There's no business like No Buisness.

The NHL is in yet another lockout seven years after it lost a season.  Last time, the owners pretty much got everything they wanted, and the players got reduced salaries but the slight majority in HRR, Hockey Related Revenues.  Fast forward to this lockout, and the only thing the players ‘won’ last time is the sticking point for this lockout, HRR - if you don’t count the contract length, the 50’s era free agency rules, and the absence of arbitration.  Fans don’t seem to get why this lockout is taking so long, there is no easy answer as to why.  From a players standpoint, imagine your job, where every 7 years you hear that your employer is having financial troubles and the only way to fix it is for you, the employee, have to give back 25% of your salary, pay a portion of what’s left into escrow that you may never see again, then essentially cap what you are able to make for the next 7 years based on revenue, not margin, then have it taken away because margin is poor. (Holy run-on sentance batman!)  For the owners, well, maybe these metrics will help you figure it out.  They aren’t doing well and to be honest, I don’t know that they ever will.

In this piece I will divide the NHL teams into four “Eras” and take a 35,000 foot view how the teams from each era are doing financially and professionally.  The four eras as pretty easy to digest: “The original six” then the “Expansion Era” thirdly “The Merger Era” and finally the Clinton Era, er, I mean “Entitlement Era” teams for lack of a better term.  I will look at the teams from each era is: 1)Number of cups the team has overall, 2) the average annual operating income since the last lockout 3) number of playoff appearances the last seven years 4) and cups won the last ten seasons.  Teams bolded in black have relocated at least once since their inception.  The purpose is to show through playoff appearances and cups won the last few years how 'competitively relevant' each team is today coupled with how they are doing financially.  I consider a team 'competitively relevant' if they have made the playoffs 4 of the last 7 seasons.

 

One country deeply loves Hockey, the other country is pretty
much just  Facebook friends with it.

 

The Original Six – these teams were the foundation of the NHL from its popularly recoginized beginning in 1942.  The league went 25 years without expanding, lets take a look at how these storied franchises do today.

Orignal Six	Cups Won	Avg Operating income since 06		playoff app since 06		Cups last 10 yrs
Toronto Maple Leafs	13	$60 million	0		0
Montreal Canadiens	23	$35.7 million	5		0
Boston Bruins	6	$3 million	5		1
Chicago Black Hawks	4	$8 million	4		1
New York Rangers	4	$30.7 million	6		0
Detroit Red Wings	11	$15.4 million	7		2

Ok, not too many surprises here.  However, it’s worth noting the Bruins have had two money losing seasons since the last lockout and the Hawks had one – the year they WON the Stanley Cup.  No other original six team has had a money losing season since the last lockout.   The Maple Leafs seem to be the only team without any competitive relevance the last 7 years, and their team is literally an ATM for ownership.  No co-winkee-dink that these are also the six teams with the highest net worth.

The Expansion Era – This started in the 1967 season when the league doubled in size from 6 to 12 teams as the WHL (not WHA) was challenging to compete with the NHL.  It also saw a playoff format where a certain number of expansion teams were guaranteed to make the playoffs.  I also lump all the tumultuous 70’s era expansion in here as well. Teams seemed to move around often, and ownership groups only went a few seasons before moving to a different city.  It was in the 70’s that NHL used expansion to keep the WHA from taking market share.

Expansion Era	Cups Won	Avg Operating income since 06	playoff app since 06	Cups last 10 yrs
Los Angeles Kings	1	$3.2 million	3	1
Philadelphia Flyers	2	$4 million	6	0
Pittsburgh Penguins	3	$3.2 million	6	1
Dallas Stars	1	$8.7 million	3	0
St Louis Blues	0	(-$4.1 million)	2	0
Vancouver Canucks	0	$15.5 million	5	0
Buffalo Sabres	0	(-$4.6 million)	4	0
New Jersey Devils	3	(-$2.9 million)	6	1
Washington Capitals	0	(-S3.8 million)	5	0
New York Islanders	4	(-$7.9 million)	1	0
Calgary Flames	1	$2.3 million	4	0

 

About half these teams struggle financially today since the last lockout.  Almost all of the teams created to combat the WHA struggle financially to this day – if they still exist (Capitals, Islanders, Devils, Sabres) .  I’m surprised at how little operating income the Flyers generate being a traditionally competitive team.  I am also shocked at the amount of money Dallas makes in a non-traditional market.  They did lose money for the first time in 2011, which I attribute to missing the playoffs 3 straight years.  Of the first six expansion teams, 4 of the surviving franchises do ok with income, if you consider 4 million dollars a year a worthwhile return on a 200 million dollar investment (hello NBA!).  What really sticks out to me though is most of these teams are regularly competitive making the playoffs, and half the teams haven’t been profitable since the last lockout.

