bailout

Friday May 15, 2020

May 15, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday May 15, 2020

CFL could lose $100 million if season lost

The CFL commissioner says that a repayable loan would be among the possibilities within the league’s request to the federal government for up to $150 million in financial assistance.

November 21, 2012

“The one point that hasn’t come out so far is that we’ve said to the government we’re prepared to be creative, and consider all options to be on the table, ” Randy Ambrosie told The Spectator on Wednesday morning. “Ultimately, we just want to find a way to get through this crisis together and we’re prepared to talk to the government about anything.”

Tuesday night, Ambrosie told Dan Ralph of The Canadian Press that in the request the league’s accountability to taxpayers would include, “community programs, tourism promotion, the Grey Cup, our digital channels.” But a loan was not specificially mentioned.

August 23, 2014

Those are positive things the CFL already does and Ambrosie did not mention then the prospect of any kind of loan. But, on Wednesday, he said a loan would be among the things that the CFL would be willing to discuss with the federal government.

The CFL financial proposal to the government is three-tiered: $30 million to manage the impact the pandemic has already had on CFL business; further assistance if there’s a shortened regular season; and up to another $120 million should the league have to collapse its entire season.

Ambrosie reiterated Wednesday that if the CFL cannot play at all in 2020 it might imperil the league’s future because the cumulative loss “could be $100-plus million. Those are actual P &L (profit and loss statement) losses.” 

There has been understandable negative reaction to the questionable optics of what appeared to be a straight bailout to a league in which six of the nine teams are privately-owned, including Bob Young’s Hamilton Tiger-Cats. Ambrosie said he understands that sentiment.

Coronavirus cartoons

“We are not tone-deaf to the realities of all this but we also know that this crisis will end and Canadians will need to get back to things which bring joy and passion to life,” Ambrosie said. “Sports is part of that and the CFL is a really big part. It’s not appropriate to just hope that this crisis passes: somebody famously said that hope is not a plan.

It has long been the opinion in this space that while the CFL must always operate as a sustainable business and league, it is, and has been first and foremost a cultural institution. The failure to grasp that — at various times in the past even some franchise owners themselves have done that — is to misunderstand its role in this country, and the unifying place of the 111-year-old Grey Cup game, which is much older than the formal league itself.

The CFL seems to welcome a broader discussion on whether it is indeed a necessary cultural institution, differentiated from the NHL, NBA and MLB, leagues with headquarters and most of their teams in the U.S. Ambrosie feels its history, consistent local-employment factor, and the historic durability and surging financial impact of the Grey Cup festival arguably separate it from other domestic leagues as well.

“We are so different than every other sports league on the planet,” Ambrosie told The Spectator. “And what we do in our communities really matters. The tone we’ve set for generations and generations has been so consistent with Canadian values. We are more than a sports league.” (Steve Milton – Hamilton Spectator) 

Friday October 9, 2015

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Friday October 9, 2015 Decision on U.S. Steel Canada benefit, tax cuts Friday The judge presiding over U.S. Steel Canada restructuring hearings says he will render a decision Friday on a controversial plan to sever the subsidiary from its parent company and relieve it of tens of millions of dollars in pension benefit and municipal tax obligations. Justice Herman J. Wilton-Siegel said it is one of the toughest decisions he has had to make from the bench. He said he will give a short written summary of his decision tomorrow and then follow it up with a detailed explanation next week. Dozens of USSC retirees bused into Toronto again today and packed the courtroom where lawyers representing stakeholders gave their final submissions. A lawyer for the steelmaker reiterated the company's position that USSC was a victim of circumstances and changing market conditions that turned the business into a crisis requiring the difficult measures of the transition agreement. Pension benefit obligations were estimated to be $40 million before the end of this year and the company does not have the funds, he said. He refuted arguments from United Steelworkers lawyers that savings could be found elsewhere Ñ making the pension benefit hit unnecessary Ñ and that the company's grim fortunes were the result of steel orders being moved from the Canadian subsidiary to other U.S. Steel operations. United Steelworkers 1005 President Gary Howe said after the hearing that he expects the judge to go along with the company plan because it has the backing of the monitor overseeing the proceedings. In its most recent statement, the monitor said "a near-term cessation of operations will be necessary" if the company plan isn't accepted. (Source: Hamilton Spectator) http://www.thespec.com/news-story/5951456-decision-on-u-s-steel-canada-benefit-tax-cuts-friday/ Hamilton, U.S. Steel, Trade, Foreign Investment, subsidies, bailout, St

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Friday October 9, 2015

Decision on U.S. Steel Canada benefit, tax cuts Friday

The judge presiding over U.S. Steel Canada restructuring hearings says he will render a decision Friday on a controversial plan to sever the subsidiary from its parent company and relieve it of tens of millions of dollars in pension benefit and municipal tax obligations.

