Update: Whitecaps Situation Room
As we previously discussed, the Whitecaps face the possibility of relocation, threatening a club that has existed for over 52 years, to fulfil the MLS's desire to inject more capital into the league.
Alex Bowen
Historical expansion fees have shot from $10million when TFC joined the league in 2007, all the way to $500million when SDFC joined in 2023:
Historical Expansion Fees
- Toronto FC (2007): $10 million
- NYCFC (2013): $100 million
- Cincinnati, Nashville, Austin (2019–2021): $150 million
- St. Louis City SC (2019): $200 million
- Charlotte FC (2022): $325 million
- San Diego FC (2023): $500 million
These expansion fees have now influenced the proposed price tag of any team up for sale as well. In 2024 when the current ownership group put the team up for sale, the expansion fee was already up for $500million, while the team itself is only valued around $440million depending on who you ask, the difference in valuation is obviously the dangling carrot that ownership is chasing.
Is the expansion fee a reasonable assessment of the actual valuation of the team(s), or is it a league initiated asset value restructuring proposal? When you set your league expansion fee at $500million, every single team in your league assumes that new baseline valuation, regardless of whether they are or not.
When the Whitecaps entered into the MLS league, they also entered into a long term partnership with the BC Place stadium ownership group (PavCo) to occupy the stadium as a tenancy, sharing the facility with the BC Lions, as well as any other concert, exhibition, sporting event (Olympics, World Cup), that PavCo could fill the calendar with. As the popularity of the Whitecaps in Vancouver continues to grow, the conditions of the licensing agreement between PavCo and the Whitecaps got to a point where operating costs, and profits were not aligning with each others goals.
BC Place stadium is still owned and operated by PavCo, a government business entity that manages the day to day operations of both BC Place, and the Vancouver Convention Centre along the harbour waterfront. BC Place staff operate the facility down to concourse, concession, security, etc. and the Team focus on their needs. The team doesn't employ the catering staff, the cleaners, the stadium medical staff, etc, they contract those services to BC Place to fulfil while they are using the stadium.
Central to the MLS's and Whitecaps concerns is that the team's revenue figures remain near the bottom of the MLS table (via Sportico). Despite having serious success in the standings, and growing success in attendance records, and merchandise sales, the Whitecaps remain unable to take home a larger chunk of the profits from food and beverage, ticket sales, and the inability to have corporate sponsorships in more predominant locations, something they say would improve if they were able to run BC Place on their own.
What the Whitecaps are asking for is not ownership of BC Place, and not a bailout. They're asking for a bridge deal opportunity to run the stadium for a multi-year term until the team and the city can finalize the long term stadium solution.
In terms of the stadium situation. There have been numerous rumours and options floated. All with some kind of caveat, or asterisk that would make it much harder to become a reality than even the current deal in place. Of that there seems to be 3 paths to keep the team in Vancouver:
Option 1: Stay the course. While the Whitecaps remain for sale, and not wanting to continue to operate in BC Place without a new deal, the significant fan and local business pressure could push them to stay in BC Place with a renewed deal while they continue to explore options. A 5 year renewal where the team runs the stadium has been suggested as the optimal timeframe, but with the lack of movement on any solution right now, we hesitate that 5 years would even be enough time at this pace.
Option 2: There is an MOU between the City of Vancouver and the Whitecaps to explore the possibility of building a stadium where the old Hastings race course existed. Initially this felt like a step forward, but without any significant signatures on paper, or updates since that was signed, there's little hope that it will actually produce a legitimate solution. There are pre-existing concerns about the lack of transportation hubs to the proposed site, land ownership remaining with the City of Vancouver, and the cost to build a stadium placed on the Whitecaps, and how soon anything could be build, that a bridge deal with the team remaining in BC Place until then being needed to make this happen, and not on anyones insider radar. The MOU expires in December, it's now August, in less than 4 months time, this possibility significantly drops.
Option 3: The team sells, and/or purchases a plot of land within the city to build a new stadium and keep the team here. This seems farfetched, but in part, seems to be the most reasonable in the long term. Option 3b would be, the team sells, and signs a bridge deal with BC Place while any of the available locations are explored. Of the possible locations, all face a mixture of land ownerships.
Hastings Racecourse we already know is City owned and the stadium would need to be financed by the team. Other City owned plots of land that have come up in conversation are the Police Impound / Olympic Village Garden, as well as a section of land near Main and Terminal that would be a tight fit, but within the immediate vicinity of a lot of public transportation. Greg Kerfoot still owns (a portion of) the plot of land the Gastown / Waterfront stadium was initially proposed on that the City was seemingly on board with. The Port of Vancouver had issues with the mixed land use and the ability to continue to run the rail yard that would end up underneath the stadium. The final option was a piece of land within mixed ownership including Kitsilano 6 First Nations land. That option would also include the sale of the team to an ownership group that included First Nations participation. The Tsleil-Waututh Nation has already been involved with purchasing the rights to a Casino on the Hastings Racecourse property, and so it would only make sense that First Nations be involved in any future ownership group of the Whitecaps.
The fact that all of this is happening in a year when Vancouver was arguably the most successful FIFA World Cup host city, should be an absolute embarrassment to everyone involved. You cannot sit here and say that Vancouver is not a soccer city after what we just witnessed this past summer. Packed stadium, a shut down Granville Street, the fact that you had players dancing with fans on Granville Street, raving about the atmosphere in the city, and the numerous international fanbases that had nothing but good things to say about the city, there is no reality where anyone involved should not feel shame and embarrassment if the Whitecaps leave the city. The Whitecaps provide a legitimate pipeline for Canadian players to be elevated to the national team, or to become noticed by the international market. Canada's mens national team would not be as much of a success as it has been if teams like the Whitecaps didn't support local soccer associations, with camps and equipment, and junior teams that put the spotlight on Canadian players.
One way or another, this team cannot leave the city. The time is now. The longest standing pro sports team, with the history it has, cannot leave the city. We know in the coming days that the Government of BC will decide if the Whitecaps will remain in the city or not by way of accepting the Whitecaps offer to run the stadium or not. The Premier of BC directly has an impact on this decision. Please sign the Petition and take some time to go through the resources that the Southsiders have put out, and keep in touch with the initiatives across the city to save the team.
savethecaps.com
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