 

No NHL hockey makes even the most chipper fans sad.

 

The Merger Era – these were the four strongest teams when the WHA ceased operations and were (eventually) absorbed into the NHL.  Think the owners are babies today, check this out.  There is a case for fan pressure I guess.  Occupy Molson.

 

Merger Era	Cups Won	Avg Operating income since 06	playoff app since 06	Cups last 10 yrs
Edmonton Oilers	5	$11.2 million	1	0
Carolina Hurricanes	1	(-$5.8 million)	2	1
Phoenix Coyotes	0	(-$15 million)	3	0
Colorado Avalanche	2	$4.4 million	3	0

Here we see hockey start to struggle in non-traditional markets – not at the time of expansion, but after their relocation.  Hartford and Winnipeg relocated because of arenas, and Quebec relocated because they were tired of taking in Canadian revenue and paying salaries at a 20% premium in US dollars.  Edmonton weathered the storm, but only seems to win draft lotteries as of late, and makes good money now that the USD is devalued.  Not much competitive relevance here, no team with a 50% average of making the playoffs the last 7 seasons.  One Stanley Cup win in the last 10 years between the 4 teams.

The Clinton Era – Nobody really thought of the consequences of making it easy to get credit and a mortgage, I mean an NHL franchise.  Only being able to get an NHL franchise in a market where hockey is typically played was discriminatory!  Need 20% down before you can get a mortgage, discriminatory!  Early in this era we see surviving WHA franchises relocate. In the latter half of the era, hotbeds for hockey like Nashville and Miami get expansion teams.  Remember when Starbucks had a store on every corner?  Not so much anymore…

 

Clinton Era	Cups Won	Avg Operating income since 06	playoff app since 06	Cups last 10 yrs
San Jose Sharks	0	(-$3.3 million)	7	0
Tampa Bay Lightning	1	(-$1.9 million)	3	1
Ottawa Senators	0	$2.4 million	5	0
Anaheim Ducks	1	(-$0.25 million)	5	1
Florida Panthers	0	(-$8.1 million)	1	0
Nashville Predators	0	(-$5.0 million)	6	0
Atlanta Thrashers	0	See Winnipeg Jets	1	0
Winnipeg Jets	0	(-$5.5 million)	0	0
Minnesota Wild	0	(-$0.5 million)	2	0
Columbus Blue Jackets	0	(-$7.9 million)	1	0

 

No rocket surgery required to make conclusions here.  However, I am seeing a trend which I will discuss in the conclusion section below.  Two Stanley Cups have come from this group of teams, yet only 4 of these 9 teams have been competitively relevant the last 7 years.  Oh, only one team has made a profit since the last lockout and it's in Canada.  I bet this group of owners like things just the way they are and are in no way motivated to see a profitible return on their 100 million dollar investments.

Conclusions:  Looking over these metrics two things stick out to me, one of which I wasn’t expecting.  The surprise to me was winning doesn’t fix everything.  Toronto and San Jose are polar opposites in the realm of competitive relevance the last 7 years and Toronto rakes in piles of money; San Jose bathes in red ink.  New Jersey regularly competes for Stanley Cups and can’t make money.  Anaheim makes the playoffs, wins a cup, and can’t make a steady profit.  While Nashville seems to make the playoffs playing 'small ball' it can't make money.  It leaves those of us in Columbus with the depressing thought, "What if winning doesn't solve everything?"

The second thing that sticks out to me, and is really no surprise, is that NHL teams in cities like Miami, San Jose, Nashville, Phoenix, Northern California, Tampa Bay, Raleigh, NC; and Columbus, OH struggle to make money.  I don’t understand from a dollars and cents standpoint how these cities got a HOCKEY franchise (I’m am very happy that Columbus did though).  I guess expanding into these markets sounded like a good idea, so did opening a Rax franchise at one point in the 80’s. 

