2012 Lockout Discussion Thread
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08-15-2012, 07:48 PM
Join Date: Mar 2010
Originally Posted by
Something roughly like what you suggest could work. If you accept the PAs suggestion that a quarter billion dollars would save all the failing franchises. That sounds perhaps right - heard Doug MacLean on McCown's shows yesterday. In talking about running Columbus he suggested that the problem was that it cost $25 mil more to run a team then it could reasonably earn. So you spread that kind of money around to the bottom 10 to 15 markets and a lot of money-losing teams are suddenly profitable.
And if you can come up with that $250 mil equally between cuts in player salaries, and increased revenue sharing from owners, then maybe that's the basis for a deal.
The one thing I worry about though - that to truly put everyone on equal footing, you might have to do revenue sharing to the "bottom" 20, even 24 teams. I suspect it's a small number of teams making an enormous amount of money...
Good post Joe I would like to add to it. I believe what the weakest markets want to avoid is extreme losses. I will use an example, let's say it's not an exaggeration that the teams that are hardest hit lose in the area of $20 to $25 million on a bad year and do not own their arena asset (Phoenix or your example of Columbus). I think any owner would be ok if their losses were under $10 million while they were trying to right the ship. I don't think its nessesary to find a revenue sharing model that gets the weakest of the weak into the black but I do think they need to assist in making the losses manageable. I think this would allow more distribution to the teams that were mild have nots. More of a hand up vs a hand out revenue share plan. It is critical That they find a solution to current systemic flaws. easy to say just have the Leafs and the Rangers float the increase in revenue sharing but the teachers are flipping the leafs to the new owners for a sale price that contemplates current profitability models.....that dog just isn't going to hunt if anyone thinks this problem is all coming off the backs of the few rich teams without the players taking a hair cut too.
I am one of the people that think the NHL is actually a pretty solid brand right now and I do think they can continue to grow revenues because they have found a model where they have competitive balance and like the NFL most teams have hope and that is good for business IMHO. They do have to adjust the economics but if they get the model right I could see then reaching 4 billion in revenues in the next 5 to 7 years. There could be allot more money to go around for both players and owners.
Last edited by ps241: 08-15-2012 at
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