Wall Street Firm offers $3.5 Billion for NHL

[Crescent Fresh 0]

I don't even know what to think about the possibility of this.

Offer for Entire NHL

I don't see how this could ever happen. Old-time franchises would never approve of such a sale. Then again, it's a new day and age. Everything is about the almighty dollar. I think non-revenue generating franchises would be given a timeline to become profitable. If they don't meet the timeline then they will be disbanded.

I wouldn't think the players would like this either. All the teams would be owned by the same company. You'd be working for the same employer no matter what team you were on. I would guess players would be much more motivated to stay in thier current city than switch teams.

What do you all think about this possibility?

[Jackal3688 0]

I don't even know what to think about the possibility of this.

Offer for Entire NHL

I think non-revenue generating franchises would be given a timeline to become profitable. If they don't meet the timeline then they will be disbanded.

I think that would be a great idea for the NHL period, regardless of if they get bought out. I mean, the Atlanta Thrashers have had like what, almost 10 years to get their act together? Lets face it, Atlanta isnt as big of a hockey city as Detroit or St. Paul Minnesota. Plus, I think it would be nice to see Kovalchuk somewhere else, like say with the Wild, playing alongside Marian Gaborik :D

As for the selling of the NHL, who knows. Maybe things will shape up and these people will whip the NHL back into shape and get them playing again. They have enough money it seems, to hold them off for a few years of instability that is inevitable right now after the lockout. Maybe they'll change a few things with the league. We can hope and dream, cant we?

[Jim Bob 0]

The NHLPA has to be praying that the owners don't take this deal.

If they do, then this gives Bettman a ton of leverage now and into the future when it comes to CBA talks because he only has one ownership group to keep happy instead of 30.

Plus, there would be a lot less pressure for teams to overspend even if the NHL does a non-capped CBA just to get a deal done.

The new owners could just tell every team that they are to only spend $30 million and not go a penny over.

[MDE3 0]

This is called a "single entity league" and is the way MLL, and MLS has been run, along with AF....This changes the entire dynamic of the business of the sport. However for this action to give the new "single entity league" full sway over the negotiations, the current NHLPA would have to be decertified I believe.....who knows maybe this action is also in play as well..legally?

It would not surprise me to learn, that this "offer" is not going to be paid for in "cash", but in at least partially in stock....basically leaving the current owners as major voting stock holders in a new company. The primary purpose being to create the "single entity league" and reap the potential benefits from the added control that this might net.

If this is how it breaks down, and the various owners are not "paid" equal amounts, but a "pro rated" number of shares based on an estimated franchise value, then the more successfull owners would then have the largest "share vote" in the new company......

It certainly should be interesting to see what happens.....

While it's not my "WLH" (World League Hockey) this development may well be the sound of "the other shoe" falling....part of an alternate long term game plan....not just a random turn of events.

[MDE3 0]

see above

[MDE3 0]

Theo..if this is really an "orchestrated buyout" by the owners, the "value" of the league, is then somewhat arbitrary, but in order for it to be a "legally valid offer" it must reflect current market conditions....If the various owners actually recieve a pro-rated number of shares in the new company,(based on a comparitive franchise value estimate) instead of cash for their franchises, then their "relative value" has not changed.....

Right now none of these franchises are worth too much....their value will only appreciate with the return of a successfull NHL in some format. If the new business model this action would create will allow the NHL to become more profitable as an entity, then each current owner, will see his "share values" grow, and lose nothing in the translation...

Follow me?

[Jim Bob 0]

If the 30 million thing happens, solong to any memory of a quality NHL.  Bye-bye.

Why?

No league in the world will offer up salaries that average in the $1.4 million US range.

There is no way players would reduce their effort because teams were actually sticking to a budget.

Teams in Europe won't continue to take the huge losses that some teams, like Kazan and others, are taking this season on a year in and year out basis to keep top talent away from the NHL.

Check out the average ticket price in Europe. Most Elite League teams have tickets that are at a lower level than pretty every AHL team. And they have arenas in most cases that are nowhere near even the size of most AHL arenas.

The NHL would still be by far the highest paying league in the world even if every team had a budget of $30 million per season. And that would keep the NHL by far the best league in the world.

[Jim Bob 0]

I doubt it would happen anyways as some teams are worth more then 100 million, and the owners of those teams are certainly not going to settle for anything less of what their teams are worth.

Who said that all 30 teams would split the pot evenly?

[MDE3 0]

Whether this "buyout" is just a "threat" or the real deal, the writing on the wall should be pretty evident to the PA. The legal question will probably be "can this be done while negotiations are still ongoing?"

A "single entity league" will certainly change the whole way negotiations take place....Even though the article goes on to say...."this would not affect the status of the NHLPA's right's to represent it's players"....it does not say that their representation would be equally effective.

And Jim Bob....you are correct...even at a substantially lower salary level, the NHL would still be the "best game in town" from a player salary point of view.

[hip check 0]

IF a league buy-out is legal during labour negotiations, and all that legal stuff...

