A Canadian Pro/Rel Manifesto

By Benjamin Massey

September 21st, 2016 · 5 comments

Canadian Soccer Association

Canadian Soccer Association

Reports of a coming Canadian Premier League have not died. The usual reporters, Duane Rollins and Anthony Totera, continue to tease us with target dates and rumoured plans. Peripheral feelers and exploratory movements have reached even the least connected members of the soccer community. The Canadian Soccer Association has still not made any announcement, but the winking and nudging and “just you waits” are only intensifying. There’s smoke, and while that does not necessarily indicate fire, somebody is trying to start one.

As far as a fan can tell, nothing is set in stone. So perhaps the time is right for us to say what sort of league we want. The true Canadian fan has been desperate for something, anything he could call his own, and we still are, and would support our domestic league even if it was Major League Soccer with a maple leaf tattooed on its face. However, just because our standards may be low and our expectations not much higher does not mean that we don’t have ambitions. A Canadian soccer league would, to a great extent, be an end in itself, but it would also be a means to other ends, and we should try to promote those while plans can still be changed.

One of those ends is making Canada, as surely as it is a hockey country, a soccer country. Eight teams in eight major metropolitan centres would be great for those in the hearts of big cities, but would still leave the majority of our landmass and a large chunk of our population with teams you could only call “their own” in very generous terms. What makes us a hockey nation is not seven NHL franchises but the hundreds of senior, major junior, and junior “A” teams, based in cities as large as Toronto and podunk towns of a thousand people, that bring the sport to the masses. Even the semi-rural family, the suburb-dweller, the oil patch kid, doesn’t have far to go if he wants to watch quality hockey. Much of the country enjoys the same access to curling, or Canadian football, and if you ever wonder why those sports command so much attention despite seeming so passé in the big city, think about that.

Alone, a Canadian Premier League alone could never imitate that. Only one thing could: promotion and relegation.

Simply saying those three words in North America provokes an instantaneous, tribal response. Many demand it with the fervour of the fundamentalist. Others decry it as foreign, impractical, a cancer that could never exist and we’re better off without. North America has franchises bound to leagues. Owners would never accept it. How could you get investors if that investment might go up in smoke with one bad year? It’s mad, it’s terrible, it could and should never happen.

That’s wrong. Promotion and relegation does not need to be an immediate and extreme load on the country’s back. Here is my view, addressed to the prospective owner, of what it could be.

Protecting your investment

Nobody is saying that you should get relegated tomorrow. We’re not insane. You, the founding franchiser, are going to plow a lot of money into getting this league started. Even in the best case the league’s very survival will be in doubt for several years. If at least one team doesn’t fold outright it’ll be a miracle. A malleable structure sending some $20-million-a-year subsidizer to League1 Ontario for 2019 is a terrible idea and everyone knows it. Even if we were that extreme, the infrastructure and lower divisions do not exist. The Victoria Vistas get relegated from the CanPL; where the heck are they gonna play?

We don’t need promotion and relegation in year one, or year three, or year five. We need a clear roadmap of how we’re going to get there. You can only accept promotion and relegation after fifteen seasons, provided the Premier League has sixteen teams and there are semi-pro leagues in every province? That sounds amazing! But write it down and work towards it.

In fact, you shouldn’t necessarily be relegated at all. You’re spending a lot of money and you want your investment to be protected. Okay. There are ways to promote and relegate teams other than “three up, three down” every year. Both the Argentine Premier Division and Mexico’s Liga MX, the best and most successful soccer league in North America, use a “coefficient” system that relegates teams for sustained incompetence rather than one bad season. The first year of the system could be promotion only: bringing in four less-developed teams to fight your established squads for three relegation places would give you an automatic advantage. Minimum stadium standards, like those used by almost every league in the world, will make sure you don’t get knocked out by some podunk outfit playing Thursday afternoons at a city park. For greater security, institute a playoff between the teams in the Premier League’s relegation places and the lower divisions’ promotion places, so we make sure that only the deserving get to the big time.

Remember, no promotion/relegation advocate has a problem with your team staying in the top division indefinitely. It’s about adding a competitive element to the bottom of the table, and clubs being free to rise as far as their talent and resources can take them. Any promotion/relegation system has to be fair, but “fair” applies to you, the owner, as well.

Making that investment work

Nothing about pro/rel prevents financial responsibility. American opponents regularly assert that promotion and relegation is a naturally reckless system but they are conflating the all-round money madness of European and South American soccer with one element of its system. Teams in no danger of relegation can spend like lunatics and suffer for it; ask the late-’90s NHL. Of course, a team that gets relegated takes a financial hit every time, there’s no way around that, but the measures you may already be taking for fiscal stability can work here.

