NHL Owners and Players Make a Deal

Ice hockey news shouldn’t happen in July. But since the National Hockey League couldn’t figure out a way to play the 2004-2005 season, anything that resembles progress toward playing ever again is worth a line or two. Word from the negotiating table is that the owners and the players have found a way to carve up the monetary pie. While ratification is still needed by both sides, the dumbest strike in sports history might be at an end.

The details won’t be released officially until the ratifications are done, but naturally, the news has leaked out. There’s going to be a salary cap of around US$39 million, and players’ salaries won’t exceed 54% of the entire league’s revenues, estimated to be about US$1.8 billion. It is also quite possible that lasts year’s contracts will be wiped from the record, and that leaves a lot of players without anything in writing.

"At the end of the day, everybody lost," said Wayne Gretzky, who is managing partner of the Phoenix Coyotes as well as a legend on the ice. “We almost crippled our industry. It was very disappointing what happened." And it seems that Mr. Gretzky is overly optimistic about the damage. The NHL is crippled, and it remains to be seen if the fans will come back to watch.

In an effort to put bums on seats, or more importantly, ads on the air, the rumor is there will be a few rule changes. One possible change is the reduction in the size of goal-keepers’ equipment. Another is a shoot-out similar to soccer to get rid of tie games. Both ideas would result in more goals and, the proponents hope, greater interest. While the equipment issue is valid and possibly useful, the shoot-out is a bad idea in soccer and would remain a bad idea on the ice. No one likes a tie game, but the shoot-out doesn’t necessarily favor the better side.

The real financial issue is TV advertising, and rule changes aren’t going to alter that formula much. NBC Sports will start its two-year deal a year later that scheduled, but the broadcaster has made all the right noises. Dick Ebersol, chairman of NBC Sports, offered the obligatory cheerleading statement, "We are thrilled for the fans that hockey is returning to the ice, and we're delighted to be the network television partner of the NHL as it moves into what I believe will be an exciting new era.” The NHL still doesn’t have a cable deal, which will add to the bottom line of marginal franchises the most and where the health of the league overall will be decided. The hour is late.


© Copyright 2005 by The Kensington Review, J. Myhre, Editor. No part of this publication may be reproduced without written consent.
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