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12-05-2012, 08:06 PM
  #789
Riptide
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Quote:
Originally Posted by SJeasy View Post
No on expansion fees, but they will benefit in number of jobs and potentially pay in the future. And some future league earnings may go to support pensions for current players (ideally, not necessarily realistically).

IMO, expansion fee shouldn't even go directly to the owners. They should be held in escrow for up to 20 years to support the team gaining entry should the need arise. Prevents owners feasting on the bones of businessmen duped into purchase.
Then where should it go?

So a guy buys a "franchise" for 150m (Columbus and Nashville paid 80m each - but inflation is a ***** ). Say the league pays out 60% of that to it's members (90m), and puts the other 60m into an account for buddy to draw on at a later date. The new club draws on it over a 6 year period (say 10m a year) to help offset their losses. Now they've bought into the NHL for 150m, received 60m back in gifts from the NHL for a total purchase price of 90m. That seems like a pretty cheap entry fee into the NHL when Forbes (yes I know) says the average team value is 280m. Even if a more realistic sale price is in the 150-200 range, buddy is getting a heck of an investment.

I'm not saying it should all just get paid out to the NHL members, but neither do I think it should go into some sort of fund that goes directly back to the club for development purposes. If that's the case, why not just lower the fee and make it cheaper to join?

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