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Argos' Future In Limbo

http://www.theglobeandmail.com/sports/football/argos-on-the-outs-in-bmo-field-dispute-between-mlse-and-federal-government/article18862832/

 

The future of the CFL in Toronto has been thrown into renewed turmoil after a backroom fight between Ottawa and the country’s largest sports concern.

 

Maple Leaf Sports & Entertainment – owner of the Leafs, Raptors and Toronto FC – has cancelled plans to include the Toronto Argonauts in their renovation of BMO Field.

 
As of 2018, this would leave one of the continent’s most historic sports franchises without a venue in which to play. Right now, they are caught in a next-level bargaining war between two much bigger players.

As ever, the issue is money.

 

MLSE had planned a phased, two-year renovation costing $120-million. They had hoped for financial help from all levels of government. That was to include a $10-million loan from the city, and $10-million grants from each of the provincial and federal governments.

 

As part of that agreement, room would be made to accommodate the larger dimensions of the CFL playing surface, as well as a promise to buy the flagging football team.

 

However, long after public announcements were made, Ottawa has yet to sign off on its part of the expenditure. Their apparent problem – the optics of funding sports stadiums.

 

MLSE provided several fig leaves to give the government cover – including parceling the money into grants for expected big events like the Winter Classic and the Grey Cup, planned for BMO Field.

 

MLSE argued that the construction taxes alone – an anticipated $18-million – made the deal watertight politically. The feds thought otherwise, and continued to delay.

 

As Ottawa dithered, MLSE lost patience. They will now go ahead without the federal money and, as a direct result, without the Argos.

 

There is an added element of urgency, as BMO Field must be ready to host rugby matches for next summer’s Pan-Am Games.

 

New architectural plans have been drawn. A $120-million reno becomes a $100-million one. The arena will be rebuilt to its current dimensions, meaning there will be no north-south extension and no room for football end zones. Ground will be broken in September.

 

The city is expected to sign off on the revised, soccer-only plan. MLSE has received assurances that the province will do likewise if the Liberal government of Kathleen Wynne survives a June 12th election. Wynne currently leads in the polls.

The decision has several roll-on effects.

 

Since there is no suitable alternative, it puts the Rogers Centre back in play as a football venue. That, in turn, creates a logistical problem for the arena’s plans to move to a grass field for baseball. The Argos were asked to leave at the end of the 2017 season because football is too hard on indoor grass.

 

It also ends MLSE’s interest in buying the Argos, putting them back on the market.

 

Within much of the MLSE hierarchy, buying the CFL team was seen as a favour being done in return for the opportunity to service the fans of Toronto FC. Without federal co-operation, no one feels the need to do any more favours.

 

It goes deeper than that. There is the strong sense within MLSE that Ottawa has let them off the hook. Supporters of the soccer club were deeply opposed to lengthening the field to accommodate the CFL. MLSE now gets to serve its base without taking the blame for a failed plan.

 

One voice within the corporation that will feel aggrieved is MLSE chairman Larry Tanenbaum. The minority owner is still on the hunt for an NFL franchise, possibly the Buffalo Bills. That team is in legal limbo following the death of founder Ralph Wilson, but is expected to hit the auction block in coming months.

 

While intrigued by the north-of-49 possibilities, the NFL does not want to be seen as undermining Canadian football. The league has made it clear that, if they were to allow a move to Toronto, they would prefer the prospective new owner also be in control of the Argonauts. As they see it, one owner for both teams guarantees the CFL’s long-term survival in Canada’s largest market.

 

Those are a great many reasons to find some sort of compromise, which MLSE has already provided on the back end.

BMO Field Renovation 2.0 is reversible. The north section of the structure will remain open, using only temporary stands, meaning that the arena can be adapted for the CFL at some future point.

 

That will now require the promised $10-million in federal money (easy to give) and a very public capitulation from Ottawa (somewhat more difficult).

 

In the end, this is no end at all. Instead, it is a shotgun clause by alternate means.

 

All this proving again that the business of sport is usually a good deal rougher than the playing of it.

