Who's Losing the Most from this Lockout

Discussion in 'Fugu's Business of Hockey Forum' started by Fan101, Feb 6, 2005.

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  1. Fan101

    Fan101 Registered User

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    I Have been wondering to myself who has the most to lose from this lockout and would be in the weakest and most likely position to "Blink" or "Give":

    OWNERS: If the financial losses are as high as they say, a canceled season means they are saving money; since they are only paying office staff and scouts etc. For owners who want to sell franchises, the lockout uncertainty makes it difficult to sell one, but franchise values have been low since many have been financial losing propositions:

    HIGH PAID PLAYERS: i.e. #1 & #2 d-men or top line forwards. The top earners are losing significant income, but many of them are already wealthy millionaires, so they can afford to sit back and enjoy a season off or play in Europe where their incomes are lower but there may be more enjoyment to play the game, especially for the native European players. They also know that when play resumes, their jobs are guaranteed since they are the top franchise "fan drawers".

    ESPN: With all of the Super Bowl coverage, Winter Baseball News, NBA Basketball, NCAA Sports etc., I don't think they are experiencing any financial loss at all.

    AMERICAN TV Network: Sorry but they have not made much money in the past from the Saturday afternoon broadcasts.

    American Cable Co's: The local NHL team broadcast represents a significant nightly audience for them and advertiser revenue. However the likelyhood of people canceling their cable service is insignificant. Most families retain cable service to watch other sports, news, movies etc.

    AVERAGE PAID NHL PLAYERS: i.e #3 & #4 d-men, 2nd and 3rd line forwards. Since they make up the majority of the NHL rosters, they know that their careers may be most in jeopardy. Loss of a season means significant loss of income. However once the season resumes they are guaranteed jobs, however GM's may move the higher paid ones to smaller market teams where their bargaining positon for future contracts are weaker. Just look at the fact that Glen Sather "fire-saled" all of his players last spring in anticipation of a future salary cap. Although they are being denied their NHL income of between $750K and $2 MIL, many are playing in Europe with six figure incomes and no income tax due to their overseas employmant status.

    LOW PAID NHL PLAYERS: i.e #5 & #6 d-men, 4th line forwards. They are a similar position the Average Paid players except the opportunity to play in Europe is limited by European team roster rules. Their lower salaries make them a comfortable fit for most team salary structures when and if the season returns.

    CANADIAN NATIONAL TV: Yes i believe they may big losers because NHL Hockey is the biggest TV Sport and a big part of Canada's culture and tradition. However Canada's fans are the most fed up with the NHL's loss of Canadian identity, "Americanization" by big money and dominance by American franchises. THe Canadian owners and media have much to gain by a salary cap, especially for small markets like Edmonton and Calgary.

    Contrary to what they say, NHL Hockey is a Major League Sport because NHL players are Major League Athletes. Hockey is also a #1 Major League Arena Sport like NBA Basketball. Hockey is #1 Major League National TV Sport in Canada because of it's tradtion and fan base. Hockey is NOT a Major League National TV Sport in the US, but wealthy Metropolitan Franchises like NY Rangers, Philly and Chicago consistantly sell out their arenas and draw significant cable revenue.

    Obviously all sides have to come up with a solution which guarantees the long term survival of team franchises and identity. Hockey is unique because of it's strong identity as a sport in Canada, The United States and Europe. As a revenue sport in the States, Hockey has to compete with the NFL which now extends to February, A Major League Baseball season which draws fan interest for 12 months, the NFL April Draft, NCAA Basketball March Madness, The Winter Olympics every 4th year, and an NBA season & playoffs which goes head-to-head with the NHL.
     
  2. Reilly311

    Reilly311 Guest

    the fans.
     
  3. jratelle19

    jratelle19 Registered User

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  4. misterjaggers

    misterjaggers Registered User

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    Aside from vendors etc., the average and less-than-average players are hurt the most. I predict a growing chorus of complaints from that group that should reach a crescendo by the halfway mark of next season if play doesn't resume.

    Their pain will force Goodenow and his millionaire player buddies to capitulate to the league's salary cap demand.
     
