There was apparently some talk of this.
http://www.newstalk980.com/incoming/20080214/saskatoon-rough-riders
The initial conversation mentioned it as a plan to either move the riders to Toon town or get an expansion team. There is almost no way the Riders move to Saskatoon --- too many of their big wigs have deep Regina ties --- and I think this could be the rare instance when I agree with the Canadian CFL fans who are expansion naysayers. Both cities float around 200K. Filling a 30K stadium from a 200K audience would be very tough.
That said potentially it COULD work. If the CFL were to tighten up/modify/lower their salary cap, structure things a little more favorably for smaller market teams, and set more favorable expansion rules, I think you could safely have teams in both cities feeding off the natural rivalry. But we are talking fairly big changes.
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