Mark Spector: Reflecting on bad decisions
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11-19-2012, 04:07 PM
HFBoards: Night's Watch
Join Date: Apr 2009
Location: Montreal, Quebec
Originally Posted by
I am the Liquor
When you are making a profit off of the tv contract alone, before selling even a single ticket, then it is much easier to give up a percentage of the gate.
The crux of the problem as has been pointed out already is that the NHL pushed into questionable markets in order to secure the coveted "national" tv contract in America. In effect they made a series of poor business decisions in order to try and get the tv deal that had eluded them.
Now they are in a position where they either have to support those questionable markets or lose the paltry tv contract they have. So far they have tried to avoid meaningful revenue sharing while trying to get the players to carry the burden of the poor business decisions of the BOG.
The owners have created this mess and are responsible for their own labour woes. The players are just trying to get what they can, which is what anyone would likely do.
They could fix this with a sizeable contraction. Cutting the league down to 22-24 teams, possibly moving back into a couple of Canadian markets and living with regional tv deals in the States. They likely have gone too far down the rabbit trail to attempt such a bold move, so we will have to live with a broken model and labour strife, lockouts and strikes every five or six years.
While I do not necessarily doubt the NHL over expanded. I am not convinced the only feasible solution is to contract. Hockey still retains a viable potential interest if they opted for better locations. Seattle is among the cities I feel could support a team for the long value. One has to wonder with lower costs, should they be obtained, if former experiments like Hartford or Kansas City couldn't work.
Bear in mind actual product is a contributor to underwhelming revenue. Columbus could very easily command a decent interest were their management not so horribly inept. San Jose, while not a top tier by any means, has at least broken even for the most part. LA seems to do be doing okay after their resurge to relevance.
At any right, I do not see contraction as the immediate fixer over the long haul.
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