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In return, Canada Soccer was paid just $3 million.
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Scott Mitchell, owner of the Hamilton franchise, credited Montagliani on social media in March 2018 as the “creator of this opportunity.”
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It was an opportunity for some but apparently not for the players or the grassroots. CSB’s earnings are hidden, but it was clear that it was an extremely one-sided deal. CIBC’s multi-year sponsorship alone was said to be worth $5 million annually.
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The matter came to a head during a labour dispute in 2023, when the men’s national team went on strike. A subsequent parliamentary inquiry unveiled major governance failings, not least of which was that the deal was signed after Canada was awarded the 2026 men’s World Cup.
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Montagliani told the parliamentary inquiry that in 2012, the lack of interest in Canadian soccer from media companies meant that Canada Soccer had to spend its own money to have national team games shown on TV. Canada had just lost 8-1 to Honduras in a World Cup qualifying game and was ranked number 122 in the world.
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But after it was awarded the World Cup, it was clear that interest was on the rise, especially as global talents like Alphonso Davies and Jonathan David began to emerge.
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The Canadian Soccer Players’ Association, representing Canada’s women’s team, filed a $40-million lawsuit against Canada Soccer, alleging the deal constituted “negligence and a breach of fiduciary duty.”
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Anthony Housefather, a Liberal member of the Canadian Heritage committee and a commercial lawyer, said there was evidence the Canada Soccer board of directors had not properly approved the content of the deal. “I have never seen anything like it,” he said.
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Canada Soccer renegotiated the terms of the agreement this year with the renamed CSB, now known as Canadian Soccer Media and Entertainment. The new deal tilts revenue sharing much more toward the sport’s governing body.
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But the sense that Canada Soccer Business was founded for the benefit of investors, rather than for the growth of the game, persists.
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There is no suggestion of wrongdoing but Montagliani admitted to the parliamentary committee that “no one would ever claim that every decision made or action taken was perfect.” Canada Soccer’s chief financial officer Sean Heffernan told MPs that the deal had shortcomings, “including the length of the agreement and the limited ability of CS to share in the upside revenue.”
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The structure, if not the intent, was not dissimilar to Infantino’s plan to create a company to run the World Cup and parcel out minority stakes to “carefully selected” private investors, including the family of Trump’s son-in-law, Jared Kushner.
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To be sure, there is no realistic comparison between FIFA today, with its cash reserves of $4 billion, and the impoverished Canada Soccer before the advent of its current golden age.
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But when Canada Soccer and Montagliani side with UEFA’s assertion that “the soul and governance of football are not assets to trade, especially with zero transparency as to who gains financially,” it should be recognized that Canada’s own record in this area is not spotless.
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National Post
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