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Cdn Dollar plunge to effect Mls bids by Vancouver


Moosehead

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I didn't say that Gillett and Hicks would get all their money back. But that money would already be invested in Liverpool FC. Whether they get that money back is a different question from whether the debt on the Liverpool FC acquisition would impact on the MLS bid or the Montreal Canadiens for that matter. Which I doubt it would but that doesn't mean that any other purchases made with a high level of debt would not face the same challenges if they needed to be refinanced. In this case, the NHL is the league to watch.

Nevertheless, my suspicion is that if a bid doesn't have a stadium to play out of that meets MLS requirements, it will likely be less attractive under the current financial environment.

quote:Originally posted by Richard

I am quite sure that the club itself forms a large part of the loan collateral but at the end of the day Gillett and Hicks hold the can. Relative to Liverpool FC and even the Montreal Canadians, an MLS bid and team are small potatoes. I agree though that Saputo likely brought him on board for his name and associations with big league sports rather than his money.

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quote:Originally posted by Johnnie Monster

I guarantee you the boys with the big coins in their pockets scooped up wads of US currency when the loonie was $1.10 USD. Rich guys tend to have these guys called "financial advisors" who see to these things.

I'd also be surprised if they weren't buying back Canadian loonies at 74 cents USD in anticipation of the loonie's climb back over the next few months.

NAIL -> -> -> -> HEAD.

In fact, because the owners (Kerfoot/Saputo) stockpiled the American greenback during those 1.10 days, it is actually going to be cheaper than the $40 million asking price.

I hope the Canadian NHL owners did the same thing.

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Toronto could sell their MLS franchise for more than they paid for it, assuming the could successfully get approval from whomever needed to give it for the stadium situation.

I also think that the money available...$40m from Toronto, and the not paid $120m from Ottawa, Vancouver and Montreal would give $160m to start a league before anything was even considered.

Alternatively, I'd love to see a CMLS, partnered with MLS here taking a smaller cut and paying a smaller fee with perhpas an 8 team league with the top 2 making the playoffs. Different league, but MLS still a defacto US/Canadian championship?

Who knows...all I know is $160m is a lot of money for Canadian teams to want to invest that could be used in Canada.

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^ Ordinarily I would chime in with some sort of Toronto bashing comment that Toronto supporters wouldn't take a league without American clubs seriously. However, the Vs cup games at BMO had a great atmosphere -at least on TV. I might have a renewed faith in a Canadian League if stadia weren't so hard to get built here. My completely untested theory about a real CSL is that it would require two clubs in each of Toronto, Vancouver, and Montreal. But in order to foster proper derbies, you really need separate grounds. Sadly, no amount of money seems able to get one done in Van City.

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quote:Originally posted by youllneverwalkalone

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However, the Vs cup games at BMO had a great atmosphere -at least on TV. I might have a renewed faith in a Canadian League if stadia weren't so hard to get built here.

I would add that those matches were not only sold out but:

1) Were not sold as part of the season ticket package.

2) Were not all that well promoted by the club. The logical explanation of course being that the event was not entirely finalized until the last moment.

Thats has to bode well long term for the future of the game. It tells me that most of the fans were informed and bothered to be informed about the team. Prior to that, it would have been hard to counter or prove that those multitude of ticket buyers were fickle and only following the hottest trend.

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quote:Originally posted by Richard

^ There was also the USL vs MLS factor which ought not to be minimised.

In Toronto's case, I highly doubt the fact that MTL and Van are USL clubs was a selling point that brought in MORE fans.

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