Ice Hockey in Canada

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Ice Hockey in Canada

Ice hockey has in the last hundred years evolved to become international. Canada is in jeopardy of losing its six teams. Tradition run deep in all of the cities and also professional hockey teams create thousands of jobs and help out in the communities. Teams in the Canadian market are having trouble keeping their programs in the black because of higher taxes and a weaker Canadian dollar. In order for professional hockey teams in Canada not to relocate to United States, it is necessary for Ottawa to provide tax cuts for them.

Professional hockey has been around in Canada for over one hundred years. Tradition runs deep in programs like the Toronto Maple Leaf's and Montreal Canadians, which have been located in those towns since the creation of the NHL