Moncton to pay basketball team $27,000 after move to Avenir Centre

The Moncton Magic basketball team has received a payment of just over $27,000 from the City of Moncton to compensate for losses incurred as a result of the team's move to the Avenir Centre.

The cheque cut Fridayis for an amount well below the maximumof$333,785.29 theteam could have received under an agreement approved by council last year.

"City council did take a risk, but the team had a successful season and the payment was minimal," said Jacques Doucet, Moncton's chief financial officer, in an interview Tuesday evening.

The Magic won the National Basketball League of Canada championship in the 2018-19 season. Average attendance rose from1,142 people at the Coliseumto1,444 at the Avenir Centre last season, according to publicly available attendance records.

No one from the team was available for an interview.Mike Storey, vice-president of operationsfor the Magic, sent CBC News a statement that didn't address the city's payment.

"The Magic are extremely excited to begin our second season at the Avenir Centre after such a storybook finish to last years quest to win the championship," Storey wrote.

Coun. Paul Pellerin, who opposed the compensation agreement and has cited it as an example of excessive city spending,replied to a request for an interview Tuesday evening with only a text message.

"Happy to hear the taxpayers are not on the hook beyond $27,153.34," Pellerin wrote.

The team, which replaced the Moncton Miracles, played its first season at the Coliseum in 2017-18.

But city council voted in June 2018 to change the business model of the 7,800-seat arena away from hostinglarge sporting events to focus ontrade shows once the Avenir Centre opened its doors.

Storeytold CBC News at the time he was shocked by the decision.The team had hoped to spend another year at the city's older arenato ensure stable revenue and fan base.

In August 2018,council voted 9-2 in favour of anagreement to compensate the Magic for every dollar lost from its revenue projections ifit had remained at the Coliseum, to a maximum of$333,785.29.

Figures the team gave the the city last year indicate a revenue forecast of $644,682.59 for the 2018-19 season if it had remained at the Coliseum. But that projection was slashed to$310,897 when playing at the Avenir Centre.

The $27,153.34 payout indicates the teamdidn't meet its Coliseum revenue projection.

The agreement signed in October 2018, a copy of which CBC News obtained through a right to information request, sets out that the team had to provide the city withregular financial updates and ticket sales reports.

Agreement for only one year

The total amount the team could receive was also reduced based on how many playoff games it played.

Storey told reporters in 2018that he hoped theteam wouldn't need the money and that it didn't plan to seek a similar agreement beyond its first year.The agreement signed with the city is only for one year.

Doucet said he's not aware of any further funding requestsfor the 2019-2020 season.