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08-28-2004, 02:29 PM
I in the Eye
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Originally Posted by BlackRedGold
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.
I personally can't provide you a list of all the costs - as I don't have intimate knowledge of the professional hockey industry...

But I do know that 9 out of 10 new businesses fail within 5 years... and the number one reason is inadequate cash flow (i.e. not enough money coming in to cover the expenses going out)... I do know that the probability of a player's league to last longer than 5 years is 10%... If it is a new business that has the experience, resources, and contacts already in the industry through owning and growing an old business in the same industry - the probability of success goes up greatly -thus, why my money would be on a new owner's league...

Whatever you project the start up costs to be (your best - most realistic estimate based on careful study and analysis)... add 25% on top - that is at least what it will cost...

The players know how to play hockey (and get the most out of a CBA) - as a group, not how to run successful companies... If the players were going to go this route (start their own league), IMHO they would need financial and business backing from investors and business leaders to control the show - for even a fighting chance for success - business astute people who have spent their lives successfully running and growing entertainment (or sports entertainment) businesses... and, IMO, it would be a challenge in it's own right for the players to convince these business astute people to invest in a business where 75% of the revenue generated goes to the employees - in a business that has a foundation that basically shut down the NHL (a 100 year old brand) - as I assume that the players would want to at least make as much as they would currently in the NHL - and maintain the status quo - to even entertain starting a new league... Oh, and the main competitor is the former NHL guys... Good luck players

It's not easy starting up and successfully growing a new business in any industry... I imagine it is the same in the 'professional hockey industry'...

Part of me wants to see the players start their own league - as it would make a very interesting case study in 'The Idiots Guide to Biting the Hand that Feeds You' book one day...

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