Contraction a necessary evil for survival of NHL says economist
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12-14-2012, 03:00 PM
Charon of Styx
Join Date: Feb 2009
Originally Posted by
I think contraction is generally bad for a business of any kind, although special circumstances may sometimes make it the right option.
If a business expands too rapidly to control, and assets are depreciated via internal issues, then
trimming the fat
would be a good option to then regroup and plan the next expansion.
But that last point should be the forefront of thought on the matter.
A successful business model is one that is bent on expansion.
My thoughts on the article are, foremost, that it is subjectively written to draw support from popularist thought that the NHL doesn't need the "Sunbelt" teams and that
mentality that hockey is Canadian and belongs in Canada (and perhaps the northern-most States).
Saying that there is "...weak nationwide interest in hockey in the U.S." may be true, but the conclusion that the author tries to force on the reader is that this means that contraction would be a good idea.
While it would be esthetically pleasing to see percentile profitability among the NHL clubs increase, it would do nothing for the actual growth of the NHL. That's the only thing that contraction would achieve. Removing the least profitable franchises would make the NHL seem like each team is proportionately more successful, but the League itself would not actually be more successful.
The important point I want to make here is that Sunbelt teams are integral components to the long-term success of the NHL.
While initial interest is low (and may remain low for some time), the mere presence of hockey, along with
promotion of hockey among the youth leagues
will eventually cause an upswing in interest and allow the NHL to make notable progress in the Sports Entertainment Industry.
It's not something that will happen overnight.
Why is that? The league has been around for a 100 years without the sunbelt. My how did they ever accomplish that? No big TV contract no big payday for players. The league will do just fine with any number over 12.
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