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Daly: NHL has already lost close to $100 million

Oct 2, 2012, 5:22 PM EDT

Bill Daly Getty Images

This lockout has cost people. Ask a pair of US Senators representing New Jersey and they’d say it’s hurting “workers, businesses, and families.” Now we also know how much a canceled preseason has cost the NHL: $100 million.

“That is not going to be recouped and that’s going to cost both sides,” NHL deputy commissioner Bill Daly said, according to the Winnipeg Press. “That’s unfortunate but it’s a reality of where we are.”

With the regular season scheduled to begin Oct. 11, the NHL’s lost revenue will only continue to increase if this lockout doesn’t end.

Unnecessary lost revenue, the union might add.

“This is really important. This is a lockout they decided to have. This was a lockout of choice. There was no reason for it. Negotiations could still be ongoing,” NHLPA executive director Donald Fehr said in an ESPN report. “And so, if there’s a problem here, maybe someone ought to look in the mirror over there.”

That echoes Fehr’s pre-lockout assertions that the players would be willing to begin the 2012-13 season without a new CBA and simultaneously continue negotiations.

Meanwhile the union and league met briefly on Tuesday and “no progress” was made.

  1. wingsdjy - Oct 2, 2012 at 5:30 PM

    “With the regular season scheduled to begin in Oct. 11, the NHL’s loses will continue to increase if this lockout doesn’t end.”

    Um….duh?

    • rickd58 - Oct 3, 2012 at 5:54 PM

      What I do not get is how a regular guy who use to skate with his Buds at one point in time …. can forget the path that took them to the NHL???? they all had to buy tickets and purchase a $10 cup of watered down Beer when watching an NHL game live…. they had to work a regular job with regular folks who make a Year what they now make an Hour in the NHL World….
      Do they and the Owners know they can not take the money when they Go to the final sleep wherever that is???? Do they realize that Life is so short that they should enjoy it????? I guess they all FORGET!!!! What a Bunch of Greedy Folks we have here and in Life!!!! Hope they loose it all maybe we can then enjoy watching Euro Hockey where they just enjoy the game for what it is suppose to be… Fun!!!!!!!!!!!!!!!!

  2. freneticgarfieldfan - Oct 2, 2012 at 5:30 PM

    sooo: the players lost already (at least) 57 million…

    • lakings23 - Oct 3, 2012 at 5:38 PM

      I could be completely wrong about this, but the players have contracts and that is the money that they have lost. New CBA negotiations will effect new contracts in the future, not any current players with a contract.

  3. jernster21 - Oct 2, 2012 at 5:33 PM

    Awwww…..sad trombone.

  4. sjsharks66 - Oct 2, 2012 at 5:40 PM

    It’s disgusting how 10 million$ to them is just ehh…it happens.

  5. sippindasyzurp - Oct 2, 2012 at 5:46 PM

    This will not end until the players give in.. The owners are ready to sit out as many seasons as needed to get what they want!

    As a fan i dont like that, but thats just the reality of the situation.

    • chiadam - Oct 2, 2012 at 5:57 PM

      They just did that in 2004. They’re too stupid to even know what they want.

  6. chiadam - Oct 2, 2012 at 5:54 PM

    Well, if the league that had been boasting about record revenues for 12 months suddenly became poor when the CBA expired, they’re not really losing anything. Cheaper to not ne on business, right?

    • chiadam - Oct 2, 2012 at 5:55 PM

      * be in business. Stupid phone.

  7. blomfeld - Oct 2, 2012 at 6:13 PM

    Friends, this 100 million dollars is forgone “revenue” … not “net” profit or loss. There is a slight difference you know. ;) Also bear in mind that likely 2/3 of the teams are actually going to be in better “bottom line” shape as a result of this temporary stoppage. Of course it isn’t good for teams like Montreal, Toronto or Vancouver. But it sure as hell makes sense if you’re the owner of Nashville, Tampa Bay or Carolina ! The simple fact is that October and November are by far the two biggest “loss-making” months of the year for the majority of financially-struggling teams, which numbers approximately 20 x franchises, mostly in the sunbelt. Let’s never forget our basic Economics 101 formula … “when revenue earned is < variable costs incurred, then operations must cease immediately". So while the NHL may have collectively kissed 100 million dollars of revenue good-bye with this fake impasse, I suspect that by doing so, they've collectively avoided a far greater sum in terms of variable cost (ie: which would equate to a loss).

