Forbes 2012 annual review of NHL
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11-29-2012, 04:39 AM
Join Date: Mar 2012
Originally Posted by
well, there are 13 teams 'in the red', by EBITDA
New CBA puts Washington and SJS in the black (though one would argue that both should already be in the black but insist on overspending their means, as teams with comparable revenues do fine - so it's either a choice or incompetent business management).
New CBA might actually end up being enough to get Minnesota and Nashville out of the hole too. Nashville is a team that needs to beef up their revenue. Minnesota is a team that needs to spend a more realistic amount of money.
Of the remaining 9 teams, buffalo stands out as a team that should stop pretending they arnt a small market. Anaheim could probably use a dose of that reality too, and revenue sharing eligibility should kick in about 1M.
So you're left with PHX, CBJ, NYI, TBL, FLA, STL, and CAR. PHX should take a significant step with the new lease + no more storm clouds hanging over the arena formerly known as jobing.com. NYI just needs revenue-sharing eligibility and is a few years away from the real fix - a major league arena. For the remaining six teams? Not sucking so much would certainly help, but
other than st. louis, which has proven to be a great financial team when successful in the past, it's probably not enough
. Your possible solutions are lowering player costs even further (this is what the NHL will try six years from now), increasing revenue sharing to more meaningful levels as seen in the 3 other major US sports leagues that havnt been locked out twice in 7 years, or moving the teams to better markets, if better markets even exist.
With regards to St. Louis, one of their big problems is they don't control a number of the revenue streams associated with their hockey operations/the arena. Notably, the city takes all parking revenue, and the concession rights were sold a few years back by their previous owner to make a quick buck, and those are two of the biggest revenue streams available to a gate-driven league like the NHL.
They also don't own their arena (and have a bad arena deal), and they have to pay a weird (and huge) luxury tax to the city that no other pro sports team has to pay.
Basically, St. Louis would probably be a decent market right now if not for previous management and the city itself screwing them over. Their on-ice struggles haven't helped, but I'm pretty sure at this point there isn't too much that can be done to help St. Louis. Even a new CBA wouldn't fix their problems, since their problems are entirely structural, rather than related to player costs.
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