CFL TAKING A HARD LOOK AT LONG-TERM SURVIVAL
Business model under review for league that routinely loses millions every year
Many people were shocked to learn the CFL routinely loses
$10 million to $20 million annually.
That bottom-line bomb was dropped by commissioner Randy Ambrosie last month as he appealed to the federal government for financial aid.
It should surprise no one, however, that the league is actively and aggressively cutting costs, in part to mitigate the immediate financial devastation wrought by the COVID -19 pandemic, but also to revise a gate-driven business model that doesn’t support a modest league’s big, long-term dreams of growth and revenue generation.
For 2021, the non-player, football operations cap will drop to $2,070,400, a 20 per cent cut from the current $2,558,000. Contrary to some initial reports that surfaced on social media Monday night, there won’t be a reduction in the maximum number of coaches and other football personnel — GMS, scouts and equipment managers et al. — allowed under the cap. Those limits stay at 11 and 14 respectively.
Four teams already have fewer than 11 coaches; Edmonton and Winnipeg have nine each, while B.C. and Montreal have 10.
There surely will be more pain in the form of pay cuts for veteran coaches and football operations people next season, as teams struggle to chop slightly more than $500,000 from their payroll. And some of those employees have already volunteered to take cuts as deep as 20 per cent this year, ensuring their teams stay afloat, if only just barely, while the league plans for a truncated 2020 season. What’s more, some of them have no idea if they’ll be paid out in the event of a cancelled season. That growing financial anxiety is part and parcel of the upheaval created by the pandemic.
“Obviously, one of the factors we have been sharing now for months is that there are significant financial considerations that have to be accounted for,” Ambrosie said last Thursday. “This is why you’ve heard me say this, that I am spending a lot of time looking at our business model for 2021 and beyond. Because, while we’re going to without a doubt have a decision to make about playing this year, and there is some great work being done in support of that, I want to set us up for long-term success for everybody’s benefit. I want this league to be strong for our fans, for our players, for our coaches, and for the owners. That’s where a lot of our focus is.”
Many CFL players are facing an even harsher reality. If a player hasn’t received an off-season bonus, he won’t have seen any money from the CFL since October or perhaps November. Their anxiety is compounded by the fact they haven’t been included in planning for a return to play.
“To date, the league has not collaborated with your players’ association, even after being chastised publicly by the federal government for excluding the players,” the CFL Players’ Association leadership said in an email sent to members on Tuesday afternoon. “We continue to persevere, despite the league’s arrogance, in working toward a safe, shortened season for you.
“After the CFL chose to not allow players to self-terminate their contracts if they elected, the league has now opted to not honour payments owed, outside of base salaries, as per these contracts. The CFLPA has filed a grievance on behalf of all members affected as the CFL cannot, to their liking, pick and choose what to honour.”
The email also states the CFLPA leadership believes the CFL will seek to “revisit such things as the length of the agreement and other significant items such as salary structure” whenever the two sides begin renegotiating the collective bargaining agreement, something the CFLPA said it has wanted to do since March.
During a Tuesday afternoon interview, Ambrosie said he wouldn’t address the CFLPA’S allegations or specifics of a renegotiated CBA.
“Our intention is to give them a set of guiding principles as soon as possible,” he said of the players.
As the CFLPA waits for that proposal, it’s also surveying membership on several aspects of a return-to-play scenario, including their willingness to play games on four days’ rest, accept a pro-rated salary, and spend 12 weeks in a hub city.
That’s because the best bet currently would be for a single hub city and no fans in the stadium, a 10- to 14-day training camp in August, no pre-season games, an eight- to 10-game regular season starting on Labour Day weekend and a mid-december Grey Cup. But the plan remains fluid, as COVID -19 conditions and government regulations change.
And whether they play a shortened schedule without fans in the stands, or cancel the season entirely, the one constant will be red ink along the bottom line.
“There is an absolute desire to play,” Ambrosie said last week. “That isn’t going to go away. Our true desire, given that we’re a football league and we’ve got amazing football people, will be to play. I suppose this is just one of those times when you would like to have your cake and eat it too.”