Ziggy Stardust
Master Debater
I'm just pulling these past articles up to show the unhealthy financial situation the league is in as a whole.
http://www.usatoday.com/sports/hockey/nhl/2004-05-19-martzke-nbc_x.htm
http://sports.espn.go.com/espn/sportsbusiness/news/story?id=1804362
http://www.tsn.ca/nhl/news_story.asp?ID=84443
http://business.bostonherald.com/businessNews/view.bg?articleid=28781
http://www.andrewsstarspage.com/5-23cba.htm
http://www.post-gazette.com/pg/04142/319803.stm
http://www.foursport.ca/June3_2004.htm
http://msnbc.msn.com/id/5009347
It further proves that small market clubs only hope of generating revenue is through local, TV revenues. The national TV contract will hardly be any help. It is difficult for small market clubs to compete in the league when the big markets can easily outbid them for their players. It becomes difficult to re-sign restricted free agents when they see players signing $3,4,5,6,7+M per year deals.
A team like Calgary or Edmonton can't have a payroll that matches a Toronto or Detroit or Dallas or Colorado. When a Jarome Iginla sees what those teams are paying for players like Pierre Turgeon or Peter Forsberg or Doug Weight or Steve Yzerman or Mats Sundin... he is obviously going to demand a contract within the same ballpark. Calgary then has two options... cave in to a long term commitment and risk losing money and be forced to trade away other salaries... or, trade him away. It's a no-win situation in my opinion.
There isn't enough revenue available to talk about revenue sharing. I think it is a must, but as the articles above will prove, there isn't a pie big enough to share with all 30 teams. And I am also skeptical that a hard salary cap will work. I think a system more along the lines of what the NBA has (a soft-cap... allowing teams to re-sign players) is a system that could work for the league.
http://www.usatoday.com/sports/hockey/nhl/2004-05-19-martzke-nbc_x.htm
http://sports.espn.go.com/espn/sportsbusiness/news/story?id=1804362
http://www.tsn.ca/nhl/news_story.asp?ID=84443
http://business.bostonherald.com/businessNews/view.bg?articleid=28781
http://www.andrewsstarspage.com/5-23cba.htm
http://www.post-gazette.com/pg/04142/319803.stm
http://www.foursport.ca/June3_2004.htm
http://msnbc.msn.com/id/5009347
It further proves that small market clubs only hope of generating revenue is through local, TV revenues. The national TV contract will hardly be any help. It is difficult for small market clubs to compete in the league when the big markets can easily outbid them for their players. It becomes difficult to re-sign restricted free agents when they see players signing $3,4,5,6,7+M per year deals.
A team like Calgary or Edmonton can't have a payroll that matches a Toronto or Detroit or Dallas or Colorado. When a Jarome Iginla sees what those teams are paying for players like Pierre Turgeon or Peter Forsberg or Doug Weight or Steve Yzerman or Mats Sundin... he is obviously going to demand a contract within the same ballpark. Calgary then has two options... cave in to a long term commitment and risk losing money and be forced to trade away other salaries... or, trade him away. It's a no-win situation in my opinion.
There isn't enough revenue available to talk about revenue sharing. I think it is a must, but as the articles above will prove, there isn't a pie big enough to share with all 30 teams. And I am also skeptical that a hard salary cap will work. I think a system more along the lines of what the NBA has (a soft-cap... allowing teams to re-sign players) is a system that could work for the league.
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