Discussion in 'The Business of Hockey' started by Bohologo, Mar 10, 2005.
Here's the link.
I really dont see this happening unless each respective franchise owner has the ability to ''buy back'' their team and act as a franchisee
too many complicated situations for each team
for example , the owner of the isles paid 190 or so for the islanders , but that price includes quite a few years of guaranteed income from Fox sports new york t.v deal.
does Bain buy the isles from Wang for 190 mil and re-sell it to him for 100 , then they get the cash cow from FSNY ?
Seems to me the owners are currently addressing their problems. I think a low salary cap will be a drastic enough change to get the results needed.
I don't think it would work to have them own and manage all the teams, but....
if they were to set up the finacial structure by which the league is going to be run..(insert several options regarding league cap, blah, blah, blah)
Then they "lease" the Avalanche to say Stan Kronke for a set fee.
Kronke pays all operating costs, player payroll, and such.
Bain gets a 5-10% cut of all profit made by the franchise.
If at any time Bain decides Kronke does not meet standards that they created for being a "leasee", they can revoke his franchise rights by giving Kronke his fee he paid plus interest.
Bain, is in charge of marketing, sales, and other PR portions of the league.
bah.. I don't know enough about the legalities of it all..but its interesting to think about a situation in which a company owns the NHL, then leases out the franchises under its system....Kinda complex and will never happen, but interesting to think about..
If this Financial Invenstment Co.. That throws around 3.5 Bil like we do pocket change ..
Perhaps Bettman is leading the NHL in the wrong Direction ..
Maybe stop the bleeding is the best answer .. not water down the NHL and more of the same ..
I think this Bain Capital Co... has merit .. at least it makes business sense .. IMO
Wasn't it your plan to cut the biggest money losers? The list might look a little like (forbes)
Want to change your criteria?
Offer the NHLPA the two following options
1) set the team payrolls at $33m for 30 teams ($990m)
2) axe 10 teams and set it at $40m ($800m)
Well a Businessman would do a market study .. Are these Bad Markets for Hockey or Badly run teams .. Depending on the results the proper action could be and should be taken ..
The Ducks just sold for What again ?? So the remaining NHL owners perhaps bought out the ducks for the sale figure and closed them .. That in fact may be a better long-term decision ..
Many Hockey markets face the same Challege in non-traditional Hockey Markets ..
"According to the Levitt report, six teams lost more than $20 million a year, and 12 lost more than $10 million per year. Shutting some of them down would stop a lot of the bleeding instantly."
The teams in this range need to be the evaluated .. Running a business that loses 20 Mil a year is not good for anyone ever ..
You know this wouldn't be the first league run by a single owner... the XFL being the last one... *cough*
Sorry, BAD idea. They may find a way to make this league profitable, but hey, Hooters is profitable... doesn't mean I want to watch a bunch of big breasted blondes on skates.
What they would do is buy the league and then sell off the franchises, make a quick profit and then move on. Would the situation be better afterwards, I doubt it.
It isn't happening anyway.
You don't have to have a league buyout to learn something from this report.
Besides the Stop the obvious Stop the Bleeding ...
Centralized player contracts through the league is an interesting concept .. The team, the Player, his Agent and the NHL determine player worth and finalize a deal .. or the NHL signs all players and the teams sort of rent them from the NHL .. Revenue Sharing could go to this process and the ability of the league to help top up bottom teams player wise ... I can see that big market teams would have a problem putting $$$$ in other owners pockets .. But if they paid an anual fee to the NHL HO for player contracts and then those players are sent to small market teams upon request that would change things ..
This is inaccurate. Let's not forget Major League Soccer and NASCAR, both of which are doing well enough for second-tier sports in the US.
That's correct you don't need just 1 owner ..
You just need 15 -17 smarter ones so they can make good business decisions like the others that make money under any system ..
and if that is not possible then you shut your doors and cut your losses just like the report says ..
Here is a small snipet from the Resume of the Author of the Article
About the Author - Daniel Gross .... He is no Al Strachan ..
Daniel Gross is a journalist, editor, and New York Times best-selling author based in New York and Connecticut who specializes in three broad areas:
Business history, the links between business and politics, and the culture of Wall Street. A graduate of Cornell University, he holds an A.M. in American history from Harvard University, as well as a Law Degree.
He has worked as a reporter at The New Republic and Bloomberg News, and has written articles, book reviews, essays, and commentary for more than 60 publications, including New York Times, Washington Post, Boston Globe, New York, New York Observer, Slate, American Prospect, and Washington Monthly. He currently contributes columns to Slate, Attache, and CEO.
He appears frequently in the media to discuss issues affecting Wall Street and Washington, and in 2000 coined the term â€œthe politics of personal finance.â€ Gross has appeared on CNBC, CNN, Fox News Channel, The News Hour with Jim Lehrer, C-SPAN, Bloomberg Television, Reuters Television, and on more than 35 radio programs,, including Fresh Air with Terry Gross, and NPRâ€™s â€œMarketplace.â€
Gross is the author of three books: Forbes Greatest Business Stories of All Time (Wiley, 1996), a New York Times and Business Week best-seller that has been translated into seven languages; Bull Run: Wall Street, the Democrats, and the New Politics of Personal Finance (PublicAffairs, 2000), and Generations of Corning: 150 Years in the Life of a Global Corporation, 1851-2001 (Oxford University Press, 2001), co-authored with Davis Dyer.
Quite a Resume to say the Least .. Not someone I would dismiss so easily as not being educated
.. and in fact based on this I would suggest the exact opposite ..
Forbes Greatest Business Stories of All Time
FROM THE PUBLISHER
Insightful stories of 20 entrepreneurs and how they changed the way we live and do business. The editors of Forbes magazine have gathered the stories every educated business professional needs to read. Each story features a business personality as well as a corporation, and is packed with drama, excitement, wisdom and success secrets. The book as a whole is an insightful history, illuminating our current condition by explaining the forces behind it.
Looks like Bain has spent their money elsewhere: