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09-16-2004, 10:47 PM
I in the Eye
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Originally Posted by DeathFromAbove
You are correct in that the NHL is set-up as a franchise. However, it is illegal for the franchisor (and it is francisor, not franchisee) to dictate the salary paid to the employees of the various franchisees.
One of them is called a franchisee... I remember that...

Originally Posted by DeathFromAbove
The NHL (being the franchisor) cannot dictate to the member teams (being franchisees) the salary they will pay their players. It is a violation of anti-trust law whether you are the NHL or McDonalds.
So, are you saying that McDonald's does not dictate the costs associated with their products to the franchisees (I assume that this is the proper use of the word)? Are you saying that the individual franchisees have different product-related costs? Are you saying that a franchise owner can pay his son (a burger flipper) 3 times more than his burger flipping peers?

I was always under the impression that expenses in a franchise-based business were standardized (for resource expenses directly related to the product - including employee salaries for those who help develop/deliver the product)... I was always under the impression that McDonald's kept ultra-strict control over their products - and product-related costs... I always assumed that burger flippers all got paid the same - regardless of the franchise (as dictated from head office)... Hmm... go figure... Learn something new every day

My underlining thinking was that in the NHL franchise business, the players are an important ingredient of the product... IMO, the players are like the burger patties in a Big Mac (speaking figuratively)... I assume that McDonald's head office controls the costs for burger patties (to maintain price for big macs regardless of franchise (I assumed that McDonald's directs and controls all decisions that directly relate to the image of the brand)... Obviously, the players have to be treated far better than a piece of meat... But I didn't realize it was illegal for the franchisor to control the salaries of the franchisee's employees...

Originally Posted by DeathFromAbove
Sure, it might be nice to do that, but not under the current laws you can't. To do what you are suggesting, each individual team would have to divest itself and form back together as a single corporation (let's call it "NHL Corp") where the owners each hold shares in NHL Corp. Then NHL Corp can dictate it's wages. But until that happens, no can do.

Last edited by I in the Eye: 09-16-2004 at 10:56 PM.
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