Navigation: Jump to content areas:


Pro Quality. Fan Perspective.
Login-facebook
Around SBN: Win or Lose, Boston Celtics' New Big 3 Era A Success

Bonus links for a Friday afternoon

Before heading out for the weekend, I wanted to share a few extra links with you this afternoon...

Ron and Gary : Tom Benjamin's NHL Blog
Tom vents his spleen pretending to be Ron MacLean, grilling the NHL Commissioner on national TV. But when he writes, "Do you even understand why Gary Bettman is so thoroughly resented in this country? Do you think it might have something to do with the fact that Canadian fans are paying through the nose to prop up American franchises that cannot succeed without the substantial subsidies from those Canadian fans?" he couldn't be more off-base. If he thinks that without having to contribute to revenue sharing, big market teams would reduce their ticket prices, he's sadly mistaken.

Goal Line Report : An E-mail Interview with Ryan Porth of RLD Hockey
Patrick Hoffman's series of blogger interviews continues with local blogger & podcaster Ryan Porth.

mc79hockey.com - How Glendale Subsidies Cost the NHL and Benefit the NHLPA
Tyler takes an interesting angle on the competing bids for the Phoenix Coyotes, and how that might impact the players around the league.

mc79hockey.com - Teams aren’t coming to Canada
Tyler also looks at just how difficult it is to move a hockey team. Whether an NHL franchise might make more money in another market is almost completely irrelevant.

Comment 9 comments  |  0 recs  | 

Do you like this story?

Comments

Display:

Hopeless

At some point somebody must have tipped Canada on its side so that all the fruits and nuts rolled off to Vancouver…and now they’re blogging.

by Hockey Hillbilly on Jun 4, 2010 5:23 PM EDT reply actions  

Lawyer

That Bettman was as elusive as ever. Bud Selig, as slimy as he is, didn’t skirt issues and was open about Minnesota and Montreal’s troubles less than a decade ago.
I remember in the fall of 06 and the fall of 08, Bettman was singing everything was rosy about Nashville and Pheonix….only to find out in the spring he was being dishonest about the whole shebang.

I do understand Canadian fans POV, though, Dirk. It seems that revenue sharing was supposed to be a short-term prop, where the rich teams supporting the poor small-market (big market teams aren’t ever eligible, i don’t think, sorry ‘bout that economy detroit!) teams through a tough stage. Like with Ottawa, Edmonton, and Carolina. Now, its become an afterthough that certain nontraditional markets (likely Atlanta, Glendale, Sunrise and probably ours) will always need that 10-15 M handout just to make a ’reported profit’ of 2 million (in our case…can’t imagine Atlanta, Florida, Phoenix, even doing that).

It seems to make sense, in the eyes of most fans from canada (and likely a share of americans, too) to move the 1-2 biggest $$$ losers to places where they can be top 10 $$$ makers. US ratings, ad revenues, whatev, aren’t gonna be affected whether there is hockey in Glendale or Atlanta.

It makes sense for everybody, players, owners, ….every one except for 10,000 odd diehard arizona hockey fans…sad, but it didn’t stop the Whalers, North Stars, Jets, and Nords from moving shop, despite arguably more local love for their teams.

I guess that’s what canadians get for socialized medicine: socialized hockey.

by DontfeedtheBelak on Jun 5, 2010 1:54 PM EDT reply actions  

The problem is, that perspective, while widespread, is overly simplistic. It may sound good to Joe Fan on a barstool, but it has little to do with the reality. There are so many factors at work when it comes to franchise location and relocation, that it doesn’t matter whether the league might be better off if Team X which is struggling, moves to a bigger market.

Also, there’s nothing short-term about the revenue sharing plan. It’s the mechanism which holds together the salary cap & floor. The owners and players specifically agreed upon a very narrow $16 million range between cap & floor, and in order to make that work, revenue gets redistributed from the large markets to the smaller ones.

More fun than a stick to the face!
On the Forecheck is SB Nation's blog covering the Nashville Predators.

by Dirk Hoag on Jun 5, 2010 4:46 PM EDT up reply actions  

It is INTENDED to be short-term, Dirk, for individual teams. When they handed out franchises, you think the intention was for teams like Nashville and Atlanta to be career welfare checks? Or to be like Edmonton “the NHL Green Bay”, a short-term fix, until they ‘graduate’ from the bottom half and stand on their own two feet (and possibly, pay into revenue sharing)?

The big revenue generators (the 6 canadian teams, and largely the northeast US teams) generate a disproportionately high amount of revenue. going by articles like sportsbusinessdaily and Forbes. May be only their best guess, and Bettman may discredit them when he sees fit (but, imagine that, the NHL owners swore by those reports before and during the lockout, when it claimed huge league-wide losses).

