NWHL and NWHL Players Association (union) working on new CBA

[LadyStanley]

New deal coming between NWHL and its players

Recently players became classed as employees, rather than consultants. Also getting (better) per diem for road meals (to be able to eat healthier).

Still a long way from being able to have livable wage.

There is plenty of good news surrounding the league, however. The Buffalo Beauts were recently purchased by Kim and Terry Pegula, who also run the NHL’s Sabres, while the NWHL acquired a fifth franchise in the Minnesota Whitecaps for the 2018-19 campaign. Given that the other four teams are clustered in the Northeast, the league won’t exclusively be a bus circuit anymore.

Nice to see Pegulas step up.

Click to read more...

 

[Ernie]

I'd bet that Bettman and the rest of the NHL are more comfortable with an AHL-like for-profit structure than the non-profit structure of the CWHL. People keep talking about how the NWHL is ready to fold but they're already heading into their 4th season.

 

[offkilter]

I'd bet that Bettman and the rest of the NHL are more comfortable with an AHL-like for-profit structure than the non-profit structure of the CWHL. People keep talking about how the NWHL is ready to fold but they're already heading into their 4th season.

They would have folded already had the players not accepted a 60% pay cut the first season. The only thing keeping most of the teams alive is NHL teams like the Devils, Bruins, and Sabres letting the teams use their practice arenas for free.

The league is by no means making money and investors are looking to pull out. If things don't change, like the rest of the teams being purchased by NHL owners like the Beauts are the league is done after this season.

 

[Ernie]

They would have folded already had the players not accepted a 60% pay cut the first season. The only thing keeping most of the teams alive is NHL teams like the Devils, Bruins, and Sabres letting the teams use their practice arenas for free.

The league is by no means making money and investors are looking to pull out. If things don't change, like the rest of the teams being purchased by NHL owners like the Beauts are the league is done after this season.

Just curious.. where are you getting this info from? If the league is bleeding money and investors are walking away, where is the cash flow coming from that is allowing them to not only play next season but increase compensation for the players?

 

[offkilter]

Just curious.. where are you getting this info from? If the league is bleeding money and investors are walking away, where is the cash flow coming from that is allowing them to not only play next season but increase compensation for the players?

I've followed the league closely since its inception and the CWHL before that. I've also had first hand experience seeing the difficulties the league has had. If you can't take my word for it there are several articles published including the original poster's that mention them too.

For example the original salary cap of the league was $270,000 the first season but that was unsustainable. The cost of arena rental, equipment, personnel salaries, insurance, and travel was nowhere near offset by meager ticket, concession, and souvenir sales.

By the second season the league had asked the players to make payroll cuts just to survive to which the players assumed was a negotiating ploy. Then they saw the books and went "Oh...****!" before taking the pay cut and slashing the salary cap to $100000.

The third season saw the New Jersey Devils, Boston Bruins, and Buffalo Sabres step in and offer their practice arenas largely rent free as well as offering marketing aid. This move largely saved the league as it freed up funds that would have gone towards facility rental now going towards other things like player compensation or meals. The Connecticut Whale are the odd one out though being largely league owned and playing out of several rec rinks.

This upcoming season sees the Minnesota Whitecaps enter league with new investors and sponsors which helps, but it also brings with it increased travel costs. Keep in mind the league only plays 16 regular season games in arenas that only seat 300 to 900 people max. Even if every fan bought the premium delux season ticket offered there wouldn't be much room for profit.

 

[Ernie]

So how are they staying afloat then? Where's the money coming from?

 

[offkilter]

As an add on here is the best case hard numbers for an NWHL team using the Boston Pride as an example.
Ticket revenue
Arena Capacity:750(capacity per NWHL site)
Home games:8
Season ticket packages:
general admiss$150
Premium seating $250

If every single fan bought the premium package the most revenue the team could get from ticket sales would be $187,500. The NWHL also has a deal with the players that ticket sales over 500 tickets goes to the players as a bonus so the real revenue for the Pride owners from tickets sold is actually $125,000 for the season.

Player costs
Salary cap max:$100,000
Games per season:16
Roster size max:25
Gameday roster:17
Salary per game per player:$170-$260

If every player averages roughly $215 then the season payroll for the Pride usuing the bare minimum 17 woman roster would be $58,480. The 25 woman max roster is $86,000.

So if the Pride were running the cheapest they could for maxium profit based on ticket sales and player payment alone the Pride ownership would only make $66,520.

Keep in mind none of this takes things like other revenue streams into account. Like souvenirs, concessions, or arena advertising. Nor does it take into account other costs like equipment, coaches, training staff, media personnel, or travel.