[Globe Editorial] NHL expansion: And why is Canada always the last draft choice?

[Budsfan]

Globe editorial
NHL expansion: Why Canada is always the last draft choice

http://www.theglobeandmail.com/glob...always-the-last-draft-choice/article25666886/

If anything, the NHL appears eager to avoid Quebec City, or any other location in hockey’s northern homeland. Here’s looking at you, Hamilton. Los Angeles has two NHL teams but the Toronto area still has but one; artificially limiting hockey supply in the biggest hockey market on Earth predictably leads to the Leafs recording league-topping revenues, year after year, regardless of their record on the ice.

Winnipeg only got its Jets back in 2011 because, when the Atlanta Thrashers went into financial cardiac arrest, Winnipeg was the one hospital available. It was a similar story for Calgary in 1980, after an earlier attempt at Sunbelt expansion failed: When the Atlanta Flames flamed out, they were moved north. (Recite now the Canadian Hockey Fan’s Prayer: Almighty NHL, we beseech thee, put another team in Atlanta. Please.)

At first glance, Quebec City’s bid ticks all of the league’s boxes: deep-pocketed corporate owner, ready-made television deal, rabid fan base and, of course, a state-of-the art arena, gifted by taxpayers. It might not matter.

One of the benefits of running a cartel is that it, and not the market, sets the rules. In what other business is a prospective entrepreneur required to plead, cap in hand, with all of his North American competitors in order to set up shop? And then cut them a fat cheque for the privilege?

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[Budsfan]

NHL is ‘eager to avoid’ expansion to Canada?

NHL is ‘eager to avoid’ expansion to Canada?

http://sports.yahoo.com/blogs/nhl-p...-to-avoid--expansion-to-canada-143531785.html

Quebec City was one of only two cities to submit bids for an NHL expansion franchise last week, which means it’s time for major Canadian newspapers to explain why the League’s inherent bias against the Great White North will prevent the return of the Nordiques.

The Globe & Mail editorial page featured this piece on expansion, which we’ll attempt to translate for you here:

http://www.theglobeandmail.com/glob...always-the-last-draft-choice/article25666886/

Quebec City recently completed a major public infrastructure project ahead of schedule, and under budget. The normal course of events would see its spanking new, $370-million arena occupied by an NHL team. That’s why so much (public) money went into the building. The timing even looks to be ideal, as the league is in the midst of receiving applications for expansion franchises; two cities could advance to the next stage. What’s more, there are only two bidders – aspiring owners in Quebec and Las Vegas – for those maximum two expansion slots. The return of hockey to hockey-mad Quebec would seem to be as easy as scoring an empty-net goal from inside the crease.

It isn’t.

Will Canada again be left out of the expansion plans of the NHL?

 

[Duke Silver]

NHL is ‘eager to avoid’ expansion to Canada?

http://sports.yahoo.com/blogs/nhl-p...-to-avoid--expansion-to-canada-143531785.html



Will Canada again be left out of the expansion plans of the NHL?

What an awful speculation piece by the Globe, bereft of evidence.

So the "NHL appears eager to avoid" expansion to Quebec City because (I had to read the article twice to find the supporting argument)....

- The league seems to care deeply about balancing the conferences.
- There isn't a 2nd or 3rd team in Ontario.

Guess I shouldn't have expected much from a Globe editorial piece with no sight of the writer's name anywhere.

 

[Swervin81]

Oh look, par for the course garbage journalism.

 

[Stand Witness]

I've always thought of new potential Canadian franchises as 'get out of jail free cards'. The NHL is going to want the most American teams possible. It just make sense from the leagues POV. If they save Canadian franchises for last possible options after they work on all the failing options in the USA then they should be safe.

I still expect QC to get an expansion team at this point though.

 

[FlareKnight]

Well regardless of league bias, the NHL probably doesn't have that much choice. They want money and only 2 cities actually are willing to pay that ridiculous expansion price. Could have seen Quebec being slapped out of the room if Seattle had come through, but it should be possible to happen for Quebec.

 

[Babcocks Marner]

Well regardless of league bias, the NHL probably doesn't have that much choice. They want money and only 2 cities actually are willing to pay that ridiculous expansion price. Could have seen Quebec being slapped out of the room if Seattle had come through, but it should be possible to happen for Quebec.

