Anyone Still Think MLSE ever had a business plan for the Argos?

[ArgoRavi]

There is no doubt, and there has never been any doubt, that MLSE is in the sports business for one primary purpose: to grow enterprise value. Operating profits (and losses) are of vastly lower importance. Its three other major league properties have all grown significantly in value over the duration of MLSE's ownership. The Argos have not. They likely could not be sold today even for the $5 million the team supposedly fetched in 1988 and 1991 (although we now know that both of those sales figures were essentially fictional).

A strong case can be made that in its five years of ownership, MLSE has done little (if anything) to attempt to grow the franchise value. And a strong case can also be made that ownership failures/neglect/stupidity over the preceding 35 years were also a massively important contributor to this awful state of affairs.

As to what could be done to reverse this situation, who the hell knows at this point? A dedicated Argo president with a mandate from MLSE to grow the Argos brand (and a budget to make that happen) certainly could not hurt, but there is no guarantee that even that would make a difference.

Can MLSE at least try and put in equal effort to what they put into Toronto FC? Is that asking too much?

The lack of vision from Tanenbaum and friends has been immensely disappointing, especially when you see the likes of Doman, Cui and Young working their tails off and either expecting success or, in the case of Young, having success.

[paulwoods13]

Can MLSE at least try and put in equal effort to what they put into Toronto FC? Is that asking too much?

It's not just effort that has been put into TFC, it's money. And based on franchise value, there has been a return (at least on paper) on that investment. Would there be a similar return on a similar investment in the Argos? My sense is that MLSE has concluded that there would not be, in a nine-team league operating only in Canada and with virtually no real revenue growth potential as it is currently constituted. Yes, we would all love to see MLSE really try, and spend accordingly, for 5-10 years to rebuild. It might work. But given that the brand has been abused and made slowly irrelevant over the past 40 years, it also might not work. And if you're the head of MLSE, why would you take that chance?

[AngeloV]

It's not just effort that has been put into TFC, it's money. And based on franchise value, there has been a return (at least on paper) on that investment. Would there be a similar return on a similar investment in the Argos? My sense is that MLSE has concluded that there would not be, in a nine-team league operating only in Canada and with virtually no real revenue growth potential as it is currently constituted. Yes, we would all love to see MLSE really try, and spend accordingly, for 5-10 years to rebuild. It might work. But given that the brand has been abused and made slowly irrelevant over the past 40 years, it also might not work. And if you're the head of MLSE, why would you take that chance?

I will ask again. Did MLSE really think the CFL would possibly be able to have a franchise valuation in the hundreds of millions?

[paulwoods13]

I will ask again. Did MLSE really think the CFL would possibly be able to have a franchise valuation in the hundreds of millions?

I'm sure they did not. But they might have thought the value could go above whatever they paid for it.

[AngeloV]

I'm sure they did not. But they might have thought the value could go above whatever they paid for it.

Yeah, they must have thought their brand alone would do it and zero effort would be needed.

[argolio]

Can MLSE at least try and put in equal effort to what they put into Toronto FC? Is that asking too much?

MLS sold MLSE on the idea of soccer infiltrating the American market to the point where MLS would eventually land a big U.S. TV contract, and MLSE is still on board with that. MLSE does not see the same revenue potential with the CFL, and therefore doesn't see the point spending more on the team.

At least that's what I think MLSE believes.

So what is their rationale for owning the Argos? Small tax write off, philanthropy (keep Argos off deathbed), keep CFL alive for TSN?
If they are committed to the losses to do that they could commit a little more to trying to create value.
If not they should try and find another Amar Doman, Bob Young to sell to. A dedicated President with a dedicated budget (drop in the bucket to them), and they can just watch what happens with very little risk. Value would come. An entire 10 team league firing on all cylinders should be worth $100 million.

Probably a content play. Bell makes money from the CFL deal and wants to keep a team in Toronto, home of major advertisers and ad agencies.

Finding another owner sounds good in theory, but those people generally want to see some kind of a payoff down the road. If it's not a big jump in TV money, franchise value, or attendance beyond the occasional East final, then what?

[Scooter McCray]

It's not just effort that has been put into TFC, it's money. And based on franchise value, there has been a return (at least on paper) on that investment. Would there be a similar return on a similar investment in the Argos? My sense is that MLSE has concluded that there would not be, in a nine-team league operating only in Canada and with virtually no real revenue growth potential as it is currently constituted. Yes, we would all love to see MLSE really try, and spend accordingly, for 5-10 years to rebuild. It might work. But given that the brand has been abused and made slowly irrelevant over the past 40 years, it also might not work. And if you're the head of MLSE, why would you take that chance?

So what is their rationale for owning the Argos? Small tax write off, philanthropy (keep Argos off deathbed), keep CFL alive for TSN?
If they are committed to the losses to do that they could commit a little more to trying to create value.
If not they should try and find another Amar Doman, Bob Young to sell to. A dedicated President with a dedicated budget (drop in the bucket to them), and they can just watch what happens with very little risk. Value would come. An entire 10 team league firing on all cylinders should be worth $100 million.