Alright, I admit it. I’m the one. I know that bashing the NHL has become the chic thing to do right about now, but I just can’t bring myself to do it. I live for the NHL. I’m the one person who would rather watch a random Blackhawks/Thrashers game, than Red Sox/Yankees or even Florida State/Miami. There’s nothing like the two month passion-fest that is the Stanley Cup Playoffs. Give it to me over March Madness any day of the week and twice on Sundays.
It’s really a shame that when the Dave Andreychuk and the Lightning hoisted the Cup last month, it basically signaled the end of hockey in North America as we know it. The league’s Collective Bargaining Agreement ends September 15, and all signs point to a labor dispute that at the very least will wipe out the entire 2004-05 season before it even has a chance to get started. NHL Commissioner Gary Bettman and NHLPA Head Bob Goodenow haven’t had official talks since last October, and no talks are scheduled in the foreseeable future.
The players, of course, are against a salary cap in any form. And why shouldn’t they be? The union knows that without a cap, players can make an infinite amount of money. While teams like Buffalo, Pittsburgh, and Edmonton aren’t able to afford those astronomical salaries that the marquee players will demand, there are teams out there like Detroit, Philadelphia, and the New York Rangers that can, and will, pay these superstars the money they are calling for. Want an example? Check out the contract Derian Hatcher signed with Detroit before the 2003-04 season (Five years at $6 million per). You can count the number of teams that could have signed him to that kind of a contract on one hand.
Meanwhile, the owners are completely correct in that the league cannot survive under the current agreement. 19 of 30 teams finished in the red last year. Aggregate league losses over the last nine years (since the current CBA was signed) total $1.5 billion. During the run under the current agreement, revenues have grown by 173% – unprecedented for a professional sports league. However, player salaries have grown at 261%. More than three-quarters of total league revenue is going to players.
The players union argues that the money the owners are losing on a yearly basis is being more than made up for by the appreciation of the asset value of the club over time, meaning the money lost in operational costs will be made up for when the owner sells the franchise for a profit. However, no business can be run on that philosophy. Not only that, but the vast majority of NHL franchise values are down.
So what are the alternatives? Basic business says there are two ways to make a profit: Either raise income or drop expenses. The players are pushing for the owners to find a way to raise income by negotiating a lucrative television deal (which isn’t going to happen) or raising ticket prices, which are already so high they are alienating the fan base. Meanwhile, the owners seek to drop expenses, starting with the largest financial investment: player salaries.
As it stands right now, the league is at an impasse. Bob Goodenow and the players union have indicated that they will sit out the season to keep the right to unlimited player salaries. The owners indicate they are willing to sacrifice the season, which would obviously guarantee minimal financial losses, rather than the projected $200 million in losses if the season were to be played under the current agreement.
Many players, including Brett Hull, Chris Chelios, and 2004 Hart Trophy winner Martin St. Louis have expressed jumping over to the new World Hockey Association, founded by Bobby Hull and scheduled to start play this October in six North American cities should the NHL season not start on time. The WHA promises wide open hockey with rule changes including removing the center red line, offsides touch-ups, and three-on-three overtimes. (Sidebar: These are rule changes the NHL should adopt the next time they play, whenever that may be.)
Other players have considered jumping over to Europe to continue to play. Bruins center Joe Thornton committed to play with Club Davos in the Swiss Elite League, and Colorado center Peter Forsberg has made it no secret that he wishes to play in his native Sweden. It is likely that the European leagues would be the biggest beneficiaries of an extended work stoppage.
(Personal rant: I’m sure they are aware of this, but last time I checked, the WHA as well as the majority of European leagues have a salary cap. The whole problem the players union has with the owner’s proposal is the hard salary cap. Many players have expressed the opinion that they would rather play in one of these other leagues than sit around and do nothing. If that is really the case, then sign the frickin’ deal, salary cap and all, and get back to coming through for your fans! It is unbelievably hypocritical for players to be willing to play in a salary-capped WHA than agree to a cap in the NHL. Any player who plays in the WHA is more of a scab than any replacement player in any sport ever!)
So where does this leave North American hockey fans? Well, we’d better enjoy the World Cup of Hockey in August. It’s likely to be the last high level games to be played here for a long, long time. Not only that, but I’m willing to wager it to be the last time we see players like Mario Lemieux and Steve Yzerman who are likely to retire should the 2004-05 season be completely wiped out.
Over the last couple of years hockey has lost its spot as “the fourth major sport” in the U.S. (I argue that distinction goes to NASCAR – check the attendance and revenue numbers for the last five or ten years.) and this labor dispute certainly isn’t going to help. Who knows what the league will look like once this is resolved. 20 teams? 30 teams? Salary cap? Revenue sharing? Lucrative television deal? Whatever happens the rest of this summer, the World Cup of Hockey Championship on September 14 in Toronto will be very bittersweet. The best players in the world will play for national pride, then 24 hours later they’ll be sitting at home watching their sport fade into oblivion.