Yea, and you would think Quebec would have to play in the West, or it would be odd.

 

[Pookie]

Have you checked the Canadian Dollar vs US Dollar lately?

Any revenue realized in Canada comes with a +25% discount.

Of course they aren't eager to expand up here. It's a business.

 

[Faltorvo]

of course the nhl would rather not have more Canadian teams

Canada and Canadian teams do not "sell in the states" be it our hockey teams, baseball teams or basket ball teams.

just look at how many "national broadcasts " our baseball and basketball teams have been a part of over the past decade, comparatively speaking, it amounts to nil.

Canadian hockey teams that comprise practically 25% of the entire league have had how many national games aired in the last 5 years?

American sports fans in general are all about" all American and all America" , they frankly want nothing to do with Canadian franchises infecting their 4 major leagues, if they can help it.

 

[Budsfan]

Most Major League sports teams, won't go to Las Vegas because of the Gambling and I suspect the other Toronto Group, probably wouldn't submit their bid because they would not get a team anyway.

Expansion didn't need to happen, to balance the League, Just move the Coyotes up to Las Vegas and Let the High Rollers there foot the bill, for the Arizona team, that has not made any money, since being given a franchise and the League has had to support them for a very long time.

Putting a team in The GTA and another in Quebec would still be balanced and they wouldn't have to stick another team in the desert, where Hockey rates under NFL, MLB, NBA, Golf and likely Tennis but Hockey in Canada would be rated at #1 and top all of those venues.

 

[StuckOutHere]

My thought has always been two teams added under two circumstances. One sure bet, and one experiment. Las Vegas is an experiment. QC should be the safe bet.

 

[Bluelines]

Have you checked the Canadian Dollar vs US Dollar lately?

Any revenue realized in Canada comes with a +25% discount.

Of course they aren't eager to expand up here. It's a business.

100% of the revenue in a most Canadian cities in converted to USD is a heck of a lot more than 100% of revenue in USD in Phoenix, Carolina, Florida, Nashville, Buffalo, NYI, ect

This issue is not at the team level its at the aggregate league wide revenues level. The NHL wants to show growth, the CAD dropping puts stress on that goal. A team like Quebec with Quebecor as owners have significant US equity fund reserves, for them the CA dollar is not as much of an issue as you think.

 

[Derek Synak]

Bettman is an American who's agenda since the day he was hired was to "Grow" the game in the US of A. He'll always choose an American market over a Canadian one if he can, even if it's illogical.

 

[xxxx]

I'm pretty sure Canada gets ANOTHER team soon (Quebec). Don't forget Winnipeg. Some people tend to forget that when talking about the NHL avoiding Canada. Quebec will get a team but there will still be heads saying the NHL avoids Canada, lol.

 

[xxxx]

Bettman is an American who's agenda since the day he was hired was to "Grow" the game in the US of A. He'll always choose an American market over a Canadian one if he can, even if it's illogical.

What you just decribed perfectly fits for Atlanta. Yet...

 

[Budsfan]

Quebec likely will get a team but only because Seattle didn't submit a bid, they had to put up a very large fee, in the millions and then were not guaranteed a team, or all their money back either and I think Kansas City had the same problem, placing a bid.

Then if they are awarded a team, they then have to come up with 500 million to join the club and get a franchise.

 

[TmlHockeyFan]

Why not have a team in Saskatchewan? I'm sure there would be lots of fans there. Saskatchewan doesn't have a team.

 

[GoldenSeal]

Knock off the nonsense and give Quebec back their team.

 

[stymie]

Hamilton will end up with the Panthers or Hurricanes.
Once the expansion cheque clears one or both will cash out.
Limited landing spots available and a TH&B rivalry would generate billion$.
Shanny will fix this too.

 

[Finnish your Czech]

Why not have a team in Saskatchewan? I'm sure there would be lots of fans there. Saskatchewan doesn't have a team.

Saskatchewan is way too small to have a team, another one of the several reasons is that the population is split between two cities instead of one like Manitoba.

 

[Bluelines]

Bettman is an American who's agenda since the day he was hired was to "Grow" the game in the US of A. He'll always choose an American market over a Canadian one if he can, even if it's illogical.

