Let's talk about revenue sharing.... (TSN News)

Discussion in 'The Business of Hockey' started by Comrie_fan, Apr 15, 2005.

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  1. Comrie_fan

    Comrie_fan Registered User

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    Bettman was in Toronto to talk about ... more revenue sharing. He will have some reunion with the owner who have the best revenue int the like to convince him to share more revenue.

    link : http://www.tsn.ca/nhl/news_story.asp?id=121575
     
  2. sakicisstupid

    sakicisstupid Registered User

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    As a fan of a large market team, I'm against significant revenue sharing. I don't think teams like Detroit, Colorado, and Toronto should have to support other teams that could beat them out for the playoffs and/or Stanley Cup. If you're in a team in a small market...I say tough luck. Not everyone is dealt the same cards in life so you gotta deal with it. But, if significant revenue sharing helps get a deal done from the owners side, then I'll let it be. It's what the owners should have proposed in the first place to entice the NHLPA. I want my hockey team back playing any way whatsoever.
     
  3. Comrie_fan

    Comrie_fan Registered User

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    The question is if the player accept the last proposition of the owners with more revenue sharing condition. what do you do ???
     
  4. HSHS

    HSHS Losing is a disease

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    As a fan of the Yankees, I watch players everyday on the Yankees "payroll", via revenue sharing, that try to beat them. The first year of receiving revenue sharing/luxury tax, the Twins took their 7M from the Yanks and signed Torii Hunter to a long term deal. Revenue sharing is simply in the best interests of all sports leagues, and will someday be part of the NHL when it catches up.
     
  5. PeterSidorkiewicz

    PeterSidorkiewicz Registered User

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    I thought all of this talk was to make the league as a whole healthy. Well Revenue sharing is a great step to doing just that. It seems to me the first step of the NHL was to try and make the league healthy by cutting it 100% out of players salaries and nothing out of their own pockets, which leaves us where we are right now. If you had in revenue sharing with whatever cap you get, you make the league healthier by cutting players salaries, but also the owners take part in distributing revenue. Now THAT seems more like a partnership then saying "no" to any significant revenue sharing.
     
  6. Comrie_fan

    Comrie_fan Registered User

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    agreed with both of you
     
  7. nyr7andcounting

    nyr7andcounting Registered User

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    I agree. It's a huge part of any succesful league and it's very fair to all players, most of the owners and all of the fans. I'm a fan of a big market team too, but now that there is a cap what good does it do me that the Rangers are going to have a ton of revenue that they can't spend on players anyway? I would rather see NYR kick money back to the lower revenue teams (resulting in a healthier league, which is the point of this lockout) than have that money go straight into the pockets of an already loaded corporation like Cablevision.
     
  8. Kritter471

    Kritter471 Registered User

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    The NHL has been campaigning for an NFL style hard cap (which is coming about in an adjusted form right now).

    If they want that, perhaps they're now pitching NFL-style revenue sharing.

    From my "American Sports" textbook:

    "Two league policies virtually insured teams against financial failure. But giving visiting teams 40 percent of the gate receipts, the NFL avoided the gross disparities in revenues among franchises characteristic of major-league baseball and pro basketball [sic: in the 1970s]. More importantly, the NFL split television revenues equally among the franchises [sic: the NFL signed only a national television deal, franchises were not allowed to sign deals locally]. As Art Modell, the Cleveland Brown's owner, once happily quipped: "We're 28 Republicans who vote socialist."
     
  9. Drury_Sakic

    Drury_Sakic Registered User

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    its about finding a fair revenue sharing level...


    I am sure the Avs, Leafs, Rangers, and Stars would not mind sharing revenue, as long as they are allowed benifts(i.e. being able to spend more) than the other teams...

    In theory, that is the incentive given to teams that share revenue, that they gain something out of it....and a slightly higher cap for the teams that share revenue(be it even 2-3 million) would be a carrot for them and the players...
     
  10. RLC

    RLC Registered User

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    I think big markets should not have sharing.
    I think big markets should rule. Get the best players all the time.
    Win the Stanley Cup every year. New York is the biggest market.
    New York should win the Cup every year.
    Small market teams should be feeder teams for the Rangers.
    When the NHL is down to 6 teams , New york will still be the biggest market forcing Detroit to give up their best players as Detroit would then be a small market team.
    I want Hockey to be just like baseball !!!
    I want Bill Gates to buy the Rangers.

