Contraction a necessary evil for survival of NHL says economist
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12-05-2012, 11:39 AM
Smartest in the Room
Join Date: Apr 2006
Originally Posted by
There are not 30 north American markets that can or will operate under a 50m floor. There just aren't. There aren't even 20.
The NHL does plan on paying for its expansion plan by reducing the salaries of its employees who are extremely overpaid.
With a lower cap, many of these franchises can and will survive. Contraction makes no sense.
I agree, I fail to see the argument that franchises must fold in order to have superstars be paid more money.
The NHL is a niche sport in the U.S. There are not enough markets in Canada to support the number of professional players in the market place. The players are THE major expense for teams. They will have to take less money.
That being said the NHL needs to make sure that their revenue sharing plan is sound and fills the gaps for the lower revenue teams.
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