams to play at TD Place as long as they are operational. However, Capital ward Coun. Shawn Menard called for a written commitment from OSEG to ensure the teams’ continued presence in Ottawa, particularly in light of the city’s financial support.
The Lansdowne 2.0 redevelopment project, with a total cost of $419 million, heavily relies on retail earnings and Redblacks’ contributions to generate profits over the next five decades. While the Ottawa 67’s are projected to operate at a loss, the Redblacks are expected to be a significant revenue source. Furthermore, revenue from ticket surcharges and stadium rent is crucial for the financial model post-2032.
Supporters of the Lansdowne 2.0 project believe it sets the stage for success beyond football, catering to a variety of events and activities. Despite the risks associated with the Redblacks’ stability, proponents argue that creating favorable conditions through Lansdowne 2.0 is essential to retain these teams in Ottawa for the foreseeable future.