  5. Pavel

    Pavel Registered User

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    People like this perfectly describe who I feel sorry for. As much as I miss hockey it is still just entertainment to me. My life has gone on. This whole ordeal has always been about billionaires fighting millionaires. It's the people who can't pay the rent or put food on the table that I feel for.
     
  6. ScottyBowman

    ScottyBowman Registered User

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    Something is missing in this article or maybe I overlooked it. He had no other job since 1990?? It says he only made $60 a game and I find it hard to believe anyone can survive on $3k a year.
     
  7. jratelle19

    jratelle19 Registered User

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    Something is definitely missing, Bowman, and I'm sure he has another income from somewhere.

    Still, my point is that they are a lot of people out there besides this guy that really do rely on hockey for their living, who make a modest but steady income from it, that are being hurt terribly from this stupid lockout.
     
  8. Winger98

    Winger98 powers combined

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    New Non-Traditional Markets.

    The majority have had a hard time establishing a market base and this labor mess, especially if the whole season is cancelled, could be disasterous for them.
     
    Last edited: Feb 6, 2005
  9. nyr7andcounting

    nyr7andcounting Registered User

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    Maybe he shouldn't have decided to be living on 3k a year for the last 14 years? And how hard would it be for him to get a job during the lockout? Does he just sit around his appt all day?
     
  10. BLONG7

    BLONG7 Registered User

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  11. kerrly

    kerrly Registered User

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    The people that are hurting most from this lockout are the ones who's income is dependant on the game to put food on the table, bar owners and employees, restaurant owners and employees, merchandisers and employees, etc. etc. These people are losing their jobs, and they are having a hard time providing for their families. These are the people who suffer the most, and the only ones I feel bad for. I don't feel for owners or players, because this ultimately isn't the end all be all for them.
     
  12. Twine Seeking Missle

    Twine Seeking Missle Go monkey go!!!

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    Could'nt have said it better myself.
     
  13. Fan101

    Fan101 Registered User

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    Who's Losing the Most

    Thanks for the comments guys.

    I agree I left out the fans. But before the strike; it was the fans in the small markets that were being threatened with franchise extinction. Bettman was saying that (I believe) four franchises would need to be eliminated.

    Of course if small market NHL cities lose franchises, look for the AHL or a new WHA to step into those areas. THe original intent of the WHA back in the 70's was to have a league with both North American and European franchises. If the NHL puts a cap of 42 Million in, look for some clever WHA entrepenaurs to come along and start signing NHL marquee players and stocking the new teams with AHL and Europeans. The NHL owners are walking a slippery slope with this lockout.

    Of course I left out PLAYER AGENTS and AMATEUR FRANCHISES and UNDER 18 YR OLDS. The agent salaries are tied to player contracts and draft pick signees.
     
  14. Skroob*

    Skroob* Guest


    perhaps a pension from his Navy days???
     
  15. :D

    That's the first thing that struck me about the piece. If being able to make $60 a game 45 or 46 nights a year is the difference between making it and going belly up, you've got bigger problems.

    But the point stands, IMO. Fans are suffering the most, along with the people who work behind the scenes at games earning extra income.
     
  16. Jag68Sid87

    Jag68Sid87 Nothing Else Maattas

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    I think that aside from the small-business owners that depend on NHL hockey to generate revenue for their own establishments, and employees of the NHL who are struggling along without any games right now, the clear losers in all of this are the fringe NHLers who are still not playing hockey anywhere, or took a long time before finding a place to play. While 19-year-old CHLers continue to develop their game, and AHLers continue to hone their skills in the pro game, these fringe guys are not and it will come back to haunt a lot of them in the end.

    Guys like Pierre Dagenais, Steve Montador etc.
     
  17. Phanuthier*

    Phanuthier* Guest

    It would have to be the lower tier players. They are the ones who might lose their jobs when they come back, only to find minor leaguers and junior players surpassing them in the ranks while they try and shake off the rust. Hope you enjoy riding the grayhound, boys! No more 1st class flights for you.
     
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