TMCnet News
Argo-nots NOT AN OPTION [Winnipeg Free Press (Canada)](Winnipeg Free Press (Canada) Via Acquire Media NewsEdge) CFL would have a difficult time thriving without a team in T.O. It's difficult these days to make the argument Toronto would miss the Argos. But the CFL can't afford to face life without a franchise in Toronto. It's long been the default position among CFL observers a team in Toronto is a necessity and, despite a ninth franchise in Ottawa, burgeoning strength in pockets around the league and a wave of new stadia, this remains the case. The Argos, despite their current state of emergency, aren't folding anytime soon. The rest of the league can't let it happen. Were owner David Braley to decide he'd had enough and hand back the keys to commissioner Mark Cohon, the league's remaining eight clubs would be forced to chip in and operate the franchise until a new owner could be found. Come to think of it, such a scenario might ease the path to new answers and a new day in Toronto. But, despite Braley no longer wanting to own the Argos, this isn't likely to happen. Braley wants out, but he wants out on his terms, which has become increasingly problematic. The Argos have been told by their current landlord at Rogers Centre they must find a new home by 2018. They've left it too late to consider the long shot of a new stadium development. No, the Argos have but one option and that's Maple Leaf Sports and Entertainment-controlled BMO Field. Earlier this summer it appeared this most obvious of marriages would reach a happy conclusion. But as the deal neared completion, Braley pushed a little too hard and things went south. Braley and Cohon have publicly insisted talks will continue but it's been crickets from MLSE. Maybe it's brinkmanship. Braley wants his price and he's waiting for MLSE to capitulate -- except it's hard to imagine MLSE really caring enough about the Argos to actively engage in such a game. Sure, they'd like the extra dates at BMO Field. The hassle of getting government money and kicking in millions of their own to make the soccer stadium more football friendly, however, precludes any chance of MLSE being a motivated buyer. MLSE isn't interested in what Braley has done for the CFL. They're interested in what the Argos can do for them. As a stand-alone small business in Toronto, competing against the Maple Leafs, Raptors, Blue Jays, Toronto FC and Toronto Rock, not to mention the myriad of entertainment options available, the Argos don't work. Fold them into a bigger family with ticket and sponsorship synergies and they have a chance at turning a modest profit. But as they sit right now, paying rent in a cavernous stadium that doesn't promote scarcity of ticket and recording poor attendance figures the Argos are a money loser. Stadiums are still the key revenue drivers in the CFL and without a building, a franchise is next to worthless. Braley has no stadium. MLSE does. One can see where the leverage rests here. The Argos have been reduced to the point where they barely register on Toronto's sports and entertainment landscape. When even the owner is disinterested, rock bottom isn't far off. But the CFL can't afford to let the Argos fail. Even with empty stands, the franchise and its position in Canada's most important corporate market is still key. "Any big brand, any national brand that is going to participate in a league-wide basis, you have to have Canada's biggest market regardless of the number of people who show up at the games," said Brian Cooper, president and CEO of S & E Sponsorship Group, a leading Canadian firm specializing in sponsorship strategies. "The fact is, whether it's from a hospitality perspective, whether it's from the possibility of hosting a Grey Cup there every four or five years, as well as the broadcasting numbers, you need Toronto. Another thing is the optics of it: You would have a national football league per se that didn't have Canada's biggest market." Cooper says national firms just won't buy the CFL if there's no Toronto. "The exposure a sponsor receives in Toronto, on the broadcast to the viewing public both nationally and in that marketplace, is going to take a significant hit. Therefore the value of a sponsorship is going to go down for the entire league. Or they won't even look at the CFL. Regardless of the fact they are only seeing 14,000 people at the game, they're missing the market. You cannot sell a national package without Toronto," said Cooper, who was president of the Argos during the John Candy/Wayne Gretzky/Bruce McNall ownership days. "We're in the business of working with clients that buy sponsorship packages. That's all we do. Whether its Scotiabank, Sportchek or Canadian Tire or whoever, if you don't have Toronto, they're not interested. Not if they are a national brand." Mark Harrison, president of TrojanOne marketing, says no team in Toronto would threaten to stall much of the good work the current CFL administration has done. "I think the CFL could survive. I don't necessarily know if it would thrive. If you think about it today, Southern Ontario is a priority market for the league. It would be hard to imagine a league without Toronto," said Harrison. "Not having the history and nostalgia of the Argos but also, Toronto is the corporate capital of Canada right now and if you're not offering live opportunities in this backyard, it would a more challenging selling proposition." Cohon, who recently announced this will be his last year as commissioner, can't let Toronto fail. It's a curious set of circumstances. The league is facing its greatest crisis and they're letting their leader move on. Say what you will about Cohon, but he's been able to close big deals (an historic broadcast agreement) and help complete large projects (expansion to Ottawa and new stadiums in several markets). There's absolutely no way the league should have accepted his resignation. They should have galvanized his strength and begged him to stay until he could complete a sales transaction of the Argos. Cohon has deep ties within MLSE and strong relationships with Larry Tannenbaum, the Rogers family and Bell. The two companies, Bell and Rogers, which own MLSE have different interests where the Argos are concerned. Bell owns TSN and would like the Argos to thrive. Rogers' holdings include Sportsnet and they have no stake in the CFL. Cohon has the relationships to bridge these differences and should play a major role in this transaction, whether it's a purchase or the negotiation of a lease for the Argos at BMO Field. For some reason, Cohon is on the sidelines. It's a mistake. Every team in the CFL needs this sale to happen. The $40 million or so a year TSN spends to broadcast CFL games was negotiated based on a league that includes a team in Toronto. Carving out Toronto would diminish the brand and the reputation of the entire league. Even with an active presence in Toronto, the CFL is considered minor league by many in the market. Cohon hasn't been able to lead Braley to the water, let alone force him to drink. It's time for some intervention from other fronts. Cohon can play rainmaker. But the rest of the CFL will first have to force Braley to give up his umbrella. [email protected] Twitter: @garylawless (c) 2014 F.P. Canadian Newspapers Limited Partnership |