Summerside's Canadian Junior A hockey team says efforts to negotiate a new contract with the city have failed and it is looking for a new host city.

The contract between the Summerside Western Capitals and the city ended last week.

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The Western Capitals may have played their last game in Summerside. (Hockey Canada)

"There were slashed sponsorship dollars, signage, increases in other areas, it was a significant turnaround from the current contract that we had," said general manager Pat McIver.

"If we come back under the contract that's been offered to us, ownership will continue to lose money, with us playing as late as we did this year, it hasn't left us with much time to work some of these details out."

The team has been playing in Summerside for 32 years.

Summerside CAO Gordon MacFarlane said the city has a lot of respect for the Western Capitals. MacFarlane said the city is interested in keeping the team, and is still hopeful it can negotiate a contract that's suitable for everyone.