Boston Bruins rookie Tyler Seguin signed an endorsement deal with Dunkin' Donuts this week. The company plans to use Seguin as the “centerpiece of the company's 'Caught Cold' promotion.” There is no word whether the 19-year-old forward actually drinks coffee, and we're not looking into it, but there is something fishy about Segin's deal.
Several months ago, Denver Post writer Terry Frei wrote that GM's could use endorsement deals as a way to circumvent the league's salary cap. Here's what he wrote:
“I was told to look out for how long it took NHL executives to figure out new ways how to not necessarily circumvent or violate the cap, but to at least find imaginative ways to 'massage' it. I’ve always thought the biggest potential for a loophole was if teams found ways to line up extra income for players. Example: Colorado signs an unrestricted free agent for a 'reasonable' deal, and all of a sudden he signs a huge endorsement deal with the soft drink company whose name is on the Denver arena, on the alleged basis that having him playing in the Pepsi Center enhances the value of the naming rights. Or he signs a Wal Mart* endorsement deal. “
As you can see, Dunkin' Donuts is clearly a sponsor at TD Garden, where the Bruins play. Frei said in the article that we've yet to see this type of deal. Maybe we haven't been looking closely enough into players' endorsements and if they are being used to circumvent to salary cap.
According to CapGeek, the Bruins currently have $0 of cap space.
*Frei is referencing the Avs/Nuggets/Rapids/Pepsi Center/Dick's Sporting Goods Park (and Rams) are controlled by the Kroenke family, and Mrs. Ann Kroenke is one of the Waltons.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>
During the 2010 Vancouver Games, IOC president Jacques Rogge questioned whether women's hockey had any appeal outside North America. But, despite finding that South America, Australia and Africa don't play much hockey, Executive Director Gilbert Felli told reporters on a conference call on Monday that "the program commission had a review, but there were no questions (concerning) the sports that were in Vancouver," Felli said.
The United States and Canada, who met in the 2010 gold metal game, have dominated the sport since it was first brought into the Winter Games in 1998. Both countries are making efforts to improve women's hockey throughout the world.
"We are pleased to have confirmed women's hockey inclusion at the Sochi Olympics and look forward to a competition level that will continue to get better across all countries," USA Hockey spokesman Dave Fischer told reporters. "We're fully committed to helping women's hockey around the world."
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>The Associated Press reported Wednesday that Rypien was suspended indefinitely pending investigation for grabbing a Minnesota fan Tuesday night in a 6-1 loss to the Wild. As you can see in the video, Rypien goes after the 28-year-old fan after being assessed a double minor for roughing and a 10-minute misconduct. The NHL will hold a hearing, likely on Friday, to determine how long to keep Rypien out of play.
How long is the question the hockey community has been bouncing around for the last 24 hours or so since the incident. The problem for the NHL is precedent; it is difficult to compare this issue to the Indiana Pacers' Ron Artest jumping into the stands while guard Stephen Jackson threw punches on the court. Artest's actions caused an all-out mob scene, while Rypien's actions were isolated to one fan.
To say it wasn't as bad as the “Malice in the Palace” isn't to say it wasn't bad. Unlike the Pacers' problems, the Wild fan wasn't wild, he was simply clapping.
TheHockeyWriters.com laid out factors that head disciplinarian Colin Campbell will have to consider when suspending Rypien: 1) The fan didn't go after Rypien 2) The fan egged Rypien on after he'd just been in a physical altercation and 3) the league cannot tolerate fan-player altercations.
A few can be added to the list including the fact that Rypien doesn't have any type of record. If this was Sean Avery, he'd be on his couch for the rest of the season. Another factor is that the Canucks' general manager Mike Gillis said Rypien is a good teammate and good in the community. Rypien's management won't be able to eliminate a suspension, but it could help ensure he returns before 2011.
Clearly Rypien broke the rules, but Campbell can't react based on the outcry. The league has to make sure Rypien and other players know the fans are off limits, while keeping in mind no one was hurt and Rypien's reaction was one of human-nature and was not in any way planned or thought out.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>Chris Botta, who covers the Islanders for Islanders Point Blank, said the team will keep broadcaster Chris King, but allow Hofstra students to cover intermissions, sideline reporting and even possibly serve as color commentators. Students would also run all the technical and audio aspects.
The Islanders competition, the Rangers and New Jersey Devils, are on two of New York City’s biggest stations ESPN Radio and CBS-owned WFAN. BusinessInsider.com columnist Adam Fusfeld said of the move, “This is a pretty embarrassing situation for the Islanders…it’s just one more reason the Islanders need to take the first train out of Long Island.”
While Fusfeld’s words are harsh, he isn’t the only one sounding off, Eric Mirlis, who used to work public relations for the Islanders wrote a seething blog post ripping the team’s decision to use college students, in the post he said:
“Look at every analyst on every broadcast you watch. The overwhelming majority are former players or coaches, who have a knowledge of the game that is more intricate and in depth than anyone really cares to realize. I’ll always be of the opinion that a former player or coach should be in that spot, especially one that has ties to the team that fans can grab onto and relate to on a personal level. You will also find the occasional media member as the analyst. This is how Chris King originally got into the Islander broadcasting biz, how Sherry Ross became the Devils radio analyst and how Suzyn Waldman earned her way onto Yankee broadcasts. None of them played the game professionally, but all had an insight into the game that came with years of being around the game and all deserved the opportunity they got to show their stuff on the air.”
A quality radio or TV broadcast can be a major asset to a sports franchise (think about how much the YES Network benefits the New York Yankees), so it’s difficult to say the quality of a college station’s game cast will be anywhere near the level of ESPN or WFAN. Not difficult, impossible. Not to mention the move takes away potential jobs for out-of-work media professionals who have the ability to produce a broadcast. The Islanders’ move essentially drives down salaries for those working in radio by saying, “why should we pay a pro when a college student can do it for free (or super cheap).”
This is the problem newspapers have run into over the past 10 years or so and the state of print journalism is sad to say the least. It is understood by all that the move about cutting costs, but if AHL teams who draw 4,000 a night can afford to pay professionals, many are going to ask why an NHL team can not.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>
Although a potential labor conflict is still over two years away, the upcoming NHL season feels like to many a make or break year. At some point during the 2010-11 season, the hockey world will get its first look at Donald Fehr 2.0, as the seminal sports labor leader shifts from his short-lived retirement from the MLBPA into a new role with the NHLPA. Fehr’s leadership is expected to morph the NHLPA from a punching bag into a formidable bargaining force.
Fehr, 62, should be a bridge leader for hockey’s fledgling union. As an unpaid union advisor, Fehr has already assisted the NHLPA with its new executive director search as well as revamped the union’s constitution. However, his most significant impacts surely lie ahead.
Many within the hockey world are holding their collective breath in anticipation of how Fehr, once installed, with interact with NHL Commissioner Gary Bettman. While some believe Fehr will adopt a more militant approach that former union chief Bob Goodenow successfully exploited during the late 1990s, it is more likely that Fehr will take a moderate viewpoint when interacting with whom many refer to as the most powerful person in hockey.
While Fehr will not always adopt an adversarial nature when dealing with the league, there are more than a few contentious issues to be bargained over. The league’s most important issue is probably tinkering with the salary cap. League executives will most likely negotiate with the union to reduce the percentage of hockey-related revenue, currently at fifty seven percent, which is allocated toward paying player salary. Fehr will not give up any percentages without league concessions.
Players will also want to address financial topics as well. A major sore spot is most likely the escrow concept. Players, who under the current CBA, deposit eighteen percent of their earnings into a league-mandated escrow account, will want to renegotiate the current escrow system. Of course there are other issues. The players want to address NHL involvement with the Sochi Olympics, long-terms contracts, and whether the league and its players can change their relationship from one of being adversarial to one of partnership. There are other issues but, because hockey’s financial landscape is at times precarious, these financial issues will probably be the most fiercely negotiated.