Bettman's agenda is to grow hockey in major TV markets, the whale he is chasing is a TV contract like the NFL. He could care less if it grows hockey in small town USA, his focus is on major TV markets, that is what grows revenues.

Bettman is able to bring in close to $4 billion in revenue from mostly a gate revenue driven sport, imagine if he gets that big US network deal?

There are 210 Designated Market Areas (DMAs) listed by the 2014-15 Nielsen ranks.

New York (#1)
Los Angeles (#2)
Chicago (#3)
Philadelphia (#4)
Dallas-Fort Worth (#5)
San Francisco-Oakland-San Jose (#6)
Boston (Manchester) (#7)
Washington, D.C. (Hagerstown) (#8)
Atlanta (#9)
Houston (#10)
Phoenix (Prescott) (#11)
Detroit (#12)
Tampa-St. Petersburg (Sarasota) (#13)
Seattle-Tacoma (#14)
Minneapolis-St. Paul (#15)
Miami-Fort Lauderdale (#16)
Denver (#17)
Orlando-Daytona Beach-Melbourne (#18)
Cleveland-Akron (Canton) (#19)
Sacramento-Stockton-Modesto (#20)
St. Louis (#21)
Pittsburgh (#22)
Portland, OR (#23)
Charlotte (#24)
Raleigh-Durham (Fayetteville) (#25)
Baltimore (#26)
Indianapolis (#27)
San Diego (#28)
Nashville (#29)
Hartford & New Haven (#30)
Kansas City (#31)
Columbus, OH (#32)
San Antonio (#33)
Salt Lake City (#34)
Milwaukee (#35)
Cincinnati (#36)
Greenville-Spartanburg-Asheville-Anderson (#37)
West Palm Beach-Fort Pierce (#38)
Austin (#39)
Grand Rapids-Kalamazoo-Battle Creek (#40)
Las Vegas (#41)

Canada - Markets are Designated Market Areas (DMAs),

1. Toronto/Hamilton/Niagara Falls, ON
2. Montreal/Laval, QC
3. Vancouver-Victoria, BC
4. Ottawa, ON/Gatineau, QC
5. Edmonton, AB
6. Calgary/Lethbridge, AB
7. Quebec City/Levis, QC
8. Winnipeg/Brandon, MB
9. Kitchener-Waterloo/Cambridge/Guelph, ON
10. London/Woodstock/Wingham, ON

 

[Wafflewhipper]

Canadian teams deliver higher profit percentages than usa teams and drive profits. There was numbers out on it recently and i did not acknowledge the main link.

Canadian teams are great for the league's bottom line though apparently.

 

[stymie]

Betty went a bridge too far too many times.
Never delivered on a big US broadcast contract for 20 years, signed up a host of crooks/fails, strikes/lockouts, & most importantly to me, denied the Hammer.

 

[Semantics]

100% of the revenue in a most Canadian cities in converted to USD is a heck of a lot more than 100% of revenue in USD in Phoenix, Carolina, Florida, Nashville, Buffalo, NYI, ect

This issue is not at the team level its at the aggregate league wide revenues level. The NHL wants to show growth, the CAD dropping puts stress on that goal. A team like Quebec with Quebecor as owners have significant US equity fund reserves, for them the CA dollar is not as much of an issue as you think.

Doesn't work that way. Winnipeg had something like a $6M profit when the dollar was on par. But since most of their expenses are paid in US and their revenues are in CDN, that will kill their profits. So assume for simplicity $76M revenue and $70M in salary expenses, which now becomes $76M*0.75 revenue and $70M in expenses = -$13M profits.

Sure Quebecor might have deep pockets and be willing to subsidize that loss, but that doesn't change the fact that the other teams have to subsidize part of that $13M loss through revenue sharing. That's less profits all around, resulting in lower franchise values, and possibly more labor strife. Also, it's a publicly traded company, so they can only subsidize a money-losing hockey team for so long before shareholders get upset.

If the existing 30 teams are going to agree to share their profits and hurt their franchise values, they're going to want it to be an investment opportunity with some long-term payoff for that short-term pain. That means a US market, with an aim towards growing the popularity in the US, getting a bigger TV deal, etc.

 

[LaPlante94]

Bettman must think he's working for the NBA still. I hope he doesn't think he's gonna get a TV deal even close to the NBAs by bringing more teams to America over Canada.