The Globe and Mail reported on Oct 10, 2008 that the 6 Canadian NHL teams cut revenue sharing cheques totaling just over $40 Million for last season alone. Over $50 Million when playoff revenues were included. This of course doesn’t include figures from the US powerhouse teams. So needless to say, the Haves can’t be all that happy with the current CBA.

And the HaveNots can’t be happy either; they are now trying to reach for a salary cap floor of over $40 Million when coming out of the lockout that was the salary cap ceiling.

NHL Commissioner Bettman must have some great personal skills to get the 30 NHL BOGs to work together. It must be like trying to herd cats.

For the sake of length, this topic will be shared in two parts.

Part 1: The Haves & The Revenue Sharing Flush

The real problem is that the $40M revenue sharing sent to the struggling southern teams has to happen every year - with no end in sight.

I think most hockey-loving people, from whatever country they live in, would agree that temporary prop-ups to random, different teams would keep the league in balance. This was the original plan to help temporary regional economic problems work out. Consider St. Louis, Washington and Los Angeles to be those teams in temporary challenges.

But sending $40M every year to teams like Miami, Carolina, Nashville, Phoenix and Atlanta is like flushing it down the sewer. These cities won't become self-sufficient. They have had 10+ years to get it right during the economic boom times. Darker times have arrived and now what's the NHL's plan? Ride out the storm!?

After 5 consecutive years of revenue sharing bailouts, there should be a stop-and-reevaluate-the-market provision in the CBA. The 30 owners should be able to relocate teams out of these situations to save the NHL further embarrassment and to save their own pocketbooks from a further hit.

Places like Winnipeg, Quebec City and Southern Ontario would gladly take these teams, turn them around and make huge success stories for the NHL. Even given arena shortcomings, these markets will significantly, if not completely, remove themselves from the revenue-sharing drags that their current addresses maintain.

But in order for these relocations to Canada to happen, the NHL would have to depart from the master plan of a continental-wide TV footprint and a US national TV contract. Something even the NHL BOGs must know that is a pipe dream at best: departing from their master plan.

Here's some free advice for the NHL BOGs: In this downturn, take the sure money, relocate teams to Canada, save yourselves from further embarrassment by continuing to throw good money after bad.

And if the NHL thinks this advice is Offside, then maybe another year of cutting revenue sharing cheques might make them consider getting on the right side of the blue line for next season! And especially if you, the Offside Blog Watcher, disagree with me then have your say and post your feedback!

Chris
Chair, ManitobaMythbusters.com

PS> Considering that $40M could buy more than half of an entire team back then, it is highly doubtful that the 1990’s Canadian team currency plan pushed northward anywhere near that. So comparisons between today and the last decade may not be accurate.