Hours following the unveiling of the highly awaited report on the proposed Lansdowne 2.0 revamp, the City of Ottawa and Ottawa Sports and Entertainment Group (OSEG) have reported another year of financial losses stemming from the original renovation project.
The annual report for the 2024/25 fiscal year, released late Monday, painted a bleak financial outlook for Lansdowne in its current state. Net losses amounted to $11.1 million, a $1.9 million decline compared to the previous fiscal year, despite a six percent increase in revenue overshadowed by rising operating expenses.
Although operating income remained positive but lower than the previous year, higher interest and financing costs drove the partnership into the red. Since its inception a decade ago, the partnership has sustained net losses every year and has never provided any payment to the city.
The report also revised the partnership’s future outlook in light of the latest financial results and budget, anticipating a reduction in distributions over the partnership’s lifespan by $42.7 million, representing a 16 percent decrease. Forecasts continue to project no distributions to the city throughout the 40-year agreement term, with payments channeled towards a lifecycle fund for the stadium and arena complex.
Mayor Mark Sutcliffe emphasized that the partnership should be viewed as a community hub rather than a profit-driven venture for the city, citing the diverse range of events hosted at Lansdowne. However, he acknowledged the need for strategic decisions moving forward, particularly with regards to the upcoming Lansdowne 2.0 plan awaiting council approval.
Capital ward Coun. Shawn Menard, critical of the Lansdowne 2.0 project, highlighted discrepancies between initial projections and actual outcomes, cautioning against replicating past strategies for future sustainability. The report attributed the financial challenges of the 2024/25 period partly to underperformance by the Ottawa Redblacks and Ottawa 67’s, as well as a non-cash loss related to an interest rate swap financial instrument.
While the sports teams’ playoff performances and attendance figures impacted the financials negatively, the retail components of Lansdowne demonstrated more favorable results.