Remind me how ‘little to do with reality’ it is to think the league would be better off with one more money maker and one less welfare case?
Take the 30th team in revenue generation and take them to a place that they make money enough to put into the program, say, 10th in revenue.
More league revenues, more league profits, more sources of help for the weaker teams from the strong teams (the strong teams get relatively stronger with another partner, the weak teams get less weak, if you remove the weakest link), a higher salary cap and floor, more money for players.

Or keep it they way it is: have the top teams, on their own merits, increase their profits and revenue,
raise the cap floor, forcing the poor teams to spend more money that they don’t have, which they have to borrow from the rich teams.

I understand that, as a Nashville fan, I should be happy to have a team here, and grateful for Montreal and Chicago and the Rangers’ cash, that allows that to happen.
But I certainly would prefered it when, pre-lockout, the Preds were self-sufficient for a short while, even though it was on a 24 M budget. The current setup,
they will never make money, and the team will always be dependent on a handout.

The ‘overly simplistic’ notion of the North, I guess, makes sense to me. More sense that that other ‘overly simplistic notion’, the thinking was sunbelt expansion would=TV money.

My thinking: if the NBA moves teams when they don’t work, and the MLB moves teams when they don’t work, I don’t see why the NHL can’t admit it when certain experiments don’t work for them. In the 70s, the Atlanta Flames, Kansas City, Colorado, the flippin Golden Seals, etc…..were bad ideas for the time. Now, the league is too proud to admit mistakes. They want you to believe all 30 teams are healthy just because the league as a whole is making ‘record’ profits.
If you buy their Kool-Aid, Dirk, I bet you would be impressed when they tell you that Esposito brothers averaged 350 goals each. On average, they were the most prolific goal scoring brother tandem in history….of course, one of the boys had to borrow some goals from the other, but why quibble?

by DontfeedtheBelak on Jun 5, 2010 6:20 PM EDT reply actions  

Go read the CBA

It’s handily available.

The league and players understood when they set the cap & floor just $16 million apart that the actual ability of hockey markets to support that range varied widely – many can go way above that, while many can’t afford to spend to the floor. Revenue sharing is the mechanism which makes it work. There’s nothing in there about it being “short term” or “welfare”.

The best path for a team like Nashville to become profitable while relying on revenue sharing involves two key tasks.

1) Keep player payroll to an appropriate level (i.e., below the mid-point of the cap). Nashville does a very good job with this, while still fielding a competitive team.

2) Reduce non-player expenses. The best way to do that is maintain a low debt load, and that’s the area which the Predators most need to improve upon. Revenue sharing amounts are targeted in a way so that a team can afford to spend roughly 56% of total revenue on player salary, and 44% on non-player expenses to break even.

If you want an example of the NHL instituting a short-term benefit to help struggling teams, it would help to recall the Canadian Assistance Plan.

More fun than a stick to the face!
On the Forecheck is SB Nation's blog covering the Nashville Predators.

by Dirk Hoag on Jun 5, 2010 9:24 PM EDT up reply actions  

The initial comment you posted from the article was
“Do you think it might have something to do with the fact that Canadian fans are paying through the nose to prop up American franchises that cannot succeed without the substantial subsidies from those Canadian fans?”

Which you think is off-base, and I clearly don’t.
As the rich teams get richer, they cap ceiling and floor goes up proportionally. That 56% you mentioned.
Nashville, Atlanta and probably a good third of the league could have been sustainable and maybe even profitable (and Nashville was, I think, for at least one year before the lockout) with lower player payrolls, but like you said,
many hockey markets simply can’t afford to spend to the floor. And that was in 2005-06, when the floor was. what. 25 million?
The smaller markets were welfare cases back then, and even more so now as the floor is ~40 M. They just need more money from the high revenue teams. And all six canadian teams have paid into that system, to help keep the welfare teams afloat.

So, by design, the canadian fans money is propping up teams that couldn’t survive without it.
The system has taken the floor to a high enough level where teams, including ours,
have to depend on that welfare check to survive.

by DontfeedtheBelak on Jun 6, 2010 2:47 PM EDT reply actions  

There are a few reasons why that comment was off base. This is the last time I’m commenting on this, as we’re just going around and around here:

1) That implcation that without revenue sharing, Canadian fans would have to pay less for their hockey is flat-out wrong. Teams try to generate the most revenue they can, and their revenue sharing contribution (or receipt) is based on those revenues generated. First you generate the revenue, then the sharing programs kick in afterwards, not the other way around.

2) The idea that teams couldn’t survive without revenue sharing ignores the fact that revenue sharing goes hand-in-hand with the salary cap & floor. If the Preds didn’t receive revenue sharing, they wouldn’t have to field a $44 million roster, either. The trio of revenue sharing, salary cap, and salary floor are a combined mechanism to keep overall costs under control, and maintain competitive parity. Small market teams will always rely on revenue sharing under this system, unless you got to the point where the 30 NHL teams all generated very similar revenue figures (which ain’t gonna happen, no matter where you place the teams).

