| | OTTAWA -- The Canadian government will offer money to its
six NHL teams to keep them competitive and prevent them from moving
to the United States.
No dollar figure was put on the federal aid package, which runs
to 2004 when the collective bargaining agreement between the NHL
and its players expires.
|  | | Montreal Canadiens president Pierre Boivin reacts to the federal government's announcement on financial aid for Canada's NHL teams. |
But the federal money is contingent upon contributions from the
league, city and province in which the team plays.
"The federal government's willingness to participate in a
shared solution for Canadian NHL teams is not about giving money to
rich hockey players and team owners," Industry Minister John
Manley said Tuesday.
"It's about helping these teams get through a difficult period
so they will be in a position to emerge from their current
financial problems as sustainable Canadian NHL franchises."
The decision immediately benefits the Ottawa Senators, who
already received such assistance. Senators owner Rod Bryden, a
former president of the Liberal party of Canada, led the campaign
for federal assistance to NHL teams.
The federal contribution is not to exceed 25 percent of the
total of any aid package involving the league, the city and the
province involved. It will be reviewed annually and is to be repaid
to Ottawa if the team moves.
The NHL already provides some compensation to Canadian clubs
hurt by the low value of the Canadian dollar. Teams get most of
their revenues in Canadian dollars and pay most expenses -- notably
player salaries -- in U.S. dollars.
"The (Canadian) federal government courageously has shown its
commitment to addressing a difficult issue in a meaningful way,"
NHL commissioner Gary Bettman said. "The NHL remains committed to
maintaining a strong presence in Canada and we will continue to
work with our clubs and governments at all levels as this process
continues."
Eric Maldoff, a lawyer with ties to Prime Minister Jean
Chretien, will be the federal negotiator who works with the league
and other parties in tailoring a package for each team.
Government polls showed little appetite for subsidizing wealthy
team owners and millionaire hockey players.
"In our hearts, really, I feel that hockey is really part of
Canada," Manley said. "But at the same time our heads are saying,
'What is this all about?' So I think what we're trying to describe
here is something that is a temporary, modest package to try to
(buy) some time."
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