8.6 C
New York
Sunday, August 1, 2021
Home Sport CFL would use potential loan from feds to fund shortened season: report

CFL would use potential loan from feds to fund shortened season: report

The bulk of the CFL’s $30-million, interest-free loan request from the federal government is to cover the operation of a shortened season.

A source with knowledge of the situation told The Canadian Press on Wednesday the CFL’s plan calls for approximately $28 million going towards an abbreviated campaign. The source added it’s included in the loan details the league has provided the federal government.

The CFL source spoke on the condition of anonymity as neither the league nor the government have divulged details of the loan request.

The CFL’s board of governors is slated to meet Thursday but it’s unclear what — if any — details of the league’s negotiation with Ottawa will be presented.

The federal government required cost certainty from the CFL. It also needed a specified repayment plan as well as Health Canada approval of health-and-safety protocols the league would implement during a shortened season.

Of the $28 million, approximately two-thirds (or about $19 million) would go towards covering player salaries and operation of the CFL bubble in Winnipeg, its tentative hub city. Roughly half the overall total (or around $14 million) would be allocated for hub-city costs like food and lodging, testing and buses for players, coaches and support staff.

That’s a great return on investment for the Manitoba government. It included $2.5 million in its bid to the CFL for Winnipeg to be the league’s tentative hub city.

Around $5 million would go to player salaries. However, the CFL would reportedly make up any shortfall in the payment of its players.

An estimated $5 million would be for coaches and support staff. Roughly $4 million would be available to take care of incidental costs.

Losses still expected in truncated campaign

The league is making a last-ditch effort to secure financial support from the federal government for an abbreviated ’20 season. But the assistance won’t assure the CFL of prosperity.

The source says the league expects to lose between $60 and $80 million with a cancelled season. Even if football is played, the deficit could be as much as $50 million.

The CFL declined comment Wednesday.

The league has been steadfast that it needs government money for a shortened season. Commissioner Randy Ambrosie has stated the nine-team circuit collectively lost upwards of $20 million in 2019.

WATCH | Ambrosie says future of CFL in doubt due to pandemic:

Testifying before the House of Commons standing committee on finance on Thursday, CFL Commissioner Randy Ambrosie stated the league could need up to $150 million from the federal government if their season is wiped out due to the COVID-19 pandemic. 4:47

And with no football yet this year, franchises have had little opportunity to generate revenue. The CFL is a gate-driven league, with ticket sales being the primary source of revenue for all of its teams.

The $30-million appeal is a reduction from the $44-million amended requisition the league presented Ottawa last month. In April, the CFL approached the federal government for up to $150 million in assistance due to the COVID-19 pandemic.

Ambrosie has stated the earliest an abbreviated season could begin is early next month. But he’s also said a cancelled campaign remains a possibility.

The CFL continues to meet with the CFL Players’ Association about amending the current collective bargaining agreement to allow for an abbreviated season. The league also must finalize a deal with broadcast partner TSN.

The CFL had originally set July 24 as the deadline for CBA amendments. It also wanted an extension of the deal past its 2021 expiry, and both health-and-safety protocols and federal funding to be in place at that time.

That deadline passed without an agreement. But while the CFL has extended the cutoff date, it hasn’t publicly announced what that might be.

Source link

Today news
Today News 1 runs four of the western GTA’s most influential media websites, offering news, food, lifestyle and entertainment coverage for millions to the Golden Horseshoe and GTA regions. The independently-run, online news source was founded in 2019 and specializes in everything from breaking news to food and restaurant, arts and entertainment and lifestyle coverage.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Oilpatch revival underway with robust profits so far this year

After racking up debt in 2020, the Canadian oilpatch is enjoying a rebound so far this year as major oil producers are gushing...

Business travel isn’t expected to return to pre-pandemic levels anytime soon

Kacey Siskind recently took her first business trip to the U.S. since the pandemic began.  The vice-president of business development at Honk Mobile, a...

Pop star Kris Wu detained by Beijing police on suspicion of sexual assault

Chinese-Canadian pop star Kris Wu has been detained by Beijing police on suspicion of rape, police announced Saturday, following an accusation the former...

Barenaked Ladies ready to return to stage after a Detour de Force

Among the four current members of Barenaked Ladies, there are differing feelings about returning to the stage. There is the predictable excitement, but...

Recent Comments