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The Plight Of Canadian Nhl Teams


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I got to talking about this a bit on the thread about Alex Tanguay, and mods, if you see the need, please move those posts here.

I just found a great speech from someone who was involved with the Calgary Flames in 1999, and some things have changed somewhat since, but it is still as relevant today as it was when the speech was made.

http://speeches.empireclub.org/details.asp...amp;SpeechID=36

It also backs up my thoughts on the tax structure being the killer of the Habs dynasty (although not quoted directly), and the downfall of the Canadian teams in general, although some have had modest success getting players depending on their province's tax code.

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  • 2 weeks later...

I'm not a tax expert by any means but common sense in my eyes would be that if taxes affect the bottom line on whether a team is profitable or hemerraging money,,,then there is something wrong with the NHL's bussiness plan. If a large portion of teams are losing money, then i would suggest that the NHL's calculations of what percentage of total income given to players,,,, needs to be revamped. If we subsidize teams through a tax reduction, then we are in effect increasing their bottom line which in turn increases player salaries ( as they get a % ). I understand the league has their fund redistribution system where the poorer teams get money from the richer ones but obviously it doesnt go far enough to keep teams like the Yotes from declaring bankruptcy.

The only true solution ( cant see this ever happening) would be that all revenue goes into ONE pot, whereby ALL expenses are taken care of and profit is then distributed evenly between all teams,,, forcing the NHL to look twice at money losing markets. Every team would get the same amount of money to be spent on players and staff. None of this low end and top end of Cap. Any team not spending to the amount calculated would then have the difference distributed between players. The NHL would then need to decide if a market is worth developing or dumping.

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I got to talking about this a bit on the thread about Alex Tanguay, and mods, if you see the need, please move those posts here.

I just found a great speech from someone who was involved with the Calgary Flames in 1999, and some things have changed somewhat since, but it is still as relevant today as it was when the speech was made.

http://speeches.empireclub.org/details.asp...amp;SpeechID=36

It also backs up my thoughts on the tax structure being the killer of the Habs dynasty (although not quoted directly), and the downfall of the Canadian teams in general, although some have had modest success getting players depending on their province's tax code.

i'm sure i've said this before, but it bears repeating.

thinking about hockey as entertainment is downright wrong, disrespectful, and insulting, and yet the guy making the speech makes that allusion. god bless!

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The Bear Cat story and the Liz Taylor joke are gold!!

As for what he is saying I don't think its relevant anymore. Ever since the salary cap came into effect, Canadian teams have not been too hard up. I think the Oilers problems are not money but the fact that Edmonton isn't the best place on earth to live in January. The whole Pronger mess wasn't over money. It was his wife hating the cold. I mean they almost got Heatley, he has a pretty big contract. Financially unstable teams can't afford him.

These days Canadian teams aren't to hard up. When the dollar was par with the states it sure helped the teams out. I am sure you didn't hear any crying in the board rooms then. Lets hope some of the owners were smart enough to take advantage of that situation.

About the only problem I see is the players not wanting to play here cause their salaries are taxed more in Canada. Well I would NOT be in favour of giving them tax breaks. The teams just pay them a bit more.We lose some cap space doing that but IMO the hit is pretty minimal.

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I'm not a tax expert by any means but common sense in my eyes would be that if taxes affect the bottom line on whether a team is profitable or hemerraging money,,,then there is something wrong with the NHL's bussiness plan. If a large portion of teams are losing money, then i would suggest that the NHL's calculations of what percentage of total income given to players,,,, needs to be revamped. If we subsidize teams through a tax reduction, then we are in effect increasing their bottom line which in turn increases player salaries ( as they get a % ). I understand the league has their fund redistribution system where the poorer teams get money from the richer ones but obviously it doesnt go far enough to keep teams like the Yotes from declaring bankruptcy.

The only true solution ( cant see this ever happening) would be that all revenue goes into ONE pot, whereby ALL expenses are taken care of and profit is then distributed evenly between all teams,,, forcing the NHL to look twice at money losing markets. Every team would get the same amount of money to be spent on players and staff. None of this low end and top end of Cap. Any team not spending to the amount calculated would then have the difference distributed between players. The NHL would then need to decide if a market is worth developing or dumping.

The National Football League already has this, and has had it since the early 60s - revenue sharing from TV money. This is what has allowed teams like Green Bay to survive. And it is no coincidence it came along just as Vince Lombardi was establishing his dynasty in Green Bay.

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