News Article: MLSE cuts salaries for full-time staff, extends management and executive reductions

[hockeywiz542]

MLSE cuts salaries for full-time staff, extends management and executive reductions

Maple Leaf Sports and Entertainment says it is cutting the salaries of up to one quarter of its full-time staff, and extending salary reductions for senior management and executives to deal with the financial impact of COVID-19.

The company that owns Toronto professional sports teams including the Maple Leafs, the Raptors and the Argonauts as well as sports venues, says up to 25 per cent of full-time staff will be moved to temporary inactive status.

Extended management and executive salary reductions will be effective Jan. 1.

Affected employees will remain on MLSE payroll at a reduced salary, retain their benefits and pension and maintain their access to all corporate communication tools to remain current on MLSE’s operations.

MLSE says the length of time employees will remain inactive will be based on its ability to return to normal business operations.

Professional sports has been disrupted by the pandemic with hockey games played in empty arenas, football matches cancelled altogether and NBA games having been played in Florida.

“These past nine months have been the most challenging we have ever experienced, and while we had hoped to see signs of a return to a more normal business operations by now, the effects of the second wave of the pandemic have forced us to brace for further uncertainty,” stated president and CEO Michael Friisdahl.

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[JT AM da real deal]

Cash flow must have been really impacted by season ticket holders parking for 2020/21 season ... and now Raps are not even playing here for their season so those rebates must be given back now too ... hard to say it but hard times for MLSE

 

[ChickenMcNugget]

As much as i hate the MLSE for charging a ridiculous amount for the product they provide i have to commend them for not simply laying off their employees while retaining bonuses for the upper management.

You have to wonder what changes will this bring when NHL does return next year or even the year after.

 

[Fogelhund]

Now that they are allegedly restarting on January 13th, I wonder if this still stands? I can see them still letting go even staff, concessions, etc... though I'm not sure how many would be full time employees... maybe the managers in charge of such areas?

 

[Mickey Marner]

Worse things in life than having all of the holidays off to spend with your family. Some of the people laid off may even be able to drop down a tax bracket if they defer their December CRB claim until January.

 

[Deebo]

Some of the people laid off may even be able to drop down a tax bracket if they defer their December CRB claim until January.

How would that work?

 

[Mickey Marner]

How would that work?

Well, not a tax bracket, but save on taxes. The Govt claws back 50% of your CRB if your non-CRB income is over 38k. So if your income is above 38k you defer your December claim until January and have a year and change to keep that 1000 (assuming your 2021 income is >38k) instead of owing it in April 2020.

How much you can get: Canada Recovery Benefit (CRB) - Canada.ca

 

[LEAFANFORLIFE23]

Cash flow must have been really impacted by season ticket holders parking for 2020/21 season ... and now Raps are not even playing here for their season so those rebates must be given back now too ... hard to say it but hard times for MLSE

It's MLSE they don't have hard times

 

[JT AM da real deal]

It's MLSE they don't have hard times

Some of employees do ... sponsors are not sponsoring arena right now ... season ticket holders are not paying for their seats ... no concessions ... very little to no merch going on ... only a little TV $$$ that's it man - not even close to enough to pay team payroll ... so dude yes they can borrow from their bankers to fund operations until they get revenues back but that has to get paid back with interest

 

[kb]

Some of employees do ... sponsors are not sponsoring arena right now ... season ticket holders are not paying for their seats ... no concessions ... very little to no merch going on ... only a little TV $$$ that's it man - not even close to enough to pay team payroll ... so dude yes they can borrow from their bankers to fund operations until they get revenues back but that has to get paid back with interest

I can't imagine that anyone other than Amazon or protected big box stores is not suffering.

 

[Warden of the North]

It's MLSE they don't have hard times

Without butts in the seats for any of the teams in question they most certainly will have hard times.

 

[justashadowof]

Without butts in the seats for any of the teams in question they most certainly will have hard times.

It's impossible for the NHL to re-start without butts in the seats. The television money isn't high enough. The cap cut in half to $41M would give the Leafs and a few other teams an opportunity to make a profit. For over half of the league, they'd be better off not playing.

 

[Fogelhund]

Worse things in life than having all of the holidays off to spend with your family. Some of the people laid off may even be able to drop down a tax bracket if they defer their December CRB claim until January.

How exactly would that help them?

 

[LEAFANFORLIFE23]

It's impossible for the NHL to re-start without butts in the seats. The television money isn't high enough. The cap cut in half to $41M would give the Leafs and a few other teams an opportunity to make a profit. For over half of the league, they'd be better off not playing.

It's not impossible they are going to start without fans

 

[Fogelhund]

It's impossible .

Impossible?

 

[Warden of the North]

It's impossible for the NHL to re-start without butts in the seats. The television money isn't high enough. The cap cut in half to $41M would give the Leafs and a few other teams an opportunity to make a profit. For over half of the league, they'd be better off not playing.

Theyre going to be playing hockey within two months. Without fans.

Businesses arent always profitable. The'll take a hit this year and back to making money in a year or two. The NHL has the resources to help those that need it get through the tough times.

 

[PromisedLand]

MLSE cutting salaries? Expect another overpayment by dubas

 

[justashadowof]

Theyre going to be playing hockey within two months. Without fans.

Businesses arent always profitable. The'll take a hit this year and back to making money in a year or two. The NHL has the resources to help those that need it get through the tough times.

My explanation why I believe the NHL isn't returning:

No NHL Without a Return To Spectators

I saw in Forbes NHL Team Values 2020: Hockey’s First Decline In Two Decades that the individual team share in national television revenue is about $20M per season. Some rich teams have large local television deals (Montreal >$50M, Toronto >$40M, Rangers ~$35M) but most teams do not. With a $80M salary cap, every single NHL team including the rich ones mentioned require gate revenue to be a viable operation.

There will not be an NHL season without full gate receipts.

You say the NFL can make it work, why can't the NHL? Well, the NFL's individual team share in television money is $260M per team according to that article. The highest payroll in the NFL is around $250M (cash not cap NFL 2020 Cash Tracker) with a median around $217M and the lowest down to $152M. You can see the difference. The most expensively rostered team can weather the small gates easily with so much television money and many teams are actually still making a profit with limited gates.

 

[Warden of the North]

My explanation why I believe the NHL isn't returning:

So you think all of the various Insiders saying the league is starting to play in January are wrong?

I mean, the Leafs held Robertson out of the WJC. They clearly think we're playing hockey not long after Christmas