Although the current CBA does not expire for another two years, the NHL and its stakeholders cannot afford another lockout. Both sides must strike a cooperative tone and negotiate an accord that fine-tunes the new NHL financial model. The new CBA should also include additional mechanisms to help correct the financial woes that many southern US franchises are still experiencing within this troubled economy. Now that the NHL has, over the last five years laid a new foundation, both Fehr and Bettman must work together to ensure that this foundation and the momentum of the new NHL is not lost to another lockout. As the season starts on Thursday, it is only a matter of time until these labor events begin to unfold.
Jeff Levine is a staff member of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is a sports attorney, and the Executive Director of One Sports and Entertainment, International.
Follow the Business of Sports Network on FacebookIf the league thought it tied up all the loose cap circumventing ends, they were wrong. Just weeks after the Devils were penalized, the Chicago Blackhawks opened up nearly $6 million of cap space by loaning goalie Christobal Huet to Switzerland. Huet was benched midway through last season for poor performance, leaving the ‘Hawks with a replacement level goalie with superstar salary. Shipping Huet across seas to get around his cap hit or, say, circumvent the salary cap, was no different than the Devils’ attempt to sign Ilya Kovalchuk to a 50-year contract.
The Blackhawks aren’t the only club using any means possible to erase their bad decisions. The New York Rangers dug an AHL sized hole and tosses Wade Redden’s $6.5 million cap hit in it. The Toronto Maple Leafs’ GM Brian Burke told SportingNews that since these types of moves aren’t against the Collective Bargaining Agreement, there is nothing wrong with them. Sound familiar?
The SportingNews story notes that agents will be taking action on future big money contracts to include no-movement clauses to ensure teams don’t bury their clients in the AHL or send them to Prog.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>The NHL is sending a clear message to teams who try to sign free agents to long-term, front-loaded contracts. As we’ve followed all summer, similar long-term, front-loaded deals to stars such as Chris Pronger and Marian Hossa went unpunished by the league, even after they investigated and decided on new guidelines.
The Blackhawks and Flyers (among others) were grandfathered in despite breaking the rules that didn’t exist. Long-term, front-loaded deals were allowed according to the Collective Bargaining Agreement due to a loophole that took the average salary across the length of a contract as the team’s cap hit.
It seems rejecting the contract and forcing the team to re-work the deal was punishment enough. It forced the Devils to work around a bigger cap hit, throwing a wrench in their cap blueprint for the next, say, 17 years or so. But, the NHL elected to punish the team twice for the same crime (which, again, wasn’t actually illegal to begin with).
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- A's Exercise Option on Manager Bob Geren's Contract for 2011
- Former MLBPA Exec Director Donald Fehr to Accept NHLPA Exec Dir. Position
- Astros Promo to Attempt World Record for "Largest Harmonica Ensemble"
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter ]]>
The old system of determining cap hit was to take the average salary throughout the duration of the contract. Just reading those words you can see what NHL officials didn’t: teams will sign long-term deals to reduce cap hits. And, though there was nothing in the Collective Bargaining Agreement against the original 17-year, $102 million deal, the NHL rejected it and had their rejection upheld.
As we know, Kovy and the Devils aren’t the first to give this a go. The Chicago Blackhawks’ forward Marian Hossa, the Vancouver Canucks’ goalie Roberto Luongo and the Boston Bruins’ forward Marc Savard all signed deals they never intended on playing out.
After the rejection of Kovalchuk’s first deal, we thought it would have two effects: ending future long-term, front-loaded deals and putting those of Hossa, Luongo etc. in jeopardy. It had neither effect. First, the Hossa-like deals will be grandfathered in. Second, When the NHL finally approved the new 15-year, $100 million deal, they came out with new guidelines for long-term deals. Those guidelines according to the Associated Press are:
The compensation for all seasons that do not include or succeed the player’s 41st birthday will be totaled and divided by the number of those seasons to determine the annual average value. In all subsequent seasons, the team’s cap charge will be the actual compensation paid to the player in either that season or seasons.
For any long-term contract that averages more than $5.75 million for the three highest-compensation seasons, the salary cap value for any season in which the player is age 36, 37, 38, 39 and/or 40 shall be a minimum of $1 million.
Considering Kovalchuk’s contract was only different by two years and $2 million, it’s hard to see those rules doing a whole lot of deterring of front-loaded long-term deals for players pre-30, but post-30 players may have it tough. We’ll use two 2011 free agents as examples to demonstrate how the new rules affect superstars:
D Zdeno Chara – 33-years old – Chara may have taken the biggest hit. Chara is currently is making $7.5 million. Under the old system, he could have signed a deal that would have taken him into his mid-40s and topped out in the $10 million range in the first few years of the deal. Now, the Bruins won’t bother to sign him past 40, they’ll likely take him to 40 with a 6-year deal at $1 million for the final year or two of the deal. Six years isn’t bad for a current 33-year old, but since the team can’t stretch the deal out to lower the cap hit, he’s not going to see quite the pay day as he would have before.
F Alexander Semin – 26-years old – Semin may not be seen as quite the caliber of Kovalchuk, but he already makes $6 million and will be looking to be locked up for life. Whatever team signs Semin will stick to signing him until the age of 40 as it is no longer beneficial to sign past that age. That leaves said team with 13 years. If you sign him for the minimum final four years of $1 million, he could easily sign for $100 million and make $96 of that in the first nine years. That would make his salary in the first nine years at $10.7 million but cap hit in the $7.7 million range. I’m not saying Semin is worth $100 million over 13 years, but you can see how teams can still reduce their cap hit but not by as much.
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Revenues: Forbes vs. Leaked MLB Financial Docs
- Nationals’ Nyjer Morgan Suspended
- Alex Rodriguez's New Agent Reflects Changing Role of Player Representation
- Court Documents Show Los Angeles Dodgers Are Awash in Debt
Matthew Coller is a senior staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter ]]>
And just when we thought it was over….
June 30 the NHL fired team president Doug Moss. If the team’s sale was on course, then you’d think the league would have let Ice Edge Holdings fire the president. Red flags, anyone? Especially after Ice Edge CEO Anthony LeBlanc said he liked Moss’s work.
Then, in late July, the city of Glendale said Ice Edge no longer had exclusive negotiating rights. What happened in between, nobody seems to know. The city paid for the arena (Jobing.com arena) and paid $25 million to cover the Coyotes losses.
The deadline for the city of Glendale is Dec. 31 to get the team sold. Here in late August, enter: Mystery Buyer. The city’s efforts to sell the team have already been deplorable at best, now they won’t say who the next owner will be. Those who paid $25 million in debts to the NHL to keep the team must be thrilled that Owner X will save the franchise.
Here’s a snip from Phoenix Business Journal today:
“Details of the new ownership group are very limited, though Glendale and the NHL could announce details and developments soon, according to sources familiar with the situation. The ownership group has asked for the city and league to keep negotiations private. The new buyer would keep the Coyotes in Glendale and is not a household name. In addition, sources say progress on the purchase is serious and substantial.”
Since Ice Edge is now focusing on an ECHL club, the mystery person/people are on their own. One can’t help but think, if the team had only gone with Chicago sports mogul Jerry Reinsdorf from the beginning, they’d be under solid ownership by now. But, Reinsdorf wanted an out clause (and who can blame them). It’s hard to think the Coyotes will stay in Glendale. They’ll more likely end up with a city in debt and an arena being used for juniors tournaments.
Matthew Coller is a senior staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>These types of accomplishments are exactly why the NHLPA has named Fehr as its new executive director, according to an AOL Fanhouse report (though the NHLPA has yet to confirm). In late June, The Hockey News’ Ken Campbell discussed the Fehr Effect , he wrote:
“First, he essentially had the agents eating out of his hand when he addressed them in March. Then he blew away the executive committee – which consists of each of the 30 player representatives and holds the balance of power – in urging the players to approve the five percent growth factor for next season’s salary cap and to extend the current CBA to the summer of 2012. He was also on hand when the league’s competition committee met recently to discuss head shots and was – to his credit – completely silent. One person who attended the meeting said it was the first time it seemed the players were free to speak in their own interests instead of acting as extensions of the NHLPA.”
