o the provincial government and $3 million to the city of Kanata which comes to a total of $34,132,950 (Bryden 3). The result was a cash loss of $10 million. This enormous some of money makes it incredibly hard for a team to be competitive and financially stable. Many of the other Canadian clubs such as the Montreal Canadians are locked into legal battle over the municipal tax bill for the Molson center, the home of the Montreal Canadian. The Canadians are asking that their taxes be cut from $9.5 million to $3.6 million a year (Hickey et al. 2). The municipal taxes in Canada are three times what all-22 to American teams pay municipal taxes a year.In the United States cities and states compete aggressively with each other for major league sports. Cities and states are offering these professional teams subsidized buildings, exemption or more reduction in real estate and sales tax making it easier for these teams to be profitable. Most Canadian cities are not reducing the operating costs like their American counterparts making it impossible for these teams to operate for an extended period of time.“Providing location incentive to businesses is a longstanding practice of states and local governments. Tax abatements, low-interest loans, job training, andfacility and infrastructure development have been someof the incentives offered to influence the location decisions of firms”(Swindell 12). Even the biggest city in the NHL market, New York, gets special treatment. The Rangers are exempt from real estate tax on Madison Square Garden. Much like New York, Nashville is provided a building for rent of one million a year with no real estate tax. In Ottawa their attendance is in the top 10 in the league and their rank is in the top five both in the number of suites leased and the value all of signage and advertising in the building. But their taxes are higher than all 22 American teams combined (Manley 2).These teams create...
