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Cohon pledges to amend rules
Courtesy The Globe and Mail:
CFL commissioner Mark Cohon says the league will amend its constitution to require financial transactions between teams to be disclosed to the office of the commissioner and the board of governors.
Cohon made the statement after learning that B.C. Lions owner David Braley has provided financial assistance to Toronto Argonauts owners David Cynamon and Howard Sokolowski since they entered the league at the end of the 2003 season.
Although sources say Braley paid half of the $2-million franchise fee and has covered half of the club’s losses for the past five years, Cohon said none of the parties violated the CFL constitution.
And while he stated the secret deal was brought upon by desperate times in the interest of the Argos and the league as a whole, Cohon said the league needs to make sure further financial assistance among owners does not occur in secret.
“I agree that transparency is important for everyone,” Cohon said. “I’ve spoken with the chairman of the board and we’ll be addressing that issue going forward as it relates to financial transactions between franchises.
“The important thing to note here is that when you look back to 2003, David Braley, Howard Sokolowski and David Cynamon, they stepped up and saved a franchise that was failing. And I wouldn’t be in this seat if they hadn’t.
“They didn’t contravene anything in our bylaws but moving forward it’s my job to address the issue of transparency and full disclosure for everyone around the board table.”
Cohon said details of the transactions would likely not be seen by the fans, noting that the financial exchanges among private businesses don’t need to be a public matter as long as the league is aware of them.
Cohon said he was unaware until this week of any financial assistance provided by Braley to the Argos, but was satisfied that he’d received the pertinent information after speaking with all the parties. He would not say whether he believed the money provided to the Argos owners was in the form of loans or simply as a subsidy to their operation.
While sources say Braley’s financial assistance continued through the 2008 season, Cohon said he believed “it was giving them assistance at various times in the early part of their ownership.”
He also repeated that there is no evidence that Braley influenced any football decision by the Argos, or Cynamon’s and Sokolowski’s opinions on matters before the board of governors.
According to sources, however, Braley’s contributions to the Argos finances did give him access to the Argos’ books and he was allowed to query expenses.
Cohon remained steadfast in his belief that Braley had no equity stake in the Argos, a situation that would have put him in violation of the CFL constitution, which requires disclosure of all parties with ownership interests in franchises.
Owners and team executives around the league mostly refused to comment on the situation, referring questions to Cohon.
However, it is clear that few, if any, had knowledge of the deal between the owner of the Lions and the owners of the Argos, although some suspected some sort of arrangement might be in place.
“It’s a league issue and the league has addressed it,” Calgary Stampeders president Scott Ackles said.
Others, while acknowledging the need for transparency, praised Braley, who rescued the Lions in 1996, for his willingness to commit his money to save an Argos franchise that otherwise might not have been able to attract new ownership after filing for bankruptcy in 2003.
“There’s a good argument for transparency, but for what he’s done for the league, he deserves the Order of Canada,” said a former governor who was familiar with the parties. “I won’t argue about transparency – there should be – but there hasn’t been to date, so he’s done nothing wrong.”
Braley, speaking on Vancouver sports-talk radio station Team 1040 AM, reiterated this is not the first time he has helped other CFL owners with financial assistance, dating to the early 1990s.
He said at that time transparency was discussed but rejected because “they didn’t want anything leaking when a team was in trouble.”
Braley said he would “abide” by new rules on transparency.
Jim Hopson, the Saskatchewan Roughriders president and chief executive officer, said he was not aware of the Braley-Argos financing arrangement, but was not upset in learning the news. He said he would reserve judgment on Cohon’s proposal for more transparency until hearing details and having more discussion.
He said he his confident that nothing among the owners affected the competitive integrity of the league.
“I have confidence David [Braley] would only do what is right for the league. … I know David’s passion for the league and his competitive nature with the Lions.”
