Wednesday, December 2, 2009

Check - The Deal

I'll start off by apologizing if this takes a rather harsh tone....

I just finished the Deal article on the Coyotes, the NHL and Balsillie. Interesting that they chose to go the route they did...but then again I'll admit I'm not a regular reading this publication.

While the article did outline the economic gravity of the situation, it chose to focus on Balsillie's methods of attempting to acquire an NHL franchise 3 times. I actually find it slightly hard to comprehend why they chose to focus on painting him as the "big bad wolf" when they could have focused more on the situation at the heart of the matter which is the economic collapse of the Phoenix Coyotes. Okay so Balsillie changed his position, had ulterior motives and was a bit backstabbing...I would like to remind you that it's business. This happens on a daily basis. Rich people do whatever they can in an attempt to get what they want. Welcome to the real world.

So Balsillie is the big bad wolf and Bettman is the savior or so it is painted. I ask you: How does keeping a financial pitfall in an economically hostile environment help the NHL? It doesn't. It's just a pissing contest. Hell, it doesn't even help Phoenix in a long term capacity. What the issue really is, and why Bettman stepped in, is control. The NHL and Bettman want to ensure that they have the ultimate control over the location and ownership of the teams in their league. That's boiled down and that's stripped down to the core.

The problem? No one is taking into consideration what really matters: the longevity of the NHL. This is at great detriment to the league.

When the Phoenix Coyotes were moved to Glendale a Pandora’s box of problems opened. Ones that cannot quickly be solved. Perhaps better business proposals could be hatched up, in time, but the fact of the matter is that the NHL does not have the economic resources to manage the Coyotes long-term.

By focusing on control, they chose to ignore the economic ramifications of FORCING the Coyotes to remain in Glendale. Sure you are keeping the jobs there, but at the expense of the league. Ticket prices across the league will increase to shoulder the burden of one struggling franchise....that is forcasted to LOSE $30MILLION a year if it does an outstanding job of running!!!!! Read that about ten times and really let it sink in.

Bettman and the NHL are willing to gamble the future of the entire league, just to maintain control.

The article also points out how certain franchises were pulled out of bankruptcy and now thrive. I ask you though, is that long-term? The Washington Capitals are located in what I consider a hockey-hostile environment. The Washingtonians aren't raised on hockey. They don't live and breathe it. They follow it because Alex Ovechkin has them winning. So what happens when he's gone? Because eventually all hockey players have to retire....you go back to $20 seats and being subsidized by other teams that are selling at the moment. How does this help the NHL long-term? It doesn't.

It's poor business sense to keep teams in locations that cannot turn a profit. If you want the league to survive LONG-TERM, tough decisions need to be made. You cannot pour money into a money pit or it takes you down with it.

I thank my lucky stars that I'm from a hockey city....because in the end, the welfare teams aren't helping anyone.

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