Lansdowne partnership posts $11 million loss in 2024-25 as council prepares to vote on Lansdowne 2.0

Lansdowne Park on Monday, Oct. 20. The Lansdowne 2.0 plan proposes tearing down the Civic Centre and the north-side stands of TD Place. (Leah Larocque/CTV News Ottawa)

The Lansdowne Park partnership posted a revenue loss for the 11th straight year, despite a boost in revenue and a higher number of events at the park in Ottawa’s Glebe neighbourhood.

The Lansdowne annual report for the finance and corporate services committee shows Lansdowne posted an $11.1 million net loss for the 2024-25 fiscal year, up from a $9.2 million loss during the 2023-24 fiscal year and a $9.1 million deficit in the 2022-23 fiscal year.

The report comes as city council prepares to vote on whether to proceed with Lansdowne 2.0, the $418.8 million second stage of the Lansdowne Park development, with a new event centre, a new north-side stands at TD Place, two new residential towers and new retail spaces.

According to the report, submitted by City Manager Wendy Stephanson, the Lansdowne partnership generated $62.8 million in revenues for the 2024-25 fiscal year, up $3.3 million from the year before. The report shows the total operating expenses were $58.1 million last fiscal year.

“Although revenues in 2024/25 grew six per cent, operating expenses increased seven per cent, which resulted in a decrease in the Partnership’s operating income from $5.3 million in 2023/24 to $4.8 million in 2024/25,” staff said.

• Here’s what you need to know about Lansdowne 2.0

TD Place hosted 188 events during the 2024-25 fiscal year, up from 180 events in 2023-24. The Redblacks and 67’s, the two teams owned by the Ottawa Sports and Entertainment Group (OSEG), accounted for 50 of the events, while Atletico Ottawa, the Ottawa Charge and Ottawa BlackJacks accounted for 34 events. The Urban Park hosted 127 registered programs last year.

The report from Stephanson said the OSEG owned teams “negatively affected” the bottom line at Lansdowne.

“The Redblacks made the playoffs for the first time in five years. However, the playoff game was an away game which resulted in a financial performance below budget of $0.3 million as a home playoff game had been budgeted,” Stephanson said. “The 67’s also missed the playoffs for the first time in 10 seasons. In addition, the 67’s experienced lower than budgeted attendances throughout the season, resulting in a variance of $0.6 million lower than budget for playoffs and the regular season.”

• Hotel tax increase to help fund new event centre, north-side stands at Lansdowne 2.0

The report shows the Ottawa Redblacks generated revenue of $20.6 million in 2024-25, up from $20.5 million in 2023-24, but operating expenses were $24.4 million in 2024-25 compared to $20.5 million in 2023-24.

Staff say the rentable retail and office space ended the 2024-25 fiscal year at 99 per cent leased, down from 100 per cent the year before. Parking revenues continued to grow, according to the report.

Lower financial distributions

The $11.1 million shortfall at Lansdowne for the 2024-25 fiscal year has resulted in a reduction in financial distributions over the Lansdowne partnership, without accounting for Lansdowne 2.0.

Stephanson says the overall pro forma forecasts for the 2024-25 fiscal year and the 2025-26 budget results in a reduction of distributions of $42.7 million to $223.3 million. In 2022, the expected payout over the 40-year partnership was expected to be $326 million.

“Despite the success of the retail component, the Lansdowne Master Limited Partnership (LMLP) has posted net financial losses for each fiscal year and has yet to generate net positive cashflows aside from fiscal years 2015, 2021/22 and 2023/24 that had positive cashflows due to proceeds from borrowing, but no distributions paid out,” the report said.

The City of Ottawa is not expected to receive any distributions from the partnership over the 40-year term of the agreement.

“OSEG is expected to barely recover the equity they have contributed to date and with minimal to no return on equity,” Stephanson writes.