 15 teams have made a profit since the last lockout, 15 teams haven’t.  There has been no expansion since the last lockout and one team relocation.  There is no easy answer as to what it will take to end this lockout, but I’m fairly certain this won’t be the lockout to end all lockouts.  The players are tired of having to always give back to the owners.  The owners locked out the players, the players want an opportunity to get their lost money back - considering this will be the most money they will likely ever make.  The owners, well, the owners aren’t all on the same page.  Anyone who tells you they are all on the same page has the power to fine them $1 million bucks for saying otherwise.  It's kind of sad that one half of your league loses money playing hockey, the other half loses money by not playing hockey. 

 

While it sounds like I blame expansion, you have to expand in order to grow your business - that is for certain.  However, there has to be tangible demand and real underlying economic factors driving that growth and expansion.  Sadly, I don’t see either of those since the Clinton Era NHL expansion– and these metrics support that conclusion.  I for one wish this would get settled once and for all.  Writing about NHL lockouts is not very fun.

 

Speaking of Metrics, I have a huge crush on Emily Haines.

 

 

 

Unanswered question

An SBNation article, published on October 25, references an October 24 Reddit "conversation" with an "anonymous NHL executive" who suggests that Columbus' John P. McConnell (referenced on Reddit as "McConnell," along with "Snider [Philadelphia], Jacobs [Boston], Leipold [Minnesota]") is on the NHL's four-man negotiating committee.

While I am skeptical of message boards' journalistic worth as a matter of practice and am even more skeptical of self-professed anonymous insiders and experts (Hi, HockeyyInsiderr), apparently SBNation's editors felt the assertion was solid enough to allow their writer to post it.

But is this true?  Is McConnell on the NHL negotiating team?

With so little of substance to write about as the lockout drags on, one would think that a Blue Jackets/NHL-credentialed journalist (of which I am not one - at least as I type) would bother to fact-check this nugget.  It's only been out there for nearly three weeks.

This Blue Jackets fan would like to know.

---

UPDATE: The New York Post's Larry Brooks lists the owners' negotiating committee as consisting of "the Bruins’ Jeremy Jacobs, the Capitals’ Ted Leonsis, the Flames’ Murray Edwards and the Wild’s Craig Leipold". So the Reddit guy was 50 percent right.

 In light of this apparent statement of fact from a credentialed NHL reporter, I can't help but wonder why the Blue Jackets didn't openly deny the Reddit guy's claim that McConnell was involved...and why a Blue Jackets-centric reporter didn't force the issue.

No Work, No Pay

Stinger has to show up to get paid!

Aaron Portzline of the Columbus Dispatch is among many reporting that the current line of thinking by the NHLPA is that they should get paid for the whole season, no matter how many games they play.  Once again, neither side is thinking about the fans.  While I could concede that there may be some few special cases where a fan gets paid for not working, the overwhelming majority gotta show up and work to get paid.

There was a proposal on the table to play a full season starting on November 1.  When the NHLPA rejected that deal, they also rejected the notion that they would play and get paid for a whole season.  I think the grade school retort of 'its the owners lockout' is ludicrous.  The only thing the lockout does is prevent a player strike two days before the trade deadline, a known Don Fehr tactic.  So this whole line of reasoning, and child like retorts, gets zero traction with me, and I suspect many other fans.  It would be wise for the NHLPA to distance itself from this stance quickly.  All that does is give the owners incentive to cancel the 2013 season here and now, because that would wipe this contract year off the books.

The working stiffs who are paying the bills don't get this.  There's still a deal to be had if both sides can stay away from the stupid stuff.

Personally, I believe a deal will get done because the loss of this season highly benefits the CBJ.  Brad Larsen is forging a winning nucleus for our club down in Springfield, and it keeps us from rushing many of our young players, which tends to happen due to the talent void at the parent club.  Every game they play down there is money in the bank for the CBJ.  Additionally, loss of the season likely conveys some benefits in the next draft.  So since this stuff will benefit the CBJ, I think a deal will get done, because that's our luck.

