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12-01-2012, 11:07 PM
  #51
Beacon
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Quote:
Originally Posted by HatTrick Swayze View Post
I disagree. Pro sports is the industry. The NHL, MLB, NFL, and NBA are the companies.

NHL franchises only compete on the ice. The goal of the Rangers is not to run the Ducks out of business. It is to cooperatively build a superb on-ice product that wins the advertising and gate revenue dollars against what the other leagues have to offer.

A healthy NHL needs healthy franchises with a wide geographic footprint. Right now there are major disagreements on how to achieve that.

The Rangers want to take fans away from the Islanders and the Devils, and to a lesser degree from the rest of the league. In the early to mid 90s, half the basketball fans around the United States were claiming to be Bulls fans. There were Bulls caps all over my high school and college at the time. All that took revenue from the Knicks and other teams, and gave this revenue to the Bulls owners.

The NHL consists of 30 rich guys who each benefit by defeating the other 29 people. The more a team advances into the playoffs, the more caps and tshirts it sells, etc., the more profit it makes.

But all of this is theoretical.

Let's look at how it will work in real life. Let's say that if my team makes $100 million a year, then I have to "share" $30, but if my team makes $75, then I have to share only $5. You know what I would do as the owner? I would spend that money before giving it to someone else. Waste it, I don't care. I'm better off spending it on ornaments around the stadium, higher salaries for everyone, employee parties (birthday, Christmas, Friday evenings), donations to my favorite charities and politicians, and for every other reason possible. At least this way, I will get greater loyalty of my employees, fans, politicians and city residents. I would get some benefit out of spending the money. Why would I just give it to Wang?

All the profitable owners will do the same thing, resulting in the destruction of the league's revenue.

This is called the Tragedy of the Commons. And it is the by-product of socialism. So whatever you want to call this: socialism, redistribution of wealth, sharing, being nice - the result is still the same tragedy of the commons.


Last edited by Beacon: 12-01-2012 at 11:16 PM.
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