NHL deputy commissioner Bill Daly asks us to keep our eyes on the ultimate prize of avoiding a work stoppage,
"Look, I'm not looking forward to Armageddon, that's for sure," said Daly. "The sport will be well served by dealing with its issues in a reasonable, insightful way, through the negotiation process, and that's what we're looking to do."
Clearly, leadership is going to be an important step forward," said Daly. "They've been without a leader and working by committee for a year. Clearly, it's not as quick, efficient and effective as it otherwise might be. We're looking forward to that decision being made and that position being filled."
Either way, a man as smart and talented as Fehr must understand the importance of avoiding a stoppage, we can only hope that all involved find a way. Biz of Hockey will be watching NHLPA developments closely as we approach the end of the CBA agreement in Sept. 2012.
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Leaked Tampa Bay Rays Docs Make Case for Revenue-Sharing, New Ballpark
- PODCAST: Maury Brown On "The King David Show" Talking Leaked Tampa Bay Rays Documents
- Baseball Winter Meetings Return to Nashville for 2012
- Kobritz: Gov. Paterson In Suicide Squeeze Over Yankees Tickets
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected]
]]>
The President of the United States wore FDNY on his cap. The way we viewed the people who work every day to make our lives safer changed. We no longer took firemen, police and ambulance workers for granted. On Sept. 11, 2001, we learned what a hero really is.
That day, John Feal lost half of his foot. Thousands of pounds of steel crashed down, leaving Feal in the hospital for months. He beat gangrene and won the battle for his life, but was thrown into financial warfare. He defeated that too, but knew many of his fellow injured responders were on the same battlefield. So, Feal decided to help. He started the Fealgood Foundation to provide financial assistance to 9/11 responders and their families.
“I started out selling T-shirts over the internet,” Feal said in a gruff Long Island accent. “I have raised over $250,000, which sounds like a lot, but it really isn’t when you think about these people’s needs."
Feal’s plan extends beyond giving away money, the Fealgood Foundation lives up to its name. The foundation teamed up with the New York Islanders' “Charity of the Game” program to send struggling 9/11 responders to an Islanders game for free.
“These people are forever part of a fraternity,” Feal said. “9/11 responders need one day of not worrying about how their going to pay their bills. It (the Islanders game) gives them a chance to enjoy their family and enjoy each other.”
The Islanders began “Charity of the Game” four years ago with a handful of charities, they now have 41 - one for each home game. The team sells hundreds of tickets at a 45 percent discount, then the charity elects to either sell the tickets as a fundraiser or, as Feal did, give them to those they assist.
“You know, 9/11 didn’t end that day,” Feal said. “More than 7,000 responders are still being treated. Some have died. We have between eight and 12 widows (who are assisted by Fealgood Foundation), these people are still struggling. We gave gas cards to some people so they could afford to drive to the game.”
Fealgood Foundation raised near $2,000 during the game with a 50/50 raffle, were featured on the Jumbotron and Feal was given stick signed by Islanders’ players to auction off.
Stories like Feal’s happen every night at Nassau Coliseum. The Islanders employ a 12 person team to handle sales and create a unique experience for each charity.
“Each charity tells their own story every day, “director of group sales Rose Barre said. “While these charities bring their organizations out to support the Islanders, our goal is to help them continue to tell their story through our Charity of the Game program. We tailor each program to fit their mission.”
The standard package includes a concourse table to promote the featured organization, the Islanders community Events Tour (ICE) at an event upon request, a formed partnership to ensure the charity receive donation items.
Other charities who partake in “Charity of the Game” include Autism Speaks, Musella Foundation, Wounded Warriors, Chabad of West Hempstead, American Red Cross, Knights of Columbus, Fealgood Foundation, Histiocytosis Foundaiton and the John Theissen Foundation.
“Each of the charities motives differ,” Barre said. “Some will purchase the tickets as a way to provide an opportunity to their families. This supports the Fealgood Foundation's mission. Some organizations enjoy the exclusive Charity of the Game partnership and exposure with the Islanders.”
The tickets, the hot dogs and rooting hard for "the beloved Islanders," Feal says, is what was most important to his organization.
“I would never sell those tickets, I don’t really know about the recognition we got from it and we didn’t earn a ton of money or anything like that, but I know I would never take that away," Feal said. "I’ve gone to a lot of funerals and held a man’s hand while he died, trust me every one of them is a hero.”
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Leaked Documents Show Rare Look at the Finances of Texas Rangers
- NESN Announces New Series Following Sports Figures "After the Game"
- Study Finds Independent Bloggers "Least Trusted", Likely Denied Press Credentials in Baseball
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected]
“We want to thank Arbitrator Bloch for his prompt resolution of a complex issue. His ruling is consistent with the League’s view of the manner in which the Collective Bargaining Agreement should deal with contracts that circumvent the Salary Cap.”
Storyline 1: So, now what? Well, the NHL can fine the New Jersey Devils up to $5 million and punish them via taking away draft picks, but that is unlikely. They can also fine Kovalchuk, but neither of those options would make much sense.
Storyline 2: How will this affect future contracts? Plenty of super-stars are unrestricted free agents after next season including Joe Thornton, Zdeno Chara and Zach Parise. The Kovalchuk decision means these guys will have to play by the rules. What is unclear is what those rules are. General managers will want to sign these big-name players to long term contracts, but now the ambiguity begins. How long-term is too long-term, how front-loaded is too front-loaded? Are we going to end up with 10 contracts going in front of an arbiter next off-season? The can of worms is officially opened.
Storyline 3: Did the NHLPA blow this on purpose? This one might have been like missing a 3-foot gimme put so you don’t beat your boss. There could be several lines of thinking here: A. If we let the NHL have this one, they’ll be easier to deal with come CBA time. B. If we win this, several players are going to take a ton of money away from average players. The NHLPA released a statement today saying they were disappointed and had no further comment. Doesn't sound that riled up to me.
Storyline 4: Will the Devils still sign Kovalchuk? USA Today reported that Devils GM Lou Lamoriello said the team will “do everything possible” to sign Kovy. That could be pretty tough because the Devils only have $3.7 million in cap space according to CapGeek.com.
Storyline 5: Will the NHL overrule other long-term front-loaded deals? ProHockey Talk reported that NHL Senior VP of public relations Gary Meagher confirmed that the league is “looking at” the long-term contracts of Marian Hossa, Chris Pronger, Roberto Loungo and Marc Savard. The Bruins and Canucks said they would cooperate, but the flyers were not so thrilled, saying that Pronger’s contract is structured differently and is compliant. If anything is clear, it’s that things are about to get hairy.
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Kobritz: WADA May Ban Caffeine as "Performance-Enhancer"
- Texas Rangers Ticket Sales Up 41,900 Compared to Last Season
- San Francisco Giants Battle with the A's Over What Wasn't Theirs in the First Place
- Atlanta Braves Attendance Up 10 % Over Last Season
- Los Angeles Dodgers Extend Partnership with Single-A Loons
- Maury Brown Answers Questions on the Texas Rangers Auction, What's In Store
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected] This e-mail address is being protected from spambots. You need JavaScript enabled to view it and can be followed on Twitter
]]>To channel my inner Joe Pesci: exploited how? The Blackhawks knew all along they would have been at least $10 million over the 2010-11 cap, so Bowman chose gamble, knowing he’d have to trade players such as Dustin Byfuglien and Kris Versteeg immediately after the cup was raised. Fortunately for Bowman, Byfuglien and Versteeg were the ones doing the raising.
But Bowman’s plan goes deeper than a post-season fire sale. The GM battled with the agents of stars Toews, Kane and Duncan Keith over nickels and dimes in negotiating long-term deals for all three. Eventually the deals were all worked out and announced on Dec. 3, 2009.
As Bowman carefully carved up the cap, the Blackhawks’ coach Joel Quenneville was left in the dark. "I didn't want to take away any focus from Joel's job, which he did masterfully," Bowman said. "Then when it was time to bring him into it, he was understanding."
