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Originally Posted by JHikka
Your entire argument for the past three months has been that the NHL is in a precarious financial hole, capable of sinking and falling at any moment, and I simply don't believe that to be the case, at least not enough to begin moving franchises around for quick cash. COVID has dented all sports leagues to some degree but I think the NHL has fared fairly well all things considered, between fielding the bubble playoffs to beginning this season.
NHL's new TV deal in the US will be negotiated soon, likely with multiple partners, which should garner them more revenue into the future. Worst case they hold the salary cap still for a few years.
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These two things are not unrelated. You'd be crazy to think that deal wouldn't be radically lower than it is going to be if they didn't have this season. I'm still very skeptical the new deal is gonna anywhere near the ballpark of the NBA's previous deal.
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Originally Posted by JHikka
The NHL took out a $1B line of credit to distribute to teams prior to this season, and with more and more teams slowly getting fans into arenas (Columbus applied yesterday, as one) these revenue streams should slowly resolve themselves throughout this season, resulting in a more or less normal 2021-2022 season.
All of this is to say that in the immediate term I don't think they need to start handing out relocations or expansions left, right, and centre.
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I never said they had to be handing out relocation fees left right and center. Ottawa-QC is a unique situation.
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Originally Posted by JHikka
- Ottawa is a bigger market.
- Ottawa corporate support is better.
- Ottawa has proven it has the fanbase when the owner isn't purposefully damaging the team.
- Ottawa soaks up both English and French media and marketing from the NHL - Quebec does not do this.
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Ottawa's market size is reduced because of the sheer number of Hab's and Leafs fans.
Corporate support is less than it should be because of the governments inability to buy booths etc.
Sure Ottawa could be a good market with a good team. But that's 5 year away, assuming the hatred for the Sens doesn't grow as the team suffers.
Ottawa's marketing territory is heavily pinched by Habs and Leafs. Their largest Anglophone market is Atlantic Canada. A place much closer to QC, and a place that has minimal interest in the Sens. The Nordqiues have major mystique because of their history.
Regardless the argument isn't whether or not Ottawa is so bad, but that it simply isn't radically better than QC. The lack of an Arena being the most obvious problem.
The idea that Ottawa could afford a relocation fee later on is exactly why this would work.
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Originally Posted by JHikka
But more to the point, the second the NHL starts moving teams around for the sheer hell of it the more it devalues teams. Team values are inherently based on stability and franchise sustainability over the long term, so moving Ottawa puts a dent in this. I think you're overestimating the fees in which the NHL recoups for relocations, especially when they're worth far less than potential expansions in Ottawa's case.
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This relocation and fee would be a 1 time deal in a unique situation, at a unique time in history. The one timer relocation fee of $300 million isn't something that'd likely ever happen again.
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Originally Posted by JHikka
It's lazy and puts the league in a worse position than it is now in five years.
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It's absolutely short term thinking, but if the league is stuck doing a bridge deal for its television contracts, it's a great way of holding over for several years, until the global economy recovers.
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Originally Posted by JHikka
Whoever wants a team in Houston (it won't be Fertitta) has to pony up money for expansion and for renting out the arena they won't be owning.
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Texas has a population of 30 million people. It only has 1 team, in a league that has a massive interest in getting larger television contract. It also has the economy least likely to suffer post covid. The league wants, in and the mass exodus of california billionaires is a big bargaining tool.
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Originally Posted by JHikka
Who in Ottawa puts up ~$750M CAD for an expansion franchise? The town has corporate support but these sorts of numbers are reserved for only a select number of people in Canada.
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Well somehow little QC has offered up $500 million USD for an expansion fee, so I can only assume they are capable of doing so. That ignores the part where the league needs to pretend it's lowest valued teams are in the $400 million range.
Neither market could ever afford Seattles expansion fees. This unique solution would allow for serious discounts in both markets.
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Originally Posted by JHikka
It's nice that you think the NHL can simply mess around with Senators fans by moving their team and then giving them another and pretending nothing happened but this simply isn't going to be the case.
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The hatred for Melnyk is the main reason this kind of shuffle would work.
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Originally Posted by JHikka
A simpler idea would be a behind-closed-doors deal between the NHL, Melnyk, and a potential buyer, where Melnyk is bought out with the NHL using the loans they've supplied Melnyk with as leverage (the league was able to secure a better line of credit for Ottawa at more favourable rates than Melnyk himself would have been able to achieve). Push Melnyk out, bring in literally anyone who is willing to keep the team in Ottawa, and then sort out an arena deal in the mid-term.
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How on Earth do you push him out without rewarding him for his behavior? How does this not become a normal behavior throughout a league seeking stability? If you don't overpay him, how do you maintain franchise value? Where is the league gonna get the money to buy out Melnyk, if they are already cash strapped?
The relocation deal effectively does much of what you mention, except it offers up some high value relocation/expansion money. Most importantly from a QC ownership group that was willing to pay $500 million just a few years ago?