Report: Nhl Governors Considering Second Team In Toronto
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10-21-2008, 12:07 PM
Join Date: Mar 2006
I don't believe this is in the best interest of the league, however, its pretty easy to see why they are doing it.
In order for hockey to grow, we need teams in the US markets to do well. Better PR, more commercials, press coverage, whatever it takes - I'm not an expert but they should have some working for the league. Instead, they talk about starting a new team in the most financially stable hockey town - and why? Revenue sharing of course.
Read this article on TSN where the Executive Director of the NHLPA tells them that revenue sharing and untapped Canadian markets are the key to the NHL's financial stability.
Toronto paid in $12 Million dollars last year for revenue sharing, the most in the league. The Habs were number 2 at $11.5M. Of course they aren't going to start a new team in Winnipeg - they'll do it in the safest environment possible that gives them the most revenue possible.
The 6 Canadian teams accounted for 1/3rd of the leagues profits last year, and according to the article below, there are 10-12 teams who can't afford to spend the salary cap minimum.
All the league is doing is talking about putting a bandaid on the problem when in reality, the league expanded much too quickly and in markets where it wasn't feasible to do so. But it's bad press for a sport to have teams folding, so instead they want to put another Canadian team in Toronto and hope for another $12 Million dollars in revenue sharing.
It's a bad situation for the sport to be in down south, and while I don't agree with putting another team in the same city, (for reasons being that there are other cities who are also financially feasible that deserve a club more than Toronto deserves another) I'm at a loss to see how they can control the bleeding. Where they made their mistake was with the salary cap and the ever increasing league minimum and maximums. Sure it's ok for it to go up, but it has been going up like CRAZY. Obviously their formula just isn't working. And now with the Canadian dollar taking a nosedive, the Canadian clubs are again taking the hit when their revenue sharing is now equal to $14.6 Million dollars instead of being closer to par. not to mention all their player salaries that are paid in US dollars.
So now that we all know WHY they are doing it, as I said above, I am against it. If they want to bring in another Canadian team, bring one to Winnipeg, Quebec City, or Hamilton. These are cities that have FANS who love the sport and really deserve to have a team that they can support that is close by. Heck, I'd even be up for some market research in places like Halifax or Victoria - even though those places don't have as large of a population in the core of the city, they could bring in fans from the surrounding area. I know I'd drive the 2 hours or so to Halifax to watch the Habs play. (and have for preseason games) Why not give those places an opportunity before doubling up on any city? And if you're going to start another franchise in the US, why not look at places like Houston? There are HUGE hockey ties in Texas and Houston has nearly 2 Million people, more than Dallas. There's a place that would succeed - move one of the troubled teams to there and get some exposure.
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