HC Energie vs. the City of Karlovy Vary: When politics is moving with professional sport

11 Feb 2011 | Petr Polák

Money talks. You can see it everywhere. One should not be surprised that this is the case when it comes to the world of sports. However, in Karlovy Vary, Czech Republic, sports became a hostage of the diplomatic war between the Czech Extraliga club and the city hall.

What is the source of the problem? Before the season of 2009/2010, HC Energie moved from the old, inconvenient ice rink known as "Plecharéna"("Tin arena" in English), seating 4,680 spectators into the new KV Arena, equipped with maximum of comfort for players and 6,000 fans. Expenses for renting the KV Arena are, according to the statement of HC Energie GM Miroslav Vaněk, approximately three times of those of the old ice rink. In addition the city of Karlovy Vary, one of major club partners, is decreasing its financial contribution each year.

"In 2009 we received from the city budget 742,000€ (18 million Czech crowns), next year 528.000€ (13 mil. CZK) with the promise that after the end of the Women’s Basketball World Championship (that was held in Karlovy Vary in 2010) we’ll receive another 132,000€ (3,2 mil. CZK). But after last summer’s elections, the new municipal corporation disowned this idea," Miroslav Vaněk said in January, one week before the municipal corporation meeting, when the city budget for 2011 approving was on the agenda. "And this year? They would like to give us an even lesser amount – 465,600€ (11,3 mil. CZK)."

HC Energie also announced that it will be impossible to keep the club running if the city won’t increase their financial support. HC Energie will have to leave KV Arena, since the club is already late with the arena renting payments and they aren’t able to settle the debt without selling players.

The owner of the club, Karel Holoubek, asked fans and the people of Karlovy Vary for their support. A demonstration was planned on the day of the city municipal corporation meeting on the 25th of January, but finally it was postponed and the demonstration cancelled. Holoubek added that if the city won’t increase the budget for HC Energie, the club will leave the KV Aréna and move to nearby town Sokolov for the rest of the season, since the club won’t be able to pay the rent for the KV Arena rent. The club may also have to sell their Extraliga license if the situation hasn’t changed for the better after the season.

A small shootout in the Czech media was followed by negotiations. On the 4th of February the city made an interesting offer, suggesting the size of the budget for HC Energie be dependent on the club’s results and final ranking after the Czech Extraliga play-offs. Karlovy Vary will grant the club a million Czech crowns (app. 41.000€) if the club qualifies for the play-off preliminary round, followed by a million CZK each for fulfilling the following conditions: advancement into the quarterfinals, the semifinals, adjustment into the league finals, and winning the playoffs. This means a total of up to 5 million crowns (206.000€).

Yesterday Holoubek rejected this offer, stating that the city grants shouldn’t be dependent on the results of the Extraliga team: "If I would accept this offer, we will come to decision, that the offer is contravening the city’s grant conditions. From this reason I’m applying again for approving of my amendment: The city will furnish 577,000€ (14 mil. CZK) and I will try to assure the rest – 165,000€ (4 mil. CZK)."
It will be interesting to see if the club will reach its purpose or if the city will reject Holoubek’s offers, at the expense of a possible move of the Extraliga license.

The ice-hockey Extraliga, second to the women´s basketball is the only highest-level sport event in the city of a Russian minority. Soccer, together with basketball and volleyball ranks third. Together with the International Film Festival ice-hockey is the most popular cultural event in the spa city of the western Czech Republic.

Although the Plecharéna was intended to be just training field, the Extraliga club played there for 35 years
The club stayed in the old "arena" for almost 35 years, although the Plecharéna was originally meant to be used as the team’s practice ice rink. In the 70’s the first city arena holding a rink of synthetic ice was no longer meeting the needs of the team and audience, and the city of Karlovy Vary decided to build a new complex of two arenas: one for training and one for Extraliga games. Unfortunately when the construction works of the practice arena were done, the main arena wasn’t done and even if the training field was roofed in 80’s, the ice rink has never been a dignified Extraliga arena, already because of a „temporary solution" label. Especially in the 90’s and during the first decade of the new millennium, the club had to expound a lot of money for the Plecharéna maintenance. Finally in 2009, the modern KV Arena was built and the club is playing its Extraliga games there. Big cultural and other sport events also takes place here.