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Originally Posted by Ozy_Flame
Wow, the CPL is DUMB for making those kinds of demands. If someone can buy the team at a low entry point, it enables them more funds to build the franchise properly. Does the CPL not see this??
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The article says that while a new owner would pay that, the league on the hook potentially for the outstanding debts that were $20M.
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Originally Posted by Bill Bumface
How do they not all lose money?
Travel costs are insane. The TV deal must be near nothing. I agree with the sentiment ticket prices need to be lower to draw better, but doing this stuff in Canada is hard. Halifax to Victoria flights are an insane expense to carry. In a denser country this level would be a bus/train league.
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Yeah it really is a surprise that they travel as much as they do. I know they want to be taken serious as league and have a league structure, and coming out of the pandemic get back to normal, but air travel has to be over half of each teams operating cost.
Ticket prices are always a tough job. Would $5 less a seat bring in any more people that would incrementally spend more then charging the 2000 people already going, $5 more. What about $10? Weather dependant, timing dependant, all tough for any business owner.
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Originally Posted by cam_wmh
They may sub it out, but I imagine the Southern's are still getting their margins.
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Yeah, part of the contract that “catering” company gets for doing the big horse jumping events each time during the year means that the company has to do Cavs games.
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Originally Posted by Party Elephant
Was it not reported last year that the mediapro deal is worth $10 million a year? Or was that just an unconfirmed rumour. It was thrown around a lot.
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Maybe $10M total, over 4 or 5 years. No way that streaming games to a few thousand people, at best, would be valued that much per year.
All this said, I think the owners were all fully expecting losses for the first 3 to 4 years, with the hope that rising interest as teams get built up in communities meant better attendance, and from that more sponsorship locally. Also the media viewership would increase and sponsors on the streaming, or picked up by networks, would bring money incrementally in. Toss in the sale of league talent to Europe and MLS also as pure profit.
Of course then Covid hit so that timeline has gotten delayed by more than the 2 years that Covid affected the games on the field and the financial planning.