Canadian Soccer News has uncovered documents that show that MLSE withheld $442,300 in payment to the Canadian Soccer Association after the organization failed to meet requirements set out in the original agreement to build BMO Field.
When BMO Field was approved for construction it was originally intended to play host to a minimum of six national team games a year, or games hosted by the CSA.
Although the CSA met that requirement in the first year of the stadium’s operation (based largely on the 2007 FIFA u20s) it did not come close in either 2008 or 2009. In total, only three games were played in those two years. As a result MLSE withheld payments to the CSA that normally would have been made under the original Letter of Intent.
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The CSA originally argued that games held in the Canadian Championships should count against the requirement, but MLSE rejected that interpretation. Quietly the two sides negotiated to change the LOI to reflect a belief within the CSA that the six game requirement would be impossible to fulfill in years without World Cup qualifying games.
Third party games sanctioned by the CSA (i.e. non-Canadian club or international friendlies) do count.
In 2011, a compromise was reached that saw the original terms of the LOI changed. Now, the CSA must meet a minimum amount of 16,000 tickets sold per year, or pay a financial penalty to MLSE.
In the event that the lowest minimum attendance level is not met, the CSA would need to pay MLSE the difference between the actual attendance and 16,000 at a rate of $6 per unsold seat.
The CSA can re-gain the penalty if BMO Field has excess profits in a given year. However, If the CSA made a payment (for less than 16,000 seats sold) it could only regain the funds up to the amount paid, so long as that figure represented 15 percent or less of the stadium’s overall profit.
The new agreement also spells out how much money the CSA must pay to MLSE for using BMO Field. That figure is again based on the amount of tickets sold.
If the CSA sells between 0-16,000 tickets it pays MLSE 15 percent of the total gate and 25 percent of the merchandise sold. The figures are reduced to 10 percent and 20 percent respectfully for 16,001-46,000 sold and 7 percent and 15 percent for more than 46,000.
There is extra incentive to sell more than 46,000 seats. If the CSA meets that criteria it will also receive 45 percent of the Capital Replacement Fee that is added to all tickets and 25 percent of concessions. They receive 10 percent of concessions sold in the event of 16,001-46,000 seats sold.
Clearly there is a financial incentive to play the majority of national team games at BMO Field.
CSN reached out to the CSA, MLSE and the City of Toronto for comment. It was only confirmed that these are the rules in place.
The money originally owed to the CSA by MLSE, the $442,300, has been waived as part of this new agreement.