Just came across this article in the Ottawa paper which speaks for itself.
Indicating there are 3-4 credible groups and how the league will be asking for a $6M franchise fee and equally as important a $10M security deposit. The latter which is long overdue.
Interestingly, the Watters group only paid $3.5M and did post a $5M bond, but this disappeared when the Gleibs took over and made a mess, paying no fee and no bond.
There is no question Tom Wright should never have accepted these clowns without at least the cash, but the BOG accepted same. Also as we know, it was the Gleibs or nothing situation.
Since this will no doubt be the last chance in Ottawa, they better get the correct owner and with the significant scratch.
Despite the suggestion, if they are not willing to pony up the franchise fee and the bond, I’d say no team, let’s move on out east to QC and Halifax.
CFL looking for cash in Ottawa
League vows to return to capital in 2007
Matthew Sekeres, CanWest News Service
Published: Saturday, July 08, 2006
FRANCHISES I OTTAWA – The Canadian Football League says there is a good chance it will return to Ottawa in 2007, but unlike earlier this spring, a new franchise will not be awarded minus an expansion fee and a security bond.
Commissioner Tom Wright told the Ottawa Citizen earlier this week the league’s newly formed franchise committee has settled on charging a prospective Ottawa owner a fee, perhaps as much $6 million, to acquire the franchise.
Moreover, it is believed a new owner would be required to post a $10-million line of credit – roughly the cost of operating the team for one year – from which the league could draw funds should there be any financial difficulties after an agreement is reached.
Wright said the franchise committee has established guidelines for an Ottawa team and that the amount of the expansion fee will be decided at the committee’s next meeting “in a week or so.” The line of credit, meanwhile, was introduced by former CFL commissioner Michael Lysko, who had the original Renegades ownership group, led by Brad Watters, post a $5-million bond to secure the franchise’s future.
Bernie Glieberman did not pay a franchise fee nor post a line of credit when purchasing the club in May 2005.
Watters’ group paid a $3.5-million franchise fee.
But both elements could be significant stumbling blocks for any new owner.
The expansion fee is a particular stretch given the team could have been purchased for next to nothing this winter. But not charging a fee also poses problems for the league because it suggests franchises have no value and because existing owners would lose money by splitting league-generated revenues nine ways instead of eight.
“I don’t think [the expansion fee] will be a deterrent at all,” Wright said.
Wright, who announced this week that he will be leaving his post after the Grey Cup in November, has called returning to Ottawa his first priority. He’s clearly determined to leave a legacy of nine franchises – the same number he inherited. An agreement with an owner would have to be reached by October.
“Beyond that, you’re looking at 2008,” he said.
Wright told the National Post this week three or four credible groups have emerged since the Renegades suspended operations in April.
One is fronted by former Parliament Hill chief of staff Anthony Primerano, on behalf of Golden Gate Capital Corp., a Toronto financial services company. Another comprises a group of American investors, who are led by a Canadian.