Thursday, October 18, 2012

NHL Lockout 2012: A Season On Ice

~Anthony Constantino

So here we are, in the midst of the third lockout for the NHL in the last 20 years. The main issue that needs to be worked out is the division of total revenue between the players and owners. However the main information the population receives from either side is some form of political stance or platform that urges you to support their side. I didn't know we were electing a winning side in order to get the NHL back in action. Anyway here are some ideas that shape my stance, which is not so hard to see as you read on.

The most important fact to be aware of is that the league never fully recovered from the last lockout, which occurred in 2004-2005. The last thing this league needed is another lockout to destroy all momentum and headway made over the last seven years. Popularity has been a major issue, which stemmed from the blunder the Gary Bettman made when striking a long term television contract. Instead of being broadcast on ESPN (and their family of networks as they call it), the NHL opted for a deal with Versus. We all know how well that turned out, as hockey is virtually invisible in almost every city below the Mason-Dixon Line. We can also go on and on about how the NHL has been unable to market their superstars successfully. Consequently, the NHL has the least sponsorship opportunities among the four major sports. So this is much of the reason why the NHL is least popular of the four major sports in the U.S. The equation ends with the National Hockey League having the least amount of total revenue coming in.

Despite all the information above that can be proven true with some simple research, we are sitting here in October without hockey. The icing on the cake? Commissioner Bettman came out and said that we are "rapidly approaching" the day that the January 1st Winter Classic game will have to be cancelled. I'm not sure how Bettman jumps from starting the season on November 2nd, to cancelling all games through January 1st. What we do know for certain is that this season is in jeopardy of being played at all.

So who is at fault here (not that pointing fingers makes the situation any better)? Although I can't relate to the money these men quibble over, I can relate to the owner and worker dynamic. Most business owners don't exactly share half their profits with the employees they preside over. Regardless of how important players are to the NHL's existence, these are still owners. They own their team and don't have to share anything more than a guaranteed contract with the players. For the players to expect more than 50% of total revenue is preposterous. This is especially true for the league with the smallest revenue of the four major sports. Let's not forget that these owners became wealthy in some other business and they could easily stick to that. Many of these owners have an NHL team for their own personal entertainment.

The NHL cannot mimic the NBA or NFL revenue model because there isn't that kind of money to throw around. There isn't a lucrative TV deal to draw from. Unfortunately, there are still some teams struggling to stay afloat in the league. Even though I cannot stand the greed both sides are exhibiting, I must side with the owners and their right as owners.