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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

Contraction a necessary evil for survival of NHL says economist

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12-19-2012, 01:13 AM
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Originally Posted by Stix and Stones View Post
No they wouldn't, if it fails it's done. Sheesh what is it with people they want everything, rev sharing, reduce player costs and if the thing is still failing somebody has to buy it. Not likely.
I dont think you understand the importance of perceived stability and security in regards to league franchise values. They certainly could let a 200 mill team fail and allow them to just die, but the hit that rest of the leagues franchise's would take would dwarf the 200 mill price tag. The rest of the owners would all lose 10's of millions EACH in their franchise values overnight, so they would have to be ******** to approve such a move, given the fact they are the ones making the ultimate decision.

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12-19-2012, 01:23 AM
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From a Dallas fan here...as cool as I think a team in Houston would be, I'm not really sure the time is right for an NHL team to go there. Dallas will get stronger with our new owner and hockey will become a strong sport here like it was a few years back. South/Central Texas does have 3 AHL teams and they do pretty well from what I hear. At least the Texas Stars for sure. IF Houston could build strong ownership that then builds a strong team, a DAL-HOU rivalry would definitely grow the game here. Until then, Dallas is fine on its own. And people need to stop jumping on them when it comes to southern markets that are failing. We've had attendance issues the last few years with the bankruptcy yet we were still operating in the black.

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12-19-2012, 04:34 AM
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Originally Posted by Jossipov View Post
Oy Vay, this again. It must be all the trapping....
Anyway, as I was telling the guy before, The Devils have for the last few years been a top 10 revenue team that is in the black on operating income....and yes, every game during the playoffs was actually sold out.

However, this does highlight an issue that is overlooked by relocation, specifically places like Hamilton. Do you think it is likely that if a team was relocated there next season that hardcore generational Leafs fans would en mass become Hamilton Coyotes fans? I doubt it. It would take a long while, and the first years would be extremely hard, probably a disaster if they were not competitive. The Devils had the same issue, being moved right smack in territory that for generations belonged to hard core Rangers fans in the North and Flyers fans in the south (add the Islanders, who were immensely popular back in the 80s and early 90s). The people who have been Rangers fans for 30 years, who's fathers were Rangers fans, and who are grooming their kids to be Rangers fans arent going to suddenly do a 180 and become hardcore Devils fans.
Things have started looking up on that front the last decade, and they've established a loyal and growing fan base (also a young one), but it took years of being there and then it took more years of being really good to carve out a place (and as I said are now an above average revenue team). A plus for that is that is that it was done in a Metro Area that has over 20 million people (not including the Philadelphia area that covers the Southern part of the state), and still has tons of room to grow.
The entire population of Ontario is half that.

It's not a sure shot that moving a team there would be successful, and it would not happen quickly, meaning it is not a short term solution and might not be long term viable unless they were able to convert many Leafs fans. Or it might work great, if you didnt obsess about comparing gate attendance over several decades. Either way, it would have all the problems of the Devils moving to the New York City area, but without the population and media potential for long term growth..meaning it would not be a cake walk
Great response and I agree, suppose Im still bitter seeing their dynasty teams playing infront of some empty seats lol. However, how freaking close are the devils, rangers, islanders to each other? From someone on the west coast lets just say we see it as a hop skip and a jump (getting increasingly difficult for most americans im sure). Think of a team in Seattle/Portland and the rivalry it would have with vancouver and the alberta teams. Imagine the hockey fans living in vancouver and south BC driving down just to see the pens, rags, philly stars on their yearly trip. Notice over here we get to see Atlantic stars once every year or two with the current schedule. (I realize the NW teams rarely travel there but lets just say theres a disproportionate amount of star players on ATL teams) Same idea with a Montreal Quebec City rivalry, people would travel to the opposing barn just to see their team play, or high profile games.

Now i ask you why this does not seem to happen in the new york area? Look at all that population from every walk of life in a snow region. It just seems weird from an outsider since people obviously travel there for school and work from all over. Now im curious, what are the travel times between the arenas?

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