    The bottom line is that while Bettman may be a rat … a "dumb" rat he is not !

    • paperkid96 - Oct 2, 2012 at 10:48 PM

      Excellent point. Apply to franchises not the league. We went from 18 franchises losing money to 30 franchises losing money.

      Still think the point both sides are missing is a saturated market. Players don’t want contraction because it means fellow players losing jobs and Bettman’s ego is too big for him to realize that 30 teams is too many. 24 – 26 teams is probably ok. Imagine what that would do for the quality of the product.

      With that said, revenue split needs to even out as well.

      • blomfeld - Oct 3, 2012 at 12:16 AM

        Friend … I would counter by asking you, why do the players even get a slice of Hockey Related Revenue ? Aren’t their million dollar “plus” contracts enough ? I mean, who are these people supposed to be ? … Madonna or something, looking for a cut on royalties ? Let’s see them put up the “money and risk” to buy an NHL franchise and try to make a profit. Then we’ll see how willing they are to part with “that” which they’ve “gone on the line” in-order to earn !

      • tatdue - Oct 3, 2012 at 12:49 PM

        @bomfeld – You really don’t know what this is really all about do you? The players don’t get a slice of HRR…The slice that they are talking about is their salaries. This is how the cap works….right now the players get 57% of HRR. That 57% is their salaries. The owners want that percentage to be about 50% which the players would probably be okay with, but the owners want it to go into effect immediately which would result in a salary roll back…which the players are not okay with. The players are willing to take less of the pie (which again is their salaries not an extra payday) but they want it to gradually go down going forward so that there is no salary roll back. The owners 43% of the 3.3 billion is almost pure profit since the players salaries is the 57% and most of the costs of running the league are already taken out before HRR is calculated. I can’t believe that anybody can think that the players are in the wrong when this is nothing more than pure greed by the owners….

      • blomfeld - Oct 3, 2012 at 4:03 PM

        Q: should I step on the stupid ant ?

        A: no friend … it’s probably best just to leave him be

        ————————————————————————

        @Tatdue – I assume you’re being serious and so I’ll answer you in a “retaliatory-free” spirit. An NHL player’s “total” compensation package comprises a number of components, including but not limited to contract salary, an agreed portion of HRR, assorted endorsement earnings, per diem allowances, etc .. etc .. etc. Now granted that player salary amounts are “linked” to the total of agreed hockey related revenues HRR), the two my friend are still completely separate items on the books. Hopefully that’s clear for you ?

        ps: I would suggest that you park the “venom-spewing” crap towards your fellow bloggers here at PHT. It’s one thing to have a go at big man “Ovi” or whoever, as they couldn’t care less about what we say here. It’s quite another thing however when you start pissing in our bed here. Please cease with that ugliness … and yes, you’ve now unfortunately come to the attention of my gun captains.

    • tommytd - Oct 3, 2012 at 1:15 AM

      And the reason we play ICE hockey in the “sunbelt” is…….?

      • blkeskimo1785 - Oct 3, 2012 at 3:27 AM

        Well, it WAS to further expand the sport into non-traditional hockey markets, to generate further revenue…but in most of those markets, hockey still trails far behind the NFL, NBA, and MLB…even though those franchises constantly struggle, I can’t see Bettman letting those teams relocate to more traditional markets…

      • jaybertx - Oct 3, 2012 at 9:03 AM

        ICE hockey is the healthiest sport in Tampa, thank you very much.

