VICTORIA: The B.C. division of the Canadian Taxpayers Federation (CTF) today argued against giving lottery money to the Vancouver Canucks or cutting any special deals. The CTF pointed out that many businesses in Canada face the same problems of high taxes and a low dollar - but most businesses also don't pay out average salaries of $1.2 million.

"Nobody wants the Canucks to leave," said CTF-BC director Mark Milke, "but million-dollar players shouldn't ask average taxpayers to support them via a lottery or through any other special deal."

"In addition, the claim that jobs and tax revenues would be lost if the team did leave town has been discredited time and again by credible academic studies on the subject. When sports teams leave town, people don't burn the money they used to spend at hockey games; they spend that money on other local entertainment."

The CTF urged the Campbell government to stand firm on its policy of no special deals with specific businesses.

The CTF on the issue of lottery money:

Milke pointed out that newspapers print reams of sports stories about hockey teams every week - and use such stories to sell newspapers - but the Canucks are not claiming they deserve some of the ad revenue from the sports sections of newspapers. "A lottery, while voluntary, is still a transfer of tax dollars from taxpayers to one specific for-profit business," said Milke. "What's next A voluntary lottery for an ailing hi-tech firm

The CTF on the issue of a property tax reduction:

"General Motors Place should receive no special treatment on property taxes; if the city of Vancouver wants to reduce everyone's property taxes, fine. But no special deals should be given to one business."

The CTF on a "player tax":

"If NHL players want to share their salaries with each other - go ahead. Cut each other a cheque after every game. But taxpayers shouldn't be forced to pay one civil servant for one minute to look at this issue. It is not a core responsibility of government to prop up one NHL team or transfer revenues between them."


Gordon Campbell in 2000 on "negotiating subsidies with Canada's NHL teams"

"Taxpayers shouldn't be forced to subsidize hockey players making millions of dollars in a year, while emergency rooms are overflowing and students are without textbooks in part because of the scarcity of government resources."
- From "TAXPAYERS SHOULDN'T SUBSIDIZE NHL, SAYS CAMPBELL," BC Liberal News Release, January 28, 2000.

NHL File:

Salaries:

In 1991, the average NHL player salary was $271,000 (U.S.). In 2002, the average Canuck player will make $761,000 U.S./ $1.2 million Canadian. (Source: 2002 figure based on NHL website information / 1991 figure - Canadian Press)

Web links to academic studies on sports subsidies:

"Government subsidies to sports and cultural businesses usually bad economics": CD Howe Institute, March 5, 2002: click here
Economic Impact Studies: Misleading, Inaccurate and Unnecessary -- click here
Sports, Jobs and Taxes --click here

Books:

Major League Losers: The Real Cost of Sport and Who's Paying For It, Rosentraub, Basic Books, 1997.
Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums, Noll & Zimbalist, editors, Brookings 1997.