We’re not sure how understanding Quenneville was when the ‘Hawks walked away from an arbitration ruling to re-sign cup-winning goalie Antti Niemi. But options were limited, partially due to the San Jose Sharks. Sharks’ GM Doug Wilson offered restricted free-agent defenseman Niklas Hjalmarsson a four-year, $14 million offer sheet which forced Bowman to commit $3.5 million to Hjalmarsson one year before he planned. Wilson claimed he was trying to replace Rob Blake, but Bowman suspected the Sharks of forcing Chicago into a decision between the young defenseman and Niemi.
Bowman isn’t out of the woods yet. He’s filled most of the open spots, but will still have to deal with ridiculous Christobal Huet and Brian Campbell contracts.
"People ask are you enjoying the Cup?" Bowman said. "In time I will. But because of all we've had to do, I haven't really enjoyed it, per se. Ever since we went back to work that following Monday, it has been a mad dash."
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- San Francisco Giants Battle with the A's Over What Wasn't Theirs in the First Place
- Atlanta Braves Attendance Up 10 % Over Last Season
- Los Angeles Dodgers Extend Partnership with Single-A Loons
- Maury Brown Answers Questions on the Texas Rangers Auction, What's In Store
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected] This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it and can be followed on Twitter
]]>"TSN Insider Darren Dreger explains that the deal was rejected due to the fact that the NHL does not believe that either Kovalchuk nor the Devils expected the 2004 Rocket Richard trophy winner would be playing near end of the contract and that it is a case of artificially lowering the annual average value of the contract. The Devils must now either file the contract once again or the Players' Association can file a grievance.
Should the NHLPA decide to file a grievance, the contract would remain dead until an arbitrator determines otherwise."
As I wrote on Biz of Hockey yesterday, the deal beyond ridiculous, especially because Kovalchuk will earn more than 95 percent in the first 11 years, but in an earmark of ridiculousness that makes the scoring system and Southern expansion look ingenious, Betteman is cutting down essentially the same contract he allowed for other NHL stars.
Marian Hossa would have to play into his early 40s as would Chris Pronger, both at less than $1 million if they played out their entire contracts. Likelihood of that is equal to the chance Tom Hicks is given a statue in Dallas.
Admittedly, the NHL warned teams to quit with the front-loaded long-term deals, but now comes the fuzzy part: How long is too long-term? How front-loaded is too front-loaded? Every area of the rejected contract is a gray area. Will others like Joe Thornton try a front-loaded long-term deal, but not so front-loaded as Kovalchuk? My guess is that they sure will, especially if the NHLPA wins a grievance (which has a fair chance because nothing the Devils did violates the collective bargaining agreement).
If you call a foul on Kobe on one end, you’ve got to blow the whistle on Garnett and if you don’t, then you can’t. Betteman essentially said some may and some may not have front-loaded long-term contracts. Now just disallow NHLers in the next Olympics, bring a team to Mexico City and Betteman’s all set.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected] This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it or followed on Twitter
Donald, meet Gary. Gary meet Donald. Now, you two meet Ilya and Lou. Donald, meet Gary, Lou and Ilya. Now guys, work this nonsense out.
Let’s start in July, 2009. ESPN.com’s Scott Burnside reports the NHL is “concerned” with front-loaded long-term contracts. Marian Hossa signed a 12-year deal with the Blackhawks paying him $7.9 million for the first seven years and $1 million for the final four.
Makes sense, right? He won’t be very good 11 years from now, so why should he make top dollar? Hossa will be 42-years old by then and won’t be able to score on a high schooler, and nor will he have the chance to. Hossa won’t see 42 in the NHL, in fact, near one percent make it past 38, but what will happen is his cap hit will be reduced to $5.275 million and he’ll still make $7.9 million assuming he retires by age 37.
An NHL executive told Burnside the contract makes sense because 40-year olds never make much more than $1 million, so all is fair. Yeah, and I’ll sell you my magic hat and golden-egg-laying goose.
Hossa was not alone in July, 2009. Chris Pronger’s monster contract beings at $7.6 million and ends just above the league minimum. Huh, Great minds?
Well, if they think alike, then so does another great mind: Lou “ca Brasi” Lamoriello. The Devils GM Lou Lamoriello wasn’t concerned with bad blood over signing superstar Ilya Kovalchuk to another Lou-dacris contract. Kovalchuk signed with the Devils for $100 million over 17-years. Kovy, 27, will peak at $11.5 million, yet earn just over $3 million in the final six years of his contract. Years he’s more likely to be Yachting than skating.
If Kovy plays until 2021, he’ll be 38-years old and have earned 96.5 million of the $100 agreed upon. Yet, his team will take significantly less in a cap hit. Textbook loophole: The CBA says the cap hit will be the average of the total contract. And nobody saw front-loaded long-term contracts coming?
Don’t worry, NHL commissioner Gary Betteman warned everyone to play nice. The Minnesota Wild did with Mikko Koivu’s contract. He’s got a $6.75 cap hit for seven years, Kovalchuk has only $6 million for 17 years.
The worst part is this can’t be corrected until the next collective bargaining agreement, which will likely feature ace-in-the-hole Donald Fehr, who may argue with the same “who, us?” tactics as owners and GMs. The NHLPA wants its players paid, the GMs don’t want the cap hit, but the commish is calling shenanigans.
But, just in case, big-name unrestricted free agents of next year will be waiting with bated breath for their day to come. These front-loaders are likely to be grandfathered in after the next CBA, which was extended for another year. Stars like Brad Richards, Zdeno Chara and Joe Thornton will all have their shot at a 29-year, $300 million contract with $297 million in the first 6 years. Currently Richards’ cap hit is $7.8 million, but odds are his salary goes up, but cap hit goes down. What a mess.
Keep investigating, Gary. But, at this point, there’s nothing the league can do but watch.
Here's the complete breakdown of Kovalchuk's contract via the Star Tribune:
2010-2011: $6 million
2011-2012: $6 million
2012-2013: $11.5 million
2013-2014: $11.5 million
2014-2015: $11.5 million
2015-2016: $11.5 million
2016-2017: $11.5 million
2017-2018: $10.5 million
2018-2019: $8.5 million
2019-2020: $6.5 million
2020-2021: $3.5 million
2021-2022: $750,000
2022-2023: $550,000
2023-2024: $550,000
2024-2025: $550,000
2025-2026: $550,000
2026-2027: $550,000
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Three Minor League Players Suspended for Violation of Drug Policy
- Survey Finds Yankees SS Derek Jeter MLB's Most Marketable Player
- LWIB: George Steinbrenner’s Legacy, MLB Debuts in 3D, Plus Weekly Tidbits
- Rangers Ballpark Lease In Limbo After Bank Files Lawsuit Against Hicks Sports Group
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected] This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it or followed on Twitter
The Hockey News columnist Ken Campbell reported this morning that Tom Hicks (who is also wrapped up in a messy bankruptcy and sale of the Texas Rangers as highly covered on Biz of Baseball) will sell the team despite his original $350 million asking price (the team is worth $247 million according to Forbes.) Campbell only says that THN “learned” of an “agreement in principle,” but does not say how. Sounds like Report-a-Bron Syndrome, huh.
No problem if Campbell’s right, but those who cover the Dallas Stars are calling shenanigans. Mike Heika of Dallas News says he talked to two sources who say the report is inaccurate. Heika said in his Stars Blog, “They say the sale process is ongoing and that Gallacher is a candidate to buy the team, but that they have not gotten as far in the process of agreeing to a price with any buyer. One said the reported price was too low.”
Former ProHockey Talk editor Brandon Worley was just plain puzzled by the conflict. Worley tweeted: “Ok...it seems that the THN report may be grossly inaccurate. Which is....odd, to say the least.” And then 40 minutes later: “I just can't see how Campbell would write a report that is this....off. Something isn't adding up.”
Stars fans probably feel like they’re in “Bill and Ted’s Excellent Adventure” and have been warped through time to Cleveland. Since Hicks ran into money problems, they have run into winning problems. The Stars have missed the playoffs for two straight seasons (in a league where everyone with a functioning Zamboni makes the playoffs) and as of right now have $13.3 million in cap space. Stars fans would give Brett Hull’s Cup ring for a new owner.
