SaskatoonThe most significant changes to a potential deal with Denver-based OVG360 to operate the $1.2-billion downtown arena district involve how the city and the private partner will divvy up profits and provide financing for the unprecedented venture.Revamped framework awards larger share of profits for city if revenues risePhil Tank · CBC News · Posted: Oct 23, 2025 12:38 PM EDT | Last Updated: October 23Listen to this articleEstimated 4 minutesThe proposed new arena in downtown Saskatoon would be built on this parking lot north of Midtown Plaza and TCU Place. (Trevor Bothorel/CBC)A rejigged framework for a private company to run Saskatoon’s proposed downtown arena district delivers a bigger cut of profits for the city if revenue soars.The most significant changes to a potential deal with Denver-based OVG360 to operate the $1.2-billion district involve how the city and the private partner will divvy up profits and provide financing for the unprecedented venture.Saskatoon will consider the altered structure at its meeting on Wednesday.The project, which is contingent on substantial funding from the federal and provincial governments, includes a new downtown arena and a renovated convention centre.“We did our best to negotiate a good deal for the city,” the city’s director of technical services, Dan Willems, told reporters at city hall Wednesday.“The [city’s] negotiation team didn’t feel at any point that this was a bad deal for the city. We’re recommending this receive council approval.”OVG360 wanted the deal renegotiated due to changes at the company, Willems explained.In the restructured framework, OVG360, which operates facilities across North America, would pay less up front to build the arena than in the previous deal, $15 million instead of $20 million.But OVG360 would assume sole responsibility for any operating losses. An artistic rendering of what the Saskatoon downtown event and entertainment district could look like once it’s completed. (Submitted by City of Saskatoon)If profits remain below $2 million, OVG360 gets half the profits under the new framework, compared to 10 per cent under the previous proposal.But if profits rise above $2 million, the new deal becomes more favourable for the city. From $2 million to $4 million, the city would receive all the profits, compared to 70 per cent to 80 per cent in the previous deal.If profit exceeds $4 million, OVGO360 receives a rising share of profits, starting with five per cent for a profit range of $4 million to $6 million and rising to 15 per cent if profit rises above $8 million.Under the previous framework, OVG360 would have received 40 per cent of any profit higher than $4 million.Big profits predictedThe city’s “conservative” forecast predicts profits from events will exceed $6 million in the first year of the arena district, which is formally named the Downtown Event and Entertainment District or DEED.The term of a potential deal has also been reduced, from 25 years to 15 years, although there is an option to extend it for another 15 years. City officials will negotiate a deal with OVG360 based on the framework if city council gives its blessing.The city is also predicting higher operating revenues, rising from $170 million over 25 years to $235 million over 30 years. The operating revenue would be used to help pay for construction.An artistic illustration of what a future downtown event centre could look like in the parking lot north of the Midtown Shopping Centre in Saskatoon. (City of Saskatoon)But the massive project still lacks a firm commitment from either the federal or provincial government. Willems said the city is looking for one-third of the cost from each level, which is a common split for funding on big projects.The project could also proceed in phases, Willems said.“The convention centre renovation and expansion could proceed on its own,” he said. “The arena could proceed on its own.”The arena site lies just north of Midtown Plaza on 22nd Street where a parking lot currently exists. Willems said replacement parking is tied to the construction of the arena.In April, the city paused the arena project in the wake of U.S. tariffs due to the turmoil and uncertainty created by the Trump administration.Representatives from OVG360 are scheduled to appear before council on Wednesday. But the delegation will probably not include former CEO Tim Leiweke, who resigned in July after he was indicted on charges he rigged the bidding for an arena at a university in Austin, Texas.The company’s projects include a $300-million refurbishment of the downtown arena in Hamilton, Ont.
New downtown Saskatoon arena deal changes how profits are divided