By all accounts the Canadian Premier League will pursue revenue sharing and cost certainty in the form of a salary cap anyway. Making this work with promotion and relegation is as easy as wanting to. If a cap team in the CanPL gets relegated to the PLSQ, it’s perfectly reasonable for the rules to “grandfather” the newly-arrived club into the PLSQ’s lower salary structure. Work out the details, that’s all they are. The PLSQ team that gets promoted in their place will want to spend more and keep their new position, but a salary cap will keep them from pulling a Gretna. Cost certainty and pro/rel can, in fact should, walk hand in hand.

The other side to relegation is that it frees you from undercapitalized, uncompetitive teams facing either new ownership or bankruptcy. The North American Soccer League spent two years keeping the Atlanta Silverbacks afloat on a shoestring for pride’s sake. Atlanta was a decent market with a good history and a solid soccer-specific stadium, but with MLS coming they couldn’t find a buyer willing to commit to an NASL level of expenditure. The Silverbacks should really have been allowed to fall to their natural level, and without promotion and relegation that becomes a whim of ownership rather than a Darwinian evolution (see San Antonio). It cost the more solid NASL owners both prestige and hard cash.

In Europe, when a team goes bankrupt or misses payments, it is automatically deducted so many points that relegation is almost inevitable. In a franchise system these teams would be near-certain bankrupts but with the lower costs and lesser pressure of a lower division, they can sometimes keep mostly afloat long enough to reorganize into a healthier model as Portsmouth is currently doing. That club is owned by a supporters’ trust that could never possibly have raised the required capital if Pompey was at the basement of a franchise-based Premier League, with all the expenditure and paper-only “value” that implies; the team would have just died. Obviously teams do go bankrupt in a pro/rel system, it’s not a panacea, but it is another way to handle the trouble one broke owner can put your league in.

Remember, more soccer is good for you. You want every sort of fan you can get, of course, but the sort who makes you the most money is the season-tickets-every-year new-kit-every-two merchandise-buying beer-swilling sponsor-supporting diehard. They come back year after year, plow way more of their disposable income than would be considered responsible into your pocket, and feel personally involved in the success of your company. Many of them feel so deeply about your corporate success that they will stand up and sing songs about how terrific your company is; they are literally paying you to use them in your marketing. Subject to pretty modest precautions like making sure the loud ones get their own section and preventing them punching babies or burning the stadium down, they bring other fans in the door. This is a good deal for you.

These fans also don’t come from nowhere. Nobody wakes up one day and decides “I am going to lose my mind for soccer,” or hockey, or football, or ringette, or any other sport. That sort of fanaticism is something that builds with exposure to the sport. It is why, for so long, soccer supporters were such a niche in the United States and suddenly were everywhere: a certain critical mass had to develop, and then things took off.

Sure, you and your fellow franchisers might be able to get domestic soccer that critical mass almost singlehanded, but wouldn’t you rather other people helped pay for it? A healthier lower division, such as is promoted by the competitiveness of promotion and relegation, is in your interest. In principle you might lose a meaningful number of fans to local, lower-division rivals, but in practice this hardly seems to happen. You only need look at the rise and fall of attendances as teams go up and down the divisions to see this: many fans want to see their local side, many fans want to see the best, and sometimes those two groups overlap. Sports fandom is not zero-sum. League1 Ontario fans still go to Toronto FC games, and at every level, atmosphere attracts atmosphere.

And if a new first-division team appears in your city, within walking distance of your stadium? Around the world those games are the most intensely-fought and lucrative of all. If you can’t make money off passionate clashes between neighbours and rivals, what are you even doing in this business?

More soccer is also good for you on the field. One of the best-established ways to train a young player is to send him on loan so he can get experience playing meaningful games at a level that suits him. At risk of stating the obvious, this requires a team to borrow him from you. Except in rare cases it’ll be a lower-division team for the also-obvious reason that if he was good enough for the first division the kid would be playing for you in it. There needs to be multiple options; you don’t want to be stuck because your only choice doesn’t need help at that position. Preferably the team will also be nearby, in case you need the kid back, and run by staff you know and trust. Heck, you probably even need successful teams at multiple levels, to accommodate players at different stages of development. That’s a long list of requirements and it takes a very healthy lower-division pyramid to accommodate them all. The United States does not have that. Bring in promotion and relegation, give lower-division teams that boost, and Canada could.

That’s an unquantifiable benefit, of course. But another reason you should want healthy lower divisions is that, if it turns out that kid isn’t good enough for you after all, you can sell him to that lower-division team that liked him so much last time. Right now, unless you’re Miami FC, there’s not much point in the NASL paying cash on the barrel for an MLS reject: the MLSer will just be released in two months anyway and they can get him for free. If that NASL team was angling for promotion, or for that matter if an MLS team was battling relegation, matters might look a little different, and you make money.

Finally, ask yourself what would promotion and relegation cost you? So long as you stay up – and as we said a few paragraphs ago, there’s no reason why you shouldn’t – very little. In ten or fifteen years or whatever, when the league reaches the point of stability where promotion and relegation are introduced, you will lose out on sweet franchise fees with every expansion. On the other hand, if you’re able to charge new investors big money then pretty-much-by-definition your business will be in good financial shape, and you will also be able to command a premium for the franchise fees in the years before promotion and relegation. “Buy in now or start from the bottom” is a decent pitch. Besides, franchise fees are a finite resource. Eventually your league will get as big as it can. They’re a crutch, not a structural revenue source.

