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Category: NHL-Business-of-Hockey

Buy High

from David Naylor of the Globe and Mail,

So what’s pushing values so high despite the NHL’s apparent downward trend in popularity in the United States and the fact that salary expenditures this coming season are equal those of the final season before the lockout?
The answer seems to be that, while NHL teams remain money-losing ventures in many cities, investors are attracted to businesses where they can at least project what those losses will be.
In other words, “cost certainty” - the buzz term of the 2004-05 lockout - apparently has a lot of value to both to those looking to buy into hockey as well as those cashing out.

more

Filed in: NHL Business of Hockey, | KK Hockey | Permalink
 

Tax Money May Be Needed To Keep Preds In Nashville

from the Tennessean,

If taxpayers don’t pay an additional $3 million per year to support the Nashville Predators hockey arena, a deal to keep the team in town could fall apart, the leader of a local buyers group said Thursday.
David Freeman, CEO of 36 Venture Capital and leader of the group, said the partners are working with the city to have the public money come from sources like sales tax generated by the hockey team.
“We are trying to identify revenue streams that reflect incentives associated with having the Predators in town,” Freeman said. “For example, sales tax revenues generated out of the arena are an appropriate revenue stream to consider donating to this cause because those revenues would disappear without the team.”
Freeman’s comments came late in the day, after Tennessean.com reported on a city analysis that said the buyers group was seeking Sommet Center lease changes that would cost taxpayers $5 million more per year at the city-owned facility.

continued

added 11:59am, from the Tennessean,

The Predators have surpassed last season’s season ticket total.
The team finished Thursday with a total of 8,764 full-season ticket equivalents, topping the 8,758 the Predators finished with in 2005-06.
Predators vice president Steve Violetta said he feels confident Nashville can hit the 9,000 level by Labor Day, and added that ticket sales traditionally pick up in September, just before the season starts.

more

Filed in: NHL Business of Hockey, Nashville Predators, | KK Hockey | Permalink
 

High-Performing Investment

from Wes Goldstein at CBS Sportsline,

From the outside, it has tended to come across as irrational behavior. But to experts in sports economics, the recent surge of interest in NHL franchises is being interpreted as shrewd, calculated investment strategy that is likely to be emulated by others.
“The fundamentals that we’re being told about these teams certainly don’t support the sale prices we’re seeing, but the numbers don’t lie,” said John Vrooman, a Vanderbilt University economics professor who specializes in professional sports franchise valuations.
“The true value of a team is reflected more in the purchase price than it is in the rhetoric. Owners always poor mouth and say they’re losing money, yet these franchises appreciate at rates that make them a high-performing investment, way beyond what we would think.”

read on

Filed in: NHL Business of Hockey, | KK Hockey | Permalink
 

Owners Spending Their Money

from Kevin McGran of the Toronto Star,

Salaries are on the rise, revenues are on the rise. And by all accounts, the value of an NHL franchise is on the rise, with the Tampa Bay Lightning having sold this week for a reported $200 million (all figures U.S.).
That has some folks within the sports business believing that hockey is making a comeback from the devastating lockout that cost it the 2004-05 season, about $2 billion in revenue and its stake as the fourth “major league” in North America.
But it has others believing that owners haven’t learned the lesson of out-of-control spending, likening the frenzied spending for franchises to the free-wheeling spending on free agents every July 1.

continued

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Buying Into The NHL

from Allan Maki of the Globe and Mail,

But despite the NHL’s many troubles — the rapidly escalating salaries, the lack of new revenue streams, the lack of a major U.S. television agreement — people are buying into commissioner Gary Bettman’s show. Not only that, they’re paying more and more money to do so….
This is all very strange. How can franchise values be going up at a time when the NHL looks to be struggling all over again?

read on

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Widening Gap

from Stephen Brunt of the Globe and Mail,

How can the National Hockey League, so obviously struggling postlockout in many of its 24 American markets, with all of those empty seats and punchline television ratings, in fact be thriving as a business?
How can a no-loopholes salary cap attached to a percentage of overall revenues be soaring if commissioner Gary Bettman’s vision of the NHL is so clearly headed for the tank?
The answer lies with the almighty dollar — in this case, the Canadian dollar, which continues to ride high against the American greenback.