    OK OK now that all that is out of my system !!

    Hockey has to have revenue sharing in order to grow. You MUST give hope to the small market teams and Fans or you will kill the sport In the long term.
    small market teams should be in the hunt for the last play-off spots
    Badly managed small market teams should be in the bottom.
    Good small market teams can be at the top if they draft well manage well and play well.
    Big market teams will always have a small edge over small market teams.
    If whole trick is striking the right balance.
    The league MUST be setup to be financialy sound and with a long term plan to maximize the growth of the fan base.
    It's the entire Fan base that will make players more money not just the fan base of any particular market.
    The bidding wars of the past for top players MUST end.
    Top players should make more money but under the confinds of the overall league health and long term plan.
    This is basic business 101.
     
  11. Jaded-Fan

    Jaded-Fan Registered User

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    :clap:
     
  12. King_Brown

    King_Brown Guest

    There needs to be revenue sharing. I have suppourted the NHL and always will, but what I don't understand is they say teams are loosing in excess of 10-15 Million a team, and yet thoose teams are spending at the amount the NHL proposing $37.5 Million. Not to mention they offered a cap at $42.5 Million, how are thoose teams going to reduce looses if there is no revenue sharing? Are monies magically going to be growing on trees? There needs to be a revenue sharing program along with linkage.
     
  13. Comrie_fan

    Comrie_fan Registered User

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    Wow this is the explication of why formula one is not popular in the usa big machine, big money no challenge. Are you really excited when the baseball season open. You know a big league is a league with some competition. Only team with incompetent person in charge win championship with money. Return watch your Yankees.
    :clap: :confused:

    By the way i hope you were sarcastic.
     
  14. bleedgreen

    bleedgreen Registered User

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    pretty sure the first half of his post was sarcastic.
    he is noting the attitude that is coming out of leaf fans that only care about their own team and would throw a parade if all the other teams died - except for the other original teams of course. these topics really do bring out the worst of some of the large market fans.
     
  15. Ok, Let's talk revenue sharing:

    Figuring out the amount of revenue to be shared is as easy as nailing jello to a tree

    NHL clubs are owned by private companies and are not required by law to publically dislose their financial reports

    Using creative accounting teams over-state expenses and under-state operating profits

    fair or foul, owners will attempt to keep as much money to themselves as possible

    Here are some tricks that owners can get away with:

    Give themselves large salaries. The O'Malley family when they ran the Dodgers would have middle of the pack revenues in the books. They did this to get around corporate taxes

    depreciation of assets over charged against income

    borrowing large amounts of money and using interest expense to lower operating income

    television revenues for the Leafs for example could be sold to LEafsTV for $1.00 and then from there sold to CBC, TSN, etc. That revenue would no longer be reported as hockey revenue, but LeafsTV station revenue. --- The Steinbrenner model: He sold the rights to Yankee games to YES Network for $52 million who in turn sold them for $200 million. Yes is owned by Steinbrenner who saw the $148 million net profit not the Yankees, or the MLB franchises, and especially not the players.
     
  16. Jaded-Fan

    Jaded-Fan Registered User

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    Thats what the Lawyers get paid for, nailing these definitions down in a way satisfactory to all parties.

    They were able to do it in the NFL, NBA . . . hell, even to a lesser event in MLB . . . why would the NHL be any different?
     
  17. nyrmessier011

    nyrmessier011 Registered User

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    :clap: bettman giving in a little to the PA's request of more revenue sharing?? what's happening...is there a full moon
     
  18. RLC

    RLC Registered User

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    Yes I was being sarcastic in the first part of my post.
    But I was being sarcastic over all people that ONLY THINK OF THEMSELVES.

    I am a die hard HABS fan. But I am very glad that they cant win every year anymore. Hockey is more important then my habs.
    When my Habs played the USSR on that new years eve game back in the seventies I saw what Hockey could be, should be.

