Why the Argonauts and the CFL need to make a BMO Field deal within a month

Friday's news that there's only about a month to the deadline needed for the Argos to make a deal so that they can play at BMO Field from 2016 onwards should spark a further fire under the team and the league to get this done. As Neil Davidson of The Canadian Press writes, Maple Leaf Sports and Entertainment executives say time is running short:

The temptation at first glance might be to tell the Argos not to panic. After all, their lease at the Rogers Centre doesn't expire until after the 2017 season, so a further one-year delay may not seem that crucial. However, the reality is quite different. For one thing, the current situation at the Rogers Centre is so poor in terms of scheduling, environment and more that the team is suffering both competitively and financially, and they'll continue to do so as long as they stay there. For another thing, the Argos and the CFL have next to no leverage in these negotiations, and that's not likely to improve any time soon. At the moment, a BMO Field deal really is their only hope. While the terms on the table at the moment may not seem that appealing, the team and the league need to strike a deal to ensure the Argos' survival as soon as possible. Given the construction delays with the current renovation, too, making a deal as quickly as possible is vital to get things in place for a 2016 move. This situation isn't likely to get better for the Argonauts, and it's quite possible that it could get worse.

From here, it really doesn't look like the Argos have much to negotiate over. BMO Field is the only halfway-feasible solution that's been proposed for them, and while there are still some concerns with it, it's miles and miles better than anything else they can come up with at this point. There's a next-to-zero chance of the team getting their own stadium in Toronto, and moving them out of town is highly undesirable for both the Argos and the CFL. BMO Field is their only hope, so they need to do everything they can to get in there, even if it's not on the terms they'd ideally prefer.

Much has been made of the supposed funding gap required to make the stadium compatible with Canadian football, which has generally been estimated to be about $10 million. Yes, the Argonauts would ideally prefer not to pay that. However, as stadium solutions go, that's a pretty good deal. Consider the Winnipeg Blue Bombers, who are paying $85 million towards their stadium over half a century.The Bombers are believed to be in a much better financial position than the Argonauts, but their financial reports show how much better the whole league is doing under the new CBA. There's approximately a $2.2 million increase in revenue for each team from the new national TV deal, and corresponding cost increases (in player salaries) of just $200,000 to $600,000. Thus, if all else remained equal, the Argos would be at least $1.6 million better off annually under the new CBA than the old one; add that up, and $10 million goes away in just seven years.

The Argos may not want to or be able to pay that themselves right now, but if so, that's where the CFL should step in. The league has never been healthier financially or more stable across the board, and indeed, the Argos' situation looks like one of the few really pressing issues for new commissioner Jeffrey Orridge. Despite lots of reports, no deal has been worked out yet, and the league may need to play a substantial role in making one happen. Whether that's through funding the whole thing themselves, funding it against future revenue distributions to the Argos or some other means is yet to be determined, but the CFL is certainly capable of coming up with $10 million if it needs to. At the moment, it may need to.

The longer this situation sits, the worse it potentially gets for the Argos. First, there's the chance of them not making it into BMO Field at all; there's still substantial opposition to the move, especially from Toronto FC supporters worried about what this means for the soccer pitch. That opposition hasn't managed to nix this deal yet, but it's only going to grow with time, and the Argos have been left out of stadium projects at the last moment before.

Beyond that, letting the clock run towards their eviction from the Rogers Centre at the end of 2017 puts the Argos in a more and more precarious situation. It also makes it less and less likely owner David Braley will be able to sell the team at a reasonable price. Every single game they have to play in the Rogers Centre rather than in a superior venue like BMO Field is also a future loss for the team; it's far easier to imagine them being profitable at a new location than it is at the Rogers Centre, where they're an incredible afterthought with no scheduling consideration and a poor atmosphere. A BMO Field deal solves so much; it ensures the team's future, it makes it possible for them to potentially make a profit, and it paves the way for Braley to sell the team. Getting this done as quickly as possible is imperative for the Argos and the CFL.

Paying $10 million or so to make this deal happen may seem unpleasant, but it's really the least objectionable outcome for the Argos and the CFL. They have the resources to make it happen, and there's no reason not to make a deal as quickly as possible. It may be painful in the short term, but it's workable in the long term, and well worth it to help the Argos survive and thrive in Toronto.