Hot Topics in Economics Canada Fully Deserves Three More NHL Franchises
November 11, 2010
Director, Centre for Municipal Studies
My 12 years-plus stay at The Conference Board of Canada has been really fascinating. I knew that economics can be applied to several different fields, but I never thought that as part of my job I could actually get to talk about economics and sports. For example, this past summer I was incredibly fortunate to be asked to participate in a special documentary entitled Why Not Canada, which was broadcast on The Sports Network (TSN). In this documentary, I was asked, among other things, how many more Canadian cities could be home to a National Hockey League (NHL) franchise. I answered “three” without the slightest hesitation -- Hamilton, Quebec City and Winnipeg. Let me explain why.
There are four pillars to the success of a professional sport organization. They are: 1) the size of the market; 2) the wealth of the market; 3) a sound corporate presence; and 4) a level playing field. Let’s quickly examine each in turn.
Last edited by Fugu: 11-12-2010 at 12:56 PM.
Reason: copyright, link is broken
The only problem I see is that if you give Winnipeg, Quebec and Hamilton NHL teams you know what will happen next. Toronto will want one too....
...But seriously. The goal of the NHL is its proliferation into the mindset of the American sportsfan. 3 more Canadian teams may in fact raise overall revenues in the interim, but will hamper the development of the American fascination with the game. As a Canadian I would love every small borough access to the NHL. As someone, who believe it or not, has a business mind disagrees with the suggested premise.
For the NHL to succed they need to maintain their American presence and get rid of the notion that paying 58% of revenue to the players is 'a good thing'.
Last edited by AllByDesign: 11-12-2010 at 12:48 PM.
I could have written this exact same thing...not very insightful. Anyone with a head on their shoulders knows what this article has said or could easily find it out.
Hopefully the more 'in depth' stuff has a lot more to it.
I'm biased but where it talks about the corporate presence and wealth of the market....it isn't really mentioned that Hamilton is surrounded by massive population as well as corporate population and also incredible wealth. The City can hold it's own by itself..but has a very strong 'supporting cast'.
Moot point I guess, since it appears clear all three would be quite capable of providing the support necessary.
the concept of who does and doesnt "deserve" a team makes me laugh
Reading the word 'deserve' makes me shudder. Because people take it so far out of context and warp it into a declaration of entitlement, which it isn't.
To get a team in the NHL (through expansion or relocation) it needs to be shown that the market is 'deserving' of an NHL franchise. Meaning, it has the ability and desire to support the franchise.
It's like saying "He deserves to win..he trains really hard and gives it his all. Nobody is more deserving of this award than he is." That doesn't mean this guy feels entitled to the award....just that he is deserving of it.
Is this really an analysis? He provides no information, no facts, no figures, nothing referenced.
This is simply an essay that is no different then any other essay written by any of the members of this board.
His first point was laughable, I don't think I need to expand on that. I don't disagree that a team can be successful in a small market, but...come on buddy, provide some real information.
His 3rd point was ??? What is he basing Corporate presence on? Businesses? Size of businesses? Employees making over X number? Where is the information?
His 4th point missed one of the biggest things going for these smaller cities - the salary cap/revenue sharing that is in place now that was not in place in 1996.
Also where did he come up with these 4 pillars of successfull sport organizations? These are important factors, yes, but it seems completely arbitrary to just claim that this particular set of factors are the be-all and end-all to sport franchises.
Did this guy do any research or is this just a small piece of a greater body of work... ?