      • bauerstick - Oct 3, 2012 at 3:29 PM

        To Remember how Many thing were different. To recall some of years when we used to play “Pond Shimmy ” (Pick — Up team) with Friends. How the Cold would burn your toes when you had been on Ice for several minutes. To Recall your First A.H.L., C.H.L. Game,or W.H.L. game you attended. The sudden recoil of the first hit you took when carrying the puck,also the curtness of the first hit you laid on someone on the opposing team. The utter Nonsense of Play on the Ice “….hey, did you just see…..Awww, How’d he miss that one?” The Yellin’ when the game was over… it was decided that the BOTH teams won because you got to PLAY — On Ice ! Later on, how wise a coach was….He Actually saw a play as it was forming and predicted its’ outcome…the Shot crossed the Crease , and went in the NET !! Memories, whether viewed on E.S.P.N., N.B.C. Sports, or the great C.B.C. and if you got a mind for….and a pocketfull of Money seeing it Happen LIVE ! Thats’ reason Why….WE play Hockey in the Sunbelt, to remember “When it was a Game.” In still some small way to participate in its’ experience — and Remember –When It was a Game!

      • blomfeld - Oct 3, 2012 at 11:34 PM

        @bauerstick – that was a nice piece of writing … well done ! :)

    • pkeenan2012 - Oct 3, 2012 at 9:35 AM

      If Bettman is so smart how come he didn’t fix the problem the first time….. or the second time?

  8. 81redneck - Oct 2, 2012 at 6:22 PM

    Nobody goes to NHL Preseason games anyways so it’s a moot point. I think it’s amusing that these NHL Players want to be paid like the rest of the Top Athletes in MLB, NFL, NBA and even Nascar , when the NHL itself isnt even in the top 5 in the US for Popularity rankings for Professional Sports .
    The season’s a wash it’s done , zero hope . They need to eliminate about 5 teams as it is and contract if they ever wanna make this a go again.

    • tommytd - Oct 3, 2012 at 1:17 AM

      Until they eliminate the goons, the fighting and the headhunting, this league will never crack the top 5.

  9. chrisvegas - Oct 2, 2012 at 6:42 PM

    I hope the NHL goes bankrupt so real business people can buy them out and give us a better product.

  10. capsfan19 - Oct 2, 2012 at 9:47 PM

    Wow! That was actually really interesting blomfeld!

    • blomfeld - Oct 2, 2012 at 11:18 PM

      You’re welcome friend. Most of the time here at PHT I like to have fun, even though I am very serious & passionate about my LA Kings and Elvis ! :) Nonetheless, I do believe that this “apparent” CBA impasse is nothing more than a ploy, designed to eliminate the “loss-making” portion of the schedule which is October and November. I believe that Bettman and several “power” owners are behind this scheme, in addition to numerous other parties who have a vested interest. Fehr is no dummy and so he obviously knows the deal too, as would a number of the marquee players. The way I see it, their motives are quite understandable in the short term. Yet in the long term, this will do nothing to mitigate that which is inevitable … contraction and northward migration.

      *** bonus video selection for the excellent commenter called Capsfan19 ***

  11. gbloedel - Oct 2, 2012 at 10:03 PM

    This is getting more ridiculous every day. They have learned their techniques of bargaining from congress. Nobody wants to give – what a shame. Looks like it’s time to get rid of the season tickets we bought during the lost season!

  12. nothanksimdriving123 - Oct 2, 2012 at 11:01 PM

    Well you certainly have to respect the brilliance of business leaders who would choose to lose $100,000,000.00 rather than agree to a deal which might cause some of them to lose some money because they can’t keep themselves from making deals that their businesses can’t sustain. Wait, WTF?

    • blomfeld - Oct 2, 2012 at 11:56 PM

      On the contrary friend … if it was going to cost them 150 million in “variable” costs to earn that 100 million in revenue, then they haven’t lost anything … if anything, they’ve done quite well, thank you very much ! :)

      • tatdue - Oct 3, 2012 at 12:59 PM

        But it wasn’t going to cost them 150 million as the players don’t get paid during preseason….Although some teams don’t make money a lot of teams do make a lot of money during preseason since those games are also sell outs…

      • blomfeld - Oct 3, 2012 at 4:15 PM

        Tatdue: “But it wasn’t going to cost them 150 million as the players don’t get paid during preseason” …

        Fact: Players get paid every 2 weeks, just like most common jobs, and their paychecks are calculated by their salary divided by the amount of 2 week periods in the season, from training camp until the end of the regular season.

