The Prince George Spruce Kings will be asking city council to reopen Rolling Mix Concrete Arena for the start of the BCHL season, because the survival of the team depends on it.
Spruce Kings business operations manager Kyle Anderson is scheduled to make the team's case to city council at the regular meeting on Monday night. The BCHL is slated to begin its regular season on Dec. 1, according to a report Anderson submitted to council.
"If the Spruce Kings are forced out of the RMCA it is likely that the team would cease to operate this season. Beyond this season, it is highly unlikely that the organization could recover financially and would be forced to cease operations permanent," Anderson wrote. "Should the nearly 50-year tenure of the Spruce Kings in Prince George come to an end, there would be no chance of Junior A hockey ever returning to the city."
The team is in Prince George and began training at the Kin Centre Arenas. The team's first scheduled home game is an exhibition match against the Merritt Centennials on Oct. 25.
The BCHL is requesting the B.C. Public Health Office to allow 25 per cent of fans in the stands at its arenas, but if that is not allowed the league will be playing without fans.
"If there are no fans allowed, the league will rely on player fees along with sponsorship and government support to fund the season," Anderson wrote. "The Spruce Kings are currently negotiating partnerships with many businesses in Prince George, for advertising space in viewable areas of the online broadcast of all BCHL games. This is the main focus of the BCHL and its teams as it is the only revenue stream available this season. The total value of these viewable items is $125,000. Without the ability to generate this revenue, the
Spruce Kings' season is in serious jeopardy."
The team is being forced to charge the players significant fees to cover the team's operating costs for the first time in the club's history, he added.
The Spruce Kings signed a seven-year lease with the city for Rolling Mix Concrete Arena in February, Anderson wrote. Rolling Mix Concrete also renewed it's contract for the naming rights of the arena for those seven years.
"Should the Spruce Kings not operate out of the RMCA, the contract with Rolling Mix Concrete Ltd. is in jeopardy," Anderson wrote. "For the Spruce Kings, this equates to a $30,000 loss annually, $20,000 of which is the concrete for the construction of the Show Home which is provided by Rolling Mix Concrete."
In addition to supporting local charitable organizations, the team is an economic driver downtown, Anderson wrote, bringing an average of 1,790 fans downtown per game during their 2019 playoff run.
"Many downtown businesses, including restaurants benefit from the Spruce Kings playing at the Rolling Mix Concrete Arena," he wrote. "Visiting teams staying in downtown hotels, eating at local downtown restaurants, and the many parents that visit each season also have a positive economic impact on our community with a large focus of that on the downtown."
In a letter of support for the Spruce Kings, BCHL commissioner Chris Hebb said sharing CN Centre with the WHL's Prince George Cougars isn't a good option. All the teams in the league are struggling financially because of the pandemic, and the loss of rink-board advertising revenue would impact the whole league.
"The BCHL is also in direct competition with the WHL, so having WHL logos and branding in one of our team’s arenas is not something we find acceptable," Hebb said.
If city council grants the request, it will come at a significant cost to the taxpayers.
In a report to city council in July, city director of community services and public safety Adam Davey estimated the cost of reopening Rolling Mix Concrete Arena at $220,000 in 2020 and $500,000 in 2021.
Under normal conditions, user groups only cover 28 per cent of the cost of operating the aging arena, Davey added. With COVID-19 restrictions in place limiting cost recovery, that number would likely drop even further.
The city is facing an estimated $3.9 million budget shortfall this year, and a roughly $8.4 million shortfall for 2021, city director of finance Kris Dalio told council in July.
