The federal government denies the CFL’s request for a $30 million interest-free loan
The CFL is facing a tough path to play a 2020 season.
The CFL is dealing with a tough situation at this point in time. The Canadian football season was set to begin earlier this summer, only to be postponed due to COVID-19.
Now the league is seeking a path to play and one option was to ask for a $30 million interest-free loan from the Canadian federal government. That plan did not work.
Federal source says government has denied @CFL’s request for $30 million loan to be directed towards shortened 2020 season. It has committed to work with the league to see what role it can play in its viability beyond ‘20. CFL’s BOG could determine fate of season on Mon. #CFL
— Dave Naylor (@TSNDaveNaylor) August 17, 2020
CFL seeking all options
A TSN article explains the league’s loan request in more detail.
"The CFL regular season was to begin in June but was postponed due to government regulations that prevent fans from attending games, cutting-off the league’s primary revenue streams. For months, the league has been lobbying the government for financial assistance, eventually arriving at a $30 million loan request, $20 million of which was to be used to pay players, $8 million for a Winnipeg-based hub and $2 million for a contingency fund. The request also required approval of Health Canada."
The league relies heavily upon ticket revenue and that is not going to be a reality in 2020. A loan from the government would establish a way to pay players and to set up a quarantined bubble. Instead, the government is saving its money and that may end up canceling the 2020 season.
The CFL currently has nine teams and all play for a shot to win the Grey Cup. That trophy has been awarded every year since 1920. Not having a champion in 2020 would be a historic moment and also one that reflects the state of the world during this pandemic.
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Another alternative to canceling is playing a shortened season. Losing out on this loan is not a good sign and the league may decide it is best to stay home after this effort to have the government help out.