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Argos' rumoured sale to Bell, Larry Tanenbaum could solve both their main issues

andrew bucholtz

The Toronto Argonauts' loop of inaction recently on both an ownership transfer and a future place to play has been at least partly thanks to a chicken-or-the-egg conundrum; it's been very difficult for David Braley to sell the team without a stadium solution, but it's been harder to get that stadium solution with the uncertainty around who would wind up owning the team. Now, it sounds like the CFL and the Argos may have found a way to kill two birds with one stone; TSN's Dave Naylor and Rick Westhead report that Bell and MLSE chairman Larry Tanenbaum (two of the three partners in Maple Leaf Sports and Entertainment) are close to a deal to buy the team and move them into an expanded BMO Field (which is operated by MLSE). From the TSN piece:

Bell and Larry Tanenbaum, two of three parties involved in ownership of Maple Leaf Sports and Entertainment, are negotiating to buy the Canadian Football League's Toronto Argonauts from David Braley and aiming to secure a lease that would see the team move to BMO Field in time for the 2016 CFL season, TSN has learned.

Toronto city councillor Mark Grimes, chair of Exhibition Place, where BMO Field is located, said he spoke to CFL interim commissioner Jim Lawson on Monday morning and understands the sale is nearing completion.

Completing the complex transaction has been difficult, according to several sources, because the third partner in MLSE's ownership, Rogers Communications, has declined to take on a stake in the Argos. Tanenbaum and Bell have been negotiating a BMO Field lease with MLSE, which includes representatives from Rogers who want to ensure its partners pay market value for the stadium that is currently home to Toronto FC.

Sorting out Rogers' role in the deal has been a stumbling block for months, according to sources, with the CFL still holding out hope that Rogers can be convinced to join its MLSE partners in owning the Argos. However, with a deadline to complete a deal looming in a matter of days in order for BMO Field to be CFL ready by next summer, there is pressure on all parties to get a deal done.

It's important to remember here that this isn't finalized yet, and that anything can still happen. For one thing, remember that we've seen plenty of conclusive reports on the Argos before that have turned out to be anything but. Also, the CFL's statement in response Monday afternoon was definitely less than final:

"We're aware that discussions are currently taking place between owner David Braley and certain interested parties regarding the Toronto Argonauts.

Out of respect to all parties involved, we are going to allow this process to take its course and we will not be commenting any further while negotiations are ongoing."

Still, this makes sense on a lot of levels. It fits with the Toronto Star''s Friday report of a mystery group buying the team and contributing $10 million to the BMO renovations, it's a logical move for Bell in particular (they own 80 per cent of TSN, which has a long-term deal with the CFL, so keeping the CFL in good shape matters to them), and it avoids at least some of the challenges that would have arisen if a group completely outside MLSE had bought the Argonauts and then tried to get them into the MLSE-operated BMO Field.

Tanenbaum's involvement also seems logical. Under this new CBA, it seems likely an owner could make money off the Argos (or at least avoid substantial losses) with a good stadium deal and a smart marketing operation. That's especially true if they're given two Grey Cups in the next 10 years (as Westhead and Naylor report is part of this deal). There are plenty of synergies to having them play at BMO Field, too. That could potentially have been forced on MLSE anyway even if competely outside ownership had bought the Argos, given that BMO Field is publicly owned and that part of its renovation budget comes from Toronto council. Buying into the Argos gives Tanenbaum (as well as Bell) control over the team (which should help to make their relationship with MLSE easier) and a stake in their profits.

It's Rogers' decision to balk that's the most curious here, given the potential for profits, but it also fits with the larger developments we've seen on the Canadian sports media front. Rogers and Sportsnet have been escalating their rivalry with Bell and TSN, most notably over national NHL rights, and this feels like part of that battle. Rogers executives have no desire to do anything that might benefit the CFL, as it's one of TSN's biggest and most valuable properties (and directly competes with a property they both own and broadcast, MLB's Toronto Blue Jays). Reluctance from Rogers, but interest from Bell and Tanenbaum, explains why we've seen so many conflicting reports about MLSE's desire to get involved with the Argos. It seems smart by Bell and Tanenbaum to work outside of the triumvirate on this occasion and make an Argonauts' deal that works for happen despite Rogers' opposition. After all, there's plenty of precedent for unstable triumvirates.

If this deal does come to pass as reported, it looks quite positive for the Argonauts and the CFL. They get stable, wealthy ownership with a substantial interest in the success of the team and the league, they get a long-term stadium solution, and their ownership has enough control over MLSE that the operator-tenant relationship at BMO Field should be relatively smooth (as compared to what it's been at their current Rogers Centre stadium, both named after, owned and controlled by Rogers). Argonauts' fans shouldn't be counting their chickens yet, though. This deal may be close, but it isn't done yet. As we know from many of the long-running sagas of the Argonauts, the football can always be pulled away at the last minute.