Revenue sharing is, of course, a concept based on the premise that a league is as good as its weakest link. Therefore, the strong franchises should help the weak. This is true of economics, as well as talent, but to different degrees in the different leagues.

Now everyone likes revenues sharing, however. Some don’t want to give any of their money to other teams. Some don’t want give their money to other teams, who will take it, and compete with them for better players. And, others believe that it is like a form of welfare – they won’t learn to stand on their own two feet – they’ll just become lazy.

NBA president of league and basketball operations, said, “This is a subject without true consensus.” Litvin added that most teams “were satisfied, but not happy, with the outcome.”

The vote passed by a “comfortable margin,” among the 30 team owners.

“To me, our thinking is completely backward,” Clarke said. “I lost Kim Johnsson to (unrestricted) free agency because the Minnesota Wild gave him $4.8 million. Well, the Flyers had to give (revenue sharing) money to Minnesota and other teams and I don’t like that but it’s the rules. And then Minnesota takes that money and signs my player and there are no rules to say I can keep him if I match.”

NHL-HIGHLY STRUCTURED-KIND OF UNREALISTIC-

HHH

NBA

NY SUN

MLB

SPENCE

I think MLB needs a salary cap, or something that helps balance the talent among the teams.

The league does have the “luxury tax” rule that requires some revenue sharing to better balance the owners income that can be used for signing players. However, it’s never worked as projected as an alternative to an annually fixed salary cap like the NFL uses.

All MLB owners are millionaires or billionaires, so it’s difficult to feel sorry for the ones that can’t or won’t spend as much.

The owners willing to spend the big money can still sign the proven free agents and pack their team with all stars and higher quality players. You don’t have to look any farther than the AL East to see how that is working.

I think this disparity in how much money teams spend has a detrimental affect on the game. Lower tier teams are less likely to spend resources developing minor league talent, since they know they’ll only get a few years production from the guys before losing them as free agents to a team that has the big bucks.

So what we see is owners staffing their core teams with average to mediocre players, then trying to sign two or three stars to make the teams competitive with the Yankees and Red Sox. It might work for a year or two, but it’s not a good way to build a consistent winning team.

http://www.bigcatcountry.com/2009/7/19/954781/how-the-nfl-owners-see-the-nfl

The National Football League’s 32 teams are somewhat insulated from global economic fluctuations — and bad seasons — because the league’s revenue-sharing policies split among the teams the more than $20 billion-plus the NFL gets from its various multi-year television, cable and satellite deals.

However, the revenue-sharing payments, believed to be more than $100 million per team, haven’t covered player payroll in recent years, meaning teams have to rely on other income streams — merchandise sales, tickets, suites, etc.

So when a team loses, that revenue drops.

The Detroit Lions, for example, failed to sell out five of the last six games at 65,000-seat Ford Field, and the team’s merchandise sales have never cracked the top 10 on NFLShop.com, the league’s official online retail site.

The Lions won’t discuss finances and disputes the analysis by financial news Web siteForbes.com that the team had negative $3.1 million in operating income on revenue of $204 million in 2007 (the most recent season studied).

If the numbers are accurate, it’s logical to assume the winless 2008 season didn’t improve the Lions’ finances. The team also will face an uphill battle as it looks to season ticket and corporate sales renewals after a horrible season and in a terrible local economy.

Detroit isn’t alone in suffering. Even teams that sell out every game, such as Washington and Cleveland, cut front office staff in recent months as franchises and their fan bases weather the economic downtown. NFL headquarters cut nearly 170 jobs this year.

Game seven of the Stanley Cup Final captured the biggest NHL audience in 36 years.

Advertiser interest was evident in the most recent Winter Classic game, which saw more sponsors and more money spent than in 2008, Bettman said. The game, at Chicago’s Wrigley Field, sold out all of the nearly 41,000 tickets in less than an hour.

Bettman declined comment on either of the team’s financial situations.

Gary Bettman was paid $7.1 million in salary and benefits for the 2007-08 season, according to league tax filings and reported by Sports Business Journal.

For the fiscal year ending June 30, 2008, Bettman earned $4,197,694 from the NHL and $2,911,550 from NHL Enterprises, the league’s business arm, according to the report. The total package represents a 27-percent raise over the previous season and the highest level of compensation Bettman has received in 16 years as commissioner.

I know for the players, escrow is a big thing. Basketball, they have a cap on their escrow where they’re only losing 10 percent of their salaries. Last year, it ended up being close to 15-18 percent of our salaries. This year with the economy and sponsorships, it might even be more. It’d be nice to have a cap on that.

