Toronto Wolfpack: New owner Carlo LiVolsi will underwrite losses if club readmitted to Super League
- Published
Toronto pulled out of this season's Super League competition in July, citing financial problems
Toronto Wolfpack's new owner Carlo LiVolsi says he is willing to underwrite the club's losses if they are readmitted to Super League.
The Canadian side are projected to lose £3.5m over the next three years.
Super League clubs will vote on Toronto's readmission application at a meeting on Monday.
LiVolsi says he will confirm proof of his net worth to the RFL and Super League, but only if the Wolfpack get a majority of votes at Monday's meeting.
The club though would still demand a share of central funding from any TV contracts, estimated at £1.5m a year.
"If we receive the necessary votes for reinstatement, the final component for reinstatement will be confirmation of my net worth statement," LiVolsi wrote in a letter that is part of Toronto's submission to be accepted back into rugby league's top flight next season.
"I will instruct my lawyer to provide the necessary NDA (non-disclosure agreement) to one representative from the RFL and SL for each of the executive teams to confirm that we are solvent and capable to own the team."
The submission has been sent to each of the eleven Super League clubs, as well as the Super League executive and the RFL, and a copy has been seen by the BBC.
It makes the case for Toronto being reinstated for the start of next season.
Toronto were promoted from the Championship at the end of the 2019 season
The Wolfpack pulled out of this year's competition in July citing financial problems with debts of about £1m, having failed to pay players, coaches and staff for several months.
Owner David Argyle, who had invested several millions into the club since 2016, said he had run out of cash and was reluctantly walking away.
LiVolsi, a Canadian businessman and former business associate of Argyle, has stepped in as the new owner. He has pledged to cover any outstanding debts if the club are reinstated.
A committee appointed by Super League to investigate Toronto's proposal to return to the competition has strongly recommended that they should be denied re-admission - concluding, amongst other things, that LiVolsi does not provide sufficient evidence of long-term funding for the club.
An independent report has also concluded that Toronto Wolfpack would not generate any significant increase to the broadcast values of Super League in the immediate future.
Opinions divided before crucial meeting
LiVolsi will make a personal submission at the meeting with club representatives of the 11 Super League clubs able to question him directly; opinions are sharply divided, and it's believed the vote could be very close.
The Wolfpack proposal includes details of projected turnover for the next five years. They estimate a turnover of £2m in 2021 rising to £5.4m in 2025, but with anticipated losses of £3.5m in the next three years.
They confirm that they would play all their games in the 2021 season in England, to avoid ongoing travel and logistical complications created by the coronavirus pandemic.
They also make the case for the club's value to Super League as a whole because of their ability to tap into international trade opportunities.
LiVolsi also proposes a profit share with the other Super League clubs in his men's grooming company Wolf Grooming, claiming that association with the company could also increase Super League's profile. But there is no indication of how much that profit share would be worth.
The club have also pledged to invest in the wider Canadian Rugby League infrastructure.
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