... this new league could change its name, then change rules, implement caps, etc and the NHLPA has no say in the matter. They would be an association for players of a non-existant league. That should scare them.

[MDE3 0]

If something like this transpires, and it get's past the various anti trust challenges it would invoke, then the next action by the NHLPA would probably be to go to "decertification". This would then allow individual players to pursue antitrust legislation against specific teams, or the league itself, particularily if it felt this move was in any way orchestrated by the league to circumvent the normal process of negotiations.

In any case you can bet that the legal offices of the NHLPA are spending cash on outside legal opinions as the day rolls on..like water flowing over Niagara Falls.

[Chadd 916]

A little digging shows that the two groups are linked to Boston owner Jeremy Jacobs, they have worked together in the past. That leads me to believe that this is an attempt to scare the union. The fact it comes only a couple days after the board of governors meeting is also somewhat suspect. Maybe to give the owners a little warning?

this new league could change its name, then change rules, implement caps, etc and the NHLPA has no say in the matter. They would be an association for players of a non-existant league. That should scare them.

That would defeat the purpose of purchasing an existing league and teams. Doing all of that may also make every player a free agent as well.

[Jim Bob 0]

I doubt it would happen anyways as some teams are worth more then 100 million, and the owners of those teams are certainly not going to settle for anything less of what their teams are worth.

Who said that all 30 teams would split the pot evenly?

No one...

Hey, they have a point. Some teams might be worth 250K while others might only be worth 40. It all evens out to 3-4 billion.

As far as the 30million being so damn low:

$30 million hard cap:

top 3 forwards, top 2 dmen, #1 goalie making an average of $3 million = $18M

next 3 forward, next 2 dmen making an average of $1.5 million = $7.5M

remaining 12 players making an average of $500K = $6M

total = $31.5M

Going from 7-9 million salaries to roughly 3? And you have roughly 12 players on a team making less then 600K. Talk about an easy way out for the owners. Yup, they have to be treated like Babys. Nice.

What league is going to pay salaries that are better than that on average?

Leagues in Europe that have AHL level ticket revenues?

I highly doubt that.

[Eazy_b97 1]

What really would worry me about a single owner, 30 team league would be the planning. Like we discussed earlier, Pitts needs a winning team for fans, where some markets don't. What would be the motivation for the league to not load up teams that need it for revenue?

[Chadd 916]

At that point the WHA may provide a viable alternative, plus some players will return to europe and we will never again see the best talent the world has to offer in one league.

[biff44 0]

The union is toast if this goes thru. It will be like Walmart and their fledgling union negotiating (scorched earth technique).

[GekigangarIII 0]

Maybe if the deal goes through and there's actually a collective effort among the entity to get the sport marketed right, the players can actually start making money on endorsement deals and the like? Just trying to put a positive spin on it...

[MDE3 0]

The fact it comes only a couple days after the board of governors meeting is also somewhat suspect. Maybe to give the owners a little warning?

The presentation was made to the Board of Governors during their meeting, and announced afterwards...

It is also quite possible that the same scenario I have painted previously was simply offered to the NHL by a group of entrpreneurs who saw an opportunity. Offering each owner a buyout option of cash, or shares equal to a prorata value of their team. That way keeping some of the owners and then having the league control the fate of those clubs whose owners opt to simply "cash out".

I am sure we will hear more.

[Jim Bob 0]

What league is going to pay salaries that are better than that on average?

I am sure there has to be some Euro or oversea teams that can afford a 3-4 million dollar player. And don't forget that the players will also have their freinds/ families/ familiar culture/ less travel in their homelands. Maybe a 2-3 million dollar contract would be worth it in that case instead of a 3-4 million one here. Either way, it would be bad news if the cap went that low. If that happens, I hope the NHL folds and a new league takes over with less teams, better planning, and the marketing that Bettman was "suppose to bring and implement like a genius." I haven't seen that yet.

But all the NHL would lose would be a handful of upper echelon, but no tquite superstar players.

That's not going to affect the quality of the league all that much.

[Chadd 916]

What league is going to pay salaries that are better than that on average?

I am sure there has to be some Euro or oversea teams that can afford a 3-4 million dollar player. And don't forget that the players will also have their freinds/ families/ familiar culture/ less travel in their homelands. Maybe a 2-3 million dollar contract would be worth it in that case instead of a 3-4 million one here. Either way, it would be bad news if the cap went that low. If that happens, I hope the NHL folds and a new league takes over with less teams, better planning, and the marketing that Bettman was "suppose to bring and implement like a genius." I haven't seen that yet.

But all the NHL would lose would be a handful of upper echelon, but no tquite superstar players.

That's not going to affect the quality of the league all that much.

People are already complaining that the league is already too watered down. Remove 2-5 players from each team, with them all coming off the second or third line or out of the top two pair of defensemen. At the bottom end that would be 60 new players that couldn't make the NHL before, at the top end it would be 150.

I don't see that as an improvement.

