Post by WpgJets2008 on Mar 30, 2009 12:22:30 GMT -5
Canada benefits if economy slams NHL
STEPHEN BRUNT Globe and Mail March 27, 2009 at 10:48 PM EDT
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It is certainly not a selfless gesture. Quite the opposite, really.
But economic circumstances seem about to dictate that the interests of NHL players and the interests of Canadian hockey fans hoping for more teams in this country are about to line up almost exactly.
The league's more than 20-year quest, inspired in large part by the trade of Wayne Gretzky to the Los Angeles Kings, to sell hockey among the heathens, hasn't worked out so well. In the grip of a nasty economic downturn, hockey (like every other professional sport) has a harder time covering its weak points, and those can be found almost exclusively in the U.S. sunbelt.
Once, the dream was of mass conversions and lucrative national television deals and a place in the U.S. sports mainstream. Now all that's left are a series of basket-case teams, kept alive by the NHL's revenue-sharing system, and this year aided greatly by the money they're about to get back from the players through a percentage of salaries held in escrow.
That's the way the system was designed to work when the current labour agreement was negotiated — albeit, at the point of a gun, since the NHL Players' Association was pretty much gutted by the 2004-05 lockout.
But along with assuming some of the risk and some of the responsibility for the league's overall financial health in return for a fixed percentage of revenues, the players were also supposed to be embraced as "partners" by the owners — which, by implication, would suggest that they have a say in how the league is operated.
It has dawned on them that this is not exactly the case, and also that by propping up hopeless teams in hopeless markets, the NHL is redirecting money that would otherwise be spent on player salaries to underwrite its welfare system.
The players put 13 per cent of their salaries in escrow to start the season, increased that to 22.5 per cent in the second half, which in total adds up to about $280-million (all currency U.S.). Sports Business Journal, citing NHL sources, reports that "significantly more" than $120-million of that is now going to be kept by, and divided among, the owners.
Again, that's exactly how the contract is supposed to work.
But if you're a player, you can't help but look at some of those half-empty arenas in the south, you can't help but look at the ownership mess in Phoenix, the one unfolding in Atlanta, the continuing debacle in South Florida (just to pick the worst examples) and feel that with a few relatively simple adjustments, the business of the league could be made stronger and shared revenues could be directed at teams that actually have a chance some day to prosper.
As a happy byproduct, salaries would go up — or at least there wouldn't be quite such a nasty surprise at the end of the season.
The truth is, fan opinion isn't going to sway Gary Bettman one inch from his position that preserving all 30 teams, exactly as they are, is fundamental to the league's future. But the players and their union can create one more pressure point. Add that to the unhappiness of some of the owners of wealthier teams, who have also tired of throwing good money after bad.
The third pressure point is of course the economy: playoff tickets are going on sale now, as well as season's tickets for next year, the first real test of the NHL's strength in the face of so much bad news. It's hard to be optimistic, especially in places where hockey is far down the sports-entertainment food chain.
Put all of that together, and it has to create quite the test for the commissioner's unwavering confidence.
Put all of that together, and it's encouraging news for those in this country — not just Jim Balsillie — sitting in the weeds, believing that the rules are about to change, that sooner rather than later, the NHL is going to come calling, needing to bring more of the game home.
Chris
STEPHEN BRUNT Globe and Mail March 27, 2009 at 10:48 PM EDT
manitobamythbusters.com/forum/index.php?topic=294.0
sports.theglobeandmail.com/servlet/story/RTGAM.20090327.wspt-brunt-col-27/GSStory/GlobeSportsHockey/home
It is certainly not a selfless gesture. Quite the opposite, really.
But economic circumstances seem about to dictate that the interests of NHL players and the interests of Canadian hockey fans hoping for more teams in this country are about to line up almost exactly.
The league's more than 20-year quest, inspired in large part by the trade of Wayne Gretzky to the Los Angeles Kings, to sell hockey among the heathens, hasn't worked out so well. In the grip of a nasty economic downturn, hockey (like every other professional sport) has a harder time covering its weak points, and those can be found almost exclusively in the U.S. sunbelt.
Once, the dream was of mass conversions and lucrative national television deals and a place in the U.S. sports mainstream. Now all that's left are a series of basket-case teams, kept alive by the NHL's revenue-sharing system, and this year aided greatly by the money they're about to get back from the players through a percentage of salaries held in escrow.
That's the way the system was designed to work when the current labour agreement was negotiated — albeit, at the point of a gun, since the NHL Players' Association was pretty much gutted by the 2004-05 lockout.
But along with assuming some of the risk and some of the responsibility for the league's overall financial health in return for a fixed percentage of revenues, the players were also supposed to be embraced as "partners" by the owners — which, by implication, would suggest that they have a say in how the league is operated.
It has dawned on them that this is not exactly the case, and also that by propping up hopeless teams in hopeless markets, the NHL is redirecting money that would otherwise be spent on player salaries to underwrite its welfare system.
The players put 13 per cent of their salaries in escrow to start the season, increased that to 22.5 per cent in the second half, which in total adds up to about $280-million (all currency U.S.). Sports Business Journal, citing NHL sources, reports that "significantly more" than $120-million of that is now going to be kept by, and divided among, the owners.
Again, that's exactly how the contract is supposed to work.
But if you're a player, you can't help but look at some of those half-empty arenas in the south, you can't help but look at the ownership mess in Phoenix, the one unfolding in Atlanta, the continuing debacle in South Florida (just to pick the worst examples) and feel that with a few relatively simple adjustments, the business of the league could be made stronger and shared revenues could be directed at teams that actually have a chance some day to prosper.
As a happy byproduct, salaries would go up — or at least there wouldn't be quite such a nasty surprise at the end of the season.
The truth is, fan opinion isn't going to sway Gary Bettman one inch from his position that preserving all 30 teams, exactly as they are, is fundamental to the league's future. But the players and their union can create one more pressure point. Add that to the unhappiness of some of the owners of wealthier teams, who have also tired of throwing good money after bad.
The third pressure point is of course the economy: playoff tickets are going on sale now, as well as season's tickets for next year, the first real test of the NHL's strength in the face of so much bad news. It's hard to be optimistic, especially in places where hockey is far down the sports-entertainment food chain.
Put all of that together, and it has to create quite the test for the commissioner's unwavering confidence.
Put all of that together, and it's encouraging news for those in this country — not just Jim Balsillie — sitting in the weeds, believing that the rules are about to change, that sooner rather than later, the NHL is going to come calling, needing to bring more of the game home.
Chris