Hockey Related Revenue versus Direct Costs
View Single Post
09-14-2012, 11:25 AM
dun worry he's cool
Join Date: Jun 2011
Location: South of the Border
Originally Posted by
I'll have to read that later, but that is sort of the basis for the math I'm thinking... Make the travel costs separate from other Direct Costs and deduct it from the over all pie before splitting the rest of it between the owners and the players.
That way, if fuel prices drop, that piece of the pie drops. If the league rents/buys a fleet of 15 757s and operates them like a business expense should be operated, then it would also greatly reduce Costs out...
I have an IT background in Travel Management. Since I have the knowledge in that, I may be biased in focusing on that as a major part of the problem.
Edit; I'm also curious to see how making it a soft cap based on variables would affect each team... Except that would also require a shift in how a player contract works from a hard figure to a percentage concept... Hey, it works in sales... Commission based... etc.
Without doing any actual math and calculations on it, I can't imagine it would be less expensive for the league to own their own fleet of aircraft. While charter outfits are certainly making a profit off of the NHL's use of their aircraft, those aircraft aren't just sitting around looking pretty when they're not flying the team somewhere. The charter outfits might not have the planes rented out 100% of the time, but the NHL's use of the aircraft in question is likely less than 50% of the total hours logged on those planes per anum. As for actual planes, unless they plan to operate an airline, I'd suspect we'd see aircraft more in the size of a CRJ than a 757. The range on the 757 is nicer, but I can't imagine it's cost effective to fly a 75% empty plane.
As for other travel arrangements and efficiency, the league owning hotels could be interesting. What I think would be a very interesting study is the possibility of the league actually opening (or purchasing an existing) chain of hotels and operating them. They could use them for visiting hockey teams, but more importantly could advertise them to the public "SLEEP WHERE THE PLAYERS SLEEP. NHL HOTELS, WHERE YOU MIGHT JUST RUN INTO [INSERT MARKETABLE PLAYER HERE]." I imagine you were more meaning them looking at purchasing a smaller property, and using it only internally though.
My biggest suggestion to the league (which the New England teams would fight to their death) would simply be to organize a league office for conducting travel arrangements. Centralizing it into the league would likely allow for some direct cost savings (if only because 10-20 centralized people could likely handle the whole department rather than 30-60 people spread out amongst the 30 teams, although there's other opportunities as well). Furthermore, with it being a league expense, there's incentive for the league to minimize their expenses across the board. That way, the scheduling department might take a more serious look at some of the ridiculous, inefficient travel they put out there some times. I know they do a little of that, but we still end up with some pretty dumb schedules on occasion.
View Public Profile
Find More Posts by squidz*