 

Featured Replies

The Wynne government (Ontario Liberals) have already told MLSE that if they win the election MLSE will get their money.

The Wynne government (Ontario Liberals) have already told MLSE that if they win the election MLSE will get their money.

Quelle surprise! But welcome.

  • 1 month later...

uh oh spaghettios

 

Bob McCown @FadooBobcat

MLSE will not buy Argos and move them to BMO. Asking price was 10 million+ percentage of future Grey Cup revenue. Deal is dead.

 

The percentage of future Grey Cups is a ridiculous ask.  The team needs that revenue to even have a chance of breaking even.

Well, they can go play all their games at varsity in front of 5,000 people sellouts I guess. 

I think the stadium issue will be hashed out eventually but the best thing for the Argos in my eyes is if they end up under the umbrella of MLSE.  That is the only organization in Toronto that has the money and marketing power to keep the Argos on life support.  A private owner has no chance of turning that ship around.  In my mind it's going to take a marketing miracle to make the Argos and the CFL popular again in T.O.. 

On the same thought line...I've noticed over the last 20 years the CFL has developed the stigma of becoming a feeder league for the NFL with all of the best players constantly looking Southward.   Didn't used to be that way or it at least it wasn't so obvious.  To me this has diminished the image of the product and that is probably the biggest problem in T.O. right now.  I think this trend can be connected with the one and two year contracts the players are signed to now which allows for a quick escape once they've demonstrated capability.  Cream of the crop developed in Canada is now skimmed off from the draft on up and thus star power and player continuity is diminished. 

 

Wish we could hold the best players here with 3-5 year contracts but realize the difficulties of making that happen, I'm well aware that you can't turn back time.  I think the NFL used to take more of a big brother/hands off approach to the CFL but now it seems to enjoy picking the apples without providing the orchard with any fertilizer.

Unfortunately the NFL feeder system just got enhanced by the elimination of the option year clause. At least when the NFL window was there you had a chance of getting a layer back for his option year.

We've been here before- again and again with the Argos staggering from one crisis to another. The new stadium will be built, in all likelihood, and that ought to give the team a decent chance of becoming both profitable and attractive to fans. MLSE has the ability to market the team well, so they would seem to be the best option, but the current owner needs a jolt of reality.

I've always wondered if the cfl would be better served by having 2 (or more) teams in Toronto. It's a different way to look at it for sure but it seems to me that individual teams in Mississauga, Etobicoke, North York, Scarborough (or whatever divisions make sense) would do as good or better than the Argos. Of course, that ignores the obvious question of where these teams would play, but the Montreal model of 20-25k seems to be doing OK.

On the same thought line...I've noticed over the last 20 years the CFL has developed the stigma of becoming a feeder league for the NFL with all of the best players constantly looking Southward.   Didn't used to be that way or it at least it wasn't so obvious.  To me this has diminished the image of the product and that is probably the biggest problem in T.O. right now.  I think this trend can be connected with the one and two year contracts the players are signed to now which allows for a quick escape once they've demonstrated capability.  Cream of the crop developed in Canada is now skimmed off from the draft on up and thus star power and player continuity is diminished. 

 

Wish we could hold the best players here with 3-5 year contracts but realize the difficulties of making that happen, I'm well aware that you can't turn back time.  I think the NFL used to take more of a big brother/hands off approach to the CFL but now it seems to enjoy picking the apples without providing the orchard with any fertilizer.

 

Not even close to being the problem in Toronto.  I'd bet substantially that this problem has not even made it into any discussions on Toronto.

 

You really believe that losing Armond Armstead or Chad Rempel was noticed in Toronto by the guy with 2 kids who might buy tickets to 1-2 games a season, and that's keeping the fans away? 

 

Here's the problem.  1. They play in a facility that is horrible for football.  2. They play in a facility where they are treated as fourth class tenants, meaning they get the crappiest dates.  3. They play in a facility that is generally far from their casual fanbase in the suburbs.  4. That crappy facility is evicting them.  At the moment, this is the biggest problem.  