read on

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Nashville Rejects Balsillie’s Offer For Preds

From TSN, breaking news,

Nashville owner Craig Leipold has advised the NHL to no longer consider Jim Balsillie as a prospective owner of the team.
Sources say Leipold told the league the absence of a finalized sale agreement and Balsillie desire to move the franchise to Hamilton are the reasons for his decision.

more soon… (whoa…)

Updated 9:28pm EDT:
More from TSN,

It’s the second time Balsillie has been spurned in his efforts to buy an NHL team. He backed out of an earlier agreement to buy the Pittsburgh Penguins.
Balsillie had agreed to pay up to $238 million for the Predators.  There was a deadline of June 30th put in place to complete the details of the sale.
Leipold, however, pulled the plug early.
Balsillie had already started putting the wheels in motion to move the team to Hamilton.
At a board of governors meeting in New York earlier this week, NHL commissioner Gary Bettman called talk of moving the Predators “premature.”

more…

Updated 10:26pm EDT:
More from Scott Burnside at ESPN.

Filed in: NHL Business of Hockey, Nashville Predators, | KK Hockey | Permalink
 

Rumors Overshadow the Big Day

From Tim Wharnsby at the Globe & Mail,

The National Hockey League general managers who sit on their thumbs in the next day or so may wind up as the big off-season losers.
With the Stanley Cup having been won by the Anaheim Ducks only 16 days ago, there is a race going on among the 30 general managers to improve their teams. There was so much chatter and gossip buzzing around that the usual debate on which young talent would be drafted when and where took a back seat on the eve of the 2007 NHL entry draft.
“We’re in a hurry, aren’t we?” one general manager said. “I got in here late [Wednesday] afternoon and there already was a tremendous buzz, and I think we all expect a lot of movement here.”

continued… (*looks at the swirl of rumors yesterday)

Filed in: NHL Business of Hockey, | KK Hockey | Permalink
 

Mystery Arena in Las Vegas

From the AP via SacBee,

They wouldn’t name names, but developers are telling city officials that several billionaires are behind a $9.5 billion proposal to reshape 85 downtown acres into a development including a sports arena.
The Las Vegas City Council on Wednesday unanimously approved measures to let developer REI Group continue trying to acquire the land needed for a 22,000-seat arena, plus hotel, condominiums, casino and retail space toward
“This is a very quiet group. They’re not anxious to broadcast who they are on television,” Jon Weaver, an REI Group principal, said following the vote. He said he would privately identify project backers for Mayor Oscar Goodman.

continued…

Speculation, anyone? Previous Vegas-related KK links here, here and here.

Filed in: NHL Business of Hockey, | KK Hockey | Permalink
 

UHL Becomes IHL… with Rule Changes

Yesterday, the UHL announced their name change from United Hockey League to the International Hockey League, at the league’s annual meeting in Las Vegas.  But what might be even more interesting is some rules changes they’ve made for the coming season, including these on matters of penalties:

- The instigator penalty has been eliminated except during the final five minutes of a game.
- In regards to secondary altercations, players will receive a 10-minute misconduct as opposed to a game misconduct.
- If a dive and hook occur on the same play, only one penalty is to be called. Diving takes precedence over hooking in that situation.
more…

 

The UHL (IHL) has always been known as a rough and tumble league with teams that focused on entertainment as much as winning and it’s interesting to note that their attendance numbers have suffered as fighting was reduced in recent seasons, having adopted the NHL’s new standards. So do these rules changes indicate an interest in turning back the clock?  It would seem so. 

But while the NHL might not be in a hurry to return to the same standards, they might consider that adjustment to the hook/dive penalty call. I’m guessing a whole LOT of hockey fans would like to see that standard in the NHL.

 

Filed in: Non-NHL Hockey, NHL Business of Hockey, | KK Hockey | Permalink
 

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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

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