Wednesday, October 21, 2009

IS IT TIME FOR A NEW COMMISSIONER?

In 1993, Gary Bettman became the first Commissioner of the NHL (previous to 1993, the title of the head of the NHL was President). Bettman was selected for the position because of his previous success as a senior vice-president and general counsel to the National Basketball Association (NBA). At the time, the push for expansion to the Southern U.S. had become a majority priority, so his experience working with major American cities was seen as a major benefit. The league wanted to enhance its profile in the South to take advantage of the large untapped market and the potential national television revenue and exposure.

As 16 years have gone by since his appointment, he has had ample opportunity to make his mark on the league. Let's take a look at his accomplishments.....and shortfalls.

ACCOMPLISHMENTS

1. THE SOUTH WILL RISE AGAIN! Bettman has fulfilled the NHL's objective of Southern expansion. The league has moved into seven southern markets during his term: expansion teams in Miami, Anaheim, Nashville and Atlanta and team relocations to Dallas, Phoenix and Raleigh.

2. MONEY, MONEY, MONEY! League revenues have skyrocketed during this period, from 400 million to more than 2.2 billion dollars.

3. TV OR NOT TV......Back in the 1990's, Bettman negotiated deals with major U.S. television networks to broadcast weekly games.

4. THROW US A BONE GARY! Bettman championed the Canadian Assistance Plan, a revenue-sharing agreement that saw American teams give money to help support the four small-market Canadian teams (Calgary, Edmonton, Ottawa and Vancouver) throughout the late 1990s and early 2000s.

SHORTFALLS

1. SOUTHERN MAN DOESN'T GIVE A DAMN! The Southern teams have, for the most part, been a financial disaster. Most teams have extensive debt and struggle to fill their arenas.

2. STRIKE TWO.....During his tenure, there have been two labour stoppages, a 104 day strike in 1994-95 and the entire 2004 season. The stoppages were both intended primarily to bring player salaries more in line with team revenue. One could argue that the salary caps have not adequately addressed the problem as the average salary is as high as ever and many players exceed the $5 million mark. The cap forces teams to dispose of high paid players, resulting in a negative form of parity by weakening the strong teams.

3. DOWN THE TUBE! After some initial broadcast deals with FOX, ABC and ESPN, major U.S. television networks have turned their backs on the NHL. With the exception of a smattering of games after the conclusion of the NFL season, American viewers must rely on the much smaller VERSUS TV package which has a very limited availability in many parts of the country. As well, the money dried up and the current game of the week deal with NBC is a revenue sharing arrangement with NO money up front.

4. "NO CANADA!" Two Canadian based teams were relocated to the U.S.- Quebec to Denver and Winnipeg to Phoenix. Although the Nashville Predators and the Phoenix Coyotes have received league "bailouts" to keep them in their cities, no such assistance was offered to either Canadian team. Although the Canadian Assistance Plan did stave off further franchise relocation to the U.S., some would argue that this was done to appease the Canadian fans angered by the loss of the Quebec and Winnipeg teams. As well, attempts to move teams from the U.S. to Canada have been rebuffed by Bettman.


THE JUDGEMENT

It would appear that although Bettman has achieved some respectable results, most of his accomplishments eventually turned into shortfalls. Bettman served his purpose in the early years when the league was looking to expand. However, the NHL now needs to reshuffle some unsuccessful franchises to new locations, and most of the viable locations are in Canada; the six Canadian-based teams currently produce almost 1/3 of the league's revenue, and are among the top 10 in attendance. Bettman's perspective is clouded by the fact that he wants to protect his legacy. The league no longer needs a marketing manager but a genuine hockey person who can ensure that the teams end up in true hockey markets and not in American cities with large populations and few hockey fans. The league also needs someone who grew up with the game and understands the passionate fans in Canada and the Northern U.S.. The tradition of the game has been damaged and can only be repaired by a leader with credibility, who can guide the Board of Governors away from the quick fix and almighty dollar to long term stability.

Thanks for your efforts Gary, but it's time for you to move on.

(coming soon...A Short History of NHL Expansion and Contraction Since League Inception in 1917)

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