The future of soccer in Canada has been solidified with a new long-term commercial partnership between the Canada Soccer governing body and Canadian Soccer Media and Entertainment (CSME). This agreement, which takes effect immediately, will run through 2037. It introduces a fresh revenue sharing model that promises to shape soccer investment in the country over the next decade.
In contrast to previous arrangements where revenue was not shared, this new deal introduces a revenue sharing model. The former commercial arm known as Canada Soccer Business used to pay an annual sum of around $3 million to $4 million to Canada Soccer. The remaining funds were utilized by CSB to support the burgeoning top-tier Canadian Premier League (CPL).
Under this new agreement, however, there is a guaranteed minimum annual sum backed by two additional lump-sum payments from CSME to Canada Soccer throughout the term.
CSME chief executive, James Johnson, said:
“This gives us the complete commercial package, and all these different commercial properties are all complementary of each other.
“We believe that this new agreement will not only transform the sport, but it will really open the floodgates for a lot of commercial revenue that we expect to see come in over the coming weeks and months as a result of this announcement. The more revenue that we can bring in, the more capital that we're able to bring in as well, the more we can invest in the national teams and the players in the Canadian Premier League, in our leagues that sit underneath, and also in our grassroots participation.”
Sponsorship, media rights & licensing
Previously confined only to sponsorship revenue and media rights related specifically with CSME’s OneSoccer OTT platform, this partnership now extends its scope. It includes licensing and merchandising activities associated with the Canada Soccer brand thereby broadening CSME's remit. To ensure that terms remain tied closely with fair market value during this long-term partnership, there will be a "look-in period" every three years. Upon expiry of the initial term in 2037, both parties have an option for mutual extension for another five years.
This collaboration will be overseen by a joint governance structure composed of executives from both bodies - ensuring smooth operations while maintaining transparency between all stakeholders involved. In addition to these changes in financial arrangements and expanded scope of work, the partnership also commits to ensuring wide broadcast distribution for Canadian national team games. This includes equitable coverage of both men's and women's teams, promoting inclusivity and equal representation in the sport.
This new commercial partnership between CSME and Canada Soccer is a significant step forward for soccer in Canada. It not only ensures financial stability but also promises to shape the future of soccer investment in the country over the next decade. With its expanded scope, regular review periods, joint governance structure, and commitment to equitable coverage - it sets a new standard for sports partnerships.