Don’t start thinking Mark Cuban. Heika said he contacted Cuban and the spunky, tight-T-shirted Mavericks owner wasn’t even giving Stars ownership a shot. That’s LeBron to Miami. Any franchise would love an owner with Cuban’s passion for winning. However, even if he was interested, Cuban was turned down for a minority ownership spot with the Pittsburgh Penguins by the NHL Board of Governors last year, so if they won’t let him sit in the dark for the Pens, they aren’t going to let him bang the glass for the Stars.
One person begging for Campbell’s report to come to fruition is Stars GM Joe Nieuwendyk, who is probably spending his days making paper airplanes while waiting on an ownership change. Only then will Nieuwendyk be able to start improving the Stars.
The obvious question is if not Gallacher then who? But, the lingering question is: If Campbell’s report isn’t true, who can fans follow for Stars sale information? At least Stephen A. Smith had Bron-Bron going to South Beach. Campbell is one of the most respected in the business, so for his sake and that of Stars fans, hopefully Gallacher buy the team.
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- MLB, MLBPA, White House to Announce "Let's Move" Initiative on Tues.
- PDATE: Judge Grants Emergency Hearing to Reconsider Bid Procedures of Texas Rangers Auction
- Two Washington Nationals Prospects, 2 others, Suspended For Being in Violation of Drug Policy
- MLB Deems 2010 All-Star Game Festivities a Success
- Kobritz: The Boss' Legacy
- At the All-Star Game: TV Ratings Worst Ever for 2010 Game
- Transaction Action: Braves and Blue Jays Swap Shortstops in Five Player Deal
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected] This e-mail address is being protected from spambots. You need JavaScript enabled to view it or followed on Twitter
Burke, the general manager of the Toronto Maple Leafs, lost his son Brendan in a car accident just months after he revealed that he was gay. Last week Burke marched in a gay pride parade in Toronto. The intention was to show respect, the result was good conversation.
National Post writer Bruce Arthur told Brendan’s story from his family’s perspective. Homosexuals are denigrated and dehumanized in sports communities, take the Blackhawks’ locker room white board during the Stanley Cup for example: Next to Chris Pronger’s name read, “is gay.” Arthur made the issue human. Here’s an excerpt:
Two months earlier Brendan had revealed to the world that he was gay. A student manager for the hockey team at Miami University in Ohio, he took up the mantle for tolerance in sports, agreeing to come out publicly in an article on ESPN.com. When he had come out to his father a year earlier — his bluff, macho, tough, Irish Catholic father — Burke didn't have to take a breath and wonder what to say. "This won't change anything," he told his son.
Burke said he didn’t think there was anything heroic about being there for then and honoring his son now. Indeed. But Burke’s openness in allowing the media to cover his story, to allow his to affect lives of gay athletes and the parents of gay athletes is heroic. In 2005, NBC hired Penn, Schoen & Berland Associates to study how the public views gay athletes. The study found that 68 percent of near 1,000 surveyed said it would hurt an athlete’s career to be openly gay. Brendan Burke wasn’t an athlete, he was a student manager of the Miami University in Ohio men’s hockey team, but his father’s prominent position in sports gave a voice to sports writers, athletes, executives and fans to ask: “Is enough being said? Is enough being done?”
John Fischer, who runs a New Jersey Devils blog, wrote that fans should take it as a responsibility to work to combat bigotry. In the NBC study, nearly half said that America needs an open discussion on homosexuality and sports, yet until now, at least in hockey, there’s only been silence. Fischer, who generally asks fans their favorite Devils player, finds himself asking strong rhetorical questions:
Why would a gay person want to play the game if the banter in the locker room is disparaging of homosexuals, as if same-sex relations are a bad thing? How can anyone at any level of the game at any position on any team possibly think about coming out of the closet if being gay is the subject of derision and insult?
Here’s another rhetorical questions: Would we be asking these questions without Brendan and Brian Burke’s story?
Another hockey writer Derek Zona of Copper & Blue wrote about persisting homophobia in hockey. Zona responded to anti-gay e-mails in response to a story written about Burke. The conversation continued with Zona’s cause and effect of homophobia on individual athletes:
The anti-gay culture is pervasive throughout all levels of hockey and it's not likely to change any time soon without a giant push in the right direction from the NHL. There are still over 15,000 near-adults playing higher-level amateur hockey in North America. Of those, some 3,500 are playing Major Junior or NCAA Hockey. As sure as Brian Burke is that there are gay men in professional hockey, I'm sure that there are many times that number in the amateur ranks. Yet these kids are left on their own, far from home, far from any support system, invariably alone, a gay kid playing a sport in which gay men are reviled, living in fear of being discovered. There is nowhere to go, no one to talk to, and nowhere to turn but inside themselves, and that loneliness and fear almost certainly impacts their on-ice performance and, to a greater extent, their careers.
The NBC study found that 42 percent said if ESPN created a television special on the accomplishments of gay athletes, viewers would be enraged. Only 22 percent said people wouldn’t be enraged. The story of Brendan and Brian Burke may have enraged 42 percent, but it also brought it to light for those who had never considered the struggles of homosexuals in sports.
Martin Luther King Jr. said “An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity.”
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Two Yankees Prospects, Plus 3 Others Suspended for PEDs
- Minor League Baseball Sees Nearly a Million More Fans through June Over Last Year
- Fan Falls 30 ft. from 200 Level Reaching for Foul Ball at Texas Rangers Game
- Selig Pleased Texas Rangers Auction Will Respect MLB's Right to Choose Owner
- While Risky, Opening Up Bidding For Texas Rangers Should Assist Greenberg-Ryan Group
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at [email protected] or followed on Twitter
]]>
While Taylor Hall and Tyler Seguin may have headlined the 2010 NHL draft class, an emerging underlying story from over this past weekend is the performance by the dozens of US-born players who were selected in this year’s draft and what it means for the popularity of hockey in the United States.
ESPN reports that, over the course of the draft, 59 Americans were selected from diverse states including Arizona, California, Connecticut, Florida, Illinois, Ohio, Pennsylvania, Missouri, Nevada, New Jersey and New York. Several highly rated players hailed from states such as Florida, Arizona and Nevada, proving that hockey is finally finding long-term support in non-traditional hockey markets.
Quality players across the nation are bridging the gap with hockey developmental programs in Canada and abroad, and NHL clubs have taken notice. "In the U.S. in general, there’s so many new pockets where hockey has caught on, so now it’s a whole new group of athletes, in California, Phoenix, places that weren't notoriously hockey places, producing some pretty good players now," Jay Heinbuck, the head of amateur scouting for the Penguins, said after the draft. As hockey’s grassroots popularity seems to be on the rise in the US, nobody is happier about the increase of American talent than NHL Commissioner Gary Bettman.
The NHL Commissioner has long maintained that hockey’s success hinges on developing a strong following within the US. In the 1990s, Bettman sought to cement his legacy as hockey’s savior by spearheading the league’s expansion into nontraditional hockey markets such as Arizona, Florida and other parts of the south. For years, these franchises struggled mightily, often lagging behind teams in traditional hockey markets in terms of fan support and team revenues. Several underperforming teams were forced to file for bankruptcy protection under Bettman’s watch, leading some to question Bettman’s NHL vision and whether he was the right man for the job.
While many people still second-guess Bettman’s decisions concerning expansion and his approach to labor relations, his vision of a hockey-crazed United States is slowly coming to fruition. Youth hockey is steadily gaining in popularity, and the number of Americans taken at the NHL entry draft is also increasing. Now Bettman needs the league to cash in on this increasing popularity.
Bettman must now harness the league’s expanding interest so that non-traditional hockey markets now support their local teams and find new partners to help pad the league’s finances. In addition, the NHL must cooperatively work with its players to further cultivate the league’s popularity and financial viability.
The NHL has been clawing back from irrelevance towards respectability ever since it lost an entire season to a labor dispute back in 2004 and arguably lost its spot as one of the nation’s top sports. Since the lockout, the league has taken steps to emerge as a leaner, more fan friendlier sport. This past weekend’s draft is more evidence that hockey is again on the rise and can be popular within the United States. However, Bettman must nurture this progress and avoid at all costs another lockout or labor-related fiasco when the league squares off the NHLPA to negotiate a new collective bargaining agreement in 2012.
