CPL new teams speculation

[CDNFootballer]

Hard to believe they would go from a rumored 1.5- 2million in year 1 to 9 million in year 2, and if true it would be excessive.

[dnina10]

1 hour ago, CDNFootballer said:

Hard to believe they would go from a rumored 1.5- 2million in year 1 to 9 million in year 2, and if true it would be excessive.

Fully agree. Shouldn't be going up to any more than 5 million for next year. If 9 million is the case, that's greedy and over the top. That could also be why there's very little chance of a new team next year

[dyslexic nam]

It would be interesting to know the total value of sponsorships.  The MediaPro deal is always claimed to be $200M and while I am sure that doesn't go directly to the clubs it still represents real value.  I don’t know the amount of the VW sponsorship but as the founding league sponsor it may be decent.  All of that represents real value and the founding clubs were the ones who took 100% of the risk. 

$9M does seem a bit excessive (EDIT the claim that it wasn’t excessive was a typo - my point is that it seems high but there may be much more to it than a straight buy-in) and scaring away potential investors seems self defeating, but these are also businessmen who know that a strong league will ultimately serve their interests more than 1/7th of $9M.   They got to be the sort of people that can afford to own a sports team by making good business decisions. I am willing to give them the benefit of the doubt that they continue to make choices that have a strong business rationale.  They may also want to make sure than anyone buying into the league is buying in for the long haul   Kind of like the idea that people don’t value things that are free.   

We also don’t know what the $9M actually gets you. Is it just dispersed among the original 7 or is it used to invest in the league - and gets you subsequent benefits.   Maybe it entitles teams to sponsor money that gets doled out over time. Maybe some of the fee acts like a  security bond that helps ensure membership over time.  

Maybe it is the beer talking, but the bottom line is that we just don’t know.  I have said it before and I will say it again - I don’t see these sorts of people making decisions that seem quite obviously to be against their own best interests.  

Edited November 25, 2019 by dyslexic nam

[Bison44]

And wasnt it rumored to be 8million a month ago by these anon reddit goobers??  Give it another month and it'll be 10million.  

[Blackdude]

2 hours ago, Bison44 said:

And wasnt it rumored to be 8million a month ago by these anon reddit goobers??  Give it another month and it'll be 10million.  

No. And those anon reddit goobers probably used the article by the same journalist that was published 2-3 months ago about CPL having a franchise fee of 9 million.

[Ozzie_the_parrot]

9 hours ago, CDNFootballer said:

Hard to believe they would go from a rumored 1.5- 2million in year 1 to 9 million in year 2, and if true it would be excessive.

Not so hard to believe if the league is franchise based and the projected value of a share of the league's sponsorship and broadcast deals over the next decade or more is being factored in. They are probably banking on a big pay off from the World Cup in 2026. Worth bearing in mind also that this is comparable to the expansion fee for a USL Championship team when the currency conversion is made.

1 hour ago, Blackdude said:

No. And those anon reddit goobers probably used the article by the same journalist that was published 2-3 months ago about CPL having a franchise fee of 9 million.

Numbers like that have been floating about on there for a while now. I was being told this on Reddit four months ago when I expressed skepticism about it:

 

[narduch]

Again this is all internet speculation. 

However perhaps it means that the Mediapro money is real. 

[Aird25]

41 minutes ago, narduch said:

Again this is all internet speculation. 

However perhaps it means that the Mediapro money is real. 

Alright, I must have missed something. There’s speculation that the Mediapro money isn’t real?

[dyslexic nam]

9 minutes ago, Aird25 said:

Alright, I must have missed something. There’s speculation that the Mediapro money isn’t real?

No, there is a lot speculation re exactly what the $200M represents.  No one knows how much (if any) went directly to teams to assist in operational costs vs how much represented investment in production  and broadcasting costs.  Some of it could even be attributed to (at least some of) the costs of creating OneSoccer since it was built to provide access to CPL.

The ratio of direct-to-team money vs production-cost money could have a big impact on whether or not the rumoured expansion fee makes sense.  If teams get sponsorship money doled out to them  (possibly over the term of the agreement) then that reduces the sticker shock of something like a $9M fee. 

[CanadaFan123]

I haven't seen it mentioned so apologies if it has been, but I think one massive advantage of a Quebec CPL club will be the ability to field a roster with a high proportion of French-Canadians as opposed to the Impact.  There really are a lot of French-Canadian players who are good players but not quite good enough to be every day players in MLS.  

[narduch]

1 hour ago, Aird25 said:

Alright, I must have missed something. There’s speculation that the Mediapro money isn’t real?

Some naysayers are claiming that some of that money represents production costs, therefore it not actually money going to the league/teams.

Edited November 25, 2019 by narduch

[Ozzie_the_parrot]

To inject some realism at this point, 200/8 = 25, so if 9 is accurate as the expansion fee it strongly suggests that not all of the Mediapro money is a rights fee.

[Impactsupporter]

The other point Clanachan mentions is that there are 18 interested communities and regions for the CPL

In the past the CPL commissioner has named the following areas interested in teams :

St. John's, Nfld ; Moncton, NB ; Quebec City and Montreal/Laval, QC ; Ottawa ; Durham Region, Mississauga, Grand River(Kitchener-Waterloo-Cambridge), Niagara Region, Regina, Saskatoon, Lower Mainland BC including Kelowna.

But after this what other regions could work for CPL teams???

[KW519]

Is there any truth to a FIFA rule against demanding money to enter a tier 1 league?

[narduch]

3 minutes ago, KW519 said:

Is there any truth to a FIFA rule against demanding money to enter a tier 1 league?

MLS says otherwise.

[Ozzie_the_parrot]

5 hours ago, KW519 said:

Is there any truth to a FIFA rule against demanding money to enter a tier 1 league?

