Toronto Wolfpack remain in limbo after failed reinstatement to England's top tier
Bid voted down by 11 teams, Rugby Football League, Super League chief executive
The Toronto Wolfpack have lost their bid for reinstatement into Super League next year.
The decision was made by the other 11 Super League teams, the Rugby Football League and Super League chief executive Robert Elstone.
"On the evidence presented to us, it would not be right for the development of the competition for Super League to accommodate a team in Canada in 2021," Elstone said in a statement Monday.
"Every opportunity has been given to Toronto Wolfpack to provide the assurances our clubs need. However, our review of the club's recent submission identified a number of areas of concern, particularly regarding the aggressive revenue targets on which the financial forecasts are based."
Elstone also cited the results of a Super League-appointed committee that reviewed commercial opportunities for rugby league in Canada.
"Its findings were unanimous, that operating a team in a fiercely competitive North American sports market was non-strategic and added no material incremental revenue to Super League in the short- or medium-term.
"Separately, it was also apparent that no assessment of the scale and accessibility of the commercial growth that might accrue to the sport from entering the Canadian market was ever completed prior to the club's first entry into the sport."
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Super League said it will meet to decide whether the 2021 competition will go ahead with 11 or 12 teams.
The transatlantic rugby league team has been in limbo since standing down July 20, saying it could not afford to resume play for the remainder of the season. Players and staff have not been paid since June 10.
Majority owner David Argyle, unable to fund the club, has stepped away. Toronto businessman Carlo LiVolsi stepped forward as a potential new owner, providing the club was allowed to remain in the English top tier.
He also wanted Toronto to get its share of the central distribution funding that is currently split by the other 11 clubs. Drawn primarily from TV revenue with a portion from sponsorships, that is worth about 2.3 million pounds ($3.9 million US) per team in a normal year.
Giving Toronto its share would, of course, reduce the amount the other clubs got.
In a last-ditch effort, LiVolsi offered to play the 2021 season entirely in the United Kingdom, a move he said that would "allow us time to assess and evaluate the business in Canada ahead of achieving the 2022 to 2025 budget/forecast detailed in the original plan."
The future of the club is now very much in doubt. The franchise could try to start again in the lower leagues — the domain of the Rugby Football League, which is believed to have supported Wolfpack efforts to win reinstatement.
But LiVolsi has made it clear he is not interested in that route. And who would want to give it a second go, given the team's losses — the missed payroll alone is estimated to reach one million pounds ($1.7 million) by year-end — and lack of interest from Super League?
Win short of reaching Super League in 2018
Wolfpack founder Eric Perez moved on some time ago. He is now in charge of the Ottawa Aces, the former Hemel Stags franchise that has moved to Canada and is slated to play in the Betfred League 1, the third tier of English rugby league, next year.
That's where Toronto started in 2017. Fielding a small but full-time squad against part-timers, Toronto won promotion to the second-tier Championship by winning 15 straight games and outscoring the opposition 916-157.
There was more success in the Championship. Toronto topped the regular-season table at 20-2-1 in 2018 but fell one win short of reaching Super League, losing the Million Pound Game 4-2 to London Broncos.
Under new coach Brian McDermott, the Wolfpack dominated the 2019 Championship, finishing atop the standings at 26-1-0. And this time, Toronto sealed the deal by defeating Featherstone Rovers 24-6 to earn promotion to the top tier.
Off the field, Argyle was willing to spend money to make money. But only the first part of that equation happened.
The Wolfpack made headlines worldwide by signing former All Black Sonny Bill Williams last November to a rich two-year deal. Argyle hoped to take the team to European cities like Madrid to showcase the brand and Williams, now 35, provided instant worldwide recognition.
The team had been paying the TV production costs to air home and away games on Sky Sports in Britain in a bid to raise its profile. There were danger signs late in the 2019 season when Toronto cut back on its TV broadcasts to save money.
While the club set lower-league attendance records at the 9,600-capacity Lamport Stadium, there were question over how many tickets had been given away. Still, the team built an enthusiastic following. And the franchise's small front office and training staff worked long hours to keep the project on track.
Argyle, a Toronto-based Australian entrepreneur specializing in mining and resources in emerging markets, dug deep into his pockets to keep the team afloat. The Wolfpack were a labour of love for him.
Top tier challenging
Eventually the cupboard went bare and friends and business associates told him it was time to step away.
On the playing field, the top tier proved challenging. Toronto was 0-6-0 but coming off a Challenge Cup win over Super League's Huddersfield when play was suspended in mid-March due to the pandemic.
Super League resumed play with 11 teams on Aug. 2, expunging Toronto's results from the standings.
While rugby league accepted Toronto into the fold, it did so with reservations. The Wolfpack's entry deal did it few favours. Salary cap rules were not written for a North American franchise without the academy development path others clubs could use to ease restrictions.
The Wolfpack took their first public step in April 2016, billing themselves as the first major-league transatlantic pro sports team.
In truth, the team was based in England. Players maintained their homes there and had a training base. While in Canada, the players stayed in college accommodations.
Toronto paid for the visiting teams' travel and accommodation, so was facing demanding overhead from the get-go.
But the physicality of rugby league — the 13-player version of code as opposed to 15-player rugby union — drew fans new and old.
McDermott, the decorated former Leeds Rhinos coach who succeeded inaugural Wolfpack coach Paul Rowley after the 2019 season, led the club to its ultimate goal of Super League. But he later acknowledged the franchise made mistakes on and off the field, was underprepared for promotion to the top tier and had "damaged bridges within the game."
McDermott declined comment Monday, other than to say he was feeling "pretty flat and disappointed."