The city of Toronto-unlike say, Salt Lake City, Utah-has taken the Major League Soccer plunge, investing $8.5 million in BMO Field, the new home of MLS’s first Canadian team Toronto. In truth, the combined $15 million in local and provincial government money pales in comparison to the $45 million Real Salt Lake needed from the public to build a stadium in Sandy, Utah. However, at $54 million, the Toronto stadium cost a lot less than the $100 million for RSL’s project; the Toronto stadium also received $23 million in Canadian federal funding.
Nevertheless, this is still a significant investment for each of BMO Field’s investors, which are principally, Maple Leaf Sports & Entertainment and the city of Toronto. And it’s a beautiful stadium, too, says Mitch Moxley of the Financial Post. But there’s no guarantee Toronto FC is going to be a hit, he says. After all, beyond hockey, professional sports has traditionally been a tough sell in Canada. Privately owned MSLE owns all three professional sports teams in Toronto: the NHL’s Maple Leafs, the NBA”s Raptors, and now, Toronto FC. But it’s hard to know whether the company is a good investment, because unlike the situation in Utah, MSLE wasn’t required to make its financial situation public.
Like any new sports franchise, Toronto FC won’t be profitable for several years, although so far, things look to be on track. The stadium has sold its name to BMO in a 10-year deal believed to be worth around $23 million, and it’s already sold 11,000 of the 20,000 seats in season ticket sales.