        Tatdue: “a lot of teams do make a lot of money during preseason since those games are also sell outs” …

        Fact: NHL pre-season games traditionally see the absolute lowest average attendance figures in any given year.

        ________________________________________________________

        “your honor … at this time we have no further questions” …

  13. dannythebisforbeast - Oct 2, 2012 at 11:02 PM

    Wake me up when it’s over. Just don’t expect me to buy playoff tickets this year. Sorry mr. Snider that’s the Least I can do. If every real fan does that they just might think twice before they screw you again. Hockey in HD isn’t all that bad.

  14. blkeskimo1785 - Oct 3, 2012 at 12:16 AM

    If they lose so much money in the months of October and November, would it make sense to shorten the season to around 60 games? Start every season around Veteran’s Day or even Black Friday…? Or even compress it…who knows…I’m a hockey fan, not an economics major.

    • blomfeld - Oct 3, 2012 at 12:40 AM

      Friend .. that makes so much sense, it isn’t even funny ! Yes indeed, contraction should not only relate to the number of teams, but to the number of games played as well … less is more ! The problem however is that neither party (ie: owners & players) will ever give way on that willingly. And that’s understandable, even though it would be for the collective good. An analogy could be made to a lifeboat with 50 x souls on board who are clinging for their lives. The boat is sinking because it’s only rated for 40 x people, but who’s going to volunteer to jump overboard ? … probably no one I suspect.

      *** special video selection for the excellent commenter Blkeskimo1785 ***

  15. id4joey - Oct 3, 2012 at 7:48 AM

    Start he season near black Friday? You must be American. As American as Elvis and the LA Kings, which btw I too love. However, no Canadian market based fans would accept starting the hockey season in November. Would the NFL, MLB, or NBA push out the start of the season? Maybe we should pull in black Friday by a month or 2 along with Thanksgiving day.

    • jaybertx - Oct 3, 2012 at 9:09 AM

      The NBA started on Christmas day last year due to their labor issues. MLB players went on strike in the middle of a season and MLB started the next season with replacement players. The NFL labor situation didn’t lose any games last year but was close. The NFL ref situation this year was an absolute joke.

      Labor issues are not exclusive to the NHL but they aren’t as frequent in other sports. They really need to get this figured out this time so there can be peace for a while. It’s really a shame.

    • blomfeld - Oct 3, 2012 at 12:32 PM

      “no Canadian market based fans would accept starting the hockey season in November” …

      that may be, but don’t forget that we Canadians are the “minority”, not the majority … and also don’t forget that no other country in the world could ever support 23 x NHL franchises the way the USA has been doing these past number of years, despite the fact that a number of them are struggling …

      • tatdue - Oct 3, 2012 at 1:02 PM

        A small number of them…

      • blomfeld - Oct 3, 2012 at 4:21 PM

        a “small” number ? …

        I honestly don’t know what to say to you other than God bless and take care …

  16. dannythebisforbeast - Oct 3, 2012 at 7:51 AM

    Hockey trails behind those in most markets. They were gaining ground on the NBA but all that momentum is being lost daily

  17. icrew29 - Oct 3, 2012 at 9:30 AM

    No union is the answer. Pay the players like NASCAR, x amount per year plus % of performance. Use the KISS method, keep it simple stupid!

    • blomfeld - Oct 3, 2012 at 12:34 PM

      I’ve personally always leaned more towards the “KISMIF” principle … keep it simple, make it fun ! :)

  18. chibimike - Oct 3, 2012 at 11:58 AM

    Headline should read: NHL admits it typically steals $100M/year from season ticket holders for crap preseason games.

  19. rudwung - Oct 3, 2012 at 2:51 PM

    After 50 years being an NHL supporter, the current lockout has made me the opposite. Lost 100 million due to the lockout when the disagreement in the first place is between two greedy entities whose actions are making fans like myself turn away from the entire situation with disgust. I no longer care what happens this season, in fact, I hope that the NHLPA, Bettman, owners/NHL feel as much pain and frustration as the average fan is feeling. No, wait, I hope they suffer immeasurably and that their wives leave them.

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