This is how I feel; too much too fast. Some new markets worked from the start (Denver, San Jose, for example) while others have been long term projects (Phoenix, Atlanta). Too many WIPs means instability. Sure, there'll always be someone at the bottom and relocations will always happen from time to time, but the recent experience of the NHL fighting fires in Atlanta & Phoenix at the same time is not good. On the upside, Nashville seem to have found their feet
Works in Progress are fine... you just really can't have more than one in a conference at a time. OTT and COL were slam-dunk markets. I'd even put ANA in that list of "places we were pretty sure it was gonna work just fine."
To me, the expansion plan should have been:
FIRST WAVE: SJ, OTT, TB (1992-1995)
Relocation to Dallas and Colorado (one growing, one slam dunk). Pause expansion.
Relocation to Carolina and Phoenix (both growing markets)
Now we have a problem. We pause expansion. We re-assess.
We go "Ok, Dallas worked, we think Houston will. Tampa worked, let's add Florida. Minnesota needs to get back into the league. And we need another market we KNOW is going to be stable. Anaheim."
That's 28 teams in 2000. And when Minnesota got their teams, it's "hey, the next expansion is in eight years. So Quebec, Winnipeg we advise you to get arena deals in place."
In 2008, it's Quebec, Winnipeg, Nashville, and Columbus.
I agree. The league over-expanded as a means of making money via expansion fees and in an attempt to get a large national TV contract in the U.S. Some of the new teams in the south have succeeded, but the league shouldn't have expanded from 21 to 30 teams in a 9-year period. At least the league stopped expanding for the past decade, but I think 28 teams would have been better.
I don't think 30 is "over-expanded." Besides, who would you cut off the last four? If we're at 28, we'd still have Minnesota, Winnipeg, Quebec without teams, as well as Houston, Seattle.
Which reminds me, the NHL needs to have a 32 plan, and a 36 plan in the drawer. You can always say "this is for 5-10 years down the road, and 15-25 years down the road" and not date it or actively seek implementing it. But you need to plan ahead.
Calgary lost money???? With the NHL's third-highest average ticket price ($66.68), behind only the Maple Leafs and Canadiens, every game sold out with an average attendance over 19K per game, 13th most valuable NHL franchise (Forbes) Come on man!
Which goes to show you that one-year profit/loss is meaningless. Who owns Calgary? What else does he own? Do you really think a Canadian oil tycoon worth $2.2 billion really gives a crap that the Flames lost $1 million in 2009, 2007, and $6 mil in 2004, $4 mil in 2003?
The Flames are in ZERO danger, so why would anyone in their right mind use a fluctuating year-by-year profit/loss to suggest otherwise?
No apply that logic to the rest of the NHL. Far fewer teams in danger now, isn't it?
Link?
I'm willing to bet that most of their losses came from 2 things: a poor season leading to a drop in ticket sales and revenue sharing. Also, the Sens might lose money on paper, but their concert subsidiary makes up for it. They own the arena and the team, so they always make money, even if the team itself is losing money on paper.
That's how a lot of businessmen roll. You have a billion dollar industry that enabled you to buy a $200 million hockey team as a hobby (and get your name in the paper as a civic presence). You run the team to just about break even. If you spend money to win and lose a couple mil, the fans love you for going the extra mile to try and win.
And it's a tax right off (at least in the States). Most owners try to walk that fine line. The ideal profit/loss for a sports team (on paper) for a guy who has a business empire is -$1000. The US has some nice tax loopholes designed to encourage rich guys to start companies, take risks and put people to work. They can get a massive tax break on their large successful company by owning a company that is losing a little bit of money.