By now, hockey fans have had to accept that their sport has been put on ice for the time being—pardon the pun. Last Saturday at midnight, the NHL locked out its players for the third time since 1994. On Wednesday, the NHL announced the cancellation of the preseason schedule to Sept. 30.
The NHL released a statement Sept. 16 saying negotiations will continue until a new collective bargaining agreement (CBA) is reached.
“The League, the Clubs, and the Players all have a stake in resolving our bargaining issues appropriately and getting the puck dropped as soon as possible. We owe it to each other, to the game, and most of all, to the fans,” the statement said.
In any case, some of the NHL’s marquee players have started making their way to the European leagues. Some of the youngest players will go back to junior hockey, while others will go to the American Hockey League. Another group will try to stay in shape while monitoring negotiations closely.
Financial Challenges
The problems in the NHL have been brewing for some time. The last CBA created some problems while solving others.
According to Forbes data for the 30 NHL teams, only 12 managed to have a positive operating profit last season. Strangely, the Toronto Maple Leafs are by far the league’s most profitable franchise, yet they are the only team that failed to reach the playoffs since the last lockout in 2004-05.
But the message is clear: Costs have to come down or certain franchises will have to relocate or be eliminated so that the league, as a whole, can be healthy.
Player contracts went through a new phase of folly this past summer, with Ryan Suter and Zach Parise both signing 13-year $98 million deals for the Minnesota Wild, while Shea Weber became the NHL’s highest-paid player with a 14-year $110 million contract from the Nashville Predators who matched the Philadelphia Flyers’ offer sheet.
The owners are supposed to be trying to bring down the percentage of revenues paid for player wages and limit the length of contracts.
And even as the “lockout deadline” approached, players were being signed—Milan Lucic’s three-year $18 million extension with the Boston Bruins.
If a lower percentage is to be paid for player wages as a share of overall hockey revenues while these massive contracts are to be honored, some of the “supporting cast” players can presumably expect far less money going forward.
Given the owners’ demands, one would assume that under a new CBA, such contracts could not be given. It remains to be seen what happens to these “legacy” contracts once a new CBA is reached.
This duplicitous behavior by owners is clearly not healthy for the integrity of the game. Whatever happened to entering into a contract in good faith?
Unified Players?
Throughout the run-up to the lockout, the players have shown a strong sense of solidarity.
But when the highest-earning players can get paid 10 times or more what the lowest-paid players get, are their sensitivities perfectly aligned?
For example, a veteran player with a family earning less than $1 million on a one-year contract might see things differently from Sidney Crosby (for argument’s sake). The veteran has limited options during the lockout, whereas Crosby presumably could withstand (financially) a lost season not to mention having the option of playing in Europe.
The point here is that the owners can eventually squeeze the players. A union cannot keep all of its members happy at all times.
Surely, a significant percentage of players don’t need to be overly concerned about, say, limiting contract lengths when they aren’t likely to be offered a long contract in the first place. What would the majority of NHL players be comfortable with in a new CBA?
Other Costs
Fans of certain teams or players could be more heartbroken than others. Other fans might move on altogether.
Some teams have more at stake in terms of their investment to win the Stanley Cup.
The New York Rangers finished first in the Eastern Conference last year and lost to the New Jersey Devils in the conference final. With the addition of Rick Nash, the Blueshirts were poised to make a serious run at the Stanley Cup.
That will have to wait. A similar story can be made for a handful of other teams such as the Vancouver Canucks.
And then there will be questions as to the future of veteran stars like Teemu Selanne, who may call it a career depending on when the NHL plays again.
And what about the fans? One could certainly see a scenario where fans in non-traditional hockey markets convert to basketball or another sport. For example, Dallas had the third-worst attendance last year, but they have a very good NBA team.
The ill will generated by the NHL and National Hockey League Players’ Association (NHLPA) and reputation damage is difficult to quantify, but should not be underestimated.
Unfortunately, a quick resolution doesn’t seem to be in the cards.
Follow Rahul on Twitter @RV_ETSports
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