Future of several NHL teams in doubt 01/12/2008 |
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The survival of the New York Islanders hinges on an arena deal that may be compromised by tightening U.S. credit markets.
The Coyotes' future in Phoenix is threatened by the plight of owner Jerry Moyes' trucking firm, Swift Transportation, during an economic slowdown.
The Atlanta Thrashers are in court daily, mired in an ownership tug of war that threatens to de-stabilize the franchise.
A 27 per cent share of the Nashville Predators is tied up in the William (Boots) Del Biaggio bankruptcy hearing.
The Tampa Bay Lightning's new owners reportedly needed help from previous owner, Bill Davidson, to complete their purchase.
The Florida Panthers are papering the house with ticket promotions and giveaways: present a Florida driver's licence, get a free ticket.
The New Jersey Devils moved to a new facility in Newark two years ago, but it has not been a cure-all for their economic struggles either. At the moment, as one of 17 teams experiencing attendance downturns in the first quarter of the season, the club is fighting the city and contractors over who should pay utility bills - and it's hard to make ice without water and electricity.
Against this mounting evidence, amid the worst financial crisis since the Great Depression, commissioner Gary Bettman recently reported a sunny forecast for the gate-driven National Hockey League, buffeted by increased attendance in October and brisk ticket sales in many markets.
Looking forward, the picture isn't so cheery.
"The U.S. economy in June was okay and the Canadian dollar (drop) didn't really happen until October," explains Larry Quinn, Buffalo Sabres managing partner and minority owner. "So a lot of these things don't hit you immediately, but there is a 12-month cycle involved ... and going out, it's looking pretty scary a year from now."
Many of Quinn's peers echoed his words. NHL presidents, governors and general managers are worrying and wondering what the future may hold.
While the league enjoyed audited revenue growth of 12 per cent last year, growth is expected to flatten to about one per cent this season, according to numerous team executives. Moreover, eight to 10 teams are struggling — at the most dire end of the scale, the New York Islanders and the Phoenix Coyotes are losing tens of millions of dollars annually.
(Source: Globe and Mail.
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