MARRIAGES END WHEN WORST-BAD ECONOMY

NOTE THE ECONOMY

NOTE THE OWNERS-SOLID

GOOD-BOSTON PLAYER

KNEW THE MIDDLE PLAYERS WOULD TAKE THE HIT

THIS YEAR UNCERTAIN – WITH ALL BIZ

INSURANCE-COUNTRIES-LITTLE INSURANCE-FEDERAL GOVERNMENTS

OWNERS FIGHTING TO KEEP TEAMS-MORE EMPLOYMENT

http://www.tampabay.com/blogs/lightning/content/forbes-says-tampa-bay-lightning-worth-191-million-18th-league

The Tampa Bay Lightning is worth less than what owner OK Hockey paid for it, Forbes magazine estimates. Forbes estimates the franchise’s value at $191 million, 18th in the 30-team league. The team was bought for about $200 million.

Forbes’ value also does not include debt, of which there is much as OK Hockey, it is believed, received $67 million in financing and $30 million in operating capital from former owner Palace Sports & Entertainment and even more financing from Galatioto Sports Partners, a New York sports investment bank.

last year tampa bay

http://www.forbes.com/lists/2008/31/nhl08_Tampa-Bay-Lightning_319451.html

Hockey salaries were out of control, prior to the NHL lockout, and the resulting agreement.

During that time, four players were earning $11 million plus per season – not counting Sakic and Fedorov, who had higher front-loaded contracts.

They were: Mario Lemieux, Peter Forsberg, Keith Tkachuk, and Jaromir Jagr (three seasons).

Name the highest paid NHL player, never to play in an All-Star game, or win a Stanley Cup.

Chris Gratton

Bobby Clarke, and the Philadelphia Flyers, signed Gratton to a $10,150,000 contract for the 1997-98 season.

When Bob Goodenough took over the NHLPA in February, 1990, he introduced salary disclosure. It’s something that’s taken for granted today.

How important was it?

Wayne Greztky’s father, Walter admitted to Terry Jones: “I knew Wayne was getting traded days before he did because Nelson Skalbania phoned me and asked, ‘How much does Wayne make?’

I said ‘Why?’

He said ‘Because Peter’s shopping him to the highest bidder.’

I said ‘No he’s not.’

He said ‘Yes he is.’

That was during the 1988 Stanley Cup finals – a year and a half before salary disclosure.

Of course Pocklington knew how much his star was making, as did Wayne and his father, but it wasn’t public knowledge like it is today.

Hockey Zone Plus has compiled a comprehensive database of some 2500 players who’ve played in the NHL from 1989 until the present.

Also, a hockey fan, who calls himself Ogopogo, has located copies of Sport magazine, which ceased publishing in 2000. In his issues were the: 1987, 1990, and 1991 NHL salaries.

I have included the Hockey Zone’s 1990 salaries, along with those listed by Sport.

I would note, however, that the two lists for 1990 aren’t always the same – some are calculated in American funds, some Canadian. But, I am including both, as they provide a good idea of NHL salaries at that time.

I would ask the reader to also note, that the years from 1987 until 1990, was the time in which Offer Sheets were first being presented.

SPORT - June, 1987

1. Wayne Gretzky – Oilers – $950,000 CDN – (converted to $717,250 USD)
2. Marcel Dionne – Rangers – $700,000
3. Mike Bossy – Islanders – $650,000
4. Bryan Trottier – Islanders – $625,000
5. Dave Taylor – Kings – $600,000
6. Mario Lemieux – Penguins – $550,000
5. Denis Potvin – Islanders – $550,000
8. Mike Liut – Whalers – $450,000
9. Rod Langway – Capitals – $400,000
10. Barry Pederson – Canucks – $350,000

SPORT - June, 1989

1. Gretzky – Kings – $2 million
2. Lemieux – Penguins – $1.5 million
3. Trottier – Islanders – $950,000
4. Taylor – Kings – $700,000
5. Dionne – Rangers – $600,000
6. Liut – Whalers – $550,000
7. Goulet – Nordiques – $510,000
8. Messier – Oilers – $510,000
9. Savard – Blackhawks – $500,000
10. Coffey – Penguins – $485,000
11. Duguay – Kings – $475,000
12. Hawerchuk – Jets – $467,500
13. Stastny – Nordiques – $446,250
14. Carpenter – Bruins – $425,000
15. LaFontaine – Islanders – $425,000
16. Gustafsson – Capitals – $410,000
17. Stevens -Capitals – $400,000
18. Pederson – Canucks – $400,000
19. Bourque – Bruins – $380,000
20. Fuhr – Oilers – $340,000
20. Robinson – Canadiens – $340,000

