2012-13 Lockout Discussion Part V: The "Back to square one" Edition
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11-01-2012, 01:45 PM
Join Date: Mar 2002
Location: New York
The NHL was supposed to cancel the Winter Classic today. The NHL will lose $100,000 and they need to reimburse the University of Michigan of any costs they incur if the game is cancelled after November 2.
No announcement coming on WInter Classic cancellation today. Confirmed.
Dollars and cents: The NHL contracted use of the Big House for $3 million. The first payment of $100,000 was delivered when they signed the contract on Feb. 8.
The rest of the payment plan called for $250,000 to be paid on Nov. 2; $1,000,000 on Dec. 7; $1,000,000 on Dec. 28; and $650,000 on Jan. 18, 2013.
Cancellation policy: Aside from the league owing more money on Friday, Nov. 2 is a benchmark for canceling the event and not owing the university any more money.
“If cancellation occurs prior to and including November 2, 2012, to retain the $100,000 initial consideration payment.
“If cancellation occurs on November 3, 2012 or later, to retain the initial consideration payment and obtain reimbursement for all documented and actual out-of-pocket expenses reasonably incurred by the University in connection with the cancelled Event prior to cancellation.”
Penny wise and pound foolish. The entire rent is $3M. Michigan keeps $100,000 and they get out of pocket expenses. How much can those expenses be? The NHL needs to start planning for the game in November. The NHL doesn't want to spend that money with no CBA in place. Even if they get a new CBA in November and begin play 2 weeks later,the Winter Classic will still be cancelled. Maybe the NHL hasn't sold that many tickets. Its almost 120,000 tickets. They don't want to be embarrassed playing the game with tarps covering the unsold seats.
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