National Hockey League can be saved. . Bain Capital Co.

Discussion in 'The Business of Hockey' started by Mess, Mar 11, 2005.

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  1. Mess

    Mess Global Moderator

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    The Puck Stops Here
    The National Hockey League can be saved. Here's how.
    By Daniel Gross
    Posted Thursday, March 10, 2005, at 1:53 PM PT


    When private equity firm Bain Capital Co. and Game Plan International offered $3.5 billion last week to buy the entire National Hockey League, fans, commentators, and team owners were puzzled.

    Pro hockey would seem to be a particularly unattractive investment. After all, it ranks a distant fourth in the hearts, minds, and pocketbooks of American consumers and advertisers. TV ratings are rotten. Labor relations are so poisonous that the current season has been canceled.

    http://www.slate.msn.com/id/2114660/#ContinueArticle
     
  2. mr gib

    mr gib Registered User

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    thats a superb piece -
     
  3. WHARF1940

    WHARF1940 Registered User

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    wow........just forwarded it to the league and the PA, not that theyll ever read it. Gary really needs to, though........
     
  4. Mess

    Mess Global Moderator

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    It basically says turn back 10 years of Bettman mistakes and make the league strong again ..

    That is something ... A Financial Investment Co.. wants to buy the league for 3.5 Bil and shut down the 10 worst franchises ..

    and that is what it thinks is the best direction to make the League profitable ..

    When it comes to controlling costs, NHL owners are pathetic. Over the nine-year period, revenues rose 173 percent, but labor costs rose 261 percent. Sure, the NHL doesn't have a salary cap. But neither does Goldman Sachs or the Gap, and they still manage to make money while competing for talent. As this Forbes article points out, NHL player salaries rose because general managers and owners made economically stupid hiring decisions.

    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.

    Next, install new managers at the teams and make their compensation contingent on turning profits. The problem with the NHL—and with many sports franchises—is that the teams aren't run to make money. Owners of many sports teams generally don't expect, or need, a dividend check from their team each year. Instead, they're happy to take their returns in capital gains, by selling the team to a bigger ego with a bigger checkbook.
     
  5. Buffaloed

    Buffaloed webmaster

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