As we know the CFL is hurting for cash. They asked the Canadian Government for a $30 million loan and were effectively shut down immediately. While Covid may not have hit Canada as hard, their restrictions have been and are stricter than the states. Ontario and Ottawa won't be hosting any large scale events until September at the earliest, that leaves 3 teams without paying fans until effectively half the CFL season is finished. Even when the gates reopen, the CFL fan is primarily over 50 and may not exactly be first in line to get into stadiums again. The league lost $60-80 million last year and can't afford that loss 2 years in a row.
This is where Redbird Capital comes into play. With $4billion in assets they could easily loan the CFL $30 million to play a shortened season, potentially with fans. Once the season is done, they gear up for a spring/summer hybrid season lasting from April-September. TSN already has clauses in their CFL contract for bonuses based on expansion and ratings above certain benchmarks. A NY-Toronto Sunday tilt or Seattle-BC Friday night game of the week will boost the CFL's lagging ratings which are down 33% in just the past decade. Redbird/XFL would get first dibs at the new TV contract money and parlay that into streaming and broadcast rights in the states and potentially a second broadcast network in Canada.
In my opinion this is why the XFL 2022 season is on hold, and also why Commissioner Ambroise has been so cryptic about this partnership. Months of talking and the CFLPA just found out about this yesterday? Looks like the CFL was looking for a life saver, and may have just found one.
Could Redbird bail out the CFL
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Re: Could Redbird bail out the CFL
Interesting take. I just don't see a large interest in a league with only 3 large Markets: 3 Jacksonville sized markets and 3 Minor league sized markets.laxtreme56 wrote: ↑Thu Mar 11, 2021 10:29 pm As we know the CFL is hurting for cash. They asked the Canadian Government for a $30 million loan and were effectively shut down immediately. While Covid may not have hit Canada as hard, their restrictions have been and are stricter than the states. Ontario and Ottawa won't be hosting any large scale events until September at the earliest, that leaves 3 teams without paying fans until effectively half the CFL season is finished. Even when the gates reopen, the CFL fan is primarily over 50 and may not exactly be first in line to get into stadiums again. The league lost $60-80 million last year and can't afford that loss 2 years in a row.
This is where Redbird Capital comes into play. With $4billion in assets they could easily loan the CFL $30 million to play a shortened season, potentially with fans. Once the season is done, they gear up for a spring/summer hybrid season lasting from April-September. TSN already has clauses in their CFL contract for bonuses based on expansion and ratings above certain benchmarks. A NY-Toronto Sunday tilt or Seattle-BC Friday night game of the week will boost the CFL's lagging ratings which are down 33% in just the past decade. Redbird/XFL would get first dibs at the new TV contract money and parlay that into streaming and broadcast rights in the states and potentially a second broadcast network in Canada.
In my opinion this is why the XFL 2022 season is on hold, and also why Commissioner Ambroise has been so cryptic about this partnership. Months of talking and the CFLPA just found out about this yesterday? Looks like the CFL was looking for a life saver, and may have just found one.
Large: Toronto, Montreal, Vancouver
Medium: Edmonton, Calgary, Ottawa
Small: Hamilton, Winnipeg, Regina (Saskatch.)
Keep in mind the XFL ONLY chose large Markets... to appeal to the largest TV audience.
Let's face it, Canada is slightly smaller in population that California.
I really don't know if this CFL talk is pie-in-sky, fluff, BS, real, or what?
Well - what if the XFL ownergroup sees a major $$ windfall with a CFL / XFL merger resulting in 3-4 Canada teams standing and the CFL effective gone and partial-merger with the NFL of the 3-4 largest CFL teams in to the NFL.
Yes it destroys the CFL (its supposedly on life support anyway) but it would 'live on ' in the NFL at least for some teams. The USA teams - maybe stlouis also gets in.
With each team valued at $1.5-4 billion - that would be a major windfall.
The XFL keeps saying 'think big, think of possibilities...' That's big thinking.
Last edited by 4th&long on Thu Mar 11, 2021 11:17 pm, edited 2 times in total.
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Re: Could Redbird bail out the CFL
I believe this talk is all very real, and possibly being pushed by the owners even more than the commissioner. TSN does pay the league about $45 million a year and with increased teams and viewership, I believe that number could exceed $60 million. Hypothetically Redbird gets that first $15 million back and that could open up a bidding war between CTV, CBC, and other Canadian networks. Maybe the massive deal the league is looking for could come from Canada and not necessarily the U.S?
ESPN actually pays the CFL roughly $500k for exclusive rights. With the CFL history and legitimacy coupled with teams in Seattle, NY, Houston, DC, etc. they may start to pony up more cash. Redbird is part owners of the YES network, which could be the official home of the NY Guardians. A 16 team league opens itself up to more opportunities than two 6-9 team leagues.
ESPN actually pays the CFL roughly $500k for exclusive rights. With the CFL history and legitimacy coupled with teams in Seattle, NY, Houston, DC, etc. they may start to pony up more cash. Redbird is part owners of the YES network, which could be the official home of the NY Guardians. A 16 team league opens itself up to more opportunities than two 6-9 team leagues.
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Re: Could Redbird bail out the CFL
Reread my post above. You never know but XFL could be thinking big...laxtreme56 wrote: ↑Thu Mar 11, 2021 11:13 pm I believe this talk is all very real, and possibly being pushed by the owners even more than the commissioner. TSN does pay the league about $45 million a year and with increased teams and viewership, I believe that number could exceed $60 million. Hypothetically Redbird gets that first $15 million back and that could open up a bidding war between CTV, CBC, and other Canadian networks. Maybe the massive deal the league is looking for could come from Canada and not necessarily the U.S?
ESPN actually pays the CFL roughly $500k for exclusive rights. With the CFL history and legitimacy coupled with teams in Seattle, NY, Houston, DC, etc. they may start to pony up more cash. Redbird is part owners of the YES network, which could be the official home of the NY Guardians. A 16 team league opens itself up to more opportunities than two 6-9 team leagues.
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Re: Could Redbird bail out the CFL
Been reading on CFL Fan pages that the Canadian Government should interfere and protect "Canadian Football"
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Re: Could Redbird bail out the CFL
Wouldn't be the first time the government, especially a Trudeau government, did so (or at least proposed to, as the Canadian Football Act was never signed into law). But that would open up such a mass can of worms they won't touch it. Besides, the situations aren't exactly the same this time around.
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Re: Could Redbird bail out the CFL
I think Ambrosie is dumb enough and crazy enough to entertain the notion of an XFL partnership. That much I don't question at all.
The idea of Redbird bailing out the CFL is plausible. As others have noted, the business model's different in that the big cities have no following or ownership but the small markets have the fans.
The idea of Redbird bailing out the CFL is plausible. As others have noted, the business model's different in that the big cities have no following or ownership but the small markets have the fans.
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Re: Could Redbird bail out the CFL
I'm still positing that the major CFL cities will be auctioned off to the NFL in RBC/DG/Rk buy in - it would be a major windfall.johnnyangryfuzzball wrote: ↑Sat Mar 13, 2021 6:02 pm I think Ambrosie is dumb enough and crazy enough to entertain the notion of an XFL partnership. That much I don't question at all.
The idea of Redbird bailing out the CFL is plausible. As others have noted, the business model's different in that the big cities have no following or ownership but the small markets have the fans.