Has Pro Sports seen its Heyday?

We all know that we are in a global recession right now and that this is likely to have a serious impact on a number of industries, including professional sports. We have seen several sports leagues and organizations cut back staff or cut ticket prices and we have all read about the speculation of how the recession will impact salary caps in leagues where the salary cap exists. No doubt the recession is going to have an economic impact in the short term, but what kind of effect will it have in the long term? The last 20-30 years has

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State of the NHL Economy

Over the past several weeks we have had several tidbits of information come out giving indication to the general state of the NHL economy. Dec. 22: NHL defies economy, projects rise in revenue The NHL projects a 2 percent increase in league revenue for the 2008-09 season despite facing one of the worst economic crises to hit North America since the league contracted from 10 to six franchises around the time of the Great Depression Dec. 24: Report: Coyotes receiving financial assistance from NHL According to The Globe and Mail, the Coyotes are receiving financial assistance from the National Hockey

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More troubling signs for NHL?

Mark Spector of Sportsnet.ca is reporting that there could be an increase in the percentage of the players salaries that are kept in escrow. The players have always paid money into the escrow account which is set up to ensure the owners don’t pay the players more than the percentage of revenues the players are set to receive as determined by the CBA. This season the NHL and NHLPA initially set the escrow to 12.5% meaning 12.5% of every players salary would be put into the escrow account. The 12.5% number represents the highest level ever required. But Mark Spector

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League Revenues, the Loonie and the Salary Cap

On Monday NHL Players Associations Executive Director Paul Kelly was on Prime Time Sports with Bob McCown discussing several topics but of particular interest was the light he shed on NHL revenues, the contribution of Canadian teams to those revenues, and the impact of the Canadian dollar on those revenues. You can listen to the complete interview but let me summarize. He stated that 27% of all league revenues are generated by the 6 Canadian NHL franchises and that of the 12% revenue growth the league saw last season, one quarter, or approximately 3% growth, was attributed to the rise

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Tough times for Canadian teams

I have written here several times before but I think it deserves repeating because this is could be a major issue in the months and possibly years to come and could have a significant negative impact on the smaller Canadian NHL franchises. The issue is the falling Canadian dollar. A season ago the dollar averaged fairly close to parity. Right now the Canadian dollar has dropped below 79 cents in US dollar terms. This is real bad news for teams like the Calgary Flames, Ottawa Senators and Edmonton Oilers, all of whom struggled for their survival in the late 1990’s

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