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11-19-2012, 04:21 PM
  #58
I am the Liquor
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Quote:
Originally Posted by Bourne Endeavor View Post
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.
Successful businesses have to be able to cut their losses and move on from failed ventures. At least a few of the expansion markets fall under that umbrella. The debacle in Phoenix being the most obvious.

Problem is the owners often hold citizens hostage in order for municipal and state/provincial govts to fund their capital projects. These govt's then usually request some kind of long term lease agreement/non-relocation agreement, which then ties the team's can to that market. This seems to be what is happening in Phoenix/Glendale.

The business model is a poor one. Broken even. All so they can pay the employees/players much more than they could/should be able to afford. Then when they try to correct the market by trying to rollback the player's salaries that the owners have agreed to, and in most cases, fallen over themselves to provide, there is understandable animosity from the players and you get a labour stoppage/strike/lockout which is what we get every time a cba comes due in the last couple of decades.

How successful businessmen can be so incompetent is hard to figure. But something drastic needs to be done to fix this, and now is as good a time as any. It will only get worse as time goes on.

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