Jun 22, 2012 5:04 AM in response to: sportsnet_ca
Re: Grange on NHL: Chance for Canadian teams
Take this into account.
It is a very different story in Canada. Only one fifth of the NHL’s teams are Canadian, yet the country’s fans account for nearly one third of the league’s revenues. And a good chunk of those Canadian dollars end up in the US through revenue sharing, in what has effectively become an effort to subsidize Americans to watching Canada’s national sport. The primary
beneficiaries of this scheme are American hockey team owners and a smattering of American fans attending games below cost.
The primary victims are Canadian hockey fans, particularly those in cities that could support a team but are deprived from having one (or two) by the NHL.
For example, the CBC is paying approximately $100 million a year for the broadcast rights to Hockey Night in Canada. Because these are so-called national broadcast rights, the monies
involved belong to the league, not the six Canadian franchises, and the league redistributes them to all NHL teams.
As a result, out of the $100 million a year paid by the taxpayer-owned CBC for hockey rights, only $20 million is allocated to Canadian teams—the other $80 million is sent to the US
The bottom line is that two-thirds of the NHL’s national TV revenues are earned in Canada, and
then redistributed across all of the NHL’s—primarily American—franchises.
And the actual distribution of Canadian TV money to American teams, once the effects of leaguewide revenue sharing are taken into consideration, is even more unfavourable to Canadian
NHL revenue sharing assistance to poorer NHL teams, all currently American, is partly funded by national TV revenues. It is estimated that at least $40 million a year is paid into the pool by Canadian teams. The exact composition and division of the revenue sharing pool is complex
and secretive, but we know that the pool is partly drawn from television revenues. In other words, American teams are entitled to at least 80 per cent of the national broadcast fees paid by CBC, *** and RDS. But after revenue share is paid out to poor US teams, the actual percentage
of Canadian national TV revenue going to American teams is higher—perhaps as high as 90 per
So as much as I would love Parise, Stall, Nash and Pavelec ( yes Pavelec is a better goalie than Luongo. His asking price is $4 million a year and I can see him going back to Russia if not paid accordingly. He was the glue to Winnipeg....a steal for the Leafs if they could throw the money at him), Burkes'hands are tied and he is nothing but a whipping boy.
Economics play a huge part and with the American population 10 times larger than us how can we compete anymore?
Also Toronto is worth over half a billion dollars according to Forbes magazine. So while we spend astronomically towards season tickets and merchandise how can we getn the best player available when ownership wants nothing more than revenue?
Yes it is a sad state of affair and you have to look no further than the Jays and Raptors.
So the chances of winning in Canada are slim. With the distribution of wealth heading south no wonder we are in such disarra. I see no cup in the future for any team on Canadian soil until we look after our own.
Just thought it was an interesting read, posted by somebody on the sportsnet website..hope you enjoyed reading it@!