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And Why Was There A Lockout…
by Paul on 02/16/08 at 02:56 PM ET
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from Tim Wharnsby of the Globe and Mail,
Well, it’s official. In only the third season since the 2004-05 NHL season was cancelled because of the lockout, total salaries for NHL players already have surpassed the total league-wide payroll at the 2004 trade deadline. In March 2004, the 30 NHL clubs combined to pay its players a total of $1.34-billion in salaries.
Even with the 24 per cent salary rollback that the players surrendered during the lockout and the salary cap ($50.3-million this season), the total amount that will paid out to players in 2007-08 will be approximately $1.4-billion, a $60-million increase.
Filed in: NHL Teams, NHL Talk, NHL Business of Hockey | KK Hockey | Permalink
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Equity, equity, equity. The cap was put in place so that costs are theoretically capped, and, as such, the investment of owning a professional hockey team, even if you incur a day-to-day loss in terms of operating costs (payroll, arena operations, etc.) vs. revenues (sales/sponsorships/concessions), the value of your franchise as viewed by financial institutions increases by 5-15% a season, and teams can either hoard their equity to sell franchises for more than they’re worth (Nashville) or cash in on the equity they have to both leverage more $ out of sponsors and business partners who want to take part in other ventures.
That’s all it was about. It was never about reducing the “inflationary spiral” surrounding ticket prices, nor proving that the Levitt Report was anything other than total BS.
Posted by George Malik from South Lyon, MI on 02/16/08 at 06:42 PM ET
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One thing is that the difference between the top team payout and the bottom (about $21 mil) is much less than it was prior to the lockout. I don’t have the actual numbers but I believe some teams had payrolls in the 70 million range, while others were in the 20 million range. That, with some of the rule changes, is why hockey is better to watch now, than prior to the lockout.
(Of course, I admit that my team is much better to watch now than before the lockout too, so my view might be tainted.)
Posted by penguinsfan on 02/16/08 at 04:10 PM ET