With the success of the Toronto Raptors winning their first-ever title, it’s time to revisit having multiple NBA franchises in Canada.
When the Vancouver Grizzlies left for Memphis, the Toronto Raptors became the sole team north of the American border. After having just won the Larry O’Brien Championship Trophy, there is no better time to consider the possibility of bringing another franchise to the Country.
In 1995, Canada scored two NBA teams. The league expanded into both Vancouver and Toronto. Unfortunately, after just six seasons, the Grizzlies were moved by their new owner, Michael Heisley, out of Canada.
The longevity of a team in a particular location has to do with its financial viability. Financial viability is essentially based upon revenue generated, an area where the Grizzlies struggled during their tenure in Canada. The team struggled to win, which largely led to fans choosing not to attend games. Perhaps if the Grizzlies drafted Kobe Bryant, Steve Nash, or Ray Allen in 1996 instead of Shareef Abdur-Rahim their fortunes may have turned around.
The apathy toward supporting the club led the franchise to bleed money. It also kept the team from getting the corporate sponsors required to help make it profitable. They needed a new audience to be successful. Initially, it looked as though billionaire Bill Laurie was going to purchase and move the team to St. Louis, but when he walked away from the deal he had in place, Heisley took over and relocated the team to its current home.
Dick Versace, the Grizzlies president of basketball operations was quoted saying that the team was losing $40 million each year. Operating a team, particularly a losing team, in Canada is expensive.
However, with the increased interest in basketball, another Canadian franchise could succeed in the right situation. For Canada, the time is now.
Why now is the time for another Canadian franchise
The Raptors managed to capture its biggest viewership ever during their storied run through the playoffs last year. In Game 6 of the NBA Finals, when the Raptors clinched the title, basketball and television history was made. The game received the largest basketball audience ever in Canada.
Across TSN, CTV, and RDS the Raptors were watched by an average of 7.7 million Canadians. Even more impressive is that 44-percent of the country’s population tuned in for a portion of the game. That’s 15.9 million viewers. It was the eleventh most-watched TV broadcast in Canada’s history.
The Raptors also set a record for most expensive NBA Finals Game 1 tickets. The average ticket price for re-sales was $1,360 USD. The average “get in” ticket cost was still a whopping $785 USD. The Finals also produced the most expensive live event ticket ever sold in Toronto.
With the excitement that was generated by the Raps and their play, Canucks from coast to coast became basketball fans. This was evidenced by the dozens of Jurassic Park viewing parties set up in cities throughout the country, which attracted thousands of fans. Now is the time to cash in on the new interest while people are still riding the high of celebrating a championship.
That level of excitement is also enough to generate corporate interest. A new franchise would be able to negotiate deals and use existing contracts with the Raptors to help set the bar. The Sun Life patch on the Raps jersey alone is paying the team a reported five million dollars per year.
The financial implications of the Raptors having so much success in last year’s playoffs saw their gains exceed $275 million in revenue. The team itself is evaluated at $1.67 billion and over the last five years, it has gained 222-percent in value, the fifth most in the league. Clearly, there is money to be made in the north.
Times have changed and so long as there is a willing audience, there should be no shortage of revenue for a new team in Canada.
Where a new team should be established
Finding the right spot for a new team would require an incredibly extensive search. It would also mean maintaining a balance between the Eastern and Western Conference. Canadian cities should be in the running.
Vancouver would likely be the first city explored in a search. The city has a growing population of nearly 2.5 million residents. Their biggest setback to getting another team would be their history in the NBA. Losing the Grizzlies only leads to questions that might be difficult to answer. Has an interest in basketball grown enough in Vancouver for a losing team’s accounting to end the year in the black? If the answer is “no” then the search must continue.
Quebec City has recently been trying to establish itself as a viable market for a pro sports franchise. They were pursuing an NHL expansion franchise. After a failed attempt, the city and ownership group could change directions and goes after an NBA club.
Quebec City would probably be the most non-traditional market in the league, but Quebecor Inc., led by President and CEO Pierre Karl Peladeau, might be interested in making basketball the new craze there. That ownership group, who were unable to secure an NHL team, manage a venue that can seat up to 20,000 spectators, The Videotron Centre.
The difficult part of establishing a team in Quebec City would be creating a culture around the sport. There are also under a million residents, which is why it may be best to look elsewhere in the province.
