OttawaOne day after the release of a highly anticipated report on the proposed Lansdowne 2.0 redevelopment plan, the City of Ottawa and Ottawa Sports and Entertainment Group have posted yet another year of net losses from the original renovation.Annual report shows net loss of $11.1 million, forecasts steep drop in paymentsAerial drone view of the Rideau Canal and Lansdowne Park in Ottawa on June 13, 2023. (Michel Aspirot/CBC)One day after the release of a highly anticipated report on the proposed Lansdowne 2.0 redevelopment plan, the City of Ottawa and Ottawa Sports and Entertainment Group (OSEG) have posted yet another year of net losses from the original renovation.That news came in the partnership’s annual report for the 2024/25 fiscal year, which painted an even darker picture of Lansdowne’s financial future in its current form.Net losses were $11.1 million, $1.9 million worse than during the previous fiscal year. That came despite a six per cent boost to revenue as operating expenses rose even more.Operating income was lower than the previous year, though still positive, but higher interest and financing costs drove the bottom line into the red.The partnership has reported net losses every year since it started operations a decade ago, and has never distributed a payment to the city. The report also updates the forecast for the partnership going forward, in light of the latest results and budget. It now assumes a reduction in distributions over the life of the partnership of $42.7 million, or 16 per cent.The report still forecasts zero distributions to the city over the 40-year term of the agreement, though payments will continue to go to a lifecycle fund for the stadium and arena complex. Poor playoff performance partly to blameMayor Mark Sutcliffe said the partnership shouldn’t be viewed as a money-making enterprise for the city”This is a community space,” he told Ottawa Morning on Tuesday. “It belongs to the people of Ottawa. It’s been an amazing space where we’ve had farmers’ markets and Christmas markets and world-class events, the World Junior Hockey Championships, rugby sports events, cultural events. It’s been a great success, but now we’re at a crossroads.”The forecast is based on the current partnership and the existing facilities, not the updated Lansdowne 2.0 plan that is coming to council for approval next month. Sutcliffe has argued that rebuilding the arena and north stadium stands is needed to make the partnership financially sustainable.Previous annual reports had already reduced the forecast for Lansdowne 1.0, which is now $91 million lower than it was in 2012.The latest forecast comes from a new set of assumptions that reduce the expected earnings from concerts and events, as well as higher interest costs due to the consolidation of the partnership’s mortgage and lines of credit.The report blames the 2024/25 financials in part on poor performance by the Ottawa Redblacks and Ottawa 67’s, as well as a non-cash loss on a financial instrument known as an interest rate swap.The Redblacks made the playoffs last season, but only played a single away game. The 67’s missed the playoffs altogether and attendance at their games came in below expectations.The results for Lansdowne’s retail elements were more positive.ABOUT THE AUTHORArthur White-Crummey is a reporter at CBC Ottawa. He has previously worked as a reporter in Saskatchewan covering the courts, city hall and the provincial legislature. You can reach him at arthur.white-crummey@cbc.ca.
Lansdowne partnership lengthens financial losing streak with another year in the red