If Bettman can strike a new accord with the players while preserving hockey’s momentum and get on the same page with the union, the NHL could be poised for a new golden era both throughout North American and abroad.
Jeff Levine is a staff member of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is a sports attorney, and the Executive Director of One Sports and Entertainment, International.
For the Chicago Blackhawks, it all started with GM Dale Tallon being ousted after a fax-machine-folly cost the ‘Hawks to sign several unwanted long-term contracts. It ended with Tallon being sent a Stanley Cup ring. But, the mix up may cost Chicago in the long run. The league salary cap is expected to be around $59 million, the Blackhawks have $57 million wrapped up in 14 players. The Blackhawks’ cap space for 2009-10 was 0.336.
The fax machine problem wasn’t the only Tallon blunder that cost Chi-town long term. He is also responsible for two enormous contracts that have the Cup champs in a stranglehold. Cristobal Huet will make $5.625 million through 2011-12 and defenseman Brian Campbell is wrapped up until 2015-16 at the price of $7.140 million.
What will they do?
Campbell could be traded, but his price and long deal may scare away potential buyers. They could also deal center Patrick Sharp, who is scheduled to make $4.200 million next season, will be an unrestricted free agent after the 2011-12 season. This makes him a good candidate to be a cap-clearing victim via a trade. Defenseman Brent Sopel is in a similar boat being unrestricted after 2012 and making a decent pay check of $2.000 million.
The Blackhawks will likely lose center John Madden, who made $2.750 million during the team’s championship season, but he’s one in a very short list that can leave without a trade. The only other unrestricted free agents this off-season are Adam Burish, Kim Johnsson and Nick Boynton.
Restricted free agents are far more plentiful. The group also includes Andrew Ladd, Ben Eager, Bryan Bickell, Niklas Hjalmarsson and Jordan Hendry. Cup-winning goaltender Antti Niemi is also a restricted free agent. Niemi, who made $827,000 in 2009-10, is considered by many to be an average and replicable goalie, but his playoff victories have likely put him in position for a large pay day.
If Niemi gets the big bucks, what happens to Huet? Trade suitors are unlikely for a goalie who makes $5.625 million and was permanently benched mid-season, so the team is all but forced to send him to the AHL next season where his salary will not count against the cap.
Here’s how all Chicago’s players’ contracts play out (including players’ cap numbers):
Forwards:
Marian Hossa – Signed through 2020-21, making $7.900 million until 2015-16. 2010-11 Cap Number: $5.275
Patrick Sharp –Will make $4.200 million in 2011-12 then become unrestricted free agent. Cap Number: $3.900
Patrick Kane – Signed through 2014-15 making $6.500 in 2010-11. CN: $6.300
Dave Bolland - Will become unrestricted free agent after 2013-14 and will make $3.375 until then. CN: $3.375
Kris Versteeg – Will become restricted free agent after 2011-12 season making $3.083. CN: $3.067
Dustin Byfuglien - Will become restricted free agent after 2010-11 making $3.000. CN: $3.000
Jonathan Toews – Signed through 2014-15 making as much as $6.500. CN: $6.300
John Madden – Currently unrestricted free agent.
Andrew Ladd - Currently restricted free agent.
Tomas Kopecky – Signed through 2010-11 for $1.200. CN: $1.200
Troy Brouwer – Will become restricted free agent after 2011, will make $1.050. CN: $1.025
Ben Eager – Currently unrestricted free agent
Adam Burish – Currently unrestricted free agent
Colin Fraser – Currently unrestricted free agent
Defenseman:
Brian Campbell – Signed through 2015-16 making $7.140. CN: $7.143
Brent Seabrook – Signed through 2010-11 at $3.500, will become restricted free agent. CN: $3.500
Brent Sopel – Will make $2.000 in 2010-11 then become unrestricted free agent. CN: $2.333
Kim Johnsson – Currently unrestricted free agent
Duncan Keith – Signed through 2021-22, will make as much as $8.000. CN: $5.540
Niklas Hjalmarsson – Currently restricted free agent
Jordan Hendry – Currently restricted free agent
Cristobal Huet – Signed through 2011-12, will become unrestricted free agent. CN: $5.625
Antti Niemi – Currently restricted free agent
Total Cap Number for currently signed players: $57.6 million
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- LWIB: Updates on Texas Rangers Bankruptcy, the Rule 4 Draft, Plus Tidbits
- "The Strasburg Tracker" Being Updated Live During Game Against Indians
- As Hearing Approaches, Focus on Texas Rangers Sale Centers Around "Better Offer"
- Peanuts to Celebrate 60th Anniversary At MLB Ballparks
- Bloomberg Releases iPhone, iPod Touch App for Baseball Analytics
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>
One of hockey’s most polarizing figures, former Buffalo Sabres and New York Islanders coach Ted Nolan, spoke to PuckLife Magazine last week on racism and his departure from the NHL. Less than a week later, Nolan says he regrets being so candid.
In an interview with Biz of Hockey’s Matthew Coller on “The Blue Line Show” on SportsRadio 950 ESPN in Rochester, NY, Nolan said he was too honest about racism in the PuckLife interview, but still believes racism exists in the NHL. Nolan also said he wants back in to the NHL.
Select READ MORE to see the full transcript of the interview
]]>In July 2007, Madison Square Garden, who owns the New York Rangers and Hartford Wolfpack, made the company Northland AEG LLC responsible for day-to-day operations which include marketing, sponsorship and ticket sales. Of course, the Rangers are still responsible for on-ice decisions such as coaching and player movement. The problem? The team averages close to 4,300 fans per game in an arena which holds around 15,000.
Usually when a company owns a team, they own the arena. So, assuming MSG owns the Civic Center in Hartford, it seems that using the same arena that books such major musical acts as Justin Bieber and Black Eyed Peas to book 40 dates that draw 4,300 doesn’t make sense financially.
Also, paying a company to handle the selling of tickets when the team doesn’t draw doesn’t make much sense either. If the Rangers moved to Rochester, owners Curt Styres and Lewis Staats would handle such things at presumably no additional cost. Attendance would then become their problem. It was reported earlier this season that to break even, the Americans had to draw more than 5,000 per game. If the same was true for the Wolfpack, the Rangers were losing money that they wouldn’t lose with Rochester (or any other separately owned affiliate).
Things might get fishy when negotiating the handling of veteran players. Last season, the Americans expected their parent club to foot the bill for veteran players such as former New York Islander Mike York. The Panthers elected not to do so though Americans ownership claimed there was a verbal agreement. Whether the Rangers would be willing to pay for veterans will likely be a point of contention in negotiations.
The Rangers can offer higher attendance for the Americans, who have seen their numbers drop from near 7,500 in 2007 to less than 4,500 this season. The attendance drop is thought to be much due to the departure of the Buffalo Sabres as a parent club. The Americans can offer a lot less liability.
Some have questioned if the location of Hartford could keep the Rangers from Rochester. Yes, costs of travel do add up, but this is very rarely a deal breaker. The Buffalo Sabres, for example, moved their AHL club from Rochester, NY (45 minutes from Buffalo) to Portland, Maine and recently signed an extention. Rochester is around six hours away. If a team elected to call up a player around morning skate time (10 a.m. or so) the player would be in New York City well before the puck dropped.
The Rochester Americans did not return phone calls concerning the possible switch.
- Breaking Down The Texas Rangers Move Into Voluntary Bankruptcy
- Texas Rangers Voluntarily Go Into Chapter 11 Bankruptcy to Finish Sale to Greenberg/Ryan Group
- LWIB: Player Evaluation, Progressive Field, MLBAM, Bloomberg Analytics, Portland Beavers, More
- Drayton McLane, Tal Smith, Frank McCourt Mourn the Passing of Jose Lima
- "At the Ballpark" Functionality Coming to "At Bat 2010" By All-Star Game
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter ]]>
While many NHL franchises have struggled to make money, seeing poor attendance and major losses, the intensity and quality of the NHL Stanley Cup Playoffs has given an enormous boost to the league’s popularity and pocketbook.