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Thursday September 26, 2015 Dispute over U.S. Steel Canada restructuring sent to mediation The dispute between United States Steel Corp. and its stakeholders over the future of U.S. Steel Canada Inc., has been sent to mediation by the Ontario Superior Court judge overseeing the Canadian unitÕs restructuring. The issues in dispute between the United Steelworkers union, the Ontario government, salaried active and retired employees, and a former president of its predecessor company Stelco Inc. on one side and U.S. Steel on the other, will be examined by former Ontario Superior Court associate chief justice Douglas Cunningham in a three-day session scheduled to begin next week. ÒThe mediation shall address the feasibility of a comprehensive agreement among the parties,Ó Justice Herman Wilton-Siegel said in an order. The mediation will also address a business plan for the Canadian unit, its potential sale, the shift of production of high value-added steel to the United States and U.S. SteelÕs claim of more than $2-billion against the Canadian unit. U.S. Steel Canada has been operating under the CompaniesÕ Creditors Arrangement Act since last September, but the announcement by its parent company that it plans to shift production of about 180,000 tons of high-quality steel annually out of its Canadian operations has sparked an imminent crisis in the restructuring. Shifting production would diminish the value of the Canadian assets in the eyes of potential buyers, steel industry sources said. U.S. Steel has started a sales process that has led to a bid by one competitor Ð Essar Steel Algoma Inc., which is based in Sault Ste. Marie, Ont., but has the backing of a deep-pocketed parent company in India. Potential buyers also need to wonder whether other steel-making contracts will be shifted out of Canada, leaving the Canadian operations to depend entirely on the spot steel market. Stakeholders have quest

Justice Herman J. Wilton-Siegel said it is one of the toughest decisions he has had to make from the bench. He said he will give a short written summary of his decision tomorrow and then follow it up with a detailed explanation next week.

Dozens of USSC retirees bused into Toronto again today and packed the courtroom where lawyers representing stakeholders gave their final submissions.

A lawyer for the steelmaker reiterated the company’s position that USSC was a victim of circumstances and changing market conditions that turned the business into a crisis requiring the difficult measures of the transition agreement.

By Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Thursday October 10, 2015 Dairy farmers protest upcoming trade deal Dairy farmers parked tractors at the foot of Parliament Hill, walked cows through downtown Ottawa and dumped milk on the pavement Tuesday to protest what they say is a looming trade deal that threatens their way of life. Farmers in Ontario and Quebec fear that the Trans-Pacific Partnership, a massive 12-country trade deal thatÕs said to be near an agreement in principle, could spell the end of the supply management system that keeps their operations profitable. Dozens of tractors clogged Wellington Street in front of the Parliament Buildings, snarling traffic, while some farmers led cows down the street and others splashed milk on the pavement. Negotiations are currently underway on the ambitious trade deal involving Canada and 11 other countries. Sources say an agreement in principle could be announced as early as Friday. Farmers fear the federal government will make concessions on supply management, a system of production limits and import tariffs that shields the dairy market from competition at the hands of foreign producers. The U.S. has been pushing for Canada to loosen its system, but the federal government says the government will protect Canadian interests at the negotiating table. ÒThis government remains absolutely committed to making sure we preserve our system of supply management through trade negotiations,Ó Conservative Leader Stephen Harper said Tuesday. Opposition parties remain concerned about how the system could be affected in TPP talks. The NDPÕs Mathieu Ravignat, who is running for re-election in the Quebec riding of Pontiac, said supply management allows for many small farms to exist in Quebec and across Canada. (Source: National Post) Canada, United States, USA, trade, dairy, farmers, agriculture, Trans Pacific Partnership, TPP, globalization, cow

Pension benefit obligations were estimated to be $40 million before the end of this year and the company does not have the funds, he said.

He refuted arguments from United Steelworkers lawyers that savings could be found elsewhere — making the pension benefit hit unnecessary — and that the company’s grim fortunes were the result of steel orders being moved from the Canadian subsidiary to other U.S. Steel operations.

United Steelworkers 1005 President Gary Howe said after the hearing that he expects the judge to go along with the company plan because it has the backing of the monitor overseeing the proceedings. In its most recent statement, the monitor said “a near-term cessation of operations will be necessary” if the company plan isn’t accepted. (Source: Hamilton Spectator)



Tuesday May 8, 2012

By Graeme MacKay, The Hamilton Spectator, Tuesday May 8, 2012

Merkel readies for fight

Angela Merkel is under pressure to defeat the popular backlash against austerity to save her political skin and preserve Germany’s dominance in the eurozone.

Over the next four weeks, the German chancellor will face the fight of her political life on all fronts, domestic and European, at a moment when one slip could sink her government and tear down the European Union’s single currency.

Merkel must take the lead in trying to find an answer for the crisis in Greece, after three-fifths of Greek voters rejected EU austerity measures. Ger-man taxpayers have put $275 billion on the line to bail out countries such as Greece, and Germany’s patience is running out with countries that reject the prescribed economic medicine of debt reduction while continuing to demand the handouts.

To appease her highly taxed voters, who are worried that EU bailouts have breached Germany’s constitution, Merkel has made German economic aid conditional on all eurozone countries signing the “fiskalpakt”.

The treaty, signed by 25 EU countries, gives Brussels officials the right to block bud-gets that break spending rules which are enshrined in national constitutions, as is the case in Germany.

The measures, the chancellor assured German voters, would prevent eurozone countries going bust and leaving Ger-many holding bailout bills.

Merkel on Monday insisted Greece had to stick to the austerity program so resoundingly rejected by voters and that the reforms to the Greek economy were of “utmost importance”(Source: Vancouver Sun)