Kukla's Korner

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Where Does The Money Go?

from Tony Gallagher of the Vancouver Province,

It’s something a little bit harder to follow and a shade more substantial than usual today because hockey fans in Vancouver have the right to know where their money goes once it leaves their hands—and then gets wrenched out of the Aquilinis’ paws to help other teams try to beat the Canucks.

That’s right, we speak of revenue sharing here. And while fans know the rich Canadian clubs subsidize the lesser American teams, for the most part, we thought we would provide a little more detailed account of what happens.

At the end of the season the teams are ranked 1-30 in hockey-related revenue (HRR); Toronto is on top of course, with Montreal, Vancouver and the Rangers also in the top five. Surprise, Phoenix is at the bottom.

What’s included in HHR is an ongoing discussion between the NHL and the NHL Players Association, but if Ted Saskin did anything well in his brief tenure as NHLPA executive director, it was to get a lot of ancillary revenues included for the calculation of the salary cap when it came about.

continued

Filed in: NHL Teams, NHL Talk, NHL Business of Hockey, NHLPA, | KK Hockey | Permalink
 

Comments

J.J. from Kansas's avatar

Pretty informative piece that does a good job trying to simplify down what is a very complex process, but it stops short of taking the stand it needs to take (although it does touch on it very briefly for one sentence in the middle of the article).

Bottom line is that the higher-earning clubs want the players to pay a bigger percentage of revenue sharing so they don’t have to.  Even better is that they’re willing to pay for the privilege of the smaller market teams intentionally lowering their salary expenditures to hurt their own competitiveness so the larger teams can stay large. 

Smaller teams can’t compete and, when they do, they pull in less of the playoff “bonus money” they otherwise would because 30% of their playoff ticket sales go into the revenue-sharing pot from which they draw (the larger teams pay 50% of their playoff ticket sales into that pot).

Posted by J.J. from Kansas on 12/19/10 at 03:12 PM ET

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About Kukla's Korner Hockey

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.

Email Paul anytime at pk@kuklaskorner.com