Local Group wanting to buy the Alouettes?

According to colleague Rejean Tremblay a group of Montreal entrepreneurs led by @rspeer of @AttractionMedia want to buy the @MTLAlouettes
Question one. How much are they willing to pay for the team.

Question two. How much does Mr. Wettenhal want for them and he is even interested in selling.

Everyone has a price but it would be nice to see them locally owned.

Anyone familiar with the names above?

Good find, MG!

Another question... With TSN owning the TV CFL rights, why would another media group be interested - perhaps I am reading too much into the name.

Anyway, anytime someone wants to buy, it is never a bad thing. :thup:

I'm guessing it's Richard Speer (Attraction's founder) leading a group to buy the team, not necessarily Attraction Media itself.

Wettenhal has mentioned in the past that he wants to keep the Als in the family but money talks, question is how much.

If this happens and Braley sells the Lions locally, then all 9 clubs will either community or locally owned which isn't a bad thing IMO.

Attraction Media is a young (2002) Media production company.
Company was founded by Richard Speer 42 years old.
President of The Academy Canadian Cinema.

Over 200 Employees
43 000 Square feet of downtown prime office space.
Bell one of his major clients. So is Astral
Revenues around 75 million a year (Self made, started with a bank loan)
Spouse Ruby Brown

Exactly what the Als need.

Lucky him. :thup:

Thanks for the background HfxTC

Sounds like this guy is legit. Only 42 years young. About the same age as Copeland here though Michael is not owership.

Still a fresh face from the lost generation. Hope this materializes and Mr. Wettenhal is motivated to sell. Though he's been a good steward of the team...seems worn down. Make it happen...welcome Als to the 21st century.

Edit: Whoops...typo there re: steward....thanks for the catch!

Leapin' Lonnie Glieberman & Horn Chen were indeed screwarts - but Uncle Bob Wettenhall and Moe Norman, Jr. (aka David Braley) are STEWARDS , , , , lol

Just glad to hear there is some interest in the team outside of the Wettenhall family to be honest. I know Montreal fans are not huge fans of his anymore.

He's been a great owner but nothing is eternal. The CFL has grown thanks to people like him but as we've seen with many teams change hands lately. The demands of a CFL franchise have grown about four fold. Where these teams use to be five million dollar toys, they are now 20 to 40 million dollar operations.

Lets just hope he's a good owner to the end and this deal doesn't fall apart or stagnates like the Argos did till there are less than 10 000 paying fans.

I wonder if the valuations of CFL teams have kept pace with the inflated values of other sports franchises? According to Forbes, the MLS Montreal Impact are worth US$128M with TFC @ US$175M. MLS teams have gross revenues comparable to CFL teams but lose money, while all CFL teams except the Argos reportedly made money last year.

Canadian football teams also have a 150-year track record in this country with most teams playing in newly refurbished or brand-new stadiums with improved revenue streams. The CFL's TV contract with TSN is lucrative and long-term, with good ratings averaging 500% higher than Canadian MLS teams. CFL teams also draw a higher average attendance than MLS teams.

Despite the CFL's rosy outlook the league is generally restricted to Canada with few locations to move a franchise...if one were to ever struggle financially. MLS franchises could supposedly move to another location in the U.S. (the Chattanooga Choo-Choo's anyone?) which boosts their franchise values exponentially compared to CFL teams...or so the story goes.

Considering the Als favourable stadium lease (and they have some upside attendance-wise) plus their lucrative RDS TV contract and sponsorships, I'd peg the Als value at a minimum of US$45M. :thup:

IMO you are way, way off. 7 to 15 million dollars Canadian. And the only reason it would go that high is because Mr. Wetenhall spend 3 million of his own money in the McGill renovations which is built in to his long term lease. This team has no facilities. no naming rights, no permanent advertizing at McGill, it is poised to lose money for years as they rebuild and are held up by the Big O renovations which may take a decade or more to get done.

The new owners would not be getting much more than what OSEG got for 9 million.

