Hours 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 announced another year of financial losses from the original renovation project.
The latest figures were revealed in the partnership’s annual report for the 2024/25 fiscal period, shedding light on Lansdowne’s ongoing financial challenges. Despite a six percent increase in revenue, net losses totaled $11.1 million, marking a $1.9 million deterioration compared to the previous year. This decline was attributed to a surge in operating expenses that outpaced the rise in income.
Although operational income remained positive but lower than the previous year, heightened interest and financing costs pushed the overall financial performance into negative territory. Notably, the partnership has reported consecutive annual losses since its inception a decade ago and has never made a payment to the city.
The report also revised the future outlook of the partnership based on the latest financial outcomes and budget projections. It now anticipates a 16 percent decrease in distributions over the partnership’s lifespan, amounting to $42.7 million. While the report foresees no distributions to the city throughout the 40-year agreement term, funds will continue to be allocated to a lifecycle fund for the stadium and arena complex.
Mayor Mark Sutcliffe emphasized that the partnership should be viewed as a community asset rather than a profit-driven venture for the city. He highlighted Lansdowne’s success in hosting various events and activities but acknowledged the need to address its financial challenges.
The forecast was based on the existing partnership model and facilities, not accounting for the upcoming Lansdowne 2.0 plan awaiting council approval. Sutcliffe advocated for rebuilding certain structures to enhance the partnership’s financial sustainability.
Capital ward Coun. Shawn Menard, critical of the Lansdowne 2.0 initiative, expressed concerns over the partnership’s financial difficulties and cautioned against repeating past strategies for future success.
The report attributed the financial struggles in the 2024/25 period partly to underperformance by the Ottawa Redblacks and Ottawa 67’s sports teams, as well as a non-cash loss related to an interest rate swap. While the Redblacks made the playoffs with limited away games, the 67’s missed the playoffs, leading to lower-than-expected game attendance.
On the retail front, Lansdowne’s retail components showed more positive results in the latest financial assessment.