Globe and Mail's Shoalts Raises Five Troubling Rumours About CHL
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02-24-2013, 07:44 PM
Join Date: Jun 2007
Originally Posted by
.. and now Global is the CHL parent corporation..
I think we're both talking about the same thing.
.. in which they use the CHL to provide an instant anchor tenant.. (sorry to repeat myself)
Not quite. The MLS was and is still somewhat of a single-entity league - meaning the league owns the teams, as the CHL was under Chen. The MLS encourages the development of soccer-specific stadiums, but doesn't do all the work on the way Global's subsidiary does.
The WPHL and CHL went through a forward merger (where the bidder survives and the target is subsumed into the bidder corporation), and one of the things they acquired was the CHL name, which they use as a d/b/a.
Now, Global does build arenas and place CHL teams in those arenas as anchor tenants. HOWEVER, the difference is that Global's subsidiary corporation, WPHL Inc. (doing business as the Central Hockey League) does not own those teams. In a single-entity league, like "Major League" Soccer, the league's corporate entity owns the teams.
With Global, a separate business organization owns the team, and Global manages the arena. Here's the difference: with a single-entity league, the league has a true interest in every team being successful. This isn't so in the CHL model. If a team fails, it's not on Global; they make their money from the league dues, the management fees for the arenas they manage, and building new arenas... though they haven't done well in any of those categories lately.
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