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If you scribbled "The end is near" on a placard and paraded it outside the National Hockey League's head office in New York, some hockey people would understand why.
They've watched teams being sold in furious fashion these days. They know that Craig Leipold couldn't wait to unshackle himself from the Nashville Predators after losing $70-million (all currency U.S.) in nine years. They know that Bill Davidson has lost more than $70-million since buying the Tampa Bay Lightning in 1999.
They may even know that Alan Cohen and his partners have lost $90-million in their six-year association with the Florida Panthers, and that the Atlanta Thrashers are looking for fresh cash. The Phoenix Coyotes, too.
And just to stick with the sky-is-falling theme, everyone and their accountant knows the NHL's salary cap has risen to $50.3-million a team — an increase of $11-million in just two years — and that the amount of money spent on players is back to where it was before the 2004-05 lockout.
Related Information
- Atlanta Thrashers
- Chicago Cubs
- Florida Panthers
- Nashville Predators
- Ottawa Senators
- Phoenix Coyotes
- Pittsburgh Penguins
- Seattle SuperSonics
- Tampa Bay Lightning
- Barry Bonds
That's why the cynics are carrying signs and saying the NHL is about to go apocalypse now on several fronts.
But despite the NHL's many troubles — the rapidly escalating salaries, the lack of new revenue streams, the lack of a major U.S. television agreement — people are buying into commissioner Gary Bettman's show. Not only that, they're paying more and more money to do so.
Check it out: The Ottawa Senators were sold four years ago when the Canadian dollar was weak, the threat of a lockout loomed and the purchaser (Eugene Melnyk) had to buy the team's arena, too. In the end, the Senators cost $71.8-million.
Last October, Canadian billionaire Jim Balsillie offered $175-million for the Pittsburgh Penguins. Unhappy with how the NHL handled the negotiations, Balsillie bolted only to reappear with a $238-million bid for the Predators. (He was rebuffed and the team was sold to local investors for $193-million.)
Yesterday, Doug MacLean led a charge that bought the Lightning for a price he wouldn't say but is believed to be at or over the $200-million mark. Meanwhile in Edmonton, the local ownership group turned down $185-million for the Oilers, saying the offer was actually cash-valued at $160-million and that the club was worth more.
This is all very strange. How can franchise values be going up at a time when the NHL looks to be struggling all over again?
This is not an easy question to answer, just like, "Why does Mike Keenan keep getting jobs in the NHL?"
It can be argued that the salary cap, despite its failings, does tie player costs to revenues and therefore does make the NHL more appealing from a business standpoint.
It can also be argued there are only so many sports franchises available in North America and that the NHL is still higher on the priority pole than, say, Arena Football, competitive eating and even fishing. Besides, the going rates for baseball, NBA and NFL teams have gone ridiculously high.
The Chicago Cubs will be for sale once this season ends and analysts are suggesting the club, and Wrigley Field, will fetch $600-million or more. The Seattle SuperSonics were sold last year for $350-million, while purchasing a small country would be cheaper than buying an NFL team (estimated purchase price: between $750-million to $1-billion).
Hey, if you want to be one of the big boys in sports, you'd better have a bank account that makes Mark Cuban blush.
Of course, big money often results in big problems. The NBA has a gambling scandal involving one of its referees. Baseball has the steroids issue and what to do with Barry Bonds. The NFL has a rogues' gallery of rich players gone bad and a commissioner bent on correcting that trend.
What's the NHL's comparable? Rick Tocchet pleading guilty to conspiracy and promoting gambling? Ted Saskin fired as executive director of the NHL Players' Association? The Toronto Maple Leafs' refusal to fire their general manager?
The NHL is no sporting utopia but those dying to get out are being replaced by those dying to get in. Maybe the incoming are gluttons for punishment. Or maybe they know more than we do. Perhaps it's less about the hockey and more about some other deal — such as the MacLean group also getting 5.5 acres of downtown property next to the St. Pete Times Forum.
Whatever the reason, NHL teams are selling for increased amounts and, really, that can't be all bad.
