CFL to implement revenue sharing

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4th&long
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CFL to implement revenue sharing

Post by 4th&long »

This also appears to close the door on teams laving the CFL... And clearly the CFL learned a few things during the XFL talks they can implement in the CFL.

https://3downnation.com/2021/07/09/alou ... of-season/

>> Revenue sharing has long been proposed as a solution to that problem, one used in almost every professional league and endorsed by the players, but until now was too difficult to pull off. The pandemic and ill-fated XFL talks have changed that.

Stern, with his connection to MLSE, was labeled by most an XFL supporter, but he now says that door is closed. CFL teams are bound only to each other and need to figure out their own financial solutions.

“The nine teams have to get together and accept we have a unique game, with three downs and a wide field,” Stern said. “But we need revenue. Hopefully the fans are thrilled it’s over, come back and support us. I think they will but we, as owners, have to give them a reason to come.” <<
laxtreme56
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Re: CFL to implement revenue sharing

Post by laxtreme56 »

How will that work when losses offset the small profits teams make. While true 5/6 teams usually profit, the margins are thin, typically $500k-1Million with the Riders sometimes a bit more. Toronto and Montreal both lose in excess of $10 million and BC isn't too far behind. Will teams like the Riders, Bombers, and Esk..Elks want to share their small profits with big market teams. This is going to be more nuanced than it seems.
4th&long
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Re: CFL to implement revenue sharing

Post by 4th&long »

laxtreme56 wrote: Sat Jul 10, 2021 4:33 pm How will that work when losses offset the small profits teams make. While true 5/6 teams usually profit, the margins are thin, typically $500k-1Million with the Riders sometimes a bit more. Toronto and Montreal both lose in excess of $10 million and BC isn't too far behind. Will teams like the Riders, Bombers, and Esk..Elks want to share their small profits with big market teams. This is going to be more nuanced than it seems.
This is not profit sharing its revenue sharing. Alot of these publicly owned teams are increasing costs to show less profit.

Its an attempt to ease the big city teams concerns and work more together, and gives more incentive for the publicly owned teams to make more revenue to compensate for sharing revenue.
laxtreme56
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Re: CFL to implement revenue sharing

Post by laxtreme56 »

I see what you're saying but still think it's easier said than done. CFL ratings have dropped from 800k to a hair of 500k in a decade with attendance plummeting from a high of 28k to 22k in just the same amount of time. The boomer CFL fans are dying off and not being replaced by the 20/30 somethings. This is why I still see Toronto, Montreal, and perhaps BC eventually making the jump to the XFL in the short-long term. Even those cities support minor and junior league hockey to various degrees as they're playing the same version of hockey they all know and love, albeit at a lower level. The issue with the CFL in those markets is not so much it's lesser quality, it's too much a different game from their preferred 4 down brand of football. Hence why the Toronto Marlies and Winnipeg Moose can still draw respectable crowds in lesser leagues. But start a new "pro league" that plays 3-3 half ice hockey with no offsides and 2 point goals and it'll never catch on as it won't be seen as "real hockey." In the big 3 Canadian markets 4 down football is real football, not the 3 down game and I think they're well past the point of convincing the general populace otherwise.
MGB01
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Re: CFL to implement revenue sharing

Post by MGB01 »

I don't know what the hell this is supposed to prove, like "we'll show the XFL, we're going to have revenue sharing, they'll wish they never talked to us, MUHAHAHAHAHAHAHA!!!!!!". Seriously, between the really? Edmonton spike and this--seemingly a response to the MLSE report, this is coming off like a mix of the Billionaire Ted skits, Dr. Evil, the adventures of the Ferengi, and Bill Gates buying Homer Simpson's Meganet.

How is this supposed to bring in extra revenue to the league? Revenue sharing is great, but those are dollars that are already there. Does it help with competitive balance? This is a league where 2/3 of the teams make the playoffs, eight of the nine teams have ten Grey Cup appearances and the ninth has three in six years.

So if I have this straight the CFL is, or was, essentially gearing the league towards Winnipeg and Saskatchewan than their two biggest markets? Who's running this, Larry Scott?
4th&long
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Re: CFL to implement revenue sharing

Post by 4th&long »

MGB01 wrote: Sun Jul 11, 2021 3:41 am I don't know what the hell this is supposed to prove, like "we'll show the XFL, we're going to have revenue sharing, they'll wish they never talked to us, MUHAHAHAHAHAHAHA!!!!!!". Seriously, between the really? Edmonton spike and this--seemingly a response to the MLSE report, this is coming off like a mix of the Billionaire Ted skits, Dr. Evil, the adventures of the Ferengi, and Bill Gates buying Homer Simpson's Meganet.

How is this supposed to bring in extra revenue to the league? Revenue sharing is great, but those are dollars that are already there. Does it help with competitive balance? This is a league where 2/3 of the teams make the playoffs, eight of the nine teams have ten Grey Cup appearances and the ninth has three in six years.

So if I have this straight the CFL is, or was, essentially gearing the league towards Winnipeg and Saskatchewan than their two biggest markets? Who's running this, Larry Scott?
This has nothing to do with the XFL at alL The CFL has a need for big market teams to maintain relevancy and attract tv fans. Yet those cities have not done well at the gate. They're (Tor/Mon) willingness to listen to the XFL illustrated how serious they are looking to make money. Those discussions alone may have been enough to push the smaller market teams into this Revenue sharing. Revenue sharing will make the league stronger on the whole. Also a reduced cost structure will help that as well. I'm sure in return for rev sharing the smaller markets will want to see more local promotion of these 3 teams.

That's the goal of revenue sharing.

The TV contract the CFL signed in 2019 was weak IMO. $37mm a yr USD is not much for the # of games and viewers the CFL gets in Canada. Especially considering its only 11% the size of the U.S. market.

https://www.sportspromedia.com/news/cfl ... s-football

The CFL teams may have learned more about non-gate revenue potential in their talks with XFL. I can see the bigger clubs pushing that on the whole league. Obviously sports gambling is a potential $$$ generator and they need to max that out. Revenue sharing also means they all need to make more $$$, putting pressure on the profitable ones to make more Rev and conversely the less profitable ones to shore things up.

AMbroise has alot on his plate. The teams officers too. First thing is to get this season moving forward and max rev short term.

IMO playing 18 games over 21 weeks with a 9 team league to eliminate what 3 teams (at least its tiered) - really? Drop to 16 games, and 5 teams - the former is unlikely but the later is needed or add more teams. Make the regular season more relevant. Also, imo whether its thru the XFL or another effort we'll see a CFL team again in the USA. They'll never get a US TV contract without one - despite playing in the Sports TV deadzone when Media needs it. And it will increase gambling interest. Its costly but IMO necessary. It won't happen till after 2023. If the XFL launches and does well, CFL may revisit or at least Tor/Mon/BC.
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Tank55
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Re: CFL to implement revenue sharing

Post by Tank55 »

It's not supposed to prove anything and it's obviously not supposed to bring in extra revenue. It's just a measure to improve league stability. And given that the AFL figured this out in the 1960s, a long overdue one at that.
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MGB01
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Re: CFL to implement revenue sharing

Post by MGB01 »

Tank55 wrote: Sun Jul 11, 2021 1:42 pm It's not supposed to prove anything and it's obviously not supposed to bring in extra revenue. It's just a measure to improve league stability. And given that the AFL figured this out in the 1960s, a long overdue one at that.
Hence why I wondered if Larry Scott secretly moved up north
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