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Leagues and Governing Bodies

New league looks to Whitecap Sports to attract capital

A fledgling Canadian basketball league founded by former Toronto Raptors coach Butch Carter has hired Whitecap Sports Group to help it raise $7 million to expand the minor league next season.

Carter, who last coached the Raptors in 2000, in December unveiled the Canadian Basketball League that had four teams playing in 2,000-seat arenas around the Toronto market.

The league, which recently completed its “concept season” with its teams playing a 20-game schedule, plans to add a fifth franchise next season and has turned to sports mergers and acquisition firm Whitecap Sports Group to attract the investment placement.

“They are looking for capital at the league level to bolster operations “ said Bob Malandro, managing partner of Whitecap Sports Group. “By keeping their business small and conservative, they have been able to get through their first year without a lot of red ink. They have plans to expand.”

The rollout of the league, which last year, according to Carter, generated $2.5 million in revenue, comes in a competitive basketball market given that the NBA Raptors, the D-League’s Raptors 905 franchise, and National Basketball League of Canada already are established in southern Ontario.

The four CBL teams each have 10-man rosters with player salaries ranging from $1,500 to $3,500 per month. The league has three major sponsors and it bought TV time this past season on Yes TV in Canada.

“We proved the concept and it was successful,” Carter said. “Next year, we will have five teams playing a 32-game schedule.”

Carter said the teams will be located within two hours of Toronto and will play in small, non-hockey arenas that seat around 2,500 to avoid the cost of converting the facilities from ice to basketball. Carter also wants to avoid competing with hockey as lead tenants in buildings.

“When you are not the first tenant, you will burn money,” he said.

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