Lose this line of reasoning players.  Its stupid!  You are not going to get paid for a full season that you did not play.  The owners are bleeding from the cancellation of the winter classic.  Both sides have been bloodied, and there is no moral high ground here.  Get to work and get a deal done.

GO JACKETS!!

Nanooks down the Buckeyes, 3-1

Buckeyes go on a 5 on 3 in 1st period action

On Saturday Night the Alaska Fairbanks Nanooks resumed their tight checking run of hockey with the Ohio State Buckeyes, this time with the visitors prevailing by a score of 3-1.  The major change for the Buckeyes in this CCHA match-up was going with 6-3, 197 lb Freshman Goal Tender Colin Olson instead of Senior Brady Hjelle.  Olson played well enough, but was unable to overcome the persistent run of OSU penalties later in the game.

The game started with an aggressive Alaska team, coming out and having the best of the early scoreless play.    The teams continued to trade chances until late in the first period, when Cody Kunyk was whistled for a 2 minute minor for checking from behind.  Eleven seconds later, Trevor Campbell received a minor penalty for boarding, which put the Buckeyes on a 5 on 3 power play.  A minute later the Buckeyes capitalized, with Chris Crane, a 6-1, 193 lb Junior notching his first goal of the season.  The first assist went to 5-11, 200 lb Sophomore Tanner Fritz, and the second assist went to Sophomore Ryan Dzingel, a 7th round pick for Ottawa in the 2011 NHL entry draft.  Alaska did not like this development much, as Kaare Odegard was finally whistled for slashing at the 20 minute mark, after his first 5 cross checks went uncalled.  This was the high tide mark for the Buckeyes in this game, as the period ended with the Ohio State leading 1-0.

Buckeyes Down Alaska in Shootout

Buckeye Hockey v Alaska at the Schott

Last night the Ohio State Hockey Buckeyes took on the Alaska Nanooks in the first of back to back tilts at the Schott down on Campus in CCHA action.  After indulging in warm ups at the Varsity Club, we got a chance to finally watch some hockey in Columbus.

It was a very entertaining game, show casing stellar goal tending by Brady Hjelle, the 5-11, 185 lb Senior from International Falls, MN.  First period action saw the two teams end up tied a 0-0.  It really seemed as if the Buckeyes carried the play in the first period, but Alaska's goal tender John Keeney was up to the challenge.

At the start of the second period, it seemed that the ice really tilted in Alaska's favor as they came out in the second period carrying the play.  This forced the Buckeyes into a couple of unfortunate penalties at about the 3:30 mark of the second period, with Ryan Dzingel, the 6-0, 185 lb Sophomore taking a tripping penalty.  Shortly thereafter, he got some company in the sin bin when Sam Jardine, the 6-1, 193 lb Freshman Defenseman taking a high sticking penalty.  Alaska capitalized on the ensuing 5 on 3, scoring the first goal of the game when Colton Parayko scored his third goal of the season on a bang-bang play at the edge of the crease off the passes from Colton Beck and Michael Quinn.  Hjelle, the Buckeye goal tender had no chance at the play.

Voting for the President of the NHL

Both Mitt Romney and President Obama are in Ohio today campaigning for the Presidency of the United States.  I love government, but I am so tired of politics – especially living in a swing state.  The last four years have been very frustrating to me.  Washington has become a bitter partisan battlefield while entitlement and politicking take away the importance of sound leadership in government. 

The only things these two men have in common are $10,000 wrist watches.

So, to take a break from my frustrations, I imagine both Mitt Romney and President Obama are campaigning for the imaginary position of Presidency of the NHL, lockout notwithstanding.  If you can admit to yourselves the short comings of the current administration and the misguided good intentions of the contending candidate, you’ll be able to enjoy the 100% hockey humor below.  If you’re Canadian, just keep on enjoying the exchange rate.

Dear voters for the Presidency of the NHL,

I had the privilege of spending 15 minutes with both candidates running for the Presidency of the NHL.  I called in years of favors to be able to spend a few minutes with each candidate.  Ohio is an important state to both candidates for the Presidency of the NHL as the 2013 NHL All-Star game is scheduled to be played in Columbus. Ohio has seen tough times in the NHL - both with the Barons and  Blue Jackets.  These last 48 hours are important to both candidates, which is why they are blitzing Ohio with political ads.  There is so much crap on TV right now that it's hard to know fact from fiction.  An Obama ad suggests that Romney wants to eliminate the Boarding Penalty, and Romney runs a spot suggesting that Obama wants to eliminate luxury suites from NHL arenas.  To clear up confusion and to help voters choose, I take the time to definitively list their stance on NHL policy after interviewing both gentlemen.

