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Contraction Creeping Into Conversation
by Paul on 12/01/08 at 07:26 AM ET
Comments (8)
from Anthony J. SanFilippo of the Delco Times,
The owners did this to themselves. They enjoyed a revenue spike from $2.14 billion to $2.6 billion in the three years after the lockout. That may seem plentiful, but it increased the salary cap and the salary floor. The floor is $40 million. That’s higher than the cap was in 2005-06. Some teams couldn’t operate financially with the floor at $25 million. Now it’s worse.
Rather than operate at more manageable numbers, 18 of the 30 NHL squads have payrolls within $2 million of the $56.4 million cap.
The NHL needs to find a financial solution, fast. Television would be the quickest way, but they need to convince major networks that their product is profitable — a daunting task. Otherwise future labor strife or a league restructuring with contraction may be in order.
Filed in: NHL Talk, NHL Business of Hockey | KK Hockey | Permalink
Comments
The writer makes an vaild agrument for so reasons for contraction of some teams. why have these teams if people are never going to support it. it’s amazing that a professional team is refusing to pay a utlity bill. i wouldnt mind it, it create better competition on the ice and get rid players that dont belong in the ahl.
there are plenty of things in nhl bi-laws bettman cane get around.
Posted by FlyersFan on 12/01/08 at 08:10 AM ET
The NHL’s problem is that there are too many teams in weak hockey markets. The lockout neither created nor solved the problem.
The lockout and new CBA being the forefront of this article misses the big picture. As long as several teams are in weak hockey markets, those teams will have financial difficulty. The only way to fix that is to get rid of the number of teams in weak hockey markets (move the teams, improve the markets etc). No salary cap will fix the quality of the markets.
Posted by PuckStopsHere on 12/01/08 at 08:30 AM ET
Nashville and Columbus should fold. They are not major league cities. Move the Islanders to Ontario. Problem solved…I love these “the NHL is doomed” stories. The media loves to write this stuff. Fact is NBA attendance is worse that the NHL….There will always be teams with attendance problems. When you suck for 10 years or more nobody wants to watch…....
Posted by kevin from boston on 12/01/08 at 08:35 AM ET
Word is Lil’ Gary will appear before a Congressional committee next week and ask for some of the bailout money. His reason? Same as the big banks…incompetent leadership at the top. 
Posted by OlderThanChelios from Grand Rapids on 12/01/08 at 09:18 AM ET
Quote from Kevin:
“Nashville and Columbus should fold.
When you suck for 10 years or more nobody wants to watch…....”
Interesting that you completely contradict yourself here Kev-o. In one sentence you say to contract a team like Columbus and then later say there will be attendance issues when your no good for long stretches.
Columbus has sucked for 8 years thus the attendance slide… when Columbus finally does improve and their attendance doesn’t along with it then you may have a point but I won’t be holding my breathe for that to happen.
Until then I’d stick to worrying about your own house.. Boston is one of the best teams in the league and only sits 18th in attedance.
Posted by John from Columbus on 12/01/08 at 09:30 AM ET
I stand corrected. Boston actually sits just 21st in attendance according to http://sports.espn.go.com/nhl/attendance?year=2009.
..yet they are tied for the best record in the East.
Posted by John from Columbus on 12/01/08 at 09:35 AM ET
Do some research…Boston’s capacity is 17,500…..they are at 92% of capacity with some of the highest tix prices in the NHL. Even if they sell out every game they will be 17th or 18th in attendance because other teams buildings are just bigger…Columbus has sucked forever and that doesn’t look to be changing any time soon. I know they had good attendance figures a while ago when they first came into the NHL but those numbers are most likely bogus. Their current attendance is much closer to reality in my opinion…Nashville has been good for a while yet nobody goes to the games. I guarantee you will see the same thing if Columbus ever becomes “good”..the markets are not big enough for an 80+ game shedule. That is why you don’t see a baseball or basketball team there
Posted by kevin from boston on 12/01/08 at 10:34 AM ET
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Well, the NHLPA signed the deal too, you know. Yes, the owners are the bigger morons because they ostensibly got everything they wanted and ‘forced’ the NHLPA to sign… but still.
Posted by HockeyinHD on 12/01/08 at 07:51 AM ET