 

There is a public and political lack of appetite to contribute further to sports facilities after the Pan Am Games, so rather than getting an ideal facility in a suburb like Markham off a 400 highway, the Argos have to piggyback on MLSE at BMO Field just to have a place to play.  Will BMO go over with the casual fans they need to attract?  Probably not.  Atmosphere will be better, but the prospect of storms off the lake could interfere with a number of games each season.  BMO is a little easier to drive to (still relying on the Gardiner for suburban fans though) than the dome, but worse by transit, basically the same as the dome plus a streetcar ride.

all part of the dance.

 

Rogers is just using their approved channel (McCown) to fire another warning shot across the Feds and League's bows. The part of BMO that could make it CFL-adaptable wouldn't have to be started on until almost the end of the renovation as a whole (think like 2016).

 

figures and timetables have been pretty much agreed to between the team, MLSE, city and province... this last bit is the prospective owner trying to squeeze a bit more out of the Feds and league (as is their right and frankly they are smart to do it now)

 

i honestly feel like there's nothing to see here.

 

On the same thought line...I've noticed over the last 20 years the CFL has developed the stigma of becoming a feeder league for the NFL with all of the best players constantly looking Southward.   Didn't used to be that way or it at least it wasn't so obvious.  To me this has diminished the image of the product and that is probably the biggest problem in T.O. right now.  I think this trend can be connected with the one and two year contracts the players are signed to now which allows for a quick escape once they've demonstrated capability.  Cream of the crop developed in Canada is now skimmed off from the draft on up and thus star power and player continuity is diminished. 

 

Wish we could hold the best players here with 3-5 year contracts but realize the difficulties of making that happen, I'm well aware that you can't turn back time.  I think the NFL used to take more of a big brother/hands off approach to the CFL but now it seems to enjoy picking the apples without providing the orchard with any fertilizer.

 

Not even close to being the problem in Toronto.  I'd bet substantially that this problem has not even made it into any discussions on Toronto.

 

You really believe that losing Armond Armstead or Chad Rempel was noticed in Toronto by the guy with 2 kids who might buy tickets to 1-2 games a season, and that's keeping the fans away? 

 

Here's the problem.  1. They play in a facility that is horrible for football.  2. They play in a facility where they are treated as fourth class tenants, meaning they get the crappiest dates.  3. They play in a facility that is generally far from their casual fanbase in the suburbs.  4. That crappy facility is evicting them.  At the moment, this is the biggest problem.  

 

There is a public and political lack of appetite to contribute further to sports facilities after the Pan Am Games, so rather than getting an ideal facility in a suburb like Markham off a 400 highway, the Argos have to piggyback on MLSE at BMO Field just to have a place to play.  Will BMO go over with the casual fans they need to attract?  Probably not.  Atmosphere will be better, but the prospect of storms off the lake could interfere with a number of games each season.  BMO is a little easier to drive to (still relying on the Gardiner for suburban fans though) than the dome, but worse by transit, basically the same as the dome plus a streetcar ride.

 

 I understand all the other issues at hand with ownership and playing facilities but I guess what I should have said is the biggest "underlying problem" in T.O. is the CFL's image as a second rate league.  No reason (other than all the reasons you stated!) in a city that size that they couldn't have season ticket sales of 30,000 on a regular basis considering the teams they've put together in the past 5 years.  Relying on the fan that attends one or two games a year is a crap shoot as the life blood of survival is season ticket sales. 

 

I think there is some merit to the idea of establishing a regional team or teams in some of the bigger suburbs if the fan logistics and facility issues are positive.

The percentage of future Grey Cups is a ridiculous ask.  The team needs that revenue to even have a chance of breaking even.

 

"Here's a franchise that's been losing money since before most of us were born.  It makes money once every 5 years by hosting the Grey Cup.  For Sale.  As Is.  Except the money-making part.  Keeping that."

all part of the dance.

