NHL Anti-Thread: Bad Business Decision Aggregator

[kiwi_canadian]

The Thrashers were sold to True North because they were in direr straits than the Coyotes, believe it or not. While the Coyotes are indeed a black hole, their existence could still be perpetuated by the NHL continuing to own the team, with or without tax subsidies from Glendale (but preferably with). The Thrashers, on the other hand, were straight-up evicted from Philips Arena by their ownership group, who wanted to allocate the Thrashers' arena dates toward more lucrative events and not run an ice plant all year. If the Thrashers had been kicked out and not sold to True North, it really would have hit the fan. They probably would have had to fold altogether.

True North was in talks to buy the Coyotes. They were also in talks to buy the Thrashers, and the Predators, and some may even have you believe the Penguins. Chipman has gone on to say that the Thrashers were the prime target all along (which jibes with some reports circa 2010 to that effect, most of which were dismissed out of hand because how could Winnipeg buy a troubled team other than the ex-Jets?), with the Coyotes coming into play only when Bettman needed leverage to extort bailouts out of Glendale and get them to write up ridiculous handouts for new owners.

Bettman ended up playing everyone against each other really well, as he ran a second shakedown on Glendale Clown College for another $25 million with the threat of selling to Winnipeg, while no one at Glendale had done their due diligence regarding the Atlanta situation. Had they known that the Thrashers were about to get kicked to the curb and would have to be dealt with immediately, they could have said no to the subsidy and made the NHL run the team on their own dime with nowhere else to put it. Quebec City wouldn't be ready for another year and a half or so, Hamilton is a big no, and no one else seemed willing or able.

As for why they're still here with the Atlanta situation taken care of, my suspicion is that they're waiting out a decision on Seattle or hoping that Glendale will once again furnish a lavish subsidy to a willing buyer who comes into City Hall and mumbles something about how "this is a real hockey town." If Quebec City is still in play, they could be trying to burn off years of Colisee usage. My real suspicion for years, which was finally addressed in the lockout talks, is that the Coyotes (among other teams) are an intentionally leaky roof designed to hedge against revenues in larger markets so as not to ratchet up the salary floor for everyone. With the new CBA, not only is it advantageous to keep dragging down everyone's averages, but the mere existence of a team that acts only to drag down the average is helped along by more generous HRR splits and revenue sharing. If they're willing to give the team away, there's no reason someone can't keep this thing running on fumes for a few years, but at the same time they're strangely unwilling to give the team away.

This answered nothing.

EDIT: oh, here it is, it was in The Instigator re: the Coyotes as a manipulator, following a breakdown of escrow and revenue sharing

The union feels the [revenue] split is unjust because the league can effectively manipulate escrow by keeping a money-losing team like the Coyotes in Phoenix, rather than moving them to a place like Quebec City where they would turn a profit and add $30 million to $40 million more a season to overall revenues. (By some estimates, Phoenix alone is responsible for 70 percent of the [escrow] clawback in recent years.) So it's not just that the players aren't getting the face value of their contracts, the money they are refunding to the owners is being used to prop up the same sick and lame franchises that are costing them the cash in the first place.

Devious. OITGDNHL

So this is some kind of Bettman ego ting then?

I think I can agree with you in the fact that we could see this s**t show drag out for one more season then they will move. I also agree with your statement in the Seattle comment. Personally I think Seattle would be a bad fit for the league. They would be playing 5th fiddle to the likes of the Sonics, Seahawks, Sounders and Mariners (Although I don't think they play a major factor as their season is summer and they are terrible right now) Seattle would be popular for maybe a season (depending on if they are competitive) then people would stop caring. The only place I see as viable is Quebec City... This would also mean another shifting around of the divisions.

[Magnus]

From reading that last big shpeel, it sounds like the team in Phoenix is acting as a "loss leader" for the rest of the league.

*(a product sold at a low price, at or below its market cost[2] to stimulate other sales of more profitable goods or services)

Am I right?

