7 new details we learned about Vancouver Whitecaps’ desperate financial situation

The Vancouver Whitecaps are in trouble.

That much has been evident for a while, with MLS commissioner Don Garber calling the Whitecaps “not economically sustainable.” Other reports broke that other cities were circling the Whitecaps situation with interest, hoping to snag the team.

Whitecaps CEO and sporting director Axel Schuster has also sounded the alarm on multiple occasions.

He did so last Friday, and Schuster echoed more of the same on Thursday when he spoke to the media.

“Look, we would not go public if we did not think we are in a lot of trouble,” Schuster said.

Although the Whitecaps did announce they’ve signed a one-year lease with PavCo to stay at BC Place, it’s far from a permanent solution.

“Unfortunately, it’s only a little step to the solution, and not that big step that we would need,” he said.

Schuster spent almost half an hour speaking to the media about the Whitecaps’ situation. Outside of the new lease agreement, here are seven other things we learned.

1. How much money the Whitecaps are bleeding

Forty million dollars.

Schuster mentioned that the Whitecaps are C$40 million short in revenues. But what does that actually mean?

“They make $40 million more in revenues. So, they also have $40 million more to spend. And we have to compete with this team.”

Schuster wanted to hammer this home amidst the Whitecaps success because, if the team regresses, their troublesome fiscal outlook will only worsen.

“We have also spent way below the average of this league,” he said. “This is not a long-term solution, and the gap will become bigger.

2. Praise for provincial government

This was seemingly the main reason why Schuster met with the media on Thursday: to clear the air about the team’s relationship with the provincial government.

“We understand that [the new lease] is the best they can give,” he said. “We will not go back and ask for more.”

“We are far away from blaming them or criticizing them. We thank the B.C. government for making this offer because even if it’s only a little step, it’s a little step, and it’s meaningful dollars.”

3. The Whitecaps’ next saviour

With the provincial government offering the Whitecaps a ‘little step’ towards financial viability, Schuster’s calls for help went out to the business community in B.C.

“We need more support from the corporate business in British Columbia. We need more support from the big companies in British Columbia and in Vancouver.”

Schuster went on to promote all the work the Whitecaps do in the community.

“Everyone celebrates that we are a huge, important asset to this community. We are a community club. You know how much we do with kids in our communities.

4. Corporate ownership?

It’s pretty clear the Whitecaps need something drastic to save the team.

“We are looking at a few things that we hope could be a game-changer,” Schuster said.

“A different stadium setup is obviously something we have been public about. We are still in the process of seeing, can that be a game-changer?”

But his tone quickly shifted to another cry for help from the business community in B.C.

“There are even models where companies step up and buy a share of a club,” he said. “We have seen that all over the world, including in North America. So, we are also very much focused on the corporate side right now.”

5. Where are the owners?

Towards the end of the press conference, Schuster was asked by journalist Har Johal why no one has heard from ownership in light of the Whitecaps dire situation.

“Everyone who is a real fan and supporter of this club knows that there’s also something very positive about ownership,” Schuster said.

“They are also not the people who speak and spoke publicly at any time about key matters. If I speak, I’m speaking as the spokesperson for owners.”

The Whitecaps’ majority owner is Greg Kerfoot, who has historically been reclusive in the public eye. Vancouver’s ownership group is also made up of chairman Jeff Mallett, Stephen Luzco and Steve Nash.

It’s been a long time since they’ve spoken publicly. The last anyone heard from them was when they issued a statement saying the club was for sale.

6. The naming rights thing

One presumed way for the Whitecaps to increase revenue would be if naming rights to BC Place were sold.

But, as Schuster explains, it’s more of a little step than a game-changer.

“Not all naming rights would go to us. The government is investing in this building. They’re operating this building. If they sell the naming rights, they obviously will take their part.”

They’re not the only ones who could conceivably look for a cut of profits.

“The BC Lions, I cannot speak for them, but I would be very surprised if they would pass on the opportunity to get also a portion of it.”

7. The Canadian dollar impact

Amidst all this Whitecaps drama, it’s easy to forget there is the quiet impact of the Canadian dollar.

“It’s not helpful, but it’s a fact,” Schuster said. “That’s probably one of the little steps or big steps that I cannot change.”

Over the last 365 days, the Canadian dollar has been at an average of $1.39 compared to the US dollar. On top of everything, the Whitecaps are essentially paying a premium of almost 40 per cent compared to their American counterparts.