The Lansdowne Park partnership saw a four per cent boost in revenues as retail leasing increased and more events were held at Lansdowne, but the partnership between the Ottawa Sports and Entertainment Group (OSEG) and the City of Ottawa posted another multi-million-dollar loss last year. The 2024 Lansdowne Annual Report shows another $4.6 million has been cut off the expected payout over the 40 years of the partnership, with total distributions reduced to $266 million from $270.6 million in 2023 and $326 million in 2022. “Despite operational gains, the partnership continues to experience net financial losses, emphasizing the need for strategic improvements to achieve long-term sustainability,” says the report, submitted by City Manager Wendy Stephanson. “The City’s urban park programming attracted significant attendance, generating revenue and engaging the community. Moving forward, planned upgrades like the Aberdeen Pavilion roof rehabilitation and Lansdowne 2.0 developments will play a pivotal role in revitalizing the site.” The report comes as the city and OSEG look to move forward with the $419 million Lansdowne 2.0 plan this year, which includes a new 5,500-seat event centre to replace the Arena at TD Place and building a new north-side stands for the football stadium. On Jan. 6, the city issued a tender seeking “qualification submissions” for general contractors to build Lansdowne 2.0. The 2024 Lansdowne Annual Report for the Finance and Corporate Services Committee shows the Lansdowne Partnership generated $59.5 million in revenues in 2023-24, up $2.3 million from the year before. The total operating expenses for the fiscal year was $54.2 million, up $600,000 from the year before. “In the 2023/24 fiscal year, TD Place had a successful year with an overall total of 180 ticketed events compared to 170 in the 2022/23 fiscal year,” the report says. “The financial result was negatively affected by the performance of the Ottawa Redblacks as the club missed the playoffs for the four consecutive season. However, Lansdowne’s approximate 350,000 square feet of rentable retail and office space ended the 2023/24 fiscal year at 100 per cent leased, compared to 96 per cent in the previous fiscal year and parking revenues were back to pre-pandemic levels with a 27 per cent increase from the previous year.” The report, submitted by Stephanson, says the Lansdowne Partnership posted a net loss of $9.2 million for the 2023-24 fiscal year, up from $9.1 million the year before. Staff note an increase in borrowing coupled with increasing interest rates contributed to the loss. The financial result was “negatively affected” by the performance of the Redblacks, with the report noting the net contribution from home games was $1.9 million lower than expected due to lower attendance, along with a higher number of player injuries. A financial loss has been reported in each year of the 10 years of the partnership between the city and OSEG. The Ottawa Sports and Entertainment Group is responsible for any losses. “Based on the most current forecasts, OSEG does not recover all of their invested equity, and for this reason there is no forecast payment to the City in those future years at the end of the 40-year agreement,” Stephanson says in the report, adding the city “is still not expected to receive any distributions from the partnerships” over the 40-year term of the partnership. Councillors on the Finance and Corporate Services Committee will discuss the report at its meeting on Tuesday, Feb. 4.
