Opinion: Is there finally a business case for bringing a WNBA team to Toronto? You bet

More than 20 years have passed since Maple Leaf Sports & Entertainment attempted to add a WNBA team to its roster.

It was during the first years of MLSE, born from the merger of Toronto Maple Leafs and the Toronto Raptors in 1998. Eager to increase MLSE’s enterprise value, then-president and CEO Richard Peddie made a presentation to former National Basketball Association commissioner David Stern about the possibility of bringing a team professional women’s basketball in Toronto.

But his argument was rejected.

“It was because we were so green,” Mr. Peddie said in an interview. “The truth is we weren’t yet experts at running the business side of basketball. So, we got turned down and, you know, looking back, I think it was fair. We weren’t ready.

These days, however, there’s no doubt that Toronto has some game. Not only did the Raptors win the 2019 NBA championship, but the city held The first ever National Women’s Basketball Association of Canada game last month. This historic match between the Chicago Sky and the Minnesota Lynx took place in front of a packed house.

As basketball fever grips the hearts (and wallets) of Toronto fans and WNBA Commissioner Cathy Engelbert confirms the city is on a short list of potential expansion sites, he Now is the time for MLSE to take another chance.

MLSE spokesman Dave Haggith did not respond to a message seeking comment. Never mind. The business case is obvious.

“If I were CEO of MLSE today, I would much rather have a WNBA team than an Argonaut team,” Mr. Peddie said. “The Argonauts can’t make money. It’s been proven since the days of (co-owner) Bruce McNall… With the WNBA, I think they can make money.

Sorry, Argo fans, he’s right.

In fact, three or four years after MLSE’s proposal was rejected, Mr. Stern (now deceased) contacted Mr. Peddie “several times” to ask if the company was willing to start a WNBA team.

“I kept saying ‘no,'” Mr. Peddie recalled, noting that MLSE was still integrating other assets.

Despite this, whenever they discussed it, the men touted Toronto’s demographics, including its racial diversity and LGBTQ community.

“You go to a basketball game and it looks like Toronto. You go to a Leafs game, it feels like old Toronto,” Mr. Peddie said.

As he also points out, women now hold higher positions in business and are increasingly making sponsorship decisions and purchasing subscriptions.

The WNBA, now in its 27th season, is also reaching out to a wider audience. With only 12 teams and 144 players, including four Canadians, the league features exceptional athletes who play a technically sound game. (Yes, Gary Trent Jr. of the Raptors is my imaginary boyfriend, but it’s exhilarating to see women owning the hardwood.)

“In summary, how much does the franchise cost? » said Mr. Peddie.

The Seattle storm was recently valued at a record US$151 million, according to The Wall Street Journal.

It’s unlikely an expansion team would bring in that much, so we’re talking pocket change for one An $8 billion sports company like MLSE. Additionally, the value of a team would appreciate over time. (The Raptors, once considered a US$125 million business, are now worth a whopping sum. 3.34 billion US dollars.)

“The model in both hockey and basketball is that players receive 50 percent of the revenue generated,” Mr. Peddie said.

So what are the potential stumbling blocks?

The league, which hopes to add a few teams by 2025, could decide that American cities like Nashville, Austin or Philadelphia are more attractive options. (But a Toronto team would attract fans from across the country.)

It is also true that MLSE’s ownership issues are not completely resolved and another issue is expected to come to light in the coming years.

We imagine that Rogers Communications Inc. RCI-BT and BCE Inc., BCE-T which together own 75 percent of MLSE, would compete for content rights.

There is also the issue of Rogers’ heavily leveraged balance sheet (due to its acquisition of Shaw Communications) and Bell Media’s operational difficulties.

But all of these concerns can be resolved. MLSE’s owners, which also include Larry Tanenbaum and the Ontario Municipal Employees’ Retirement System pension plan, need to take a long-term view.

Certainly MLSE, with its portfolio of arenas, could find a suitable venue that would allow a WNBA team to generate sufficient revenue, which is money generated by putting bums in seats.

U.S. Ambassador to Canada David Cohen, who attended the historic game in Toronto, discussed the issue of WNBA expansion with the league’s Ms. Engelbert.

“This is going to require the private sector to step up its efforts with interested investors,” Mr. Cohen said in a recent interview at the Canadian Club Toronto. “But I think when the window opens, I bet there will be … Canadian investors interested in bringing a WNBA team to Canada.”

Perhaps MLSE’s lawsuits should heed the wise words of Minnesota Lynx forward Bridget Carleton, a native of Chatham, Ontario.

Before the pre-season game in Toronto was announced, Ms. Carleton said, “I think it’s time to show them that Canada is not just a hockey country – that we are also passionate about basketball. »

Now it’s child’s play.