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The Cost Of A Season

from Gregg Krupa of the Detroit News,

As players, owners and Bettman whittle down the time left for tactical maneuvers to the last two weeks, if a 48-game season is to begin in mid-January, both sides will consider whether the cost of losing a season is greater than the cost of making a deal. Saving the season may depend on whether the price tag of not doing so is greater than any financial advantage gained by more bargaining.

Simple arithmetic suggests the NHL will lose an additional $2.75 billion in revenue if it cancels the full season and the Stanley Cup playoffs.

That sum includes $2.2 billion based on the economic performance of the NHL last year.

The league also would lose $330 million in additional revenue due the owners, now that the players have essentially agreed to a 50-50 split of the pot.A considerable source of revenue is the lucrative, record-breaking television contract with NBC. A 10-year, $2 billion deal, now in its second year, helps finance the owners through the lockout, because it requires NBC to pay $200 million annually, regardless of a work stoppage.

But, if the season is canceled, the NHL must provide an additional season at the end of the contract, for free. Considering that the 2022-23 season is scheduled to be the first year of a next broadcasting agreement, the NHL likely risks losing even more than $200 million.

The value of sponsorships also is at risk during a lockout and ever more so if the season is canceled.


Filed in: NHL Talk, NHLPA, | KK Hockey | Permalink


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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

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