In a deal the City of St. John's says will not require a taxpayer subsidy, the Fog Devils will play next fall in Mile One stadium after all.

After weeks of trading barbs and bitter looks, city-owned St. John's Sports and Entertainment and the Fog Devils showed nothing but smiles as they announced the deal late Thursday at center ice at Mile One.

Developer Derm Dobbin, whose group beat out St. John's Sports and Entertainment's own bid last fall for a Quebec Major Junior Hockey League franchise, says both sides agreed to ease up on their demands.

Three weeks ago, when talks between the two sides collapsed, Dobbin said the city was effectively asking his team – which will play 40 nights a year in Mile One – to 365 days' worth of operating expenses.

St. John's Sports and Entertainment said Dobbin was expecting a taxpayer subsidy to run his team, and was demanding profits from advertising at the stadium.

Now, the two sides have agreed to compromise.

"It was more give and take," says Dobbin.

The new deal will see the two sides share profits equally, with the Fog Devils responsible for any losses.

Coun. Keith Coombs, who chairs St. John's Sports and Entertainment, says Mile One's operating deficit will not worsen under the deal.

Mile One has been running a deficit since it opened in 2001.

"The city has met its objective of ensuring there's no subsidy," Coombs said.

The Fog Devils will play out of Mile One for the next five years, and possibly longer.

Dobbin says his first move will be to start contacting all the team staff he laid off three weeks ago.

The Fog Devils become the anchor tenant in Mile One stadium, which was built in large part to accommodate the St. John's Maple Leafs.

However, the parent Toronto Maple Leafs, which lobbied hard for a new stadium, decided last year to withdraw its farm team and relocate it to Toronto.

The Baby Leafs will leave St. John's once the current American Hockey League season is over.

WebPosted Mar 3 2005 08:24 PM NST
CBC News