The use of the term “welfare” is also completely misleading. . Teams have to hit certain performance targets to receive 100% of their apportioned amount.

It’s a happy circumstance for the Canadian teams that the Loonie is thriving and they’re all among the highest-revenue teams. That hasn’t always been the case, and there’s no guarantee that it will be for very much longer. If it goes back down to 75 US cents, you could easily see teams like Edmonton lining up to receive their portion of revenue sharing, and they shouldn’t have to apologize for it.

More fun than a stick to the face!
On the Forecheck is SB Nation's blog covering the Nashville Predators.

by Dirk Hoag on Jun 6, 2010 3:19 PM EDT up reply actions  

Because Nashville goes from 13,2 to 15 K in paid attendance, justifies not calling their ten million dollar welfare check a welfare check?
The size of the check hasn’t gotten any smaller, nor will it in the current system.

You mention that
Small market teams will always rely on revenue sharing under this system, unless you got to the point where the 30 NHL teams all generated very similar revenue figures (which ain’t gonna happen, no matter where you place the teams).
,
which is factually incorrect. I’m not sure if this an honest mistake, or intentional deceit….you may have a little Gary Bettman in you!
Edmonton, for example, is a small market team that does not pull from the welfare pool, and for at least a few years, have put in. That’s right, the NHL’s Packers are paying into revenue sharing.

Furthermore, if you put a few of the worst money losers in places where they become top 15 breadwinners,
that moves lower-middle teams like Edmonton into the lower 15 revenue teams,
and they could then benefit from the pool. They wouldn’t, of course, need to pull out anything like 10 M a year.

Plus, the disparity in revenue between the top 15 and lower 15 decreases,
and the size of the handout becomes less. Its not that hard to understand.

by DontfeedtheBelak on Jun 6, 2010 4:31 PM EDT reply actions  

Welfare

From an article a couple years ago
http://communities.canada.com/edmontonjournal/blogs/hockey/archive/2008/01/20/canadian-nhl-teams-are-hot-commodities.aspx
As Washington Capitals owner Ted Leonsis recently groused on his blog: “I remember having to pay corporate welfare to help Canadian clubs in the NHL under the banner of an assistance program”

I am not sure why the term welfare bugs you, Dirk. It helps us keep our team in town.
Its not fair that Edmonton prop up Atlanta with a similar arrangement, under a different banner, indefinitely. And Canadian fans have to pay through the nose, about ~150 on average for tickets for the lower bowl, where here we get to see hockey in the lower bowl for 35 dollars in the playoffs. On Military Monday, groups of 20 of us could be 5 rows of the glass at center ice for 20 bucks a ticket.

The disparity isn’t just with the clubs’ revenue-sharing, Dirk. It clearly trickles down to the fans.

by DontfeedtheBelak on Jun 6, 2010 4:41 PM EDT reply actions  

Comments For This Post Are Closed


User Tools

Welcome to the SB Nation blog about the Nashville Predators.

FanPosts

Community blog posts and discussion.

Recent FanPosts

Stax_at_night_small
Strictly for imagination. Battle of team goal chants
Small
So apparently Suter is 86 out the door
Josiah_small
My Roster Proposal for the Predators...Give Me Yours
Small
Whats the cost for the "Big-2"
Gameon100_small
Miss: A Recurring Theme
Preds_game_small
Moving on from Game 4
Sackboy_small
Why are the Preds so streaky?
Preds_game_small
What was gained, or lost, in Game 4
Predhead_small
Intent to Blow
E-pred_small
We're all talkin about it. Let's make it official.....

+ New FanPost All FanPosts >

Best of Nashville 2011 - Best Sports Blog

About OTF

is the Forechecker, churner of NHL stats & analysis, and managing editor of On the Forecheck.

Me_medium_medium

Got a question, a suggestion, or are interested in advertising here to reach thousands of Nashville Predators fans? Feel free to email the.forechecker@gmail.com.

Are you new here? Read this first!

On The Forecheck Community Guideilnes

Check us out on iTunes!

Otf_podcast_medium


Managers

Forechecker_35_small Dirk Hoag

Muckers

Rad_small Chris Burton

Grinders

Kanye_pekka_small Sam Page

91490_obit_heimerdinger_football_small Aditya T (smashville)

Adslogo_small Ryan B. Miller

209353_10150193095230917_581960916_8380447_5205638_o_small Marc Torrence

Enforcers

Infinite_sadness_avatar_small 3DLink

Photo_on_2011-12-09_at_00 davisca