Regina's mayor Pat Fiacco says the Saskatchewan Roughriders generate many economic benefits to the city. (CBC)

The mayor of Regina is defending a deal with the Saskatchewan Roughriders football club that sees the team paying a relatively low rent as the major tenant of Mosaic Stadium.

"It's been subsidized ever since the Roughriders have been a tenant with the facility," Pat Fiacco, the mayor of Regina, told CBC News Thursday.

According to an agreement between the club and the city, the team's rent is fixed at 25 per cent of the Roughriders' net profit for a season, to a maximum of $200,000.

The five-year agreement was renewed in early 2010 for another five years.

Financial figures provided by the city of Regina reveal the annual cost associated with running the stadium is higher than the rent collected, averaging around $490,000 per year since 2002.

'I am a proud shareholder of the Saskatchewan Roughriders like every other fan is.'—Regina Mayor Pat Fiacco

The arrangement has benefited the team, especially in lean years. In 2002 and 2004 no rental payments were made. In 2006 only $120 in rent was paid for the season.

According to the city, the Roughriders' average annual rent from 2002 to 2009 was $106,000.

The club's fortunes, however, have been improving.

"We were pushing $2.8 - $3 million, somewhere in that range," Jim Hopson, the president and CEO of the Regina-based CFL franchise, told CBC News about current profit levels.

Hopson said questions about the rental agreement are best left for civic leaders.

"You should ask the city their opinion on that because they're the landlord," he said.

Mayor defends rental rate

Fiacco says there is more to the Roughriders than simply being a tenant in a stadium for ten events per year.

"I think we have to also consider the economic spin-off that it generates for the entire community, not just city hall," Fiacco said.

The club has also made significant contributions towards improving the city-owned stadium, by adding or improving various amenities. Figures provided by the team and the city show both have invested heavily in Mosaic Stadium capital improvements over the years.

Fiacco added there is also an element of civic pride attached to a team that is community-owned.

"I've asked everyone to wear green this week," Fiacco said, as the club prepared for the CFL western playoff final on Sunday. "I am a proud shareholder of the Saskatchewan Roughriders like every other fan is."

Fiacco also noted that the current rental arrangement would change if a new stadium is built in the city.

"That will be a negotiation between the owners of that facility and the Saskatchewan Roughriders," Fiacco said. "As we move forward, there's no question that the agreement is going to look a lot different."

The Roughriders have also acknowledged that if there's a new stadium they would pay a much higher rent.