Business not as usual:
New league partners Gieco, Starwood Hotels, Enterprise Rent-A-Car, LG Electronics and Hershey’s Canada have added up to a 20 percent raise in corporate sponsorship of the NHL. Additionally, ad spending on NHL media increased by 37 percent and NHL.com ad revenue is up 50 percent over the last year, according to a league press release.
Web accomplishments also include 32 percent more unique visitors, 25 percent more NHL Game Center Live subscriptions and a 12 percent increase in sales at Shop.NHL.com. NHL Mobile also reached 1.6 million. The NHL’s use of video on NHL.com is also paying off, seeing a 153 percent boost from last year.
TV Highlight reel:
-Between NBC and Versus, the Stanley Cup Playoffs have averaged 742,000 viewers, the most since 2000 and a 24 percent increase from last year.
-The average 1.04 million viewers for Versus’ coverage of the Conference Semifinal surpassed all other playoff series’ dating back to 1994.
-TSN set a record for the most watched NHL game ever that did not involve a Canadian team. The 2.1 million audience wasn’t a shock considering TSN’s average audience was up 61 percent from last year, from 681,000 to 1.1 million viewers. The game also brought in an 11.7 rating on Comcast Philadelphia, making it the most watched Flyers game on the network.
-Game 1 of the Blackhawks-Sharks series earned an 11.2 local rating in Chicago, beating the Cubs, White Sox and NBA Playoffs Boston-Orlando series.
-Game 2 of the Detroit Red Wings-San Jose Sharks series averaged 1.77 million viewers, making it Versus’ most-watched Conference Semifinal game in network history and the most-watched second-round game since 2000.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>
ESPN’s Scott Burnside is reporting that the City of Glendale and the Ice Edge Holdings group have agreed on all points on a new lease agreement that would keep the Phoenix Coyotes in Arizona. Ice Edge and the city are expected to sign an agreement on a memorandum of understanding that gives the group exclusive negotiating rights. If the city meets the NHL’s requirements, which include paying back the $20-$30 million in losses the league eat after taking over the team, it could take up to eight weeks to complete the sale of the team to Ice Edge.
As Biz of Hockey reported Friday, the city’s deal with the Reinsdorf Group collapsed, possibly because the group may not have been committed to keeping the team in Glendale. The city originally raised concerns about Ice Edge’s ability to pay.
"Ice Edge continues to believe in the future of hockey in the valley," the group said in a statement released Saturday. "We have held several discussions with the city of Glendale over the past few days, and those discussions continue through the weekend."
Here’s a timeline over the past two months Phoenix Coyotes sale saga:
April 7:
Arizona Legislature puts forward a bill that would allow for community facilities districts in the state to establish a reserve fund against bonds they take out. The bill allows for bonding against property tax revenue in the designated area, which would help in working out a lease between Reinsdorf or Ice Edge.
April 8:
Phoenix Business Journal reports that Ice Edge COO Daryl Jones says the group is “frustrated.” Jones wants the city to publicly disclose difference in least and sale proposals by Ice Edge and Reinsdorf. He also said the frustration stems from the city’s changes to previous agreements related to the lease, but hopes the group can still move forward in its bid.
April 9:
Glendale signs preliminary lease deals with Reinsdorf and Ice Edge and releases the proposed terms of those deals. Major differences include Ice Edge’s desire to play games in Canada and Reinsdorf’s potential opt-out clause.
April 12:
Ice Edge writes a letter appealing to the residents of Glendale pleading for the city to reconsider. In the letter, Ice Edge wrote:
“No one is paying us to do this. We are simply passionate hockey fans who believe in the long term future of Glendale and its hockey team. This is not about creating a business option for ourselves, but rather it is about developing a successful business plan to enable the Coyotes to succeed long term. While the pundits have consistently doubted us, we have continued to prevail at every turn.”
The letter also includes highlights of the Memorandum of Understanding between the group and the city noting that the group will not relocate and plans to play games in Canada.
April 14:
Glendale chooses the Reinsdorf Group over Ice Edge Holdings, approving the preliminary agreement. The agreement would include the group buying the team for $103 million while the city would create a special bond district around the arena that would take out bonds against the property tax revenue. The bonds would be used to pay the NHL $65 million.
April 14:
Goldwater Institute, a group that tracks public subsadies to private corporations, says the Reinsdorf Group places too much burden on Glendale taxpayers. “He really seems to have insulated himself completely from financial ability,” Goldwater lawyer Carrie Ann Sitren said.
May 4:
Commissioner Gary Bettman says Reinsdorf owning the Coyotes will be “great for the league.”
May 7:
Phoenix Business Journal reports that Ice Edge might still be in the mix as a backup plan and that another suitor may have emerged. True North Sports & Entertainment Ltd. Of Winnipeg issues a statement saying:
“While we understand the current situation with the hockey team in Glendale is an uncertain one, we will continue to respect the efforts of all parties involved to maintain the Coyotes in Arizona, including those of the National Hockey League. As we have stated many times in the past, if that situation changes, we are certainly open to reviewing the opportunity with the NHL,”
May 7:
The Reinsdorf Group is reported to be dead as the city is making attempts to bring Ice Edge back into the picture.
May 8:
Ice Edge Group and Glendale reported to be near an agreement to purchase the team almost a month after the city initially rejected the Ice Edge proposal.
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- LWIB: MASSIVE MLB Report - Manfred, Cubs, Reinsdorf, Beavers, Bryce Harper, Ratings on FOX
- The Gloves Come Off....
- MLB Attendance Through April, Early May Down 2%
- MLB Launches Initiatives to Deal with PEDs, Age Falsification in Dominican Republic
- Will MLB Seize Control of the Texas Rangers Today?
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
Follow the Business of Sports Network on Facebook
]]>
Biz of Hockey had a chance to chat with Paul Kukla:
Matthew Coller:
How did you come up with the idea to start Kukla's Korner? What were you doing before?
Paul Kukla:
I started Kukla's Korner after a friend suggested I start blogging about the CBA lockout since hockey fans in Detroit were not receiving much news on the status of the lockout. It was as simple as that, no five year business plan, just dove in head first and began providing information to readers. Before I started blogging, I was selling air time to advertisers for a major radio station in Detroit.
MC:
How did you get hooked up with NHL.com?
PK:
Out of blue, I received an email from them about four months after I started the blog. I made sure it was real, answered their request to see if I was interested in doing a weekly blog for them and the rest is history.
MC:
I've heard you say that you don't consider yourself a journalist, why not? Do you consider your resident bloggers journalists?
PK:
In my opinion, you have to have the training/schooling to be considered a journalist. I've witnessed the real journalists work and believe me, I am not one of them. I am just a hockey fan who happens to write about the sport I love. I consider it the perfect job and hope to continue to do what I do until I decide to stop.
The folks who have their own blogs at Kukla's Korner are first off hockey fans. Some have more talent than others when it comes to writing and one blogger may actually have a writing background, but I won't divulge who it is. Let the readers decide.
MC:
That’s right, you have quite a few contributors to your site, talk about their role in running a blog full time.
PK
It is very simple, they write when they want to write. Some do more writing than others, most have a regular job or attend school, so at times it is difficult for them to find the time to get into their blog. I don't edit their posts, don't tell them what or what not to write, but did give them some guidelines when they first came on board.
The bloggers really do not do any of the running of the website. I had an assistant for some time, but then a baby was due, then born, so hopefully next season, the assistant can assist again, but I sure do miss her now.
MC:
Do you think bloggers should be allowed in locker rooms and press boxes?
PK:
I feel it is a decision that should be made on the team level. There should be a set of rules for bloggers and if that criteria is met, then they should be welcomed in the locker room. But I find many of the bloggers really do not have a desire to enter the locker room. They are happy with just writing about the team, the sport or anything they want to write about.
MC:
What types of things have you done to expand Kukla's Korner from a simple blog to a legitimate news source? How did you achieve visibility?
