NHL season on pause - Coronavirus (COVID-19) - Part II *Mod Warning OP*

[Major4Boarding]

After a consult, we are going to try this again. This time with an upfront note on how the discussion flow will be conducted. Also, an upfront warning to anyone that can't see fit to follow the Thread (and Forum) Rules.

Basically C/P my original notes from before -

Its one thing that this discussion stays on the pathway of business and the impacts it can potentially have on the NHL. It's completely different when it keeps straying over the lines of Political and poster vs poster snipes back and forth.

For the second time - The banner for this Forum reads: Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion. The BOH board is not a spill-over, catch-all Forum.

Simply put - Keep Politics and the personal bickering out of here and we should be fine.

Anyone that can't seem to follow these guidelines will have their post(s) deleted and be banned from the Thread and possibly the Forum as a whole.

Click to read more...

 

[Major4Boarding]

 

[Jumptheshark]

here in europe it is being considered to either cancel all games or to play in empty stadiums

NHL is still a gate drawn sport so it could kill the the bottom line on many teams if they have to play in empty arenas

I would not call it a panic but as someone who works in hotels in the UK I can tell you we are feeling the pinch and layoffs are starting shortly in some hotels in London. I am in the north right now and in a hotel that has little international clientele but two hotels I used to work at who usually had up 75% of their business coming from not UK guests during the week are feeling the pinch already and have notified 20% of the staff that as early as next week their services may no longer be needed with more cuts to come on April 1st

Italy has closed schools and universities and some games will be played in empty arenas

IF this carries over to North America, the NHL will be the hardest hit off pro sports due to it being a gate drawn business

there is talk of cancelling the rest of the EPL in the UK

IF the nhl losses the season there could be grave long term ramifications for some teams and a big hit to the salary cap

 

[Fenway]

here in europe it is being considered to either cancel all games or to play in empty stadiums

NHL is still a gate drawn sport so it could kill the the bottom line on many teams if they have to play in empty arenas

I would not call it a panic but as someone who works in hotels in the UK I can tell you we are feeling the pinch and layoffs are starting shortly in some hotels in London. I am in the north right now and in a hotel that has little international clientele but two hotels I used to work at who usually had up 75% of their business coming from not UK guests during the week are feeling the pinch already and have notified 20% of the staff that as early as next week their services may no longer be needed with more cuts to come on April 1st

Italy has closed schools and universities and some games will be played in empty arenas

IF this carries over to North America, the NHL will be the hardest hit off pro sports due to it being a gate drawn business

there is talk of cancelling the rest of the EPL in the UK

IF the nhl losses the season there could be grave long term ramifications for some teams and a big hit to the salary cap

I have to think teams have insurance for situations like this.

As much as the NHL is gate driven there is still substantial television revenue in play.

 

[mouser]

I have to think teams have insurance for situations like this.

As much as the NHL is gate driven there is still substantial television revenue in play.

I would be skeptical about most teams having major insurance to cover a situation like this. Simply thinking about it from the insurers risk view and how much teams would be willing to pay in premiums for such coverage.

Usually insurers try to assemble a diverse and ideally uncorrelated pool of members so the outflow cash risk of claims is limited to some subset of the pool. Insuring teams and leagues against loses of games/seasons would create a very highly correlated risk pool of members where the insurer carries the risk of a huge loss if there's a league-wide stoppage.

 

[Exarz]

here in europe it is being considered to either cancel all games or to play in empty stadiums

Just to add on this, the Swiss playoffs have already been postponed and might be even cancelled.

Thankfully the situation isn't as serious in the Nordics. I haven't heard any talks about postponing or cancelling any of the Nordic leagues or the KHL (included as Jokerit Helsinki is currently in the KHL playoffs)

 

[vorky]

Since you talk about insurance. I will add the IIHF WHC into the mix.

Is the IIHF WHC insured against a total loss? If so, what is the premium?
The IIHF has been insuring itself for a cancellation due to vis maior since 2012. We pay 250,000 CHF to cover of 22 million CHF. And we recommend every host to do the same. The Swiss organizers have taken out this insurance, so financial damage is impossible.

Original source in German

 

[Fenway]

I would be skeptical about most teams having major insurance to cover a situation like this. Simply thinking about it from the insurers risk view and how much teams would be willing to pay in premiums for such coverage.

Usually insurers try to assemble a diverse and ideally uncorrelated pool of members so the outflow cash risk of claims is limited to some subset of the pool. Insuring teams and leagues against loses of games/seasons would create a very highly correlated risk pool of members where the insurer carries the risk of a huge loss if there's a league-wide stoppage.

@mouser - Here is where it gets dicey. I will use my hometown of Boston as an example.

If the mayor or governor decides to forbid ALL public assemblies along with closing schools and asking employees to work from home the Bruins would be stuck. Italy, Japan and others have already done so as far as sporting events are concerned so there is precedent.

The NHL has a weather protocol that states if the visiting team and officials are in a city the game will be played BUT if local officials say no they will reschedule.

4 weeks from now we should have a pretty good idea of how bad this threat could be if not sooner. The NHL is worried as otherwise, Bettman would not have said anything on Wednesday.

