WOW! RIDERS GROSS $28.2M, WHO SAYS CFL TEAMS ARE NOT PROFITA

Just came across this article and the money making machine that is the Riders and our "new" CFL.
I also read elsewhere how Mark Cohon recently said 6 out of the 8 teams either broke even and or made money.
What a change that is from the "dark ages" when teams were losing a boatload.
The article mentions a record ticket revenue of $8.3M and also from merchandise at $6.5M.
The team has nearly $10M in profit sitting in the bank.
I still say like some how the team made much more in profit and this is mearly creative accounting.
Now, what will the picture be like when a new stadium comes into play.
I dear say the Riders next to the Leafs could be the second most profitable team in Canada.
Now this also begs the question how the province should be able to support another team in Saskatoon and the CFL franchise values I would say have doubled in the latest few years with Regina leading the pack at least at some $25M+?

[url=http://www.leaderpost.com/sports/Saskatchewan+Roughriders+make+profit+exceeding+2008/1667619/story.html]http://www.leaderpost.com/sports/Saskat ... story.html[/url]

Yep, it's a bit ironic that the Riders have been crying poor over the years and couldn't sign free agents, ect, now they are rolling in dough, but are restricted to spending $4.2 million (or maybe a bit more :slight_smile:) on player salaries with the SMS. That is a pretty small percentage of their revenues (15%?), but they still managed to spend over $26 million, and showed a "small" profit.

There is little question a CFL franchise would be successful in Saskatoon, but the risk of undermining the popularity of the Riders isn't worth the risk. Don't mess with a good thing. :thup:

The Riders are a bit of an aberration in the CFL, no other team is even close to matching their $28 million in revenue. Didn't the Esks recent financial statement show about $15 million revenue? I think most teams are in the $12-15m range, except for perhaps Hamilton/Tor, the likely two teams which did not turn a profit last year.

I would agree. However the Esk with the leading attendance every year to me suggests this also community team may be "cooking the books" to suggest a minimal profit every team.
This team bought and eventually sold the AAA team and made a cool $10M profit. Then took some of the money to what improve the old Clarke stadium and some Commonwealth improvements.
I suspect the Riders and Esk are carrying a surplus profit not declared and in a seperate account.
The other team which garners quite a gross is the Allouettes. Year in they have the highest corporate sponsorship at nearly $10M and with the Grey Cup and profits which are not publicized as being a privately owned entity, I heard as high as around $10M for the 08 game.
Every year the Grey Cup team can expect profit on the game alone at between $3-$5M or upwards.

According to their financial statements, the Esks have over $15 million in contingency and rainy-day reserve funds. The Riders have $9.9 million in "infrastructure improvements" and rainy-day funds put aside, and likely a wack of cash-in-hand on the books ($3.5 million last yr). Considering their huge revenues, that's is how the Esks and Riders can show such small profits. Even Winnipeg has built up a $5 million nest egg over the past few years. The remaining teams are privately-owned and we can only assume they have similar revenue streams...but the Riders probably sell more merchandise than the rest of the league combined!

what is with this inane desire to always have to need or want a team in Saskatoon? I don't understand!!!

It won't EVER EVER EVER!!!!!!! happen! do you not get that? like does it have to be tattooed on your forehead?

Glad to hear it. The more teams that make more money, the better for the league.

  1. The Eskimos are not "cooking the books" The Riders just report income differently.

I'm pretty sure that this is what is happening:

The Eskimos sell a jersey and report $20 of income ($100 sale price - $80 cost to the Eskimos)
The Riders sell a jersey and report $100 of income and a $80 expense

Probably the same for hot dogs and beer too. They are both acceptable approaches. You need to have access to the full financial statements with full note disclosure, then you'd be able to interpret the financial results and compare the two teams.

  1. The gross/revenue number is at best misleading, at worst meaningless without context. A business can gross $28 million and lose $10 million.

It is the net income number that counts and making only $1.6 million on $28 million of revenue is not very impressive. Only in the CFL context it is great.

You have to look at the Riders numbers over MANY years to realize that these new numbers are the fallout of winning a Grey Cup and club success in general. The province of Saskatchewan will never have a second club, and may not have one club if the cities, particularily Regina, don't get serious about building new facilities.

If 28.2 gross seems impressive to you, wait for the net total. Big numbers grab big headlines.

$28.2M worth of cash flowing in a recession economy is just a way to sell the money they're going to sink into the new facility to the public. If they say that the team does that much business every year, they can use that to justify the infastructure expense to keep the business growing.

Does the CFL have revenue sharing among its teams?

Actually, that’s not a bad number in many industries. But I agree with others on here that you would need to see the full books to get a real idea of what the numbers mean.

And for those commenting that the books are being cooked, you’re out to lunch. The guys looking after the accounting have professional designations (C.A., CMA, etc.) and if they were to intentionally provide dishonest numbers, they put their designations and careers on the line. And not many accountants would do that.

Why would the expansion zealots believe some one THAT LIVES IN SASKATCHEWAN? :roll: :roll: :roll:

Not to worry, when the zealots are finished with Saskatoon, they'll be pedalling their halucinations about Kelowna and Victoria! :roll: :roll: :roll:

Thats okay cflisthebest....We know the truth! :wink: :wink:

I think "Gate Equalization" was discontinued in the late 1990's....Not exactly sure when...some of you older posters help me out on this.......

Just the same. Either late 90’s or early 200’s it was kaiboshed.

Ya this could happen......if all other Canadian NHL teams folded at once. :lol: :lol: :lol:

I don't think so, other then maybe the Canadians what makes you think the other 4 NHL teams are profitable. Why just because it is the NHL?
Haven't you read how most of the American teams are losing money and yes the Canadian teams with the strong TV deals is bringing in the most capital for this league.

He was kidding dude! Let's stop jibbering this jabber right now, no comparison is fair or entertaining by ANY means.

Well for one, the Canucks announced they made $20 million profit last year which is almost as much profit as all CFL teams combined. They "grossed" over $100 million to give perspective. So ya, its not even close actually.

How about a few years back in fact when our dollar was tanking in fact, the 4 Canadian teams lost a boatload and the Senators went into bankruptcy and our "friend" Melnyk bought the team and arena at bargain basement prices.

Yes this was the case years ago when the dollar was struggling. But it is a different story now. Look back to that same time period to see how well CFL teams were doing back then.