Obama - his official hockey nickname would be "Barry."

-          Supports funding money losing teams by implementing luxury tax on NHL teams making more than $250,000 per year in operating income.

-          Would have raised the luxury tax on the Browns to keep the Cleveland Barons from folding.

-          Wants to eliminate fighting and the blue lines from the game.

-          Supports free agency at the age of 38, 4 year max lenght contracts, elminating salary arbitration, but is somehow calls himself pro-player.

-          Despite the financial struggles of teams in non-traditional markets – supports two expansion teams in Seattle and Kansas City while refusing to let existing teams relocat to foreign countries
-          Career Game played in order to qualify for full pension benefits has been reduced to 50 games played.

-          Any hockey player refusing dental treatment will be fined by the IRS.

-          Believes backup goalies should make the same money as starting goalies.

-          Wants to outlaw “butterfly style” goaltending.

-          Wants to reduce the size of goaltending pads further to increase scoring.

-          Mike Milbury will be appointed as Czar of the Goaltenders union.

-          Bobby Clarke would be appointed Czar of Rookie Development

-          To create jobs, rosters would be expanded to 35 players and increase the league minimum salary to $5million, with a single player cap at $7 million.

-          Eliminate all funding to Junior ROTC programs in order to support youth hockey in Houston, Hawaii, and the US Virgin Islands.

-          Two-thirds of all tickets to NHL games are to be free, the remaining one-third cost $1200 a piece.

-          Referees and linesmen are no longer required to have previous officiating experience prior to becoming an NHL official.

-          Team apparel shops will be required to sell American made merchandise only, guaranteeing that jerseys will cost $600 a piece.

-          Has never visited a Canadian NHL team or city before, but vows to prevent them from ever losing their NHL franchises.

-          The Canadian National Anthem would be sung at all NHL games.

Clearly Obama is anti-goalie and pro-expansion.  From his days in Chicago, he helped make it illegal to own a goalie stick in his district.  While in youth league hockey, his appointments to the youth hockey board repeatedly stated that the NHL rule book, while having provisions for goalie equipment, doesn’t guarantee a team’s right to a goaltender.  Financially, 15 out of 30 NHL teams have lost money since the lockout, but he supports expanding the league further in non-traditional markets.  Currently, he blames the lockout on the rich owners.  While a big proponent of bringing the NHL to non-traditional markets, do the rest of us have to pay higher ticket prices so 30 million people in Seattle and Kansas get an NHL team? 

Romney - his official hockey nickname would be "Rommers."

-          Believes that a team losing money and not attracting fans can move to a market that will best serve the popularity of the sport.

-          Teams must have an average attendance above 90% capacity in order to receive financial assistance from the league.

-          Blames loose expansion policy for the subsequent relocation of the Cleveland Barons.

-          The ‘puck over the glass’ would no longer be a penalty, but assessed like icing.

-          Paul Ryan will make it legal to replay fights in arenas.

-          Publicly funded arenas must have passed a vote or referendum in order for the team to receive financial assistance from the league.

-          Wants to re-institute the two-line offside pass.

-          Would relocate two US NHL franchises to foreign countries, like Canada.

-          Full face shields would be mandatory, taking away a player’s right to choose.

-          Wants to eliminate the instigator penalty and touch-up icing.

-          Didn’t support the WHA merger or putting two NHL teams in Florida.

-          Supports eliminating the salary floor so that guys who wouldn’t be first line players in the AHL aren’t making $3 million dollars in the NHL

-          Re-runs of AirWolf would be played during all intermissions league wide.

-          Teams receiving assistance from the league would not be eligible for the Stanley Cup playoffs. 

-          Player’s pension plans would be privatized.

-          Would fire Gary Bettman within 7 seconds of winning the election.

-          All NHL broadcasts would be on FOX and feature Foxtraxx and the glow puck.

