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edicius

League takeover of cash-strapped Devils may be inevitable

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Can someone please explain to me how the league taking over ownership of bankrupt teams is good for anyone other than the fans of those teams? All the other owners are losing money twice - once through revenue sharing and once through absorbing the day-to-day losses of those teams. If I were an NHL owner, I'd block the league taking over any more teams. Hockey is a business, right? So if I own Best Buy and ABC Warehouse is going bankrupt, why in the world would I agree to pump money into their store and not change the products at all? I can see maybe agreeing to a short-term loan to get them over the hump, but we've owned the Yotes for 3 years, and now there's talk about funding the Devils as well? Whatever happened to capitalism? This is the very definition of socialism, which people apparently don't mind in athletics, but abhor the idea when it comes to human beings.

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Can someone please explain to me how the league taking over ownership of bankrupt teams is good for anyone other than the fans of those teams? All the other owners are losing money twice - once through revenue sharing and once through absorbing the day-to-day losses of those teams. If I were an NHL owner, I'd block the league taking over any more teams. Hockey is a business, right? So if I own Best Buy and ABC Warehouse is going bankrupt, why in the world would I agree to pump money into their store and not change the products at all? I can see maybe agreeing to a short-term loan to get them over the hump, but we've owned the Yotes for 3 years, and now there's talk about funding the Devils as well? Whatever happened to capitalism? This is the very definition of socialism, which people apparently don't mind in athletics, but abhor the idea when it comes to human beings.

If Jesus taught us anything it's that society shouldn't be concerned with the poor. ... no wait, I'm confused how capitalism is compatible with the teachings of the Bible.

Edit, ignore that. While I don't mean it to be I did just toss a grenade there in terms of off-topic discussion.

Edited by Drake_Marcus

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I hope the NHL gets rid of revenue sharing. Keep a cap, but if you can't fund your own team, you shouldn't be able to spend to the cap. If you attend the games, then you can ask more from your team in terms of who they sign. Phoenix should have the bottom cap floor as their actual salary cap.

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Wow, you would think after their run, fans would be lining up for Tix, eh? Oh wait, it's New Jersey...They are part of that East Coast, NFL first, NBA next, MLB then Texas Hold Em, then NHL fanbase...That fanbase reaches as far west as Pittsburgh...and starts again in Southern California and heads East to Colorado...

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From the article:

But with close to $200 million in overall debt and $77 million due this summer, experts remain divided about the long-term impacts of the newfound cash.

"If they take all of that and attribute it to debt, they can make a small dent in it sure," said Scott Rosner, a sports business professor at the Wharton School of the University of Pennsylvania. "Will that attract investors? I guess it could make it marginally more attractive."

$200 mill in debt and over a third of it due this summer? ouch.

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I get why the league is loathe to let teams fail, but they're too eager to jump in and bail out teams like Phoenix who have no hope of ever rebounding, thus dooming the NHL involvement. And then, when they finally move, the NHL will have done nothing but waste resources.

Why is it so hard for American businesses to see the writing on the wall?

I'd hate to see Jersey move, but reality is reality. They're not as far gone as Phoenix, but this has been a consistent problem. If there were any sort of real punishment in the NHL this wouldn't be happening more frequently.

League takeover should only be a transitory situation. A two year chance to get business affairs in order should be plenty. If after two years a team has not righted the ship it should be sold or allowed to go bankrupt, even if it makes the league look bad.

Edited by VM1138

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I just love how they're saying in certain circles that the Devils can still afford to give Parise big money because they have a potential investor lined up. Vanderbeek has been singing that song since last September & here they are, still $200m in debt with a $77m payment due by September (pretty sure September). Why would a free agent who is looking at signing possibly the last contract he'll ever have, sign on to stay in that tenuous of a situation? Just my $0.02.

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I hope the NHL gets rid of revenue sharing. Keep a cap, but if you can't fund your own team, you shouldn't be able to spend to the cap. If you attend the games, then you can ask more from your team in terms of who they sign. Phoenix should have the bottom cap floor as their actual salary cap.

What they need to do is get rid of the floor. If they want to cap the top, that's fine, but the floor has been a complete disaster, despite what the Dictator Bettman says. Let teams base their team salary on what they bring in, not what the entire league does. It's so obvious that revenue sharing and the floor isn't working. Teams were better off financially before the cap.

I think the players have the advantage this time around. A 1/3 of the teams are in the toilet, the more games missed, the more debt they'll get in, which will lead to 1/2 of the teams in financial trouble.

The players really have an opportunity to stick it to the owners and get the game back to being entertaining again.

Edited by Barrie

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Good job Fidel Bettman the teams were healthier before the damn cap, because everyone spended what they could afford to. Getting rid of the cap floor and revenue sharing would be a good idea for a healthy league.

So with my New Jersey soon to be taken over by the league does this mean the Nordiques are finally back soon?

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