The NHL locked out its players in 2004 and ended up losing the entire season.
The sport was in economic chaos at the time and needed to change the way it did business.
There was not much disagreement about the economic system at the time. The players eventually caved into the owners' demands, and the new system that was in place seemed to work out well for the NHL.
The league's revenues reached $3.3 billion last year, according to SportsNet.ca—well above the $2.3 billion the NHL brought in during the 2005-06 season (via NHLNumbers.com). Yet, apparently, the league is not making enough money.
On the surface, this sounds like greed on the part of the owner. But the biggest problem is the distribution of wealth.
According to Forbes' Kurt Badenhausen, three NHL teams are making a significant profit. Those teams are the Montreal Canadiens, the Toronto Maple Leafs and the New York Rangers. The Edmonton Oilers and Vancouver Canucks are also making small profits.
The other 25 teams are losing money. Per Badenhausen's report, the profitable teams are making $212 annually, while the 25 money-losing teams total $86 millio ...
Read Full Article at Bleacher Report - NHL
Article written by Steve Silverman
NHL Lockout: Why Profitable Teams Must Share the Wealth
October 5th, 2012 by Steve Silverman Leave a reply »
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