Owners considering a new league...
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08-28-2004, 07:58 AM
Join Date: Mar 2003
Location: Tonawanda, NY
Originally Posted by
What startup expenses? The biggest expense for the NHL is the players.
If the players are on board with their own league, what startup expenses do they have? Arena leases can easily be covered by the PA's warchest. They can hire all the front office staff that the owners laid off.
You do have lease arena, pay lawyers, buy uniforms, contract for travel expenses (planes, hotels, buses, etc...). Then you need to have staff in place to operate the arena (ushers, ticket takers, announcers, etc...). Then you also need team staffs (coaches, trainers, scouts, doctors, etc...). And let's not forget that you must have inssurance covearge. Most of this will need to be in place before you play a single game.
If the numbers are accurate that the league had $2B in revenue, and player costs were 75% of that. That means that the day to day operation of the team costs ~$500M, so maybe you need ~$250M just to get started. I'm not a business major, but I do know that there is a lot that has to be done before you start up something like this.
Originally Posted by
But as far as the players are concerned this new owners league is just like the NHL bringing in replacement players. It won't draw worth a damn without real NHL players. And if the fans aren't there, the money won't be there either.
Meanwhile the players' league will be packing in the fans if they play in smaller venues or have cheap tickets for large venues like Skydome. They may not make as much as the old NHL teams did but they'll make more then the owners league will with scrubs and scabs playing.
The owners will also have to worry about paying off the loans they incurred while paying for their franchises and building their arenas. The players won't have to worry about that because their franchises were free.
You sound as if you know all of the players personnally...
That is a very simple view of how things will work. Human nature will take the players where the best money is. That is why many Europeans come to the NHL to play in the first place, rather than being stars in their own countries.
And don't forget that there will be in an economic war between the two leagues. The owners will drive up the prices on anything they can to drive the players league out of business. And since many of the owners are experienced businessmen with billions of dollars in net worth, my money is on them.
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