Other than that, it’s hard to see how it’ll cost you a dime. A rival gets relegated? Given the probability that the new league will be spread across this huge country, it’s much more likely that new geographic rivals will appear. Travel costs are going to be a bastard whether you’re going from Toronto to Edmonton or Toronto to Sherwood Park. Minimum facility standards, common around the world, will save you from road games where friends and family pay a buck each to watch your $5-million roster. You may want to introduce parachute payments for relegated teams, and modest stadium subsidies for teams being promoted would be a good idea, but weren’t we just talking about revenue sharing? This is the same thing by other means, the rich giving a certain proportion of their revenue to benefit the poor for the benefit of all. The total amount of money you pay out doesn’t need to change.

And if it goes wrong?

Of course, there’s every chance that you hire the wrong guy, he signs the wrong players, blows through your money like a politician in election week, and in spite of all protections you get relegated. I’m sorry. There’s also every chance that you sell all your capital to buy Bre-X stock and wind up fishing for change on Granville and Nelson. We can give you a sporting chance, we can shield you from ordinary bad luck, so that one comes down to “don’t make stupid decisions.” If you can’t handle that as a condition, maybe capitalism isn’t for you.

Comments are closed.

5 responses to “A Canadian Pro/Rel Manifesto”

  1. Douglas Martin says:

    Great article Ben, now if the Minister of Sport Carla Qualtrough ( from Delta BC ) and CSA directors would read it and hold a Pro/Rel consultation conference we could move forward.

  2. Faiz Imam says:

    You know what? I think you have me convinced.

    I came into this very much skeptical, used to the pro rel ramblings of Ted and the NASL fanatics.

    Their arguments are founded in the context of MLS, the politics of US soccer and the NASL and as such they’ve never resonated with me.

    But this has laid out a vision for the future that seems believable.

    Whilr I’m still unsure if performance based relegation of any kind is desirable, having a strong grass roots to anchor and sustain top flight soccer certainly seems essential.

    Having open promotion is very appealing, because basically, why not? When you have a <8 team league you need to foster growth anyway you can. It's irresponsible to shut down an avenue like that.

    But at the same time, I feel like advocating some semblance of Plutocracy. If you paid to start the league and to get in, and you represent big cities with significant infrastructure (in short supply in Canada) I feel like it's beneficial for them to stay up despite their failure.

    I mean, I'm a straight up Marxist, but I don't think private sports leagues need to be run the same way as governments of the people.

    Dicsriminating League status based on infrastructure, capital and local market potential seems like the responsible thing to do, a the expense of fairness and integrity.

    But Congrats man, you've got me convinced that this idea isn't totally ridiculous.

    • Benjamin Massey says:

      Well this is my favourite kind of comment.

      (Not totally related, but it’s always killed me that real-life-right-wing-maniacs like me are always advocating salary caps and greater socialism in sports, and real-life-straight-up-Marxists like you seem to tend towards laissez-faire there…)

      • Faiz Imam says:

        Well, for me the 2 are not dissonant because sports teams are not people and as such not deserving of equal treatment, fairness, etc. So I find it acceptable to see them in a very mechanical way. These potential teams are institutions that need to be grown and supported in such a way that best grows the league(and therefore the sport). This may or may not mean tearing them down.

        I’m not particularly lessez faire or socialistic about these teams. I just think we need to do whatever it takes for them to survive and thrive.

        I think having teams in big cities grows the league, and *not* having a team in a big city is horribly detrimental, if not debilitating, and needs to be defended against.

        If we are to think about some time in the distant future when the league is at a level where the CFL is now (big in some places, small in others, but stable) and the question of relegation comes up. I think the answer needs to be, is this in the best interests of the league and the sport?

        If I understand you right, I think you are saying that while MLS style single entity franchise may help the sport *survive* it won’t help it *thrive*. ie: prorel and an open(ish) league is required for grassroots transformation.

        If so, if that means we need to set some ground rules for that possibility right away, then yeah. We definitely need to have that discussion right now and it needs to involve people beyond the half dozen big money people who are starting this up.

  3. Seathanaich says:

    As always well thought and eloquent. However, is pro/rel viable in Canada? We’ve already “lost” the biggest three markets to MLS in Vancouver, Toronto, and Montreal. I can see a CSL being viable in Vic, Cgy, Edm, Saskatoon, Wpg, Lon, Ham, Ott, Que and Hfx – ie ten teams. Beyond those places, you could MAYBE have teams in Windsor and Kitchener, but beyond those, what cities could raise the revenue for cross-country travel? I love pro/rel, but I’m not sure that the small number of cities and the huge distances in Canada can make it viable for “D3” markets like Nanaimo or Sudbury to afford promotion to a D2 CSL.