-          The limit on stick curvature will be changed to one inch.

-          Limits on goaltender equipment would be repealed.

-          Players would be required to be naturalized citizens before receiving team medical treatment.

-          Any player who signs with a KHL team will receive a lifetime ban from the NHL.

Romney is clearly a pro-capitalism, supporting the owners provided they show fiscal responsibility for their teams.  He does seem to want to set the game back a little by bringing back the two-line pass, eliminating the instigator penalty, and making people watch Airwolf during the intermissions.  How can we trust a guy who’s never had to worry about where next month’s travel hockey dues are going to come from?  He was in charge of Massachusetts youth hockey program after the Mighty Duck hockey bubble burst.  Youth hockey saw a dramatic decline as the Bruins sucked while the Patriots and Red Sox were winning championships.  He also will take away the players right to choose by implementing full face shields as required equipment.  Oddly enough, Planned HockeyMomHood doesn’t provide skate sharpening services.  Romney feels that the league has grown too large in size while being on an unsustainable financial path.  Even with hundreds of millions in financial assistance to less fortunate teams, 15 teams have lost money since the last lockout.  NHL teams should have the latitude to make decisions to get a return on their investment, even if it means relocation.

The decision is yours to make in that voting booth, and regardless of which way you decide – GET OUT AND VOTE.  If you do nothing else, get out and vote!!!  After that take a few minutes each week, outside of partisan ideals, and educate yourself on the role of government in this great nation.

Joe Biden could reprise the role of 'Dominic Santini.'

Lockout Negotiating brought to you by Bud Light

A while back, from 1999-2000 Bud Light ran some very clever hockey ads.  The premise of these TV spots started as clever little commercials, simple 30 second TV spots featuring little bubble hockey players that come to life trapped in their little bubble world.  I loved these commercials because it felt like people who grew up playing hockey were in charge of these commercials, as evident in one of my favorites called, "Old Timer."  ...Punk.

The commercials were popular because they were on ESPN and ESPN 2 which means lots of people saw them.  Hockey was first portrayed a simple fun game - like these TV spots were.  Eventually, as the popularity of these commericals grew, these clever little guys got their own league, the BBHL - the Bubble Boy Hockey League.  Like any modern league, it had a commissioner - Wayne Gretzky - and the players had representation - Phil Esposito.  Budweiser dragged these commercials out, determined to ruin them like Bud Bowl.  The last two or three of these commercials weren't nearly as fun as the original 5 or 6 and people lost interest in the commercials.

These last 3 or 4 Bubble Boy commercials that lost people interests were about - you guessed it - labor negotiations.  The first five of six of these commercials are all over youtube and are funny and clever.  The last 3 or 4, featuring Gretzky and Espo negotiating about salaries and revenue seems to kill the momentum and popularity the first commericals had.  See where I'm going with this?

I only found one of the final TV Spots featuring the labor negotiations - the commerical below introduces the negotiations.  In this commercials it seems to the outside observer that the player rep is driving a hard bargain.  But really, if you're on the inside, there is little seriousness between the two parties in hashing out a lasting deal.

I wish I could find the last few commercials in the series.  One shows Esposito reading off a list of demands to Gretzky as commissioner. Demands that start with the request for a large bonus to the players ultimately settling for a free turkey on Thanksgiving.  In that commercial, it's evident that commissioner doesn't seriously consider any of the players proposals.  And in the last of the series, Gretzky and Esposito are on the golf course laughing about the state of the league while the fans and players think the two sides are hard at work in a heated session negotiating in best efforts and good faith.  Pretty much where things are with the NHL today.  There's dual duality in this post - one, Budweiser took what was a clever marketing campaign and killed it by trying to make it something bigger and two, the consumers lost interest because the commericals were no longer about cute guys with funny accents playing hockey, it was about labor negotiations.  The marketing campaign that came after the 'Bubble Boys' was the hockey cliche-in-a-can "Hockey Falls" series featuring mullets, slut moms (listen to the game broadcast in the background #CBJ fans), and mouth-breathers.

It's funny how silly beer commercials from a decade ago have some significance and relevance today.  I really wish I could find those last two commericals on the internets.  One free beer to anyone who can find those last two commmercials and send me the link.