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Van/Mon MLS bids and US Credit Crisis


tovan

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Does anyone here think Vancouver and Montreal's positions have strengthened because of the US credit crisis?

Most of the American bids involve some sort of public funds which might be much harder to come by now with the state of things in the US. Vancouver and Montreal are both privately financed bids and probably have much of their financing in place. The would also play out of privately financed stadiums (once the Whitecaps can get the Waterfront stadium going). In the meantime, BC place stadium redevelopment is already in the works and will definitely be completed unlike work/proposals on US bid stadiums which are exactly that, proposals.

Canada hasn't been hit as hard (yet) by the crisis, so credit and financing for any bids and proposals might be easier to come by here. Also, entry into another market outside of the US would help diversify their interets making the league less susceptible to any downturns within the US.

The addition of Montreal and Vancouver could also help the MLS gain national broadcast rights across Canada. A national TV deal might help MLS gain important revenue outside of the US where the economy is plummeting. CBC/SRC would be a good place to start as they've lost CFL coverage and they've gotten approval for a CBC sports channel.

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Montreal, Vancouver, and Ottawa would be better off to invest their $120million in Canada! Along with Toronto, there is half of a Canadian league. Shame on anyone for saying it wouldn't work, especially when we have these Canadian teams, in Soccer Specific Stadiums(or planning to be), putting up that kind of private investment. The US is falling apart, but these three clubs can't wait to get involved.

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Yea, I think the MLS would be silly to turn their backs on stable owners with deep pockets. I also agree with RJB. This is where a stronger CSA would step up and say "Hey, we can make this work. We will make this work." MTL, VAN, OTT and TOR could build a solid core of a Canadian league. If it went pro/rel, with regional div 2, there are too many cities to count that could make it work. Victoria, Calgary, Edmonton, Winnipeg, London (Balsili?), Hamilton, Quebec, Halifax. Travel can not be an excuse. Has anyone tracked Montreal this month?

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Its all a matter of perception. MLS is a step up for Vancouver and Montreal. They will get to play teams from New York, LA, Boston, Chicago, and San Fransisco(Jose). All world class cities. What does a Canadian league offer them? An opportunity to play in cities much smaller them themselves? cities that most people in the big three cities don't want to associate themselves with? A canadian league would be a lateral or even a step down for Vancouver or Montreal.

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quote:Originally posted by tovan

Does anyone here think Vancouver and Montreal's positions have strengthened because of the US credit crisis?

It has to help if we pay the 40 million in Canadian dollars! ;)

I remember the early 70s when the canuck buck was 1.03 to the yankee dollar. Ah the good old days are back, next comes the gas lines and beer strikes .... :(

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On topic: yes, I think that MLS has to be looking at the US financial instability right now and wondering how it will impact US bids contingent upon major amounts of borrowing (i.e. Portland) and real estate development (i.e. St. Louis). In Canada we've got three, deep pocketed expansion candidates who could self-finance their stadiums & clubs without worrying about loans, land devaluation and bank collapses.

Off topic: Assume we can get a Canadian Div 1 league off the ground. You have to look at the CFL cities as your most likely candidates for soccer clubs by virtue of the fact it's where the populations are. Maybe add Ottawa, Quebec City and a team from the Maritimes at the most... ok, so now it's what, 11 teams?

Well, with this kind of club stock you can pretty much kiss any hope of landing international talent goodbye. Why would a player cross the ocean to play in a tiny small market league stocked with poorly trained / coached Canadian kids when the MLS brand and hype are thriving south of the border?

Canadian players will not elevate their game by playing against each other... the status quo is not getting us to the World Cup as it is. Our kids need exposure to international coaches and players in order to take it to the next level.

Further, the big sports money is in Vancouver, Montreal & Toronto. Assume TO stays in MLS.... rest assured any Canadian league experiment will soon devolve into a two-team derby between the Caps & Impact year after year after year, because those are the two markets that have the financial clout to field a good product. The rest of the league will likely be forced to settle for losing squads and Lynx-like attendances.

Prediction - league collapse in three years.

As far as I can tell, the only way a Canadian league can find some semblance of sustainability will be if the teams outside of Vancouver & Montreal are backed by the CFL/NHL owners (hence access to existing sales/marketing/management infrastructure), or if Kerfoot & Saputo pull an MLS and establish a single entity league model, with centralized sales & marketing.

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So you're saying Sweden, Norway, Russia etc. shouldn't have their own leagues because Italia, Spain, England have way better leagues? Maybe it's not quite possible right now to have a canadian league but I don't think it's because of the MLS.

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Apples and oranges.

Sweden, Norway and Russia should most definitely have their own leagues, because they are already cranking out much more talented players than we are. Their domestic leagues have much more prestige than a new Canadian one will anytime in the forseeable future. A young, talented international would not shy away from opportunities in those countries.

I can however see them turning their noses at Canada if their options were limited to the Caps, Impact or one of several fledgling clubs located in such metropolitan juggernauts as Winnipeg or Hamilton.

I mean really... how many young talented internationals do you think are out there saying to themselves, "To hell with my chances of glory in the UEFA Champions League. I'm going to Canada to play for the Aviators!" ???

Politics aside, the USA has one thing Canada does not: an undeniable worldwide appeal as a place of opportunity for anyone with talent. "Land of Opportunity" they call it, and for good reason. The CFL does not draw the same megabucks as the NFL. American star athletes are not clamouring to play Canadian pigskin. Much will be the same with respect to any Canadian league operating in the shadow of MLS, Beckham, Blanco et al. Internationals will come to Canada only after their US options have disappeared.

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quote:Originally posted by tovan

Does anyone here think Vancouver and Montreal's positions have strengthened because of the US credit crisis?

What a great question. I'd be very keen to know the backgrounds and debt situation of the companies and or owners either owning or bidding for expansion franchises.

Just because the Montreal-Vancouver ownership groups are based in Canada, doesn't mean they're not exposed in some way.

The BIGGER question, is whether any of the proposed new stadiums are contingent on bank financing...like say in Philadelphia, Kansas City, DC and San Jose.

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It is a great question. Beyond the bank financing issues, it's worth asking if a MLS franchise is still worth $40 million? How can profitability and growth continue in MLS when consumer confidence in the economy is down? Where will companies find the cash for sponsorship or suites? Everything is up in the air right now, and lower profile U.S. pro leagues like MLS and the NHL could take a big hit.

That being said, Vancouver still has to go MLS. Otherwise, the Caps get caught in a small stadium that's already maxed out, and rising costs. MLS is the only route available to grow the game and the team.

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quote:Originally posted by MastaK

So you're saying Sweden, Norway, Russia etc. shouldn't have their own leagues because Italia, Spain, England have way better leagues? Maybe it's not quite possible right now to have a canadian league but I don't think it's because of the MLS.

The big difference between these countries and Canada is that football is well and truely established as a main sport there whilst here it is still a circus sideshow to many.

Neither the Caps or the Impact could sell out their first play off matches.

In response to the original question though, money talks. Any team that can guarantee having the money in place is well ahead of the others.

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  • 2 weeks later...

Listening to Bob Lenarduzzi last night he didn't seem very comittal regarding if the dropping dollar / worsening credit situation would affect the Bid plans or even if it would cause the MLS to reconsider expansion at this time.

They're submitting their bid Wednesday anyways. Where things go from there heaven knows.

I hear this morning the NBA is laying off 80 staffers as they anticipate lower ticket sales for all their teams this season.

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