The 3DownNation Monday Mailbag answers questions from readers across the country every week.
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We’ve answered a handful of questions below. If your question didn’t get picked, don’t panic — we’ll save it to potentially answer here next week or on the 3DownNation Podcast.
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I get the sense the XFL folks just milked the CFL for all the info they can get.
It would be advantageous for them to do so? Find out what exactly the CFL is doing, their future plans, etc. Business espionage is a real thing! I guess time will tell.
-Charles Whitfield
Thanks for the message, Charles.
To be frank, I’m not really sure what type of business practices the XFL could steal from the CFL. The CFL’s business model is outdated, which is part of the reason a potential partnership or merger was considered in the first place.
The XFL did a better job of monetizing their fans in 2020 and engaging them in creative ways. The league’s on-field product was mediocre at best, but the games were dressed up in fun, engaging packages. Their presence on social media was very good as well, which we all know is important for any business to maximize exposure.
This is why I actually think the CFL had more to gain from conversations with the XFL than the other way around. The strength of the CFL is its excellent on-field product and century-long history, neither of which are things the XFL can copy. We know the XFL was ‘far ahead’ of the CFL in terms of single-game betting, so hopefully those conversations can kickstart gambling revenue for teams north of the border.
I’m sure there are little things the XFL picked up regarding league infrastructure that may have been helpful, but I wouldn’t be concerned about business espionage.
The main area in which the XFL was reportedly interested in the CFL’s business is its global ‘CFL 2.0’ initiative, speaking of which…
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Hey John,
Early in the CFL 2.0 talks there seemed to be some revenue growth in international broadcast rights for the CFL in Mexico and possibly elsewhere. This seemed like a tangible benefit of this endeavour.
Has there been any progress on that since if so what kind of league income is expected? Are those deals even still active given time and the 2020 season cancellation?
-Michael Dennis
Thanks for the question, Michael.
The reason I’ve deemed CFL 2.0 a failure thus far is that it was designed to generate new revenue for the league. I asked the CFL for an update on the initiative in September 2019 and it was apparent that the program had not become a money-maker.
The league office spent well over $1 million — I’ve heard the number could be as high as $2 million — setting up the program and it has yet to yield any meaningful financial dividends. The program remains in its infancy, sure, but I’m not sure I see a path for the CFL to recoup its investment.
The CFL’s television deal with ESPN is reportedly only worth around $200,000. If a nation of football-crazy Americans can’t generate a lucrative broadcast deal for the CFL, why could a country like Mexico, Germany or Italy? It just doesn’t make sense.
I appreciate that the CFL is willing to think outside the box and I hope to be proven wrong regarding the global initiative. It was cool to see German linebacker/defensive end Thiadric Hansen make a big tackle in the Grey Cup and this year’s globals should see more playing time than the inaugural group did in 2019.
Still, I don’t see the 2.0 initiative ever becoming the revenue-generating program that Randy Ambrosie hoped it would be.