 

Rogers is just using their approved channel (McCown) to fire another warning shot across the Feds and League's bows. The part of BMO that could make it CFL-adaptable wouldn't have to be started on until almost the end of the renovation as a whole (think like 2016).

 

figures and timetables have been pretty much agreed to between the team, MLSE, city and province... this last bit is the prospective owner trying to squeeze a bit more out of the Feds and league (as is their right and frankly they are smart to do it now)

 

i honestly feel like there's nothing to see here.

From the beginning it has always sounded as though MLSE didn't really want the Argos, just use them to get the BMO face-lift (which is now happening without the Argos involved) and eventually bringing the wet/pipe dream of the NFL.

 

Braley has absolutely zero leverage in this, he wants to sell, nobody wants to own. IIRC there was one radio interview that I heard Commissioner Cohon even stating that they were begging/trying to convince MLSE to buy the team. Honestly considering how crappy the potential lease agreement is and knowing how much Rogers loathes the CFL it sucks that MLSE is the only option, because I could see the Argos dying quickly under them, although they're dying as is anyways.

 

all part of the dance.

 

Rogers is just using their approved channel (McCown) to fire another warning shot across the Feds and League's bows. The part of BMO that could make it CFL-adaptable wouldn't have to be started on until almost the end of the renovation as a whole (think like 2016).

 

figures and timetables have been pretty much agreed to between the team, MLSE, city and province... this last bit is the prospective owner trying to squeeze a bit more out of the Feds and league (as is their right and frankly they are smart to do it now)

 

i honestly feel like there's nothing to see here.

From the beginning it has always sounded as though MLSE didn't really want the Argos, just use them to get the BMO face-lift (which is now happening without the Argos involved) and eventually bringing the wet/pipe dream of the NFL.

 

Braley has absolutely zero leverage in this, he wants to sell, nobody wants to own. IIRC there was one radio interview that I heard Commissioner Cohon even stating that they were begging/trying to convince MLSE to buy the team. Honestly considering how crappy the potential lease agreement is and knowing how much Rogers loathes the CFL it sucks that MLSE is the only option, because I could see the Argos dying quickly under them, although they're dying as is anyways.

 

Perhaps the key is for TSN to acquiesce and give Rogers the rights to broadcast all Argo games. Wouldn't be that bad a concession, would it? Of course, Rogers would have to pick up the cash difference lost by TSN giving them Argo TV rights.

 

 

all part of the dance.

 

Rogers is just using their approved channel (McCown) to fire another warning shot across the Feds and League's bows. The part of BMO that could make it CFL-adaptable wouldn't have to be started on until almost the end of the renovation as a whole (think like 2016).

 

figures and timetables have been pretty much agreed to between the team, MLSE, city and province... this last bit is the prospective owner trying to squeeze a bit more out of the Feds and league (as is their right and frankly they are smart to do it now)

 

i honestly feel like there's nothing to see here.

From the beginning it has always sounded as though MLSE didn't really want the Argos, just use them to get the BMO face-lift (which is now happening without the Argos involved) and eventually bringing the wet/pipe dream of the NFL.

 

Braley has absolutely zero leverage in this, he wants to sell, nobody wants to own. IIRC there was one radio interview that I heard Commissioner Cohon even stating that they were begging/trying to convince MLSE to buy the team. Honestly considering how crappy the potential lease agreement is and knowing how much Rogers loathes the CFL it sucks that MLSE is the only option, because I could see the Argos dying quickly under them, although they're dying as is anyways.

 

Perhaps the key is for TSN to acquiesce and give Rogers the rights to broadcast all Argo games. Wouldn't be that bad a concession, would it? Of course, Rogers would have to pick up the cash difference lost by TSN giving them Argo TV rights.

 

 

There is absolutely no reason for TSN to give Rogers anything. FYI - Bell Media is a part owner of MLSE just like Rogers. No way would the League agree to something like that and, from a practical, technical and every other aspect it couldn't be done even if they wanted to do it (with either Rogers or Leafs TV). Besides, Rogers has made it very clear they don't want to broadcast CFL games.

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