[DG_ThenNowForever]

Yeah, I don't see Seattle being a good idea for the NHL at all. With the Sonics decision supposedly being previewed on Monday, perhaps we'll be able to settle the fate of the Coyotes sooner than later. Seattle is an objectively worse pro hockey market than Quebec City, which is precisely why it's more likely to happen.

[TheOldRoman]

I don't doubt the NHL would do something as dubious as keeping the Coyotes in Glendale just to keep revenue sharing lower, but here is my question. The NHL was losing approximately $30 million a year when Glendale was giving subsidies, correct? Now they will lose close to $50 million a year on the Coyotes. So, they'd be spending $50 million to save them $15-20 million in revenue?

[Magnus]

Sounds like the same kind of math that Canada's federal government is using in their budget. [/end political rant]

[The_Admiral]

I don't doubt the NHL would do something as dubious as keeping the Coyotes in Glendale just to keep revenue sharing lower, but here is my question. The NHL was losing approximately $30 million a year when Glendale was giving subsidies, correct? Now they will lose close to $50 million a year on the Coyotes. So, they'd be spending $50 million to save them $15-20 million in revenue?

I was seeing $-40 million, with the subsidy and revenue sharing making up most but not all of that. Obviously expenses will be less this year but so will revenues, so I don't know. I guess the bean-counters have figured that with the appropriate subsidy, they're better off losing money there.

Press conference in Quebec City tomorrow, I'm seeing.

[BigBubba]

Press conference in Quebec City tomorrow, I'm seeing.

Is that just your speculation or has one actually been announced?

[rvrdgsfn]

http://translate.google.com/translate?sl=fr&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&eotf=1&u=http%3A%2F%2Ftvasports.ca%2Fhockey%2Flnh%2Fne-doutez-plus-marcel-aubut-28042013&act=url

"People close to the headquarters of some NHL teams were present yesterday (Saturday) and I was told that this news would fall like a thunderbolt, quite simply, he said.

"There will be no warning as was the case in Winnipeg, where there had been some casting information. The NHL has learned from all this. "

The fate of the team is it sealed? Nothing is certain, but a daily Phoenix says the team had started selling promotional merchandise training to 40% off.

I wouldn't say Monday but I'd say sooner than later.

[The_Admiral]

"tomber comme un coup de tonnerre"

I thought "thunderbolt" was "coup foudre" but either way, French is beautiful

[rams80]

IIRC "Foudre" is lightning, "Tonnere" is thunder.

[zpqmaowl]

I thought lightning was éclair?

[kiwi_canadian]

http://translate.goo...8042013&act=url

"People close to the headquarters of some NHL teams were present yesterday (Saturday) and I was told that this news would fall like a thunderbolt, quite simply, he said.

"There will be no warning as was the case in Winnipeg, where there had been some casting information. The NHL has learned from all this. "

The fate of the team is it sealed? Nothing is certain, but a daily Phoenix says the team had started selling promotional merchandise training to 40% off.

I wouldn't say Monday but I'd say sooner than later.

So is there going to be some type of relocation soon? Is that what this translation is saying?

[Lee.]

That's all we have. We know as much as you do.

[Francis10]

I think Bettman just deals with it by putting a Nordiques logo in the Phoenix envelope at the draft tonight, rigging them to win, and acting like nothing ever happened.

[bosrs1]

Well now that Seattle isn't an option (the NBA just effectively killed the Kings move to Seattle), it makes sense that they're prepping to announce Quebec City for the 'Yotes. The NHL was probably told in advance how the NBA relocation committee was likely to vote as a courtesy since they'd been inquiring for a while now. Great day for Sac and soon to be great day for Quebec City. Crap day for anyone in Seattle.

[IceCap]

Now that Seattle is no longer an option.....

BRING ON THE "COYOTES TO QUEBEC" PRESS CONFERENCE!

[rams80]

Once again, so glad we ramrodded through a stupid realignment scheme to accommodate a non-existent market. Welcome back to the Hotel Western Conference Columbus and Detroit, where you can always check out but you can never leave.

[Magnus]

[Burkell007]

i kinda like it, but division races might not be as close?

[Gothamite]

Uh, oh.