CSE Terminates 25% of Business Operations Staff
- Thread starter canuckfan75
- Start date
NHL wants to start 2020/2021 Season on December 1 . Dr Bonnie says no fans at all for the rest of 2020.
So essentially the rest of the business staff is unlikely to be let go before the end of September.
People will complain about this and about Aquilini in particular, but realistically this was inevitable. Businesses won't keep paying people who have no work to do in perpetuity.
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Tim Calhoun
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- May 31, 2006
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Have to feel for the staff that were let go, especially since there a select few of their colleagues in the hockey ops department (with much higher salaries) who are sticking around and who should be let go for performance issues.
biturbo19
Registered User
- Jul 13, 2010
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Example number i forgot and can't count that high, in corporations and big business proving that when push comes to shove...they'd rather keep their wealth, than their employees.
Things get tight? Let's fire a bunch of employees, they're just people after all. As long as we retain our control of the property and rights to to the sports team, we'll make out just fine.
Things get tight? Let's fire a bunch of employees, they're just people after all. As long as we retain our control of the property and rights to to the sports team, we'll make out just fine.
Hit the post
I have your gold medal Zippy!
Love
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- Feb 29, 2012
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Why do people expect businesses to pay their employees to not work
Fatass
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- Apr 17, 2017
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Or to work poorly. (Benning/Wisebrod cough cough)
Love
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Companies won’t and can’t. There is no money coming in for some places that depend on people being in your facility, see the aquarium, science world, dine in specific restaurants, etc.
For the other poster who mentioned Benning and Weisboid, Those people have contracts so they get paid regardless of whether they are employed or not.
Regular folk end up with a severance package based on their time with company, their role, etc. If severance package isn’t where they feel it should be they can always hire a lawyer to get more.
When you look across the pro sports landscape, it isn't just the layoffs of office staff you have to be concerned about going forward. It makes you wonder how long it will be, before entire franchises are at risk.
Most of these franchises are owned by billionaires who might be able to afford to keep things afloat for a year or so, if it wasn't for the fact that their other businesses are under the COVID-19 siege as well. They're probably bleeding money everywhere.
Unless some miracle vaccine makes an appearance and the stadiums and rinks are full by the end of this year, you have to think that 'contraction' isn't just a possibility but an inevitability.
So I guess all the NHL players and their agents are feeling fairly comfortable with a new CBA and the knowledge that they'll always be the first guys to get paid. But as this thing drags on, I wouldn't get too comfortable.
Most of these franchises are owned by billionaires who might be able to afford to keep things afloat for a year or so, if it wasn't for the fact that their other businesses are under the COVID-19 siege as well. They're probably bleeding money everywhere.
Unless some miracle vaccine makes an appearance and the stadiums and rinks are full by the end of this year, you have to think that 'contraction' isn't just a possibility but an inevitability.
So I guess all the NHL players and their agents are feeling fairly comfortable with a new CBA and the knowledge that they'll always be the first guys to get paid. But as this thing drags on, I wouldn't get too comfortable.
On the bright side, for billionaire owners, owning a sports team from a business standpoint is more about having the team increase in value rather than its yearly income. Of course no owners want their business to be losing money.
Hit the post
I have your gold medal Zippy!
In the case of the certain hockey teams, isn't it true that so as long as it's able to cover it's share of the 'fixed costs", being a bit in the red on the "variable costs"; the parent company (eg., owner/family) might still be "profitable". Like in the case where the owner owns the arena (and the hockey team plays a number of dates in the calendar year where it otherwise would be empty). Course, I've never run anything bigger than a lemonaide stand so..
Yes it's true. Aquilinis have profited massively from owning the Canucks. Not only has the value of the Canucks ~tripled in value, the real estate developments around Rogers Arena have been highly profitable as well. But business people have their own mindsets. Some people want to squeeze out every last dollar, some people don't care about earning the extra buck as long as the business (every single one of them) doesn't lose money, and some are willing to go in the red for a year or two if it means earning more money in the future or if they overall make money. With the Canucks, according to Forbes, the Canucks have been one of the more profitable teams in the league. The Canucks season ticket renewal rate for this 2019-2020 season was something like over 90% so the one ice standings have certainly not translated to decreased tickets sale. I also did notice that on the secondary market price for tickets have been higher than in the past.
How's that working out? If anything, the current situation shows how fragile that value can be. Sure, it's not everyday you get a pandemic and can't have fans attend for an entire season, if not longer. Revenues are tied to value. The plummet in revenues will lead to a plummet in franchise values.
archangel2
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- May 19, 2019
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Most teams did this in April and May. Took Vancouver awhile to catch up.. With what is going on with baseball, I doube we have a season next year. Do not see them doing a hub for the next season. Also, players would not do Edmonton in the Winter time
Value? Oh you mean the $2 billion the Clippers were sold for in 2014. Seattle expansion fee was $650M. Hurricanes was purchase for $420M and they were losing money and had $100M+ of debt. Obviously if there's not going to be NHL games for the foreseeable future then yes values will plummet along with everything else.
The Canucks did cut staff pay back in April. Who knows if they laid off or temporarily laid off others without it being reported.
krutovsdonut
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- Sep 25, 2016
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this could be to manage severance for employees already furloughed as they see the 24 week furlough limit approaching, and a bunch of automatic terminations pending. if you terminate more than 49 people within a 2 month period, everyone gets at least 8 weeks of severance. most likely they are almost 2 months out from the 24 week period ending.
a lot of other large employers will be doing the same depending on when they furloughed people.
a lot of other large employers will be doing the same depending on when they furloughed people.
True, though if the arena covered losses for the hockey operation that won't work any better now if the arena is also a money loser now with no concerts and the like. Unless the owner is in one of the few industries that is making money through the pandemic (like tech) then chances are they're losing money on the hockey team, the arena AND their "day job" businesses.
Yeah, I wonder how the owners of the Kraken are feeling today? That's a lot of money to put out, at least the other owners got to benefit from the 7.8% CAGR. The value argument can be made for the higher end franchises in the NHL. But only a handful are on the upper end. The salary cap is more than 25% of Florida's value which means HRR is greater than 50%. For them, and others like them, revenues are very important. Just because the number is big doesn't mean the economics are great and that owners don't have to worry about losing money because "the value of their franchise will increase". That works for Toronto and New York. Not so much for some others.
