Quebecor is the preferred buyer to become the next owner of the Montreal Alouettes and therefore in a favorable position to complete the transaction.
The Montreal conglomerate headed by Pierre Karl Péladeau has been in exclusive negotiations for more than a week with the aim of carrying out this operation. According to our information, exclusivity was quickly granted to Quebecor shortly after the official sale of the team in mid-February by the Canadian Football League.
The decision to grant exclusivity to Quebecor so quickly surprised a businessman familiar with the matter, who asked not to be identified because he was not authorized to discuss it publicly. “Unheard of,” says this investor who believes that the stakes are made in this case.
The fact that Quebecor’s proposal comes from a single buyer, as opposed to a group of investors, and Quebecor’s various platforms allowing the team to shine are two elements that militate in favor of the Quebec company as a preferred buyer. , according to our information. Broadcasting of Alouettes games, however, will belong until 2025 to TVA Sports’ rival channel, RDS, which is owned by Bell.
Discussions with Quebecor, first reported Thursday by The Montreal Gazette, have reached an advanced stage in this sale process described as “accelerated” by the league. The official announcement of a transaction could therefore occur quickly if the parties involved reach a final agreement.
Everything being relative, the value of the team is not very high given the financial situation in which the team finds itself. The Alouettes lost ten million in 2019 and nearly five million in 2021.
“It didn’t scramble to get their hands on the team,” said another person familiar with the case, who also requested anonymity because she is not authorized to speak about the case in the media.
The Alouettes’ sale process is being led by Park Lane, an investment bank in Santa Monica, Calif., which counts the Canadian Football League among its clients to whom it provides, among other things, consulting services.
Park Lane has already secured assignments with the Cincinnati Bengals, the National Football League, as well as teams in the NHL, NBA and Major League Baseball, according to the firm’s website. .
Our messages left at Park Lane and Quebecor have gone unanswered.
Still according to our information, the importance of keeping a professional football team in Montreal and the more important French-speaking aspect in the entourage of the team in recent years are factors that have fueled the interest of Pierre Karl Péladeau.
The Montreal football team in search of a new owner has been under the supervision of the Canadian Football League since February 14. Mario Cecchini has also returned to the presidency on an interim basis since that day.
The Alouettes recently lost their quarterback, Trevor Harris, to the Saskatchewan Roughriders. The Montreal team now led by Jason Maas, however, acquired quarterback Cody Fajardo last month. He is currently the favorite to lead the Alouettes’ offense this summer.
If Quebecor acquires the Alouettes, it will be interesting to see what changes will be made to management and operations in order to know in particular who will lead the organization and what recovery strategy will be adopted to boost ticket sales and the interest of fans.
The team currently plays at Percival-Molson Stadium (McGill University) and holds its training sessions at Olympic Park.
Canadian Football League commissioner Randy Ambrosie said in mid-February that the league had acquired the Alouettes from their former owners, Gary Stern and the estate of the late Sid Spiegel.
The Alouettes were bought in 2020 by Ontario businessmen Sid Spiegel and Gary Stern. The season was canceled that year due to the pandemic, and the death of Sid Spiegel the following year had created a void and uncertainty around the team’s future.
Quebecor already owns two sports teams: the Quebec Remparts and the Blainville-Boisbriand Armada, two teams of the Quebec Major Junior Hockey League (QMJHL).
These two clubs are part of Quebecor Media’s Sports and Entertainment segment, which also includes the management and operating activities of the Videotron Center in Quebec City.
Quebecor, whose stock is traded on the Toronto Stock Exchange, has substantial financial resources at its disposal. However, the company is currently managing a much more important file for its future than that of the Alouettes. Management is trying to expand the activities of its Videotron subsidiary in Ontario and Western Canada by completing the acquisition of Shaw’s wireless subsidiary, Freedom Mobile.
This $2.8 billion transaction is pending approval by Ottawa. This proposed acquisition in the telecommunications sector is part of a larger operation that should allow Rogers to buy Shaw, a financial agreement valued at 26 billion.
Quebecor also controls 65% of the shares of Groupe TVA, another company listed on the stock exchange which is currently the subject of speculation surrounding the possibility of a complete buyout of the shares by the company headed by Pierre Karl Péladeau.