Successful St. Louis team helps in other teams valuations

A St. Louis Americans CFL owner could own the wealthiest club in the CFL because of the cap and US income. If they had an average of 30000 fans a game (Baltimore had 37000) they would become the richest club in the CFL. Realistically the team could be on par with Saskatchewan if successful. The financial valuation of such a franchise would be a multiple of its earnings. Probably more than they paid to join . If they helped in obtaining additional ESPN money "game of the week on ESPN" as another poster stated it must help to change the value of the existing CFL clubs. MLS as an example has much higher franchise valuations than our league.

I can't see how the CFL owners would not at least study this idea as it can only mean their own franchise values would be worth more - used the St. Louis Americans name because of a U.S. CFL site. They have a US flag on the side of the helmet. I can see it would help in the marketing for sure

and would they be able to set a lower cap for a USA team.

X amount cap for Canadian teams = X * exchange rate for USA team

Of course anything strictly Canadian in the entertainment/sporting world is going to have lower franchise or market value than if that product or service can be successfully exported to the US where huge television and market share is available. That is why the NHL is much more interested in US markets than Canadian even though hockey is, or at least has been, Canada's no. 1 sport.

Did the US based teams of the 90s raise franchise values? How much money off US networks did they make back then?

In all of the other CFL to St Louis threads, I’ll say the same thing. Is there an ownership group that actually wants to put a team there?

Is there a viable stadium plan? With today’s TV money and average ticket price, the break even point in terms of attendance is lower than 20 years ago.

I’ve heard around 20-22K give or take. If that is accurate, does the Edward Jones Dome suit today’s CFL needs? Never mind if the CFL field fits, not sure there. Would a planned MLS stadium work instead? Comes back to if the prospetive owners there want to put the CFL under its wings.

Not saying a definite no, but lots of questions to be answered.

I think a good starting point would be to stage an exhibition game here to guage interest. There's a huge void created by the loss of the Rams. I like the idea of a possible shared use of an MLS stadium. I don't think the use of the Edward Jones Dome is viable long term. Putting an average of 25k people into a stadium that holds 66k is a formula for failure. There's seems to be a groundswell of support for a MLS team. They're scouting potential sites for a stadium now. If it happens, hopefully they will build it to accommodate the CFL. Time will tell. For now, I'll keep watching on ESPN......

As has been discussed ad nauseam, whether the team could draw fans or TV interest is relatively irrelevant; the first issue is whether the CFL wants to risk the team being decently run and recreating the emergent Baltimore Stallions dynasty from the last US expansion, or just eliminate the ratio to level the playing field for all teams.

This is for Thursday night NFL games only. If we could only get a small piece of this.
"Multiple sources said CBS and NBC each paid $225 million for the deal, or $45 million per game". This is only for Thursday night. We don't even get 45 million for the entire season.

You know there is a sticky...which is why your last thread poofed on you. It was moved there

This is a good point. The increase in CFL franchise values due to a successful U.S. team shouldn't be understated. The main reason some CFL teams are supposedly "worthless" according to media pundits, is franchises can't be relocated to other Canadian cities due to a lack of stadiums and/or market size. Because CFL franchises also can't be relocated to U.S. cities, that supposedly drops their value to 1/10th of a Canadian MLS team, which average US$140 million (according to Forbes).

CFL teams' average gross revenues are similar to Canadian MLS teams. The difference is all CFL teams will be profitable this season while the MLS teams lose a substantial amount of money. But MLS teams are supposedly worth so much more because they can be moved to another U.S. city?

So if a CFL franchise in St. Louis were as successful as the Stallions were in Baltimore and could sustain that success for at least 3 seasons...then other U.S. cities could be considered for CFL expansion or relocation. This factor alone could have a substantial positive impact on CFL franchise values.

A sports franchise is only worth what somebody is willing to pay for it. The last reported sale was the Calgary Flames acquisition of the Stamps several years ago, which pegged their value at $20 million. That was before the doubling of TSN's TV contract and the emergence of all CFL team's into profitability (the Ticats last year and Argos this season).

With all the new CFL stadiums being built, including the $600 million upgrade to B.C. Place and the fabulous new Mosaic Stadium, this should further enhance the long-term viability (and value) of CFL teams.

If the Whitecaps and Impact are worth US$125 million (TFC US$175M), there is little reason why CFL teams (if they could potentially be relocated to U.S. cities) shouldn't be worth at least half as much.

So CFL franchise values could balloon to C$85 million to C$180 million if the St. Louis Americans were successful. If the Americans failed, would that result in a drop CFL values to below "worthless"? No. So there is little financial downside with a failed St. Louis franchise, other than the league getting egg on it's face for "failing" in the U.S again.

