Pierre Karl Péladeau became the new owner of the Montreal Alouettes on Friday, in a personal capacity, a few days after Quebecor was chosen as the “preferred buyer” of the Montreal team. The news was confirmed at a press conference at the Olympic Stadium, along with Péladeau and CFL commissioner Randy Ambrosie.
“I am a proud Montrealer,” said Mr. Péladeau.
“It’s important for organizations like Quebecor to get even more involved in the community. I’m here as the new owner of the Alouettes, it’s not a financial transaction, it’s a pride transaction. The Alouettes have gone through a period of instability and my commitment is for the long term. It is a vision that will decline as time goes by. We also have great quality people around me.
“It’s important to have a solid team, to invest money in it so that it is good, but also to market it in Montreal and throughout Quebec. You know the media, but also all this digital expertise. It will be used to broaden the influence of the Alouettes. »
The Montreal conglomerate headed by Péladeau had been in exclusive negotiations for more than a week with the aim of carrying out this operation. The exclusivity had been granted to Quebecor shortly after the official sale of the team in mid-February by the Canadian Football League. In the end, it was rather Péladeau in his own name who bought the franchise.
This decision would notably avoid repercussions on the profitability of Quebecor Media’s Sports and Entertainment sector, which includes the Quebec Remparts and the Blainville-Boisbriand Armada, two teams of the Quebec Major Junior Hockey League (QMJHL), as well as the management and operating activities of the Videotron Center in Quebec.
It would also possibly be easier, if necessary, to inject money into the club for the Quebec businessman by becoming the owner of the team in his own name.
Pierre Karl Péladeau is CEO of Quebecor and also its controlling shareholder. Forbes estimates the personal fortune of the former leader of the Parti Québécois at 1.8 billion US.
Two elements would have favored Péladeau’s candidacy: the fact that the proposal came from a single buyer, as opposed to a group of investors, then the existence of different Quebecor platforms allowing the team to shine. Broadcasting of Alouettes games, however, will belong until 2025 to TVA Sports’ rival channel, RDS, which is owned by Bell.
Last I heard, the value of the team was not very high given its financial situation. The Alouettes lost ten million in 2019 and nearly five million in 2021, after a turnaround operated by team president Mario Cecchini.
The Alouettes’ sale process was led by Park Lane, a merchant bank in Santa Monica, Calif., which counts the Canadian Football League among its clients to which it provides, among other things, consulting services.
Upcoming moves
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 had 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 latter, however, accepted the role of commissioner of the Quebec Major Junior Hockey League, thus confirming that he would not remain in office for the long term.
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.
The team bought in 2020
Canadian Football League commissioner Randy Ambrosie revealed 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 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 sector, which also includes the management and operating activities of the Videotron Center in Quebec City.
The Alouettes’ major challenges
It now remains to be seen how Péladeau intends to tackle the challenges surrounding the daily activities of the team. Our columnist Alexandre Pratt had drawn up a list of them in mid-February, following an interview with Cecchini.
Profits
The Alouettes have been in deficit for about ten years. In 2019, the losses were 9 to 10 million. In 2021, between 4 and 5 million. “We have shown that after more difficult years, the club’s finances could improve,” said Mario Cecchini.
Enough to hope to make a profit one day? ” Yes. Not next year. But eventually, if someone comes up with a good plan, I think it’s possible […] We are no longer in 2019. The League now has an agreement with Genius to develop sports betting and digital marketing. The television experience will improve. We will have more advanced statistics, and 25 to 30 cameras per stadium. The collective agreement is signed until 2027. Revenue sharing is in place. We also have a long-term television contract. »
Stadium
The Alouettes are not owners, but tenants of the Percival-Molson stadium. It comes with constraints. The team is currently in the process of renegotiating its lease. In the short term, its future remains downtown. But in the medium term? The future owner will have options.
Assets
The Alouettes rent Molson Stadium, their training ground and administrative offices. They therefore have few assets. The previous owners, Sidney Spiegel and Gary Stern, wanted to build a training ground, and become its owners.
“I don’t have any advice to give to the future owner, but it is an aspect that deserves to be studied,” Cecchini said. The new buyer will have the opportunity to start from something close to a blank page. »
local sponsorship
In 2020, the CFL decided to sell the Alouettes to two Ontario investors, rather than to Quebec consortia. This decision offended many people in the Montreal business community. Mario Cecchini felt it on the pitch.
season subscribers
In the early 2000s, the Alouettes sold 17,000 season tickets. The club were so popular that they installed additional bleachers – which were almost never used when performance on the pitch began to decline. By 2019, the subscription base had shrunk to 10,000. Today? Mario Cecchini is not authorized to publicly reveal the exact figure. But he agrees that “COVID-19 has taken a bit of a bite out of it.”
Addiction to Victory
A few years ago, the Alouettes called their former subscribers to find out why they had left the nest. “Nearly 83% of fans who canceled their subscription did so because of the team’s performance,” revealed former president Patrick Boivin. Does the Alouettes’ box office success depend on wins?
“We have often said that about the Montreal market,” explained Mario Cecchini. This is true of all sports. A few months ago I was on a panel with Geoff Molson [du Canadien] and Gabriel Gervais [du CF Montréal]. Even Geoff said the best marketing is winning. That’s what creates the excitement. If that’s true for hockey, it’s surely true for us too. Afterwards, it’s up to us, year after year, to improve the atmosphere, so that people have three, four or five reasons to come to the stadium. »
With information from Richard Dufour and Alexandre Pratt, The Press