The Business of HockeyDiscuss the financial and business aspects of the NHL. Franchise sales, valuations, TV contracts, ratings, expansion, relocation, the CBA and work stoppage discussion goes here.
with the new restrictions on contract term and variance, the precious competitive advantage for big markets has shrunk a little more. nice work uncle gary... good to know this discussion is meaningless for the next 8 to 10 years!!!
Big market franchises can still build great hockey teams by drafting well, having solid player development, and smart player management; as LA and Boston have shown over the past few years.
If the league stopped tearing down these teams and stopped locking out every time the league had any momentum the teams would raise more revenue. The NHL is horribly managed. That combined with crappy owners is what drags the league down.
Was anything done regarding the burying of stupid contracts in the minor leagues?
Yes - at least in earlier drafts of the CBA, minor league (or Euro league loans) contract over a certain amount ($1M I think) would count against the team's salary cap. No details on the final CBA yet.
If the league stopped tearing down these teams and stopped locking out every time the league had any momentum the teams would raise more revenue. The NHL is horribly managed. That combined with crappy owners is what drags the league down.
The league isn't tearing anyone down. GMs manage to do that all on their own after making crapping signings, and having piss poor cap management.
__________________ "It’s not as if Donald Fehr was lying to us, several players said. Rather, it’s as if he has been economical with information, these players believe, not sharing facts these players consider to be vital."
Yes - at least in earlier drafts of the CBA, minor league (or Euro league loans) contract over a certain amount ($1M I think) would count against the team's salary cap. No details on the final CBA yet.
Have heard league minimum + 375k counts towards cap.
The big teams made a killing on that CBA the cap is locked at a minimum of 64.3M for next year. That last year cap so it can't never go bellow that but we all know it will start rising again in year 3. They get two compliance buyout that likely a candy to keep the Geoff Molson of the league in line and teams are permitted to retain up to $5M in a trade that Bryan Burke candy. They barely have to put more cash in Revenue sharing just 50 million more. Plus that 60 million slush fund that both the NHL and NHLPA will create over the next three years. So yeah that was totally worth losing half a season guys!
They barely have to put more cash in Revenue sharing just 50 million more. Plus that 60 million slush fund that both the NHL and NHLPA will create over the next three years. So yeah that was totally worth losing half a season guys!
So they just increased their wealth transfer by 110m. That sounds like an expensive summer.
So they just increased their wealth transfer by 110m. That sounds like an expensive summer.
60 million divided by two over three years that 10 million a year so technically it 60 Million a year more that the big fish have to fork out. I have no idea where that slush fund is going by the way for all I know it a contraction fund! But by the look of it this sound like an emergency fund for team to get loan if they can't meet a paycheck. It cheaper than keeping a line of credit or maybe the banks just don't want anything to do with the NHL anymore.
60 million divided by two over three years that 10 million a year so technically it 60 Million a year more that the big fish have to fork out. I have no idea where that slush fund is going by the way for all I know it a contraction fund! But by the look of it this sound like an emergency fund for team to get loan if they can't meet a paycheck. It cheaper than keeping a line of credit or maybe the banks just don't want anything to do with the NHL anymore.
Hmm. My impression was that it was a yearly thing, not a one time thing.
The way I see it is that revenue sharing is a necessary corollary of expansion into non-traditional hockey markets. You can't have one without the other. In a gate-driven league it's vital that every team have a chance to succeed. If anything it's more important that the small-market teams have winning records because the Toronto's of the league don't need a winning record to pull in revenue.
My outside the box idea to increase HRR and lessen the impact on the big market teams. Can Phoenix play a home game or two at the Air-Canada Centre in Toronto? Or Madison Square in NY?
This would provide extra NHL hockey viewing for the Toronto area. The ticket prices would not be Toronto Leaf prices but could be a bit higher than the regular Phoenix ticket price and hopefully it would be sold out.
Revenue sharing is nothing more than the teams who will make out like bandits in a cap-era buying the yes votes from the teams that couldn't vote yes on a salary floor if they couldn't afford it.
The vast difference between a $80 million payroll for some and $15 million payroll for others meant bad competitive balance, and teams unable to compete financially.
Because Winnipeg, Hartford, Quebec and Minnesota relocating from cities with passionate fan bases and strong hockey tradition WAS EXTREMELY BAD AND UNWANTED; And because we didn't want to see the trend continue and wind up with the Oilers and Flames in Houston and El Paso; the salary cap was necessary.
Hence the cap. But if everyone spends what they can afford, but the rich are capped, the players don't get a fair share of the loot.
The rich go from spending 70% of HRR on players, to spending 40% on players and 5% on revenue sharing. They make out like bandits.
The poor are still poor: The added revenue covers their added expenses (hopefully. This lockout started because the floor kept rising to beyond what they could afford WITH revenue sharing).
So, no, big market teams are NOT the losers. They never were and never will be. Even if they have to spend more in revenue sharing, it's never going to be a higher percentage than what the salary cap saves them (from themselves, by the way. And they also get a nice scapegoat to explain to their fan bases why the didn't win a Cup: "Well, we can't flex our financial muscle anymore!")
The losers are those who lost fans because of the lockout, and of course, the fans. And fans in future years because they didn't SOLVE anything, they just rolled back the last CBA's problem. In five years, they'll realize the floor KEEPS RISING!
