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10-31-2012, 08:32 AM
Measured Intangibles
brian_griffin's Avatar
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My view is this will be worked out, eventually, regardless of whether a season is lost.

My real concern is around future franchise viability / equity.

I alluded to this in the prior thread, and apologize for being too cute with the analogies between the weaker money-losing franchises as "kept mistresses" for the 8 or so uber-wealthy franchises. I firmly believe both the players and the league need and want the current number of franchises (or thereabouts) and must preserve that, lest it devolves back to some modification of the "original six" days.

Lacking a meaningful TV contract, increased revenue sharing and/or greater cost-certainty, or both, with or without other equitable financial features, must be addressed. Spread or disparity on franchise valuations will continue to grow (franchise ceiling value grows, but floor remains) without addressing it, and I'm sure that is NOT in the league's (or players) best interest. Without fixing that spread, you will simply increase the number of franchises which are un-sellable, as a prospective owner will NOT want to spend $100-$200M for a weak financial franchise with negative to 2% annual profit potential, and low appreciation potential, when the potential return for other investment options is much greater.

It is not clear to me that either the League or Player proposals fully address my concern above. I suspect the League proposal is dominated by wants of the wealthier franchises. It's not clear the Player proposal for greater revenue sharing ($240M or whatever) adequately addresses the issue. As a previous poster noted, both the absolute RS amount as well as the means that is achieved present signficant challenges to the League, and RS alone may not be a singularly adequate tool.

[Note I recognize PHX is a specific case.]

[Note also I do not frequent the "business of hockey" thread*, and apologize if these issues are rehashed ad nauseum there. (*But I will do so at some point if the season remains suspended.)]

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