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Government loan helps keep 'Riders in the CFL basement

Author: David Maclean 2003/06/03
As CFL teams pare down their lineups in advance of the coming season, now is as good a time as any to re-visit the issue of government loans and subsidies to professional sports teams.

Readers may remember that back in April the Saskatchewan government announced a $2.8 million loan to the Saskatchewan Roughriders. The Canadian Taxpayers Federation (CTF) and Liberal MLA Jack Hillson were alone in the wilderness opposing what is ultimately a government subsidy to a professional sports team.

It's funny how fiscally conservative sports fans turn in to 'big government' advocates when it comes to their own teams. Anyone who is a fan can relate - we all want our teams to compete, and hopefully win championships. But of all the strong stands the CTF has taken in recent months, the most critical feedback we've received has been in response to our stated opposition to the Sask government's loan to the 'Riders.

In their lead editorial, Star Phoenix staff howled condemnation at the CTF (and yours truly) for voicing concerns. "A self-appointed guardian of taxpayers has stepped in uninvited to denounce the provincial government's decision to grant the Saskatchewan Roughriders football team a loan of $2.8 million," they cried.

"Either MacLean hasn't been in Saskatchewan for very long or he just doesn't grasp the role the team fulfils in this province, but he's on third down and about 50 yards to go on this call," they continued.

What Star Phoenix writers and others who forcefully complained don't understand is that we oppose government subsidies for any business because, among other reasons, they ultimately cause harm to the industries they are trying to prop up. In the case of the 'Riders, government assistance to the team helps sustain failing league salary cap rules. That means the small-market 'Riders have an uphill battle just to have a .500 season against teams with bigger payrolls.

It's common knowledge that the CFL salary cap is a joke for team owners. Teams like the Edmonton Eskimos and the Toronto Argonauts have openly admitted to going over the $2.44 million cap in an effort to win a championship. Others suggest that as many as five of the nine teams in the league go over, without any league sanctions.

Subsidizing the 'Riders with a sweetheart loan enables them to limp through another mediocre season. One of the big market teams like Edmonton, Toronto, or Montreal will likely stack their teams over the salary cap limit and win the Cup. This result will please CFL execs who are more interested in TV ratings and demographics than league parity.

It's tough medicine, but what the league needs is a storied institution like the 'Riders to fall into financial jeopardy. Then and only then will the league wake up and enforce the salary cap to ensure the health of every league franchise.

The same rules that apply to every other industry in Canada apply also to pro sports. Whether it's Bombardier, Air Canada or the Saskatchewan Roughriders, government subsidies help industries ignore the systemic problems in their own business and take a taxpayer-funded vacation from market realities.

We all want the 'Riders to win the Grey Cup at home this year. Unfortunately, taxpayer dollars going toward propping up the team will only serve to perpetuate the real problem with the league - their inability to enforce the salary cap.

Wouldn't it be nice to see how the 'Riders would stack up in a league of $2.4 million teams

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Franco Terrazzano
Federal Director at
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Federation

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