Canada Soccer Community Update – Commercial Rights Update
Dear Canada Soccer Community:
Happy New Year! We are writing today in the spirit of continued transparency and public accountability with an update about Canada Soccer’s commercial rights. We have recently received an increased volume of questions from media and soccer stakeholders about this topic.
How third-party rightsholder deals work
Canada Soccer’s commercial rights have been represented since 2019 by Canadian Soccer Business (CSB) in what is known in sports business as a “third party rightsholder” relationship.
In these situations, a sports organization (i.e., a team, federation, or league) hires a third-party company (the “rightsholder”) to sell commercial assets such as its sponsorships and broadcast deals. The parties share the associated revenue and often there is a minimum revenue guarantee provided by the rightsholder to the sports organization. The rightsholder makes a profit by keeping a portion of the revenue it generates. When these arrangements are structured properly, both parties can benefit.
Third-party rightsholder arrangements are not common in global football or Canadian sport. They are more common in US college sports. The most recent similar deal in global football was between US Soccer Federation (USSF) and Soccer United Marketing (SUM), which lasted between 2004 and 2022.
Canada Soccer’s relationship with Canadian Soccer Business
Canadian Soccer Business was created in 2018 by Canadian Premier League (CPL) club owners and modelled after the USSF/SUM relationship. Bundling the sales of sponsorship and broadcast rights of the Canadian National Teams with those of the CPL was meant to have positive effects for both entities.
In the past few years there has been significant commentary from stakeholders about the Canada Soccer/CSB agreement, including questions about its fairness and viability. Previous discussion focused on the valuation of commercial assets, the term of the agreement, and the broadcast reach of national team matches.
Towards a new agreement
Canada Soccer and CSB have engaged in good faith negotiations over the past year to enter a new agreement that better reflects a fair and appropriate sharing of the value of Canada Soccer’s commercial rights. A new agreement will also ensure alignment of incentives so the parties can work together more effectively. These discussions have been protracted, and complex at times, but constructive overall.
We are not able to mention the specific deal points at this time. In general, topics being discussed include how the partnership is governed, how revenue is shared between the parties, the breadth of rights and assets that comprise the partnership, and ways to increase broadcast distribution and visibility of the national teams.
We are also mindful that any final solution must be compatible with Canada Soccer’s obligations as a publicly accountable National Sports Organization (NSO). We recognize that a commercial relationship with a for-profit entity like CSB — whose activities intersect with related ventures, including the Canadian Premier League and OneSoccer – requires careful and transparent structuring to uphold these obligations. This is particularly important given Canada Soccer’s governing body role serving all soccer stakeholders in Canada, including provincial and territorial associations, professional leagues and clubs, national team players, coaches, referees, and grassroots participants. Canada Soccer will publish the details of any new agreement that is reached to support transparency and public understanding.
Urgent and solutions-focused
Canada Soccer is acting to resolve this matter imminently and finally. We are focused on solutions to ensure that all parties move forward together promptly and in a positive way as we enter the most important year in Canadian soccer history. Canada Soccer will communicate updates about this matter when they are available and is hopeful that it will be resolved soon, to the benefit of all stakeholders.
Paulo Senra