PK:
What I have done from the start of my blogging career is the same I do today. I provide hockey fans the news I feel they would want to read about. All I do is point out the news to them, then they decide if they wish to 'read on' as I say. If it is considered a legitimate news source, that is fine with me, but I am not making the news. All I am doing is pointing it out or in simple terms making it easier for hockey fans to find.
MC:
The NHLPA is somewhat of a mess right now with no true leader, do you think Donald Fehr is the answer to all their problems?
PK:
Who knows. All I do know is the players want their fair slice of the pie and Donald Fehr is one person who may be able to get it for them. Hopefully the right choice is made and we all can move on. Our game does not need this type of issue to turn into a problem every year or so.
MC:
If you were negotiating the next CBA for the NHL owners what would be your No. 1 priority? What about the NHLPA?
PK:
I really don't follow all the negotiation talk, who wants what, etc. I try to focus on the game played on the ice, not in a boardroom.
MC:
You and I are huge hockey guys. My entire life it's always been: you're either a hockey person or not. That's clearly changing with boosts in ratings despite being on Versus. Does the growth of the game affect the way you choose news stories?
PK:
Not at all. The people who follow Kukla's Korner are mostly die-hard hockey fans. What numbers Versus does produce has no influence on those types of fans and therefore I don't view how Versus is looked at in the least bit.
MC:
I know you're a Detroit fan, they can't make it three trips to the cup in a row, right?
PK:
Yep. San Jose has had real problems with the Wings this season and there are matchup issues they must figure out to win this series. After that, it would be either Chicago or Vancouver and I give the Wings a very fair chance at winning that series too.
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Rules Changes Will See DH No Matter if AL or NL for MLB All-Star Game
- With Ryan Howard Deal, the Dominoes Will Fall for Record Pujols Contract
- MLB Network Lands Four Sports Emmy Awards
- Craftsman Inks Deal with MLB For Logoed Tools, Equipment
- Minor Leaguers Calero and Brito Suspended 50 Games for PEDs
- Philles Agree on 5-yr $125M Contract Extension with Ryan Howard
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter ]]>
The good news: 14 of the 22 U.S. teams with available ratings had more people watching local NHL broadcasts than last year. The bad: If you add up the bottom seven teams’ households, they still fall short of the Pittsburgh Penguins. The strange: The Buffalo Sabres, who missed the playoffs in 2008-09 had 18 percent less viewers on average in 2009-10 and the San Jose Sharks, who spent most of the season at No. 1 in the Western Conference (and finished first) also saw a significant drop (20 percent). Also in the strange department, the St. Louis Blues, who missed the playoffs, brought in 20.8 percent more viewers than last season.
Before we get to all the numbers, here’s a look at how the best and worst teams compare to other major league sports (other sports based on last season):
Here’s how the top rated teams stack up:
Pittsburgh Penguins rank 3rd for local rating in all sports behind the Boston Red Sox and Cleveland Cavs. They rank 13th in total households sandwiched between the Seattle Mariners and the Chicago Blackhawks.
Buffalo Sabres draw similar local ratings as the San Antonio Spurs and Minnesota Twins, ranking 8th overall among all major league sports teams. The mid-market Sabres rank 45th in the total households category, drawing similar amount of households as the Portland Trail Blazers and San Diego Padres.
Detroit Red Wings stand at 13th with a 4.21 local rating right behind the New York Yankees and in front of the Chicago Cubs. They rank behind the San Francisco Giants at 19th and in front of the Chicago White Sox.
Here’s how the bottom looks:
Florida Panthers are the worst team among all major sports teams that report ratings. Four of the bottom five in households in all professional sports are NHL franchises. The Charlotte Bobcats, who have the fourth least more than double the Panthers. In the rating share department, the New Jersey Nets stand just above the Panthers with a 0.29. In the Miami market, which is the 17th largest in the U.S., the Florida Marlins have more than 12 times the rating the Panthers have.
Western / Southern struggles. The Anaheim Ducks scored lower ratings than the Los Angeles Clippers in LA. In the Northern California area, the Warriors had more watching than the San Jose Sharks. The Phoenix Coyotes scored 2.56 lower than the Phoenix Suns on TV. The Thrashers scored 1.33 lower than the Atlanta Hawks.
*All numbers according to Sports Media Watch
Here's all the numbers from NHL Local Markets:
1. Pittsburgh Penguins (FS Pittsburgh) – 8.05 (Up 26.2%)
2. Buffalo Sabres (MSG Buffalo) – 6.45 (Down 19%)
3. Detroit Red Wings (FS Detroit) – 4.21 (Up 5.3%)
4. Chicago Blackhawks (CSN Chicago) – 2.45 (Up 131.1%)
5. St. Louis Blues (FS Midwest) – 2.33 (Up 21.4%)
T6. Boston Bruins (NESN) – 2.18 (Down 13.8%)
T6. Philadelphia Flyers (CSN Philadelphia) – 2.18 (Down 8.8%)
8. Minnesota Wild (FS North) – 1.67 (Down 27.4%)
9. Washington Capitals (CSN Mid-Atlantic) – 1.6 (Up 46.8%)
10. Colorado Avalanche (Altitude) – 1.56 (Up 13%)
11. Columbus Blue Jackets (FS Ohio) – 1.39 (Down 25.3%)
12. San Jose Sharks (CSN California) – 1.11 (Down 20.7%)
13. New York Rangers (MSG) – 0.89 (Down 18.3%)
14. Dallas Stars (FS Southwest) – 0.74 (Up 27.6%)
15. Phoenix Coyotes (FS Arizona) – 0.62 (Up 55%)
16. Tampa Bay Lightning (Sun Sports) – 0.60 (Up 27.7%)
17. New Jersey Devils (MSG Plus) – 0.58 (Up 48.7%)
18. Los Angeles Kings (FS West) – 0.48 (Up 50%)
19. Anaheim Ducks (Prime Ticket) – 0.42 (Up 50%)
20. New York Islanders (MSG Plus) – 0.36 (Up 100%)
21. Atlanta Thrashers (SportSouth) – 0.33 (Up 26.9%)
22. Florida Panthers (FS Florida) – 0.25 (Up 8.7%)
Households Watching
1. Pittsburgh Penguins – 93,000 (Up 25.7%)
2. Chicago Blackhawks – 86,000 (Up 132.4%)
3. Detroit Red Wings – 80,000 (Up 3.9%)
4. New York Rangers – 67,000 (Down 17.3%)
5. Philadelphia Flyers – 64,000 (Down 9.9%)
6. Boston Bruins – 53,000 (Down 13.1%)
7. New Jersey Devils – 43,000 (Up 48.3%)
8. Buffalo Sabres – 41,000 (Down 18%)
9. Washington Capitals – 37,000 (Up 48%)
T10. Minnesota Wild – 29,000 (Down 27.5%)
T10. St. Louis Blues – 29,000 (Up 20.8%)
12. San Jose Sharks – 28,000 (Down 20%)
T13. New York Islanders – 27,000 (Up 107.7%)
T13. Los Angeles Kings – 27,000 (Up 50%)
T15. Anaheim Ducks – 24,000 (Up 50%)
T15. Colorado Avalanche – 24,000 (Up 14.3%)
17. Dallas Stars – 19,000 (Up 35.7%)
18. Columbus Blue Jackets – 13,000 (Down 23.5%)
19. Phoenix Coyotes – 12,000 (Up 71.4%)
20. Tampa Bay Lightning – 11,000 (Up 22.2%)
21. Atlanta Thrashers – 8,000 (Up 33.3%)
22. Florida Panthers – 4,000 (Unchanged)
OTHER NEWS FROM THE BUSINESS OF SPORTS NETWORK
(THE BIZ OF BASEBALL)
- Bud Selig Appoints Dr. Charles Steinberg as his Senior Advisor for Public Affairs
- LWIB: Are the Blue Jays the Next Expos, Attendance Update, Is the NFL Arrogant, Plus Tidbits
- MLB Early Season Attendance Down 4% From Same Period in 2009
- It's a MLB.TV Free Weekend for iPhone, iPod Touch, and iPad Users
- MLB.TV Now Available on Sony PS3 in HD
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be followed on Twitter
]]>