The Malik Report
by George Malik on 09/21/12 at 05:02 PM ET
Aww, this is downright cute, especially given that, as noted this morning, Jimmy Devellano wants to pat every NHL fan on the head and let us know that while the economics of the game are far too hard for our wee little brains to understand, the owners are gonna fix the good old hockey game again, this time, for good, and that we can go and watch other hockey games until the NHL's ranchers are willing to let their cattle graze upon our wallets again:
NHL deputy commissioner Bill Daly gave a Q and A to the Tampa Bay Times' Damian Cristodero, and he insists that the NHL does indeed care about their walking dollar signs,' I mean fans' thoughts...
On if public opinion matters: Yeah, we care what our fans think. Ultimately we have to do an agreement that makes sense for the league and from which the league can grow and from which our franchises can be healthy and stable, and ultimately that will benefit the fans and will benefit the players. But of course we care what our fans think and we are cognizant of that and that’s why they need to hear our message as well as the Players’ Association’s.
On possible fan backlash: Of course there’s a concern about that. There has to be a concern about that.
Daly also tries to explain why the owners have locked the players and fans out for a third time to "fix" the game yet again...
On why the lockout is necessary: I guess I have three answers to that. One is, yes, we’ve done – collectively and thanks to our players -- we’ve been able to grow the business tremendously and revenues have grown on a league-wide basis tremendously. But I don’t think people should lose sight of the fact that those revenue numbers are gross revenue numbers, they’re not net revenue numbers and there are a lot of costs associated with running a professional hockey league and professional hockey teams, including 57 percent of those revenues being paid directly to players and another large percentage being paid in costs that are very much player related whether it be health care, whether it be equipment, whether it be first-class travel and the like, they’re all kind of very costly. It’s a costly product to produce and as it’s turned out two things I think have happened. Obviously 57 percent, which is what this agreement ultimately got us to – we started at 54 percent – but we’re at 57 percent now is too much to have a sustainable model going forward and that’s why we need an adjustment in that. … But two, the world is a lot different in terms of the worlds we’re doing business in today than it was in 2005. The Canadian currency is above par when it was 75 cents in 2005. That’s a big issue. It costs more to generate revenues these days than it did in the past and quite frankly the economy is not nearly as vibrant as it was in 2005; those all make it much, much more difficult to prosper in 2012 than where we were in 2005. The world doesn’t stand still. Things change over time and responsible parties should change with it.
Continued, and I might add that the CBC's Elliotte Friedman's breakdown of hockey-related revenue determinations more or less throw Daly's estimations into serious question, if not label the estimations with the "Total BS!" stamp of approval.
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The Malik Report is a destination for all things Red Wings-related. I offer biased, perhaps unprofessional-at-times and verbose coverage of my favorite team, their prospects and developmental affiliates. I've joined the Kukla's Korner family with five years of blogging under my belt, and I hope you'll find almost everything you need to follow your Red Wings at a place where all opinions are created equal and we're all friends, talking about hockey and the team we love to follow.