Federal CFL bailout plan relies on provincial help

When the Trudeau government told the CFL officials to go see their bank last week, few thought that meant that Ottawa would step up as a financial backer.

However, that is very much what might happen as a federal loan to the tune of $42.5 million is in the works.

In the House of Commons last week, Conservative MP and former sportscaster Kevin Waugh asked Heritage Minister Steven Guilbuealt whether the government would support the CFL with a bailout. Guilbeault stated that the government supports amateur sports, not professional sports.

“We encourage organizations in need of assistance to talk to their financial institution and to see what options are available to them,” Guilbeault said.

While Waugh took that as a no, Guilbeault made it clear that the government continued to be in discussions with the league. Now it appears a loan may be forthcoming from the Business Development Bank of Canada if all involved can agree.

That remains a big “if.” Several sources from the league, player and government side have said that a deal is close but not done yet.

In addition to asking the federal government to back $42.5 million in financing to secure a shortened season, the deal will likely require the provinces that have CFL teams to effectively co-sign the loan, meaning taxpayers could be on the hook if things go south.

If all goes well, then the plan is one that allows everyone involved to act as a hero but will spread the risk around in the event the league falters.