It's in FIFA statutes (think that's the right terminology) that entry into the top league is supposed to be done based on sporting merit, but that hasn't stopped MLS and the A-League in Australia from charging expansion fees to a franchise based D1 league in the very recent past. The ligation by Rocco Commisso and the NY Cosmos against the USSF revolves around this point.

Edited November 25, 2019 by Ozzie_the_parrot

[dyslexic nam]

1 hour ago, KW519 said:

Is there any truth to a FIFA rule against demanding money to enter a tier 1 league?

This would presumably in associations with promotion/relegation, so that a prohibitive fee couldn’t be used to exclude a team that deserves to be in D1 on sporting matters.  MLS (and CPL) is a different sort of beast. The fee could be justified insofar as you are buying access to the whole structure - which at the moment consists just of D1.  That would raise issues if/when pro-rel ever becomes reality, but at the present time it is easy to see why it is different than e.g. a European league where entry is win rather than just declared and bought. 

[Kent]

1 hour ago, Impactsupporter said:

The other point Clanachan mentions is that there are 18 interested communities and regions for the CPL

In the past the CPL commissioner has named the following areas interested in teams :

St. John's, Nfld ; Moncton, NB ; Quebec City and Montreal/Laval, QC ; Ottawa ; Durham Region, Mississauga, Grand River(Kitchener-Waterloo-Cambridge), Niagara Region, Regina, Saskatoon, Lower Mainland BC including Kelowna.

But after this what other regions could work for CPL teams???

The only other one I have dreamed up is London.

[SpursFlu]

Doesn't the money kinda go right back in your pocket? Your not just giving the money away. It's going to the league as a whole. If you pay 9 million to be 8th team. Then 9 10 and 11 come along well do some math

I'm not sure about this speculation but if the numbers true that's a good thing because it means there must be figures in the balance sheet to back it up

I only went to 1 CPL game and there was definitely money flying around. For investors it's all about cash flow. If the league can show people they're is a significant amount of cash flow it make it appetizing 

Edited November 25, 2019 by SpursFlu

[mtlsab]

3 hours ago, Impactsupporter said:

The other point Clanachan mentions is that there are 18 interested communities and regions for the CPL

In the past the CPL commissioner has named the following areas interested in teams :

St. John's, Nfld ; Moncton, NB ; Quebec City and Montreal/Laval, QC ; Ottawa ; Durham Region, Mississauga, Grand River(Kitchener-Waterloo-Cambridge), Niagara Region, Regina, Saskatoon, Lower Mainland BC including Kelowna.

But after this what other regions could work for CPL teams???

He also talked about Sherbrooke, QC

[CDNFootballer]

15 hours ago, Ozzie_the_parrot said:

Not so hard to believe if the league is franchise based and the projected value of a share of the league's sponsorship and broadcast deals over the next decade or more is being factored in. They are probably banking on a big pay off from the World Cup in 2026. Worth bearing in mind also that this is comparable to the expansion fee for a USL Championship team when the currency conversion is made.

The CPL is a club based league not a franchise one as has been posted on the forum before with links (and stated by the league itself).

That big of a jump is still excessive if true, and USL who you use as a comparison has usually gone up around a million a year roughly in most of its recent existence and is an 9 year old league.

Going from 1.5-2 million to 9 at this point is excessive imo although there is added value for an expansion club in CPL as the fee would highly likely include a share of the club owned CSB's revenue stream.

[Watchmen]

Well, just like with the Media Pro deal, I'm sure we'll all be told that the fee is "huge" but then never told what it is.  CPL likes to operate in the dark.

[Blackdude]

4 hours ago, CDNFootballer said:

The CPL is a club based league not a franchise one as has been posted on the forum before with links (and stated by the league itself).

https://the11.ca/promotion-relegation-independent-club-system-the-future-of-canpl-as-seen-by-its-new-commissioner/

Was looking at it. Found this quote

Quote

“But we are looking at a club-based style. We are not looking at a franchise system. We are looking for each of our clubs to build from the ground up, and we know it’s important what we do at the community level.”

It means nothing really. I feel it's more what they say in public vs what they say in private. Saying pro-rel and clubs looks really good to people even here, but it means nothing really. Why would the president of the Quebec Soccer federation lie about the $9M? Whether it's a franchise fee or a league fee, what difference does it make? 

I've never understood the difference between club and franchise and to me, the only thing that is different to me is that players can't be traded against their will. 

[Ozzie_the_parrot]

It's all just a game of semantics for the most part and using the words that their focus groups tell them resonate better with their potential fanbase. Differences on how player contracts get handled would probably be what they would point to, if they were ever forced to justify it.

[grasshopper1917]

20 hours ago, narduch said:

Some naysayers are claiming that some of that money represents production costs, therefore it not actually money going to the league/teams.

I dont think its a matter of 'Naysayers'. It more common sense. Why would Media pro pay 20$ million dollars a year cash to the league then on top of that pay millions per year to produce and broadcast the games with virtually no revenue coming back to them?

I mean it is great for the league they have a company producing and streaming their games to me this is a 20 million dollar value a season because when you factor everything in I think it is reasonable that is the price tag it would cost the league if they did it themselves.

On the downside there are limitation to media pro owning the rights. Like when they would not let CBC air the final in real time. To me this is a massive opportunity lost for the league in terms of exposure an allowing casual fans (which they need) to watch their 'crown jewel'.

That aside I don't think people who think the people who state this is not a cash deal are naysayers - I would say they are realists. TBH I still think its a great deal for the league - there would be no way I would be taking on costs to produce and broadcast CPL games without some kind of revenue assurances.... Then again that may explain CPL buying every season ticket holder a free One Soccer pass this year.