    I want other people to get that hockey feeling. Hockey has the potential to be #2 behind soccer in the world. A place where even the little guy ( if your good enough) can be a star. A game where tallent, hard work, teamwork and desire is rewarded with a win ( most times anyway). Players giving up their body for the team.
    Throwing themselves in front of 100 mph slapshots.

    If basebal players would throw them selves in front of those 100 mph fastballs just to get on base or if football players were allowed to have wooden clubs in their hands while trying to defend againt the pass I might think differently. These are good sports in their own right but not as fast paced or a dangerous to the player.

    As for the business of hockey, What's holding things up is large parts of the US don't get it yet. I beleive it is in the nature of the average US citizen to think of America first. They cant relate to US teams having russians or fins or other on there teams. It confuses them, it goes against the America first thing. It's cute to see but I can't give my aleagence to a non american "it's not right" It's too international. I cant yell USA USA when the russian player on my team scores a goal.
    They go nuts for collage sports because it's an all american battle.
    But even in those sports some outsiders (players from other countries) are sneaking in.
    Time will solve this problem but we are not there yet.
    I have no doubt the Hockey in the future will be successful in all the USA. But the game needs some changes and the NHL knows this.
    The next 5 years will bring changes, some good, some not so good.
    The end result will be a much improved entertainment sport while holding on to it's roots.
    Then everyone will see Hockey realy take off.
     
    Last edited: Apr 15, 2005
  19. bleedgreen

    bleedgreen Registered User

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    i was with you until this part. ive been playing hockey since i was 5, i grew up playing on frozen ponds. i still play, coach and ref - i spend the majority of my free time in rinks. i "get it", as do most hockey nuts i know. im not confused by russians or fins - many of my favorite players have been euros. i dont think all that much of avs fans around here (in denver, not posters on the board), but you cannot tell me they are confused or unsupportive of forsberg...they worship the guy. i love your hockey fans need to unite, kumbye ya , holding hands thing - but the american analysis is a little too much. americans have no problem with japanese baseball players, foreign basketball players - or anything else ....they tend to like anyone that helps their team win.

    ps, infielders do throw themselves in front of 100mph balls for the sake of the team, and the catcher/player sliding into home collision takes a little brass, dont sell it short there. baseball has its moments.
     
    Last edited: Apr 15, 2005
  20. RLC

    RLC Registered User

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    I am refering only to the non hockey fans in the US. Fans like you understand fully what hockey is all about. and like you I am totaly sold on hockey and all top tallented hockey players.
     
  21. bleedgreen

    bleedgreen Registered User

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    fair enough - i just think canadians are too hard on the fans that didnt grow up with hockey and didnt have it in their back yards. it takes tim eto teach the culture, and i can tell you as a ref - it will take a long time even for a "great hockey market" like denver for people to truly understand the game. if you want the game to grow everyone has to be patient.
     
  22. Drury_Sakic

    Drury_Sakic Registered User

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    Not all teams would spend to that level....they dont spend even near to that in the current system...

    A cap is not ment to make them(the small market teams) spend less...it is to not allow teh Big market clubs from driving up the price of players and prevent them from totally stockpiling all good players as soon as they become UFA's. Thus hopefully cutting the losses teams have..

    It also assumably to prevent the big market clubs from outspending themselves..
     
  23. Le Golie

    Le Golie ...

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    Fans of rich teams will be against this. Fans of poor teams will be for this. And both can argue until they are blue in the face, but the fact is - revenue sharing is good for the health of the league as a whole.
     
  24. RLC

    RLC Registered User

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    Exactly !
    My post states that I have no doubt that Hockey will be successful in the US. In lots of states it is not a game played as a youth, it is not the national sport the state sport or even a city sport.
    Hockey is comming from a position of disadvantage.
    The sport of Hockey will have to grow in the USA due to the entertainment value and overall action since it is not the national sport. A big US tv contract would help a lot but again we are not there yet. But once it does "look out" American are not stupid, they are savy sports fans once the Hockey bug bites them. They need more exposure.
     
  25. Flyguy_1ca

    Flyguy_1ca Registered User

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    I'm a fan of a rich team (philly), and I'm not opposed to revenue sharing. I think it is completely unfair, however as you said it IS good for the overall health of the league. It also makes for more competitive games that are a lot more fun to watch.
     
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