When you compare TV ratings, attendance, gross revenues, profit margins, merchandising, continuity in their markets, the appeal of their Championship games, etc...CFL teams should really be exceeding MLS team valuations by a considerable margin.

According to the 2015 Can-Am Sports survey, the MLS was followed by 9% of Canadians and 15% of Americans...while the CFL was followed by 26% of Canadians and 10% of Americans. You do the math... :thup:

Can we stop with the St Louis talk? It's not going to happen. The US expansion was a disaster, it would ruin the non-import rule, it would likely cause a massive US fund cap issue and fundamentally, why should the league look like it's going after the NFL's scraps? It's the Canadian Football league. We visited the States once, that was enough. Expansion to QC or Halifax should be the focus.

No, but if it hasn’t stopped anyone from calling for expansion to Halifax, Moncton, Quebec City, etc, etc, why would such a huge deal-breaker stop them now?

Right now there is an increased reliance on TV revenues for the teams' bottom lines. If CFL expands within its national borders won't that just dilute the TV revenues as you will be dividing the same pot by ten instead of nine? Successful expansion into markets outside of Canada might lead to increased TV revenues. I don't actually know the answer to that. Just throwing it out there.

I'm all for US expansion--in fact it might be argued expanding into a US city or two might be more beneficial to the league than expanding to Halifax or Quebec City 15-20 years down the road (which it might inevitably take).

That said, I don't see why both agendas can't be pursued at the same time. Perusing one won't exactly negate the other.

Still, any US expansion--at least in the beginning--should be restricted to those northern states bordering our great country. Otherwise, I fear it would be too much of a stretch to call it the Canadian Football League.

(If the CHL can get away with having US teams so can the CFL).

And, before someone mentions it, for the best chance for success, US teams shouldn't be forced to field Canadians, but so-called "nationals" from their own state (or/and other neighbouring states/counties).

Geographic restriction for employment will not be allowed.

If you’re a US based CFL team, why would you even bother following the cap? The penalties are a fine based on the $ amount of the cap exceeded and loss of a first round pick if you’re over by I think $100K. You’re not going to be involved in the CFL draft most likely, so you’re not losing the pick. The exchange rate makes it favourable to pay off any fine. So, where’s the deterrent?

CHL is development amateur league for young adults not a good comparison .

I am not worried about US expansion because there is no love of 3 down football in the states . I would rather 

the CFL join the NFL with 4 downs than ever try putting our style of football down south . It's too bad because I would advocate a Canadian division in the NFL with just one wild card playoff spot over any US expansion . No cross over games until playoffs .The Canadian teams receive only US TV contract of any games showing Canadian division teams allowing entry in the league without dividing the greedy TV contract pie.

There would be sold out games everywhere in the CFL Division and the NFL gets it's first attempt at globalizing the league with the acceptance that you have to allow foreign teams challenge for the Super Bowl . They can then move forward on a European Division , Mexican Division etc.... .
without sharing their American TV contract .

i believe the current owners in the CFL would do everything possible to support their team. We couldn't ask for more from these guys/gals/groups. As a fan of the league, I wish we had 3 or 4 other locations in Canada or the US ready to accept a CFL team and I will tell you why below.

The city of a specific team in Canada must support their local team and if they don't, we need to give the owners the ability to move their franchise to another location. This would be protection for the rest of the league and ourselves as fans of this league. It is like an insurance policy. We don't have this ability right now and future sites must be developed over time. The league needs to do this.

Halifax has some support, poor economy right now and no stadium. QC has little interest and no stadium so I say look to the U.S. and make sure the business case is solid and fan support high or we don't do anything right now but try to develop for a future site.

If you can't beat them then join them .

Don't ever try fighting the US 4 downs love of their game . You might as well join em and if we do that ; do it at the highest level the NFL .

Says who? Link please.

Geographical restrictions are applied regularly in the U.S. for all kinds of sports. For example, at the recent 2016 International Bowl series in Texas there were regional teams from both Canadian provinces and the U.S. states.

The International Bowl Football Tournament is played by high school kids comprising US National Teams and US Select Teams.
The CFL-this is a Professional Sports Team. Teams are comprised of individuals that are playing to earn a living. You will have the Federal and State Labor Relations Boards denying approval. You will have the NFL, NFLPA, NCAA filing suit. If you think your just going to do this without proper approval you have no knowledge of Labor Laws in the US.
My background starts with 2 years of Labor and Employment Law at George Washington University Law School.