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09-15-2012, 02:24 PM
  #93
I in the Eye
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Quote:
Originally Posted by KevFu View Post
Owners: 100% broadcast revenue sharing.
Players: 49-49% HRR split (post-revenue sharing) year one.
1% (one year only) - NHL buys all the entire AHL franchises and realigns that league into one that serves the "grow the game" purpose the best.
1% (one year only) - NHL builds Islanders a new arena.

Everyone's problem is solved.
I've had somewhat of a similar thought before... but instead of the AHL, the NHL ownes Minor Hockey (in US and Canada)... From age 6 (and under) to 20...

I think it might be smart business...
- While the majority of NHL expenses goes towards player costs, this is not the case with the minors... Probably wouldn't even have to pay for the full cost of equipment - split with other bodies, and parents...
- Cities are probably willing to help finance (in whole or part) local stadiums in order to stimulate local economies... In a small town, the stadium is probably the entertainment hub...
- I think they must be successful... Minor hockey provides family entertainment at a reasonable price... It's a good family outing... The Vancouver Giants do pretty well in Vancouver, and there's still lots of other entertainment opportunities for families here (including a NHL franchise)... Just imagine in towns where there are not significant alternatives... I think minor hockey must be a money maker, and attaching the NHL to minor hockey would make more...

While a minor team would only be worth a small fraction of a NHL team, I think the NHL could generate spectacular returns - because of the minimal investment to buy (relatively speaking), and by using the knowledge and leverage of running professional hockey and applying it to minor hockey... Sure, the money involved doesn't come close to the NHL... in isolation... But when you multiply real nice return by a number of teams, it could soon add up to being a real nice money maker*.

*This is all just my imagination, making assumptions... I have no idea, in reality, how much revenue or profit an average minor hockey team generates... or how profitable it would be if the NHL owned minor hockey in North America from age 6 to 20...

- Control the supply chain of talent...
- Leverage the star-power of the NHLPA to stimulate interest in local communities (how the NHLPA earns it's share in this HRR)... Hockey Camps, Meet the Player days, Player advice to young players, "Career in Hockey" and "Hockey as a Hobby" camps - just stimulating interest in hockey at a really early level - "Partner with the Parents"... And not all minor hockey players become NHL players (understatement), but still, opportunities to stimulate and build the game from those kids (and their parents) who have shown interest in hockey (by putting their kids in minor hockey)...
- It's not professional hockey, so it's not competitive with the NHL at all - it's complimentary... With owning the AHL, it may open up conflict of interests... But, much more importantly, there's large player costs (not as significant as the NHL, but still, significant) - that cut significantly into profit... Player costs is the reason why there is no hockey (probably) and why there is a fight between owners and players... So, I think, raise HRR significantly without also raising (or touching) player costs significantly... That's how the NHL becomes profitable...

The goal, I think, is to raise revenues as much as possible, and keep player costs as untouched as possible... To leverage what the NHL and NHLPA have to generate more revenue, and grow the game to higher levels... Start, at the grass roots all the way up to just before the NHL (HRR without the related salary cost)... Then, the NHL also, obviously, ownes the NHL professional hockey route... Others own and control the AHL and ECHL (and other alternatives to adults playing professional hockey - Europe, etc.)... NHL still benefit from transfer agreements and rights... I think it's best to keep these other professional hockey leagues independent... For professional hockey, it's the NHL... All efforts at a professional level should be spent on making the NHL as best as it can be...

This idea just popped up in my head one day, and I don't have any knowledge of the inner-workings of minor hockey, so I don't know if it's even feasible or worthy of much discussion, other than maybe spending a few minutes to read... But I do think, from my armchair, that the NHL could generate some real nice returns from it... to add to HRR... and also grow the game...

If the NHL ownes the mini-stadiums in these towns (be it, in whole or in part) then the NHL could house various level minor teams in the same facility (leverage the investment), as well as control the entertainment that flows through these towns... Could hold NHL exhibition games, etc... Could also leverage NHL branding - Port Alberni Canucks, Orlando Panthers, etc... and sell minor hockey merchandise on a larger scale... As well, market young stars, and provide greater opportunity for young player exposure...

As well, the players, by and large, seem to love working with kids... They do lots for kids anyways during the offseason, etc... Doing hockey camps, etc. This way, the players through the NHLPA do it and get paid for it (share in HRR)...

Just a thought...

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