Saturday, November 24, 2012

The Business of Hockey

I became curious about which owners are taking the most active roles with the NHL in the ongoing CBA negotiations.   An interesting article by Pat Hickey in yesterday's Montreal Gazette sheds some light on this http://www.montrealgazette.com/sports/hockey/montreal-canadiens/Hickey+proves+rich+people+different/7602720/story.html  He discusses the most involved owners and their motivation:
  1. Jeremy Jacobs - the Bruins made a number of signings prior to the lockout.  Word has it he is one of the more driving forces behind the lockout as he attempts to pad his profit margin through these negotiations.  Curious, he could also have padded his margin by not going on a spending spree prior to the lockout.  
  2. Craig Leopold - as Hickey points out in his article, Leopold's Minnesota Wild lost close to $6 million in 2010-2011.  Leopold was whining about his hockey losses this past spring.  So how does he address the problem?  He signs Zach Parise and Ryan Suter to 13-year $98 million contracts knowing that his attendance is already at 98.4% capacity.  The only way for Mr. Leopold to remediate this poor decision is to be staunch in his support for increased HRR - shocking he is an active participant in the ongoing negotiations.  
  3. Ted Leonsis - in 2010-2011 Leonsis' Washington Capitals lost $7.5 million.  Hickey points out he is experiencing some buyer remorse.  Was he referring to Leonsis' purchase of the Capitals or the 0-10 Washington Wizards?    
  4. Murray Edwards - the Flames made $1.1 million in 2010-2011, their average attendance was 19,289.  Not far away the Edmonton Oilers made $17 million in 2011-2012 with average attendance of 16,839.  That is a statistically significant revenue difference in markets that are not too distinct from each other.  
If these guys are not making enough money in hockey why can't they go back to businesses that are more lucrative for them - and let us get on with the season?  It will be interesting to see how the fan base in each of these cities supports these teams whenever the NHL gets underway.   

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