The Edmonton Oilers are back in the Stanley Cup Final for a rematch of their 2024 loss to the Florida Panthers. The on-ice success is a boon to the club’s bottom line, with revenue generated from the playoff run. It also positions the Oilers for continued success with their Ice District development, which is headed for expansion.
In March, OEG Sports & Entertainment, which owns the Oilers, Ice District and rights to operate Rogers Place, revealed the next phase of the Ice District, an “event park” connected to Rogers that will be a space holding up to 2,500 people for music, festivals and other events. The CA$250 million project ($183 million based on current exchange rates) will include $61 million in funding from OEG, with the balance paid by the city and the Alberta government.
The event park will be owned by the City of Edmonton and operated by OEG. It will include 140,000 square feet for indoor and outdoor components to attract year-round events.
The 25-acre Ice District is the second-largest mixed-use sports and entertainment development in North America, behind only Hudson Yards in New York. Development started after a new hockey arena was approved in 2013.
The initial master agreement had Oilers owner Daryl Katz investing $75 million to develop the area outside the venue, which was mostly gravel parking lots and an old Greyhound station. Large mixed-use developments were still rare in 2013, with Atlanta’s Battery still four years away.
Yet OEG’s ambitions grew, and the company ultimately invested CA$2 billion ($1.5 billion) during Phase 1 of the project, with Phase 2 scheduled to include 2,500 housing units and more green space. Other entities spent an additional $1.5 billion developing the real estate in the area since the Oilers announced their arena plans.
The Ice District now includes shopping and dining, office space, a casino, residential condos, a JW Marriott hotel and an outdoor plaza. OEG sold the commercial portion of the 69-story Stantec Tower for $400 million, as well as an office building to Alberta pension manager AIMCo for $300 million.
Despite playing in one of the smallest pro sports markets in North America, the Oilers have become one of the NHL’s most valuable teams, thanks to Rogers Place and the on-ice success on the backs of Connor McDavid and Leon Draisaitl. In October, the club ranked seventh in Sportico’s NHL team valuations at $2.4 billion, which does not include the value of the Ice District.
The team value will get a further boost if it can break the 32-year Stanley Cup drought for Canadian teams. Game 1 against the Panthers is Wednesday night in Edmonton.
