Haggerty: Jacobs should be held responsible
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12-01-2012, 08:05 PM
Join Date: Feb 2005
Location: San Jose
Originally Posted by
Stix and Stones
How would contraction work? You think the other owners would buy the contracted teams?
Not in a decertification scenario. Not enough profits to pull rescue operations like Phoenix.
There are some draconian penalties in breaking leases although they can be mitigated through bankruptcy. I would genuinely like confirmation in writing that the NHL doesn't have its signature on some of these arena deals as a guarantor. I would assume the potential for lawsuits stemming from bankruptcy or the folding of a team is pretty high (and costly) even if the NHL isn't acting as a guarantor in writing.
If I were the PA and I was caving to owner demands on any item, part of my agenda would be to have the NHL guarantee contracts in the event of bankruptcy or folding of a team. Right now, the contracts revert to the league with no obligation for payment until the player is moved by the league to a new team. The players are not free to seek employment elsewhere with a new contract and would still be on the hook for insurance should they opt to play across the pond rather than sitting at home. This has been a hole in the language of the CBA for as long as I can remember.
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