NHL: TO STRIKE OR NOT TO STRIKE

Special Editorial By Katie Rook

Katie Rook is a journalism student at Ryerson University in Toronto, Ontario.

  
The 2003 National Hockey League season is ending in September and with it will come the expiration of the Collective Bargaining Agreement between players and ownership. Unless an agreement is reached before September, the players will strike or ownership will force a lockout. Alternatively, the CBA will be extended for one year, while negotiations continue. Whatever the outcome, a change is imminent. At what expense that change will come remains to be seen.

“To perpetuate the bloated NHL is to ask at some point for a collapse of the league,” says independent sports columnist, Barry Stagg.

Stagg's ominous prediction rings true in the minds of fans who have been hearing about the financial woes of the league for a long time. When Jaromir Jagr of the Washington Capitals is taking home $11.5 million per season, it is hard for fans to imagine that money is at the center of labour negotiations. The league doesn't exactly seem cash-strapped. In the last decade, the NHL has seen significant expansion, arenas becoming more and more elaborate, tickets prices rising and players' salaries sky-rocketing.

Scratch below the surface, however, and it's another story. While some franchises are making money, others are only losing money. A strike or lockout could wreak havoc on the already fragile economics of hockey. The 2002 season saw the Buffalo Sabres file for bankruptcy and the Ottawa Senators near collapse.

Of course, ownership has been forecasting economic ruin for the league since the 1995 labour negotiations. This time around, they claim that the current economic model of the NHL is not sustainable and will be in trouble soon, if changes are not made.

Without salary caps, ownership says Canadian teams and several smaller market teams in the U.S. will be forced to fold. NHL commissioner, Gary Bettman, urges players to accept salary caps as a means of making the league economically viable and as a way of keeping certain teams afloat.

  
"An NHL strike could be the best thing that has ever happened,"
  
But the players refuse salary caps outright. They observe that the league has afforded their salaries until now and that would not have been possible if escalating salaries had not been factored into owners' business plans. The players' association executive director, Bob Goodenow, goes so far as to say that there will never be a salary cap. He has advised players that a lockout could last up to three seasons.

The trouble with Bettman's position is that he gives the impression that contraction of the league is negative. In fact, contraction would mean short-term loss, but significant long- term gain for the league. Critics wonder if Bettman has been flogging the issue of salary caps to keep the players union on the defensive.

A strike would force the liquidation of several teams and divert blame to the players who collectively have refused a salary cap, but are considered by the public to be excessively wealthy. Bettman could cap the players' salaries inadvertently and do so under the guise of trying to get the players back on the ice.

For Bettman and the NHL, a strike would ultimately drive down players' salaries. Contraction would result in immediate job losses for the players, but an increased pool of available athletes from which the remaining owners could choose.

There would be more players vying for fewer positions. Competition for positions would increase and players would be inclined to accept smaller salaries for the privilege of playing. This would prevent ownership from becoming embroiled in expensive bidding wars for players.

“Right now in the NHL if you want the top player, you have to pay top dollar. If you pay top dollar you increase the value of everyone else,” explains sports marketing consultant, Bob Kirwan.

Kirwan is sympathetic to the players, but observes, “an NHL strike could be the best thing that has ever happened, if a lot of things change.”

Kirwan suggests that although the players may be facing an inevitable salary cap, the changes a strike could bring about in NHL hockey might be what is best for the game itself.

“If the NHL does go out, they're leaving the door open for the audience to go out and see other leagues,” says Kirwan.

Although hockey is very popular in Canada, traditionally it has been a hard sell in the American market. The NHL's television contracts with ABC and ESPN are coming up at the end of the 2003 season and a strike would rob the league of an advantageous negotiating position. While players and ownership square off, the NHL fan base will dwindle.

Kirwan believes that people who really want to watch hockey will seek the game out. The minor leagues will have an increased fan base and as a result will have more incentive to play better hockey.

“Fans always want to watch the best that is available,” he says.

This could mean great things for hockey. If a strike is imminent, the game will have to evolve at the minor league level. To retain any new audience, the minor leagues will have to “develop a better product,” says Kirwan. When and if the NHL resumes, the game will have improved. Combined with increased competition for positions on NHL teams a new standard of hockey will have been set.

At what expense this change will come, remains to be seen. A strike or lockout could be calamitous for both the players and ownership. To fans, the economics of the pending NHL strike remain largely, what Stagg calls, “the hocus-pocus of sports franchises.”

For now, neither the players nor the owners and least of all the fans know what will become of the NHL. Most fans are ambivalent about a strike and reflect on the fallout of other major league sports strikes.

“I think they are idiots to go on strike,” says Richard Powers, professor of sports marketing at the University of Toronto, “and the perfect example is baseball.”

The Major League Baseball strike of 1994 came on the heels of two championship seasons for the Toronto Blue Jays. Ticket sales have never returned to their pre-strike numbers. One can't help but wonder if the NHL will face a similar fate.

 
 

 

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