Montreal may be a more viable option thanks to its size. Known as a hockey enthused city, the fans are nothing if not loyal and passionate. There are over 3.5 million residents in Montreal, making it the second-largest population in Canada. That also means that there should be enough support on the island to ensure an NBA team is profitable.
In contrast to Memphis, which has an approximate population of just over 650,000 people, Montreal would be a much larger market with no shortage of wealthy people who could help spearhead a bid to get an NBA team.
One of the better landing spots for an expansion team in America would be Seattle. The city has been booming economically and has incredible growth over the last decade. After the city lost its basketball team, the Seattle SuperSonics to Oklahoma City, they have been primed to support a pro sports team. That’s why the NHL chose to lay down new roots there.
Seattle could be disqualified for the same reason a team in Edmonton, Calgary, and Winnipeg may be passed over. The NBA may feel as though competing with the NHL for the aforementioned cities residents’ entertainment dollars could lead financial losses instead of gains. However if a team was given to Seattle, it would be a member of the Western Conference. That expansion would certainly be accompanied by a team being added to the Eastern Conference.
In the east, Montreal might be the perfect spot for a new team. However, there might also be potential for space in an already established NBA market. Another team in Toronto would not just balance the league, but also create an instant rival for the Raps.
Could the GTA support a second franchise?
Considering the size of the City of Toronto and the surrounding area, it isn’t outrageous to consider housing a second team. STAPLES Center has been the home of the Los Angeles Lakers, Los Angeles Clippers, and WNBA team Los Angeles Sparks for years. New York also has two NBA teams, the New York Knicks and Brooklyn Nets as well as the WNBA New York Liberty.
The Greater Toronto Area (GTA) has more than enough people to support another basketball team. Toronto has a population of 2.93 million. The GTA is at 5.928 million. Thanks to the popularity of the sport, there is a good chance that plenty of people from even outside the area would travel to see games in person and certainly watch on television.
If the NBA were to expand or a team moved, the GTA should be in consideration. Whether it landed in Toronto proper or a suburb like Markham or Hamilton, each of which was explored as potential NHL homes, there is credibility to the argument that the cities could support an NBA team.
Hamilton is particularly interesting geographically because it could attract fans from both the Toronto area and even Buffalo. With only approximately an hour drive for each of the cities, FirstOntario Centre might be an ideal home for a new NBA franchise. The arena can already fit up to 18,500 spectators and was host to the Canadian Elite Basketball League.
Even London, Ontario, a city that is approximately a two-hour drive from Toronto could be a good fit. It is one of the fastest-growing cities in the country. They regularly sell out Major Junior hockey games at Budweiser Gardens so a professional basketball team would certainly gain great support.
Who might be interested in buying an NBA team
Finding an owner or ownership group shouldn’t be difficult. There are many incredibly rich people in Southern Ontario who have an interest in sports. If ever the NBA demonstrated that they were interested in expanding, there would surely be Canadians vying to be involved. Some of whom may even be Toronto based.
Mitchell Goldhar is a Toronto born real estate tycoon. He made a fortune with his ownership of SmartCenters. He currently owns Maccabi Tel Aviv football club and is on the Advisory Board for the Canadian Sports Concussion Project.
Carlo Fidani is another Toronto based multi-billionaire who has earned his wealth primarily through real estate. He is a part of the ownership group that purchased Canadian Tire Motorsport Park in 2011, partnering with the hall-of-fame race car driver, Ron Fellows.
Jim Balsillie, the owner of Research in Motion, attempted to bring an NHL team to Southern Ontario. He failed on three attempts. Though his passion was hockey based, he has the means to buy a team should one ever be made available.
David Thomson is a part of the richest family in Canada. They already own the Winnipeg Jets along with many other assets. If there was to be another NBA team in Canada, Thomson might be the ideal candidate to be the primary owner. With roots in Toronto, getting a basketball team might be the right fit for Thomson’s extensive portfolio.
Even rock star Jon Bon Jovi was at one time trying to bring an NFL team to Toronto. Though he later denied wanting to move the Buffalo Bills, Bon Jovi paired with Raptors owners Larry Tanenbaum and Edward Rogers to try to buy the team.
At the moment, there is little indication that the NBA is looking to expand. However, the league is seemingly more popular than ever and there is always the possibility of a franchise sale/relocation. If either were to occur, a Canadian location should be heavily considered.
The idea of growing the number of franchises in Canada remains intriguing. Hopefully, when the time comes, the country will get another chance to have multiple teams.