[MDE3 0]

In this recent era where "superstar" status is either "vestigial" dating back to some half forgotten glory days(Lemieux, Messier, Lindros, Yzerman, Jagr Forsberg, etc, etc, etc,) or a player that scores 35 goals a season, there is more excitement available through other means that simply spending money.

Make stick checking on the body illegal on the puck carrier or away from the play, and seriously enforce the other regulations governing impediment/obstruction tactics, and with no other changes, you will immediately have more exciting hockey, with or without "expensive" superstars.

Do this and new "stars"will emerge almost immdiately.

[Jim Bob 0]

What league is going to pay salaries that are better than that on average?

I am sure there has to be some Euro or oversea teams that can afford a 3-4 million dollar player. And don't forget that the players will also have their freinds/ families/ familiar culture/ less travel in their homelands. Maybe a 2-3 million dollar contract would be worth it in that case instead of a 3-4 million one here. Either way, it would be bad news if the cap went that low. If that happens, I hope the NHL folds and a new league takes over with less teams, better planning, and the marketing that Bettman was "suppose to bring and implement like a genius." I haven't seen that yet.

But all the NHL would lose would be a handful of upper echelon, but no tquite superstar players.

That's not going to affect the quality of the league all that much.

People are already complaining that the league is already too watered down. Remove 2-5 players from each team, with them all coming off the second or third line or out of the top two pair of defensemen. At the bottom end that would be 60 new players that couldn't make the NHL before, at the top end it would be 150.

I don't see that as an improvement.

There are not enough rich European clubs to take 60 to 300 players that will make $3 million+ per season.

My guess is that the league would lose a handful of those types of players TOTAL if it went to a $30 million per team budget/cap.

Europe isn't as desirable a landing spot as the NHLPA and their mouthpieces would have people believe.

Heck, even Spector is starting to figure out that the viability of a major European league has been overstated.

http://msn.foxsports.com/nhl/story/3422330

[Chadd 916]

There are not enough rich European clubs to take 60 to 300 players that will make $3 million+ per season.

My guess is that the league would lose a handful of those types of players TOTAL if it went to a $30 million per team budget/cap.

Europe isn't as desirable a landing spot as the NHLPA and their mouthpieces would have people believe.

Heck, even Spector is starting to figure out that the viability of a major European league has been overstated.

http://msn.foxsports.com/nhl/story/3422330

As Theo pointed out, only top stars would be making $3M per year over here with a $30M cap. If it's a matter of making $1M here or $750K at home, it's not unreasonable to see many European players staying home. I don't believe we would see many NA players going over, but the number of european players coming here would certainly decrease and that will change how the game is played here.

I would like to see a real Euro club championship every year at the end of the season. If that is successful, a limited league of the top (existing) teams could be a possibility but well down the road. No way they make what NHL players USED to make, but if the NHL payroll drops low enough, you never know.

[Jim Bob 0]

Also, to go back onto the owner debate..If there was technically a group of owners running all 30 teams, how would trades, FA work? Would it be competitive?

Also, I heard on another board that the MLS does this? And its not working out so great. Although I have no clue about soccer, so I can't back that up much.

MLS is slightly different.

They have owners that own multiple teams (Lamar Hunt, the KC Chiefs owner, owns Dallas, C-Bus, and KC and Phil Anshultz, the LA Kings owner, owns LA, the Metrostars, and DC as examples), but they also have a "single entity system" where the league negotiates all the player contracts and makes teams fit within the salary cap.

Although, there are always rumors that players get paid more than the league max and certain teams are over the cap, etc.

If one group owned the entire league, in theory they'd have each team run independently like is the case in MLS. The GMs get their budgets and they do what they can and the owners take a pretty hands off approach to the soccer side of the business in most cases.

Except when they have a winner on hand and it's photo op time, of course.

[Jim Bob 0]

There are not enough rich European clubs to take 60 to 300 players that will make $3 million+ per season.

My guess is that the league would lose a handful of those types of players TOTAL if it went to a $30 million per team budget/cap.

Europe isn't as desirable a landing spot as the NHLPA and their mouthpieces would have people believe.

Heck, even Spector is starting to figure out that the viability of a major European league has been overstated.

http://msn.foxsports.com/nhl/story/3422330

As Theo pointed out, only top stars would be making $3M per year over here with a $30M cap. If it's a matter of making $1M here or $750K at home, it's not unreasonable to see many European players staying home. I don't believe we would see many NA players going over, but the number of european players coming here would certainly decrease and that will change how the game is played here.

I would like to see a real Euro club championship every year at the end of the season. If that is successful, a limited league of the top (existing) teams could be a possibility but well down the road. No way they make what NHL players USED to make, but if the NHL payroll drops low enough, you never know.

I don't see that many middle of the road NHLers get those kinds of paydays in Europe.

The revenue streams don't support salaries at that level outside of a handful of Russian clubs and maybe another handful of teams perhaps in leagues like Sweden.

Seriously, most European clubs pay players on par with what the AHL does. And guys in the AHL make around $150k at the top end.

I doubt too many European clubs will be forking over even $500k for middle of the road NHL guys.