How to stop a lockout...
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09-19-2004, 03:19 AM
Forgot About Z
Join Date: Feb 2002
Originally Posted by
Something from Econ. Yes, businesses that benefit from hockey will suffer, and that means sports bars, taxis, hotels, etc. But, hockey fans will use that money elsewhere in the economy. They may shift their dining from sports bars to family restaurants or casual dining with a girl. Maybe, spend a weekend at a nice local resort somewhere. Take in other events.
So, a good chunk of the hockey money people spend will be used, just not where they typically would. It will be spent in other business sectors.
But the money spent elsewhere would not be to those buisnesses, thus it would hurt buisnesses who are paying through the roof lease fees just to be located there. When city bring in NHL teams, they do so for 2 reasons: Improves quality of living and ups property value in a certain block radius. Shoot, how many resturaunts work together with teams in special promotions? Tons.
It boils down to this:
#1. Buisnesses pay much higher lease fees/taxes by being in arena districts. Most of the time, this is due to the lone fact that there is a NHL team in the arena and 41 nights a year, there are 19000 potential customers there.
#2. The NHL and NHLPA, by their actions, are directly hurting the revenue of these small buisnesses.
I think you could even take it as far that most teams have 20-30 year leases on the arena, and that implies that not only that they will pay a 'rent' to the city, but that they will provide a product to fill the arena a certain number of nights a year. I guess it would depend on the wording of the contracts each team has. The entire goal would of any sort of lawsuit would be the force both sides to either get an arbitrator to settle the differences and force a season to start.
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