Argos at BMO Field

[AngeloV]

I think what you guys are failing to see here is that people aren't (and haven't in the past) been lining up to buy the Argos. I think that $20 million is a ridiculously high number to ask for a team that each of the last 2 owners have not paid a dime to take over. Braley has put money into it, but the fact remains, he took it over from C&S for nothing, just as they took it over from the league for nothing. If there was a bidding war for the team, I can understand the asking price. Unfortunately, there is no evidence to suggest that there is a bidding war or that there is even more than 1 interested party.

[Invader]

I think what you guys are failing to see here is that people aren't (and haven't in the past) been lining up to buy the Argos. I think that $20 million is a ridiculously high number to ask for a team that each of the last 2 owners have not paid a dime to take over. Braley has put money into it, but the fact remains, he took it over from C&S for nothing, just as they took it over from the league for nothing. If there was a bidding war for the team, I can understand the asking price. Unfortunately, there is no evidence to suggest that there is a bidding war or that there is even more than 1 interested party.

I frankly doubt Mr. Braley didn't pay a dime to take over the Argos. Cynamon has said they paid a couple of million to buy the Argos (which was likely used to pay key creditors). Braley likely called in his Line of Credit he held with C & S. They either had to pay off the loan or turn over the Argos to Braley, which was held as security for the loan. So Braley probably had to eat that loan (i.e. $2.5 million), then pay off outstanding creditors to keep the operation going. So to say they bought the Argos for nothing is likely false. Cynamon was very upset about losing the team and said in a recent article he wouldn't answer the phone if Braley called. It was also reported that S. Shwartz also paid a couple of million to buy the Argos.

The franchise valuation benchmark was set with the Flames purchase of the Stamps. They paid a widely-reported $15 million to increase their ownership stake from 5% to 70%...which puts the Stamps value at $20 million. This is for a club which had turned a consistent $1 million to $3 million profit for about 10 years.

Braley pegged the value of the Lions at $25 million, which had turned similar profits to the Stamps, but were the prime tenant in $800-million retractable dome stadium.

What are the Argos worth? Only what somebody is willing to pay for them. I can almost guarantee MLSE wanted to buy the Argos for nothing (or better yet have Braley give them a $2M LOC for the privilege of MLSE taking over the team) MLSE stated goal was to bring a NFL team to Toronto...and the TFC fan experience must be improved with any move of the Argos to BMO (but that conversation hasn't even started.) So we can see where the Argos would fit into the MLSE hierarchy.

I believe the Argos have been losing $1-3 million over the past few years (not including Grey Cup profits of a reported $10M to $12M), but the organization has been swimming in quicksand. The Rogers/MLSE monopoly had blocked and diminished the Argos chances of regaining a foothold in the market. But with MLSE onside, important doors could be opened, if only a crack, if they chose to do so.

That is the risk and also the reward.