The experts in the medical field don't know what we are dealing with - just ask one of the most respected Mods at HF @Gee Wally who works for a company that is a global giant in vaccines.

The Boston subway has been moved to actually try to keep trains clean

 

[Vancouver Canucks]

I have to think teams have insurance for situations like this.

As much as the NHL is gate driven there is still substantial television revenue in play.

Maybe. more advertisements can be put over the seats for the NHL to make more money, or, at least, a particular team?

 

[discostu]

Glad to see this thread back open. This is clearly the biggest potential business story in the NHL, especially as Italy has taken such aggressive measures for sporting events. But, it definitely should stay focused on the business side.

Even without a formal ban on fan attendance or cancelled games, this is likely to have a large impact. Some people are going to choose to stay home if things go ahead, and I'd expect to see reduced demand for tickets.

 

[Vancouver Canucks]

Glad to see this thread back open. This is clearly the biggest potential business story in the NHL, especially as Italy has taken such aggressive measures for sporting events. But, it definitely should stay focused on the business side.

Even without a formal ban on fan attendance or cancelled games, this is likely to have a large impact. Some people are going to choose to stay home if things go ahead, and I'd expect to see reduced demand for tickets.

This is a significant deficit for the NHL business, because the playoffs are looming, and the postseason grants the most sales, due to a larger average number of attendees.

 

[Tuggy]

 

[Ernie]

Just end the season now and have a single elimination tournament to award the Stanley Cup.

 

[cbcwpg]

NHL keeping close eye on virus, limiting employee travel - Red Deer Advocate

The NHL is not allowing its employees to make work-related trips outside of North America in response to the global fears over the coronavirus, and if any of those employees go on their own to a country where the virus has been found they will be quarantined before being able to return to work.

 

[BruinsBtn]

Whistling past the graveyard here. The NHL better be making preparations to play in empty areas right now because it's coming.

 

[tony d]

Will be interesting to see what happens here. I'm not going to say the sky is falling just yet but hopefully the NHL takes the needed precautions in relation to this.

 

[Major4Boarding]

Could we be looking at Summertime Hockey? Or just outright cancellations

 

[New User Name]

Could we be looking at Summertime Hockey? Or just outright cancellations

That never occurred to me but I think that's a better idea than playing games in empty arenas. As the league is mainly gate driven that would certainly help financially.

Obviously there's problems the league would have to consider and have solutions for if they moved the playoffs to the summer but I'm sure it is one option they would consider.

 

[tapi]

It's almost a guarantee that a player will get infected and at that point, it's over for the whole team, they have to forfeit as the whole roster will be quarantined for 2 weeks minimum.. some teams might be able to survive this scenario if it happens prior to the play-offs but it's going to be rough.

Likely will happen to several teams if not most.

 

[New User Name]

Bottom line is $$. That said, I don't believe for a second Gary and the NHL would put the health of players or fans at risk.

If a location had a major outbreak I could see games be moved to different locations. If California or another city/province/state banned spectators those games could be moved or financial assistance provided to said team(s)

If the league determined that a complete shut down had to be done; either the season would be completely wiped out or resumed at a later date.

So many different things could happen and I'm sure the league is studying the what if's and possible solutions.

 

[Jumptheshark]

Bottom line is $$. That said, I don't believe for a second Gary and the NHL would put the health of players or fans at risk.

If a location had a major outbreak I could see games be moved to different locations. If California or another city/province/state banned spectators those games could be moved or financial assistance provided to said team(s)

If the league determined that a complete shut down had to be done; either the season would be completely wiped out or resumed at a later date.

So many different things could happen and I'm sure the league is studying the what if's and possible solutions.

Actually it may fall outside of the NHLs control. Not all arenas are owned by the nhl teams and the ones owned by the cities could close their arenas or the guv could step in

 

[Jumptheshark]

if you asked me 78 hours ago I would have doubted sporting events in North America being cancelled but I think within in the next few days and weeks we will see cancellations

 

[New User Name]

Actually it may fall outside of the NHLs control. Not all arenas are owned by the nhl teams and the ones owned by the cities could close their arenas or the guv could step in

I know. That's why I posted if California banned spectators (has been reported they might)

 

[IceNeophyte]

That never occurred to me but I think that's a better idea than playing games in empty arenas. As the league is mainly gate driven that would certainly help financially.

Obviously there's problems the league would have to consider and have solutions for if they moved the playoffs to the summer but I'm sure it is one option they would consider.

Many contracts, some signficant to their teams, end July 1st.

 

[New User Name]

if you asked me 78 hours ago I would have doubted sporting events in North America being cancelled but I think within in the next few days and weeks we will see cancellations

A lot of people are convinced this will turn into something modern society has never seen.

The door to stop this in NA closed weeks ago. The US, Australia and a few other countries banned foreign nationals from travel to their countries but not to citizens and family members. Canada did not ban foreign nationals.

From data I've seen (take that with a grain of salt) looks like it was brought back by citizens and not foreign nationals.

Not sure if Canada, US has the legal right to prevent entry to their citizens though.