All teams profitable, Xcept TiCats and Argos

During his annual state of the League address, Commissioner Cohon stated that the TiCats and the Argos were the only teams to not make a profit this season, although believes the near future is bright for both clubs.

But, but I thought CFL is not viable in the current IWS location. :roll:

I kind of take that as: the reality is a loser, but the dream has some potential.

The Ticats don't make money now (and presumably haven't during BY's time as owner or for many years previous to that), but maybe somehow they could make some in future. This is good PR in the state of the league address, but it sounds more like "we need a Hail Mary play" than "we have a plan we're following and have confidence in".

That doesn't seem like viability to me, unless one defines viability to mean we lose money every year but have an owner who is willing to accept that indefinitely.

It sure doesn't look like a path toward profitability unless ticket prices go up significantly (attendance can't increase in a smaller stadium), and non-ticket revenues also go up.

I suppose they could always cut costs (reduce player payroll; eliminate a layer of management; something else....) but these costs are incurred to support the product and the revenue stream. We had a player and payroll fire sale after the 1999 GC win-- that started a downward spiral from which we have yet to fully recover.

I'm not sure the CFL is viable (in the sense of breaking even now and having a realistic chance to make consistent profits) in the Hamilton area at all. The team had better attendance 40 years ago than it does now. If a wealthy owner like BY who invests money, time, energy and passion in the team can't make it a success, I don't know who can.

That surprises me that only 2 teams wer in the red. As a rookie CFL watcher, first full season, two things I noticed were the small stadiums and the empty seats. What is the average team payroll compared to the NFL? About 20%? I guess I answered my own question.

Salary cap is approximately $4.3 million per team.

Max salary cap was $4,350,000 in 2012; the max. in NFL was/is $130.0 millions. One NFL Team pays roughly 3.7 times more than all 8 CFL Teams combined.

In the CFL,TV revenues represent roughly 40% of players salaries,whereas,in the NFL, TV revenues pay/ areequivalent to players salaries.Two different worlds!


Not sure what to say really. New stadium is coming and that is super. Really wondering what will happen with the Argos. That's a key question.

In some ways, as much as I love the IWS site for so many reasons the first one being it's fairly close to my house, I almost wish the city didn't offer up the $40 mill as I think we could have seen soemthing happen with a stadium with direct GO service, highway accessibility and lots of onsite parking combining the efforts of Young and Braley in a Mississauga area. With one team. But $40 mill is $40 mill, Bob would have been crazy to turn that down even though he almost did. :o :wink:

I can see the Ticats making money in the future in the new stadium. As the team president said in his interview, the team needs to sell 22,500 tickets per game at $50 average. On top of that there are the sales of the new Private Suites, Club Seats, Naming Rights then an increase in the corporate community involvement/advertising etc
A new stadium with better more comfortable seating, better concessions, restaurants and overall game day experience should easily have no problem in filling the stadium.

I think Toronto as a CFL city is a lost cause, and they will be gone in a couple of years.

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Not sure mike about Toronto, we'll see, as I say, will be very interesting after Braley says to Toronto "ok boys, now it's up for grabs, you want it or we put it into limbo land". If people in Toronto thought, as one writer said, Braley is nowhere to be seen this year, he will be a ghost come the minute GC 2012 is over.

The average salary for a:
CFL player: $81,000
NFL player:$2.0 millions
NHL player: Was $2.5 millions in 2011-2012; would have been $2.2 millions in 2012-2013,had they accepted the Owners original offer. I am not/won't cry for them. Better paid players in professional sports.


TSN has the rights to the CFL for $16M($2M/team)
After next season the rights are up for grabs and it appears that 4 networks will be involved .
TSN,CBC and Sportsnet (The Score).
The new rights contract to be split between the 3 networks is rumoured to be up to $40M($4.44M/team{9teams})
That is a substantial raise in revenue for teams.


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[i]TSN, which exercised its option for 2013, pays $16-million a season for its rights to the CFL. It has a window next spring to do another deal with the CFL, but sources tell Daily Grind the league wants in the neighbourhood of $40-million on a new contract.

Even in today’s world of inflated TV-rights packages, that dog won’t hunt with a single Canadian broadcaster.

Thus, the CFL needs to get the CBC back in (the 2007 Grey Cup was its last game). Sportsnet is also interested and might park a CFL Thursday night package on The Score (which it recently purchased). Using three networks, the CFL could get a lot closer to $40-million than with just one.[/i]


Does anyone know how much the naming rights will be to IWS2?> will it be enough to give the Ticats/Mr. Young a shot in the arm financially?

The grey cup game needs to be in toronto every 5 years. nothing increases the league's visibility and garners as much media attention in the area like a grey cup game. Really gotta keep coming back to keep the momentum.
Not only that, but, it creates a $12 million profit for the argos, which covers the losses they incurred the other years.
The league's sponsorship as a whole is up, in large part, due to the grey cup being in the centre of corporate canada.

This market cannot go 10 years between grey cup games, like other markets can. That is just reality.

The league is only as strong as it's weak link. Strengthen that link, and strengthen the league as a whole.

Does anyone know how much the naming rights will be to IWS2?> will it be enough to give the Ticats/Mr. Young a shot in the arm financially?

Or the city although it seems the city wasn't all that interested in not having a highway accessible visible stadium. But that was their choice.

I'm sure the TiCats would've been fairly close to breaking even this season if not for the many expenditures with respect to "The Final Year" celebrations.

To be clear, not say that they would've be profitable, cause none of us would know without looking at the financials, just saying I think the team (Bob Young) expended much more this season due to its historical significance than in a normal year.

And I would assume that the "investment" by the league into the TiCats as part of their investment into southern Ontario is treated as a debenture/liability/capital adjustment, thus affecting their profitability.


Wow, that's terrific! Hope it happens!

Thanks for sharing this Grover!

Cohon said. "But longterm I think in terms of looking at professional sports teams you're looking at the size of the Ticats stadium, the size of the stadium in Ottawa, all around 24,000, that's perfect for CFL football . . . and I've talked about a strategy around potentially a new stadium around the Toronto region."
I've heard the Pan Am athletics stadium at York U.
Cohon provided a positive outlook for the CFL, stating attendance, television ratings, revenues and sponsorships all increased in 2012. He said TV viewership in Ontario of Argos and Ticats games shot up 20 and 11 per cent respectively this year.

Overall, viewership was up six per cent on TSN and four per cent on TSN and RDS combined. The average audience of 728,000 was up 27,000 per game over last year.

That's good news considering the CFL is entering into the final year of its TV deal. TSN and the league can extend the agreement before it expires, but if that doesn't happen it would allow CBC and Rogers Sportsnet, which reportedly both have an interest in CFL games, to enter the bidding.

"TSN has been a great partner," Cohon said. "But we also know we're well positioned because there are other entities out there that are extremely interested in our property."

If the new contract is worth $40m, there is no doubt that the players are going to say that with a huge TV contract, the salary cap must be doubled. They will probably demand at least a doubling of the salary cap.

Does anyone know how much the naming rights will be to IWS2?> will it be enough to give the Ticats/Mr. Young a shot in the arm financially?
I think they are expecting around $500,000 a year over 20 years. This was from the City of Hamilton financial report on the new stadium:
"Naming Rights Revenues: The Tiger-Cats would pay the City 90% of the first $500,000 annually and 50% of any amount over $500,000. For the purpose of this analysis, staff has assumed that naming rights revenues would be used to offset capital construction costs
The City of Hamilton is taking a chunk of the naming rights plus a $3 per ticket surcharge. In total the City will get around $1.5 MILLION a year from the Ticats - tickets, naming rights, advertising per centage

In Ottawa they are talking about $50 Million for naming rights

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To hear any conversations about who gets the money from naming rights might be premature, it was Bob Young himself that said they couldn't even get enough for naming rights at this location to pay for the scaffolding required to changed the sign.