Ottawa Voyageurs Compensation Decision

The case study revolves around the Ottawa Voyageurs, a Canadian professional soccer club, and its struggles with decision making, compensation, and teamwork. The team's head coach, Manuel Tertuliano, has to allocate $85,000 among six players whose contracts are about to end. He realizes that compensating the right players can boost motivation and improve team performance. The case highlights the challenges faced by the Voyageurs, including poor team performance, player controversies, and coaching changes, and how compensation decisions were made to ensure the team's success.

Ottawa Voyageurs
This case was developed by few professors along with a PhD. Candidate for class discussion. It’s
published on 14th October 2003. This case covered the importance of decision making, compensation for
boosting motivation and teamwork. Manuel Tertuliano and Chris O’Leary was the head coach and deputy
commissioner of the Ottawa Voyageurs that was a Canadian pro soccer club (CPS). In 1998, O’Leary
joined CPS and found it as a problem child league from powerhouse league. O’ Leary demands from the
head coach about compensation decision making of his six players whose contracts were about to end. He
has to allocate $85000 among six players which will prove to be beneficial for team. They realized that
team can face elimination in both cases if performance is not up to mark and low game attendance
respectively. In such circumstances, he realized to motivate his six players and found that compensation is
the sole tool. He needed to ensure the value of not only six players but also other team players who were
contributing a lot in the team as individuals.
The primitive people of Canada and Alaska used to play aqsaqtuk game comprised of two teams. Canada
was the first country who sends a team to Britain to play soccer in 1888. Soccer ranked first sport with
more registered members as compare to hockey. In spite of the eagerness they showed for sports, still in
Canada there was no professional league established. Canadian franchises, six in number, joined the
hands of (NASL) league in 1968 but expired till 1984. Canadian’s own soccer league established in 1986
but unfortunately collapsed in four years due to interest inadequacy.
Such bumpy history of Canadian Soccer couldn’t diminish their sports spirit. In United States, the
achievement of soccer league becomes the base of the establishment of Canadian pro soccer team in
1996. In May 1997, with ten teams it started officially its season in ten different cities and honoured
CAS/ACS.
To continue this professional league a solid business model was badly required so for this CPS opt to
establish an individual owners association. Each and every owner got enough time for the operations and
negotiation with players, their contracts and trades. In the league, CPS plays an immense significant role
in terms of negotiation in all contracts, working relationship with local city and government for stadiums
financing, structuring a salary cap, relationship statuses with other leagues and positive role to bring back
all young professional players back in Canada. With its continuance growth, league evolved few
principles to direct the soccer business including passion for soccer, role model for youth players, young
in style, meeting place for all fans and soccer diversity in each and every facet.
Season started from May to October and during the period of 1997 to 2002 there was an improvement in
overall attendance along with the spectators. CPS was in pursuance of expansion methods with more
teams and building new stadiums along with the maintenance of quality play and rise in talent. Players
were the key people of CPS. The ages of the players were 18-35 and average age was 24. Team was
restricted to 23 players only. Over time span of their career all players can transfer their teams till 31 st of
July.
Among 15 teams of CPS compensation decision was entirely standardized. Player’s ability and
marketability were the basis of compensation package. Compensation was comprised of salary, bonus and
incentives. In the period of 2002-2003 salary fezzes was $2.5million excluding bonuses and employees
salaries were from $35000-$45000 excluding bonuses.
Bonuses confined from $5000 to $15000 representing a small proportion of team member’s remuneration
assortment. Bonus was the reward of performance and in player’s contract several guidelines was

available to improve performance. Among the compensation criteria defined by CPS was quality play,
marketability, age and player stance. All those who will be high performers deserve high salaries.
CPS ensured young players should be paid more. Attacking players should be paid more than defenders
because ultimately they provide the goals and scoring opportunities. Are the players had sense of humour,
popularity, fan following. The more they are popular, familiar, entertaining it will be better for CPS.
Contract tenure was 5 years and within contract period they were not allowed to play for any other team.
At year end players had full right to either play or pass. Team ensured the renegotiation in player’s
contract before the expiry. Renegotiating depends upon the player’s future expectations, fan’s base,
location, coaching etc.
After CPS, an affluent woman named as Carolyn Conacher started working with CPS to erect Voyageurs.
She was once an athlete and a wistful sports investor. During the period of 1997-1998 voyageurs was
heading towards championship under the supervision of CNT coach LaFleur along with few players.
Unfortunately it desolated in 1999. At the end of the season, LaFleur’s sudden resign decreased the fans
spirit. Barry Saddleman, an ex coach, tried to give team a systematic and disciplined style. Players used to
dislike his dictatorial existence. Fight between Saddleman and players afflicted the whole 2000 season
and at last it finished from the league. 2001 season was not different than this thought improved hardly
but Saddleman surrendered at the end of the season.
In 2002, when the head coach of the Ottawa voyageurs take over he knew the whole situation and was
worried about its future. CEO also realized the substandard performance, coach resignation and players
controversies repose the team in an awkward position. In spite of all these, he was optimistic and believed
that compensation can prove to be a key factor to boost player’s morale and team’s success. Both head
coach and CEO spent quality time to analyze the whole situation, reviewing individual player’s
performance, compensation allocation and the teams other essentials. It was the head coach, Tertuliano
who has to made final decision and give the recommendations.
Alex bean that was 24 years old and joined in 2000 was considered to be the team’s backbone. He was
honest, responsible and knew about his duties. He was asked to give back his salary due to not up to mark
performance. Although Tertuliano had no doubt about his potential so he justified his salary. Lindloff
who was 21 years old, energetic, professional player excelled at every step. In first season he performed
well but without division. Being a good player, he was also into in community support and very social.
He was the favourite of his teammates and his passion was uncontainable. Tertuliano being a coach
realized the scoring importance for him and also for his repute. Besides compensation he has to take few
steps to develop his scoring power as well. Bin Wang, 26 years old, was high performer and a
mesmerizing soccer player. Tertuliano had no doubt about his abilities and fan following. But the concern
that he was from china and played at Vancouver. High compensation can be a stimulant for him to
continue struggle in future as well. Carl Lodgers, 31 years old, was among one of the flashing and
dashing player. He was a senior player as well but a huge disappointment for him and the whole team due
to his severe injury. CPS cannot afford him to be the part of team if he cannot perform well. Mario Lopez,
23 years old, considered being the most amazing exposition in past five years so far. He had the guts to
inspire other team mates. After joining, he had done bit impressive work but Tertuliano inspected the
reason of his poor performance was his teammate, Taranto. Massimo Taranto, 27 years old, was supposed
to be the best in his position as a midfielder. He was popular, qualified among his teammates but now his
image damaged badly due to badmouthing. Though team cannot afford to lose such talented player but
Tertuliano had to consider other players as well who were also contributing a lot. As per O’Leary he was
already getting more what he deserved to get. After deciding about player’s salary and compensation,
Tertuliano was concerned about the influence of these decisions on employee’s motivation.