Perry Lefko

Perry Lefko keeps you connected to all the news in the CFL on Sportsnet.ca.

Argonaut owners Howard Sokolowski and David Cynamon. (file)

The Argos were bought for $2 million, lost money every year, and the owners want $10-15 million.

The Toronto Argonauts' ownership situation will be decided one way or another by the end of the weekend.

David Cynamon, who has owned the team for the last six years with partner Howard Sokolowski, gave that timetable in an interview Thursday morning with Toronto radio station The Fan 590. It was the first public interview given by either Cynamon or Sokolowski, who are normally available to talk but have maintained a code of silence since the end of last season while they have been criticized heavily in the media and on chat sites.

Cynamon politely declined an interview request from Sportsnet.ca, saying "there is nothing further to add right now."

While there have been negotiations going on with B.C. Lions owner David Braley, who has helped fund the team since Cynamon and Sokolowski bought the Argos after the end of the 2003 season, a deal has failed to materialize.

And it all revolves around money, valuation and revenue sharing.

Cynamon and Sokolowski bought the franchise from the Canadian Football League for a reported $2 million, half of which Braley contributed to as a sign of good faith and partnership knowing the Argos had annually lost anywhere from $2 million to $5 million a year. It's believed he continued to give financial assistance to the team afterward and was to receive payback from the Argos' hosting of the 2007 Grey Cup.

Cynamon and Sokolowski have valued the franchise at $10 million and possibly as high as $15 million. No doubt this figure takes into account the significant money they have lost owning the franchise. Some of their operating costs included money spent on trying to develop a stadium, which was their number one priority after assuming ownership but never happened, though not for a lack of trying.

But if the franchise was purchased for $2 million, how could it be worth at least five times as much now, if not more? Not only is the franchise struggling to come remotely close to breaking even, it has had two dramatic losing seasons in a row. Last year it finished last in the league.

Moreover, there has not been a franchise in recent memory, if at all, that sold for $10 million or more. A few years ago Calgary changed ownership for $6 million, but it was a turn-key operation with a solid season-ticket base.

You can understand why Braley would be reluctant to meet the asking price sought by Cynamon and Sokolowski: He'd be bidding against himself as the only owner with any interest in buying the team.

So this situation will likely be predicated on whether the other franchises in the league are willing to participate in revenue sharing. A source said the majority of the franchises made money last year - disputing the notion that most of the teams are lucky to break even - including at least one, the Saskatchewan Roughriders, which turned a healthy seven-figure profit, perhaps as high as $10 million combined over the last three years.

It was back in 1997 that the Canadian Football League was in dire financial shape and needed a $4 million loan from the National Football League to provide stabilization. All eight teams were to be given $500,000. The Roughriders, in particular, were so cash strapped at that point they had a telethon, so the money provided a financial rescue.

Now look where the Roughriders are.

And where the Argos are.

One franchise has grown exponentially as a thriving business, while the other continues to struggle, though all means have been exhausted to try and grow it. It's simply a case of one franchise being the only game in town - and the province - and dramatically improving its position on and off the field, while the other is facing a challenging marketplace and continues to fight off other forms of competition.

Cynamon and Sokolowski knew the challenges they faced when they bought the franchise, but now there is the NFL and Major League Soccer as new forms of sports entertainment in the marketplace.

Cynamon and Sokolowski have been good owners and have done everything possible to make the business work, although it has been a painful struggle. Granted the franchise has won one Grey Cup and had a winning record for the first four seasons, but the last two seasons have systematically drained the enthusiasm of the fans and possibly the owners, too.

Cynamon used "synergy" in trying to explain the difficult process of finding a partner since the Grey Cup last November and apologized to the fans for the matter taking so long.

With no head coach hired, CFL free agency beginning February 16th and a general manager, the owners' inertia has made it difficult to promote the team to ticket buyers. Adam Rita, the team's general manager, has done little in the off-season to create any excitement. A recent head coaching offer to a top-coaching candidate, Montreal offensive co-ordinator/quarterbacks coach, was turned down because the terms of the deal were considered low.

The most enthusiasm for the Argos is coming from Moncton, where the team will play in a regular-season game in September. It is the first regular-season game in CFL history and Touchdown Atlantic, as it has been christened, is receiving reams of local publicity.

Meanwhile in Toronto, the interest is noticeably lukewarm, and those who do care want the ownership situation to be resolved.

Come Monday, Cynamon and Sokolowski will continue operating for a seventh season or they will have ended the bargaining and Braley will assume control.

If the other teams are not willing to participate in revenue sharing, why would Cynamon and Sokolowski want to still be part of the league?