By RaptorTalk


Recently, Michael Grange of the Globe & Mail questioned whether Maple Leaf Sports and Entertainment were the ownership group that might be best suited to help the Toronto Raptors bring an NBA Championship to the Centre of the Universe.

Good question and its one that's crossed my mind before.

The criticism of MLSE goes like this. As a professional sports franchise owner, their number one priority is ensuring their profitable bottom line. Frankly, truer words have not been spoken.

The unanswered question is – will MLSE spend what is necessary for the Raptors to become an elite NBA team even if it means reduced profitability for the corporation? Fact is that the NBA’s elites are all deep in luxury tax territory. Will MLSE ever go there? 

     

Toronto sports fans fear that MLSE cares more about selling million dollar suites in the new 50 story Maple Leaf Square condos outside the ACC than they do about putting a competitive product on the court or the ice.

First, let me say I’m far from an MLSE apologist. In the past I have been very critical of MLSE’s treatment of Raptor season ticketholders and Dave Feschuk has twice quoted me in Toronto Star columns about unhappy Raps fans.


Be careful what you wish for

That said, unless you can find a Toronto based multi-billionaire who is passionate about NBA basketball and is willing to spend anything to win - then Raptor fans had better be happy with MLSE's deep pockets.

MLSE may not be the best ownership group in the NBA, but they are far from the worst.

Even with a rich passionate owner, let’s remember that Paul Allen's and Mark Cuban's deep pockets didn't bring championships to either Portland or Dallas.

Right now, there is no Toronto billionaire willing to step up and rescue this franchise- so it’s largely a moot point. Plus, if you get an outsider with billions to step up and buy the Raptors, then you run the risk of the team moving – albeit remote. Then again, look at Vancouver and Seattle.

I believe the Raptors are secure in Toronto and will never be moved - but , never say never. Over the years, major markets like Los Angeles, New York, Houston and the Bay Area have all lost professional sports franchises.

Ten years ago did anyone seriously think that small markets like Oklahoma City and Memphis would have NBA franchises? Who would have predicted that the largest media market in the USA would have gone 20 years without an NFL franchise? You just never know what a billionaire may do with his or her sports franchise.

This may not be what fans want to hear, but having the Toronto Raptors under the MLSE umbrella with their deep pockets, may very well be the best option for our Heroes of the Hardcourt.

    
             
Back in the day the Raptors were a financial mess

Everyone forgets how fragile the Raptor's financial situation was before they were purchased by MLSE in the late 90's and became part of the Maple Leafs' family.

Many Raptor fans who look at the ACC’s near sellouts fail to realize that buyers of prime Maple Leafs tickets MUST also buy those same Raptor tickets. So, if MLSE decided to spin off the Raptors to some hoops-crazed billionaire, the Raptors could potentially lose a few thousand prime season ticket holders who are only interested in Leafs tickets.

To a certain degree, the Raptors are profitable because they are part of MLSE. A large portion of the Raptors’ profit is a result of a shared arena, shared marketing, shared administration, shared media production, shared luxury box sales, shared premium ticket sales and so on between the Leafs and the Raptors. That's the new model for successful sports franchises - a single corporation owns the arena, the NBA team, the NHL team, concert revenues and so on.

Face facts. Most nights, the Raptors draw flies on TV. On the past weekend, the Raptors TV ratings were worse than Olympic Bobsleigh Trails. Outside of a hardcore following in the GTA, most people in Canada could care less about the Raptors.

Right now, Toronto has solid attendance. Yet, not too long ago under Rob Babcock, there were games in with attendance in the 12,000 range. Without a good product on the floor, Raptors attendance might drop again into that range which is the time a new owner might say, "I'm losing money and I'd rather move the Raptors to a new arena in Las Vegas, St. Louis, Pittsburgh or even a second team in suburban Chicago.”

Granted, the Raptors have been very profitable under Bryan Colangelo. That said, season ticket sales are down nearly 25% from last year and Raptor-generated  profits will be down too.

Remember, Leaf fans who are forced to buy Raptors tickets generate somewhere around $30 million annually in revenues (based on my simple calculations). That's a lot of money driven to the Raptors by the Maple Leafs.

After Vince Carter was traded, attendance dropped and according to Forbes, the Raptors lost $8 million. Who is to say that if Bosh leaves (which likely won't happen) that the team won't go into rebuilding mode and all of sudden be back losing money when attendance drops?


If Bryan builds it, will they spend it?

Look, I understand that most Raptor fans wish we had our own version of Jim Balsille who would rescue Canada’s team from the evil, profit-first clutches of Maple Leaf Sports and Entertainment. In reality, it just ain’t happening.

Our best hope for an NBA Championship lies first in Bryan Colangelo making the right moves talent-wise. Once the pieces are in place, Bryan the ultimate salesman, needs to sell the MLSE on the benefits of taking a big dip into Lake Luxury Tax.

MLSE certainly has the cash! Question is will they spend it?