SPORT - June, 1990

1. Gretzky – Kings – $2.72 milion
2. Lemieux – Penguins – $2.15 million
3. Chelios – Canadiens – $1 million
4. Trottier – Islanders – $975,000
5. Taylor – Kings – $950,000
6. Bourque – Bruins – $925,000
7. Messier – Oilers – $875,000
8. Nicholls – Rangers – $725,000
9. Yzerman – Red Wings – $700,000
10. Goulet – Nordiques/Blackhawks – $600,000
11. Carson – Oilers – $585,000
12. Robinson – Kings – 550,000
13. Savard – Blackhawks – $525,000
14. Dineen – Whalers – $510,000
15. Wilson – Blackhawks – $500,000
16. Hextall – Flyers – $500,000
17. Kerr – Flyers – $500,000
18. Coffey – Penguins – $485,000
19. Stastny – Nordiques – $480,000
20. Hawerchuk – Jets – $462,000

HOCKEY ZONE PLUS - 1989-90 (U.S. Dollars)

1. Lemieux – Penguins – $2,000,000

2. Gretzky – Kings – $1,720,000

3. Messier – Oilers – $855,271

4. Yzerman – Red Wings – $700,000

5. Trottier – Islanders – $ 575,000

6. Robinson – Kings – $550,000

7. Savard – Blackhawks – $525,000

8. Goulet – Nordiques/Blackhawks – $517,980

9. Bourque – Bruins – $500,000

10. Hextall – Flyers – $500,000

11. Wilson – Blackhawks – $500,000

12. Taylor – Kings- $500,000

13. Kerr – Flyers – $500,000

14. Chelios – Canadiens – $496,398

15. Coffey – Penguins – $450,000

16. Liut – Capitals – $445,000

17. Salming – Maple Leafs – $435,000

18. Kurri – Oilers – $431,650

19. Howe – Flyers – $425,000

20. Stastny – Nordiques – $414,384

21. MacInnis – Flames – $410,068

22. Sandstrom – Kings – $410,000

23. LaFontaine – Islanders – $400,000

24. Nicholls – Rangers – $400,000

25. Gartner – Capitals – $400,000

25. Carson – Oilers – $400,000

Inventor Frank Mogridge designed an inflatable boxing glove-looking thing in 1905. The A.J. Reach Company of Philadelphia sold it for $5.

Hall of Famer Roger Bresnahan experimented with “head harnesses” and developed a leather batting helmet in 1908.

Necessity was the mother of invention, as he had been severely injured by a beaning.

The earliest versions were made of soft leather and were predominantly designed to cover the ears. The first helmets offering full protection of the skull and featuring holes in the earflaps were introduced between 1915 and 1917. During the 1920s and 1930s, makers began to utilize harder leathers and some fabric cushioning for greater protection and helmets finally caught on just after World War Two.

The BIKE Athletic Company – based in Knoxville, TN – claims that it invented the athletic supporter as we know it in 1874.

The Cultural Encyclopedia of Baseball credits catcher Claude Berry with introducing the cup to major league baseball in 1904.

So, baseball – like hockey players – were more concerned with their knackers than their heads.

NHL owners and players continue this tradition today.

Do NHL owners patch the roofs of their arenas?

Do they fix their ice making plants when they break down?

Of course they do. It’s good business to keep their assets in top shape.

This is true of any business.

And the NHL is big business. The combined values of the 30 teams is nearly $6.7 billion dollars – this according to Forbes Magazine’s league-wide appraisals.

So, why don’t the NHL teams protect their greatest assets – their players?

By allowing repeated head attacks, they are undermining their businesses.

The preceding chart shows the increases and decreases in teams’ values – as determined by Forbes Magazine.

There are numerous variables used to determine a team’s value, but success tops the list.

Washington was up 15% last season.

Forbes wrote:

“Winning counts for a lot in the NHL where gate receipts contribute a higher percentage of revenue than any other major league and home playoff games can bring in between $700,000 to $1 million for the Capitals. That is good news for the Capitals who rode superstar Alex Ovechkin to the second round of the playoffs last season and fans believe the team could be a premier franchise for years to come…at the start of this season the team was close to selling all 12,000 of its season tickets. Meanwhile, ratings for Capitals broadcasts on CSN Mid-Atlantic were up 67% last year. The Capitals brand has also rebounded, with the team among the league leaders in merchandise sales.”

Many have commented on the loss of Ovechkin – due to injury – and its impact on the NHL.

What if he was injured by a head attack?

It would be devastating to the Caps and the league.

And not good business.

*****

GM Place photo courtesy of ultradev.martell.ca

*****

EARLY ATTENDANCE TRENDS IN THE NHL – THIS SEASON

Alexander Ovechkin is earning $9,000,000 this season.

This is in contrast to a number of NHLers who are earning the league’s minimum salary – $500,000.

All of the 715 players listed by nhlnumbers.com can afford a cell phone.

And yet, the NHLPA has difficulty electronically assembling their membership to vote – or discuss problems.

This is just one of the numerous difficulties that the players currently face.

The following is my summary included in The Fischler Report:

A thorough review – plus a new constitution and infrastructure – should assure the players that their organization represents them in a competent manner.