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Ottawa CPL Club


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Definitely a hybrid model with elements of both and definitely not the MLS. Seems very similar to a traditional North American model like the NHL or CFL. Things like broadcasting, sponsorships, uniforms etc. are central (and some scouting and draft too apparently). Expansion fee (or, franchise fee, if you prefer) to join the party.

Edited by PaulV
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10 hours ago, JamboAl said:

I think this is probably where I can't tell the difference.  Aren't the owners of the teams in the traditional North American leagues distinct entities?  I can distinguish in the MLS model where the players are "owned" by the league and assigned to the teams (in a way), except for homegrown talent like Davies.  But aren't the individual owners of the MLS teams not also distinct entities?

Fundamentally, I can't tell what makes the CPL teams not franchises or what doesn't make MLS teams, clubs.  I feel like the 6 year old kid who is always asking why?  

Think of it this way: clubs are distinct corporate entities that are members of a league. I think some people get hung up on the expansion fee. 

In the CPL’s case, it seems to be that the ‘expansion fee’ could be clubs buying their shares of CSB (actually sharing ownership of a distinct corporation which is in charge of their collective media negotiating) but they appear to be separate juridic entities, clubs. 

On the other hand, franchises (while leased by different entities, like MLSE) are licensees of the league. If I own a Tim Hortons franchise, what I actually own is XYZ Holdings Corp which leases a license to operate a Tim Hortons location for a period of time. 

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The definitions of franchise versus club teams are not clearly defined. If there has to be scale scale of club <----------> franchise then it seems CPL is further to the club side than franchise side compared to MLS based on the little info we have. No league in the world is likely completely on the club side (according to this made up scale) as then they would not have any financial reasons to play against each other.

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I’m not sure it really matters if the teams are called clubs or franchises... the important thing is how they feel... and to me they feel incredibly different to the corporate feel mls gives out. Having Rob Gale come out in an interview and be so honest about player contracts, and laughing at the idea FC Edmonton signs Bustos.... and then doubling down and essentially calling LBG an average player that they have a few of already.... is so different. That wouldn’t happen in MLS. It feels real. Not to mention both Gale and Bobby have come out and talked about moving players onto better leagues in the past few days instead of playing dumb and acting like they’re on par with Europe. The league is doing a good job of letting the teams sort of do their own thing while keeping the business in order... while I’d definitely like more transparency, right now things are going pretty well. 

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3 hours ago, BradMack said:

I’m not sure it really matters if the teams are called clubs or franchises... the important thing is how they feel... and to me they feel incredibly different to the corporate feel mls gives out. Having Rob Gale come out in an interview and be so honest about player contracts, and laughing at the idea FC Edmonton signs Bustos.... and then doubling down and essentially calling LBG an average player that they have a few of already.... is so different. That wouldn’t happen in MLS. It feels real. Not to mention both Gale and Bobby have come out and talked about moving players onto better leagues in the past few days instead of playing dumb and acting like they’re on par with Europe. The league is doing a good job of letting the teams sort of do their own thing while keeping the business in order... while I’d definitely like more transparency, right now things are going pretty well. 

Agreed as it's all about perspective.  It just seems like some people on this board are using the "franchise" vs "club" tag to the CPL teams to differentiate themselves from the MLS/USL when in fact, as I have now concluded, this point or description has no real relevance.  Personally, I'll exit the discussion.

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14 minutes ago, JamboAl said:

Before you get too cocky, let’s see what happens about whether any group winds up actually paying $9M.  I still personally  think that fee is preposterous.

Ottawa attracting investors is really a no brainer as it's the biggest market with no pro clubs in Canada right now. The stadium is there and available for use. As for the $9M expansion fee, it's accurate especially if OneSoccer increases their portfolio (they will bid on MLS & and got all CONCACAF tournaments). Teams can turn around and make even more money on sponsors.

I mean, we're hearing places like St.John's, Saskatoon, Moncton etc... Ottawa, having more potential fans and the marketability of the city over the other markets is a huge incentive for investors.

 

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6 minutes ago, Ansem said:

Ottawa attracting investors is really a no brainer as it's the biggest market with no pro clubs in Canada right now. The stadium is there and available for use. As for the $9M expansion fee, it's accurate especially if OneSoccer increases their portfolio (they will bid on MLS & and got all CONCACAF tournaments). Teams can turn around and make even more money on sponsors.

I mean, we're hearing places like St.John's, Saskatoon, Moncton etc... Ottawa, having more potential fans and the marketability of the city over the other markets is a huge incentive for investors.

 

I agree with most of your points about the market.  My problem is that this is only Year Two of the league and to have that high of a valuation seems crazy - that's probably due to my estimate of what One Soccer's (CSB's) actual financial backing is worth.  $9M is a very high (too high) for the vast majority of potential Canadian markets which means the CPL can be no more than about 9-10 teams.

Edited by JamboAl
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8 minutes ago, JamboAl said:

I agree with most of your points about the market.  My problem is that this is only Year Two of the league and to have that high of a valuation seems crazy - that's probably due to my estimate of what One Soccer's (CSB's) actual financial backing is worth.  $9M is a very high (too high) for the vast majority of potential Canadian markets which means the CPL can be no more than about 9-10 teams.

Every league inflate their valuations. Are we really to believe that FC Cincinnati is worth more than say Serie A Fiorentina? No F'N way.

This is whole debate is pointless as valuation is really subjective. As I pointed out before, as long as people are willing to pay it, forget about CPL lowering the fee.

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11 minutes ago, Ansem said:

Every league inflate their valuations. Are we really to believe that FC Cincinnati is worth more than say Serie A Fiorentina? No F'N way.

This is whole debate is pointless as valuation is really subjective. As I pointed out before, as long as people are willing to pay it, forget about CPL lowering the fee.

And how many people got duped into investing into Bre-X?  Or the more recent IPO for WeWork?  And what happened to the financial doping that Scottish football was on when Setanta was found out to be an unsustainable business model?  I don't want One Soccer being the sole basis for the existence of the CPL.  If someone is willing to pay $9 M for a CPL franchise in Moncton or Saskatoon (let alone Ottawa) in 2021, that makes me much less positive about the future of the league.

 

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26 minutes ago, JamboAl said:

And how many people got duped into investing into Bre-X?  Or the more recent IPO for WeWork?  And what happened to the financial doping that Scottish football was on when Setanta was found out to be an unsustainable business model?  I don't want One Soccer being the sole basis for the existence of the CPL.  If someone is willing to pay $9 M for a CPL franchise in Moncton or Saskatoon (let alone Ottawa) in 2021, that makes me much less positive about the future of the league.

 

ok :)

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27 minutes ago, JamboAl said:

... And what happened to the financial doping that Scottish football was on when Setanta was found out to be an unsustainable business model? ...

That will be very obscure for a few people on here. ITV digital and the Football league in England is another one:

https://www.thelondoneconomic.com/sport/remembering-when-itv-digital-collapsed/08/12/

It's not clear at this point how much money CanPL is actually getting in cash each season from the Onescoccer deal. The subscriptions for season tickets move suggests there may be minimum targets on subscriptions that have to be met.

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