St. John's Edge not returning to Mile One, as city to announce new franchise

TheSt. John's Edge have played their last game at Mile One Centre, according to theCity of St. John's.

Ward 3 Coun. Jamie Korab who is also chair of St. John's Sports and Entertainment told reporters on Thursday the city and the ownership group of the Edge could not reach a lease agreement for next season.

But the city is preparing to welcome a new professional basketball team to Mile Once Centre this fall,aftercouncil and St. John's Sports and Entertainmentjointlyapproved aproposal from local ownership group 2001 Investments in July.

Negotiations are underway to finalize the tentative deal, with further details being announced in the coming weeks, Korab said.

"It's exciting to get an anchor tenant coming in here, one of hopefully a fewthat will have bums back in the seats, obviously abiding by provincial health orders," said Korab.

The new team will play in the American Basketball Association in the 2021-22 season. The league has been operating since 1999. The number of teams in the league seems to fluctuate from year to year, butthe rapidly expanding ABA has more than 130teams according to its website.

Korab said businessman Tony Kenny is part of the group bringing in the new team. In 2017 Kenny struck a lease agreement forMile One in an effort to bring in basketball team ahead of the Edge finding its home. Kennyhas also been a part of to past efforts to bring a major junior hockey franchise to St. John's.

The 10-year tentative agreement

As for hockey, Korab said SJSE is eager to get a leasesigned with the Newfoundland Growlers for the upcoming season.

In 2019, the cityannouncedit hadreached a 10-year lease agreement in principle with the Growlers and the Edge.

Korab said it was never signed by ownership groups,and in April both organizations were notified to come forward withproposals.

In November 2020 the ECHLsuspended play for its entire North Division, which includesthe Growlers, due to risks associated with the COVID-19 pandemic.

Atlantic Sports and Entertainment, the owners of the Edge, say they, too, are disappointed with the city's announcement.

"Our loyal fanbase deserved better, and after three successful seasons of being an anchor tenant at Mile One Centre, where we lead the National Basketball League of Canada in attendance, we deserved better," reads a media release issued shortly after 8 p.m. on Thursday.

Growlers owners wanted Edge

Meanwhile,Deacon Sports and Entertainment, the owners of the Newfoundland Growlers, say they're surprised by the city's announcement on Thursday of a new basketball club coming to St. John's.

In its own media release, the company said it recently submitted a proposal to SJSE,in conjunction with the Edge, in which Deacon Sports would assume the rights to the team, allowing it to continue to play in the National Basketball League of Canada, at Mile One.

The company said the proposal offered to settle the Edge's outstanding matters, including debtowing on the recently installed 360 LED boardinside Mile One Centre.

The Edge ownership group said that earlier this year it wasinstructed by SJSEto come to an agreement on a number of outstanding matters, whichincludeda resolution to debts owing on the recently installed 360 LED board.

Based on those instructions, according toAtlantic Sports and Entertainment, it"successfully negotiated a structured agreement to transfer the franchise rights of the St. John's Edge Basketball Club to Deacon Sports and Entertainment in an effort to settle those outstanding matters."

"This proposal was delivered to St. John's Sports and Entertainment last week by Deacon Sports and Entertainment, with the full support of Atlantic Sports and Entertainment," the release reads.

Atlantic Sports and Entertainment said it strongly believes that SJSE "acted in bad faith" through the lease negotiation process and that SJSE"never had any intentions to enterinto any lease agreement that saw Deacon Sports and Entertainment oversee the operation of the NBL Canada franchise thus misrepresenting our loyal fans and the taxpayers of the City of St. John's."

Korab said the city went through the proposal andthought the dealfrom2001 Investments was a better fit for tax payers and SJSE.

"It wasn't something that was done in the media. It was a great process and it's going to be something that's great for Mile One," he said.

Korab said he couldn't comment on the Edge's outstanding debts.

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