The Ottawa Rough Riders ceased operations and folded after the 1996 season.
In February, a dispersal draft was held for the players who were under contract with the Ottawa franchise.
The Montreal Alouettes began the 1997 season under new ownership, which was headed by Robert C. Wetenhall.
Wetenhall and his ownership group retained the Alouette name and logo.
With the Rough Riders departure, the CFL returned the Winnipeg Blue Bombers to the East Division.