Players True Value

Discussion in 'The Business of Hockey' started by pei fan, Mar 10, 2005.

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  1. pei fan

    pei fan Registered User

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    Recently in the news Sidney Crosby signed a record "hockey" endorsement but
    despite being a record for hockey it is a mere pittance compared to the contract
    Lebron James signed.Indeed, endorsement contracts for elite hockey players are only 3-5% of the contracts elite stars in other sports make.However their playing
    salaries while less are still in the same stratosphere.One of the reasons for this
    is that hockey is not as big in the U.S. and it lacks a major TV deal ,but doesn't
    this situation still bring to light a couple of facts:

    1)hockey players don't have the real star power of players in the other sports
    and what they bring to the table as far as marketability is quite limited.Players
    Salary earning power is outrageously high compared to their endorsement
    earning power.

    2)The owners ,with their arenas in the best cities and best locations,their teams
    history,the Stanley Cup and it's history,logos etc. ,really own more of what the
    real product is and it's potential for marketability.

    Besides,the endorsement angle another thing to back this up is the lack of
    drawing power the players have had on their own.The original stars league
    was a major bomb.When they came to Ch'town there was about 300 fans
    in an arena that sits 3700 and even at that they had to give a bunch of
    tickets away.
     
  2. dakota

    dakota Registered User

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    what did Lebron James get in terms of money?? Just curious?
     
  3. CMUMike

    CMUMike Registered User

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  4. AlexGodynyuk

    AlexGodynyuk Registered User

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    I think a big part of the lack of endorsement dollars in the game today is the overall excitement of the game.
    If Gretzky or Lemieux were around playing like they were in the 80's, they would be making big money on endorsements.
    Lets face facts, offence sells and the game today is pretty pathetic offensively compared to what it used to be.
     
  5. Lil' Jimmy Norton*

    Lil' Jimmy Norton* Registered User

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    Be careful ! you wouldn't want the PA to get a hold of this..... They'll spin it like nobodys business....!!! Hey PA wake up !! It is what it is and if you keep playing this delay strategy you'll look back on the 42 million cap as ancient history !!! What does it say for the state of NHL hockey when a junior A kid who hasn't played a shift in the NHL gets this type of cash !!?? If the PA doesn't see the writing on the wall then I really feel sorry for them.
     
  6. pei fan

    pei fan Registered User

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    I was always surprised to hear how little Gretzky got for endorsements.
     
  7. Drury_Sakic

    Drury_Sakic Registered User

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    who buys hockey skates and in general, hockey gear?

    Hockey players.

    Non-players sometimes buy jearsy's.


    Who buys basketball shoe's?

    Everybody.. majority is players... But I see people walking around in Jordans who could not dribble anything more than their own spit..

    :lol


    Plus.. Think James would have gotten 90 million if the league was going to possibly miss 1-3 seasons due to labor crap? And an NBA player is alot more of a sure bet than an NHL player in terms of making it in the league..

    Its apples an oranges...
     
  8. don

    don Registered User

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    Remember

    Eric Lindros wouldn't sign with Quebec because he wanted a "big market city". Endorsement potential = $.
     
  9. bcrt2000

    bcrt2000 Registered User

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    hockey players can't have star power until clutching and grabbing is eliminated

    theres a big difference from Alexander Mogilny: 76 goals, 51 assists, 127 points in 77 games, 50 goals in first 50 games that he started

    to Rick Nash: 41 goals, 16 assists, 57 points in 80 games
     
  10. gb701

    gb701 Registered User

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    This is, I think, the whole point well summarized.

    The bottom line is that Reebock is hoping to recoup its investment in Crosby through more families buying their skates or other equipment because little Johnny wants to wear the same as Crosby, or (to a much lesser extent) because Mom or Dad can be convinced that if it is good enough for Crosby it must be good quality.

    Given that a tiny fraction of kids play hockey at all, the market is severely limited - so the value of the endorsement is similarly limited.

    When he goes "Gretzky" and starts endorsing everything from Banks to car makers to hamburgers, he can make some serious coin. But then he will be limited by the market comments that started the thread.

    It is sad, really - Sidney will be capped at being an 18 year old multi-millionaire instead of having the potential to make multiples of that. Terrible tragedy really. Must be a conspiracy in the US to shaft Canada yet again.
     
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