$45 million lol. HxTC is right. I would peg the Als at $10 million right now, maybe $15 million at most given their lack of assets. If the Big Owe’s roof is fixed and the city can host the Grey Cup on a regular basis like every 6 - 8 years then the value of the team would rise commensurate to that.

I dream of Ruby with the light brown hair - - - anyways . . .

10 to 14 million is the range for the Als franchise

You're not getting any land, building or real physical assets

Just a pile of player contracts (some useless), uniforms, training equipment and guaranteed coaching and management contracts (which a new owner will prolly want to turn over by at least 60% if not more)
A new owner will also receive guaranteed cash flow from TSN TV contracts but will have to work to generate more than the 17000 or so season ticket holders, generate better walk-ups and do an altogether superior job with Montreal and regional provincial media. Not to mention finding lay-down sponsors for stadium, program, local radio & TV.

If I were Ruby with the 42 yr old multi-millionaire hubby I'd suggest offering Wettenhall 7.5 million cash plus 1 million a year for next 5 years. Wettenhall could retain 20 to 25% of the team until he's paid out.

Well said. :thup:

Might be high, Xvys. But, then again, Braley got $10M for the Argos and wants $40M for the Lions so maybe you are right! My gut tells me between $20M - $25M.

I disagree because Mr. Wetenhall has no interest in selling. If I love my team and they offer me $7M - $15M, I tell them, "Thanks but no thanks". If they want W to sell, they have to make him an offer he will actually take. Again, it is $20M+.

Wetenhall is not going to this guy and saying he wants to sell. This man is asking Wetenhall. Again, unless this potential buyer makes it worth W's while, why would he sell? Anything below $20M and he tell the kid to go pound salt.

The more I think about it, the more I think Xvys might be closer than we think. :thup:

Think about it this way...

Someone knocks on your door, says they love your house and ask if you are interested in selling. At that point do you accept a low ball offer? Of course not. You negotiate the deal YOU want.

the Als are only worth precisely what any prospective buyer is willing to pay and the same goes with MLS teams despite Forbes' so called valuations lists.
Valuations are just that. Valuations, not binding tenders from authentic buyers.
that being said, well regarded financial publications can and do carry some weight just by affixing a set public value on sports teams or other businesses/corps.
(e.g. if Forbes valued the Als at $25 mil, there is a higher likelihood of attaining a purchase amount closer to that figure.)

IMO, the greatest assets the Als have are intangibles such as their deep history/goodwill, established client base and room for growth in the regional and/or Provincial market.
granted, their physical assets are limited although a favorable long term stadium lease is also a key component in attracting ownership.

If CFL franchise fees are in the $7-8 million range, it would not be unrealistic for the Als to get twice that amount (and possibly more) as a final sale price were Wettenal open to offers.

Exactly. This is NOT Braley trying to dump the Argos. This is a man with enough cash and family to run the team forever - and the desire to do so. Why would he accept anything less than what he wants? The more I think about it, the more I think my $20M may be low.

quite possible.
If I were Wetenhall I wouldn’t go any less than $20 mil due to the time and resources he has put into the club over the years.

Fix Olympic stadium and he may be able to get $25 mil or more.

Anything less than $20M is an insult and the group would be shown the door.

The problem is, too many people/posters are thinking about Braley and the Argos - someone who had no interest in the team and wanted to sell. That is not the case with Wetenhall. I am bumping up my minimum to $25M.

This makes a certain sense since league disbursements to teams have about doubled since Ottawa reportedly paid $7 million for the Redblacks franchise.

Having said that, none of us knows what the Alouettes books actually show. And I would think that would be the most important factor in determining value.

Then again, if the Argos actually sold for $10 million, the Als in comparison should go for a good chunk more than that. But again, none of us knows the real selling price there.

Anyway, will be interesting to see if this report has any legs. Wettenhall was reportedly one of Braley's guys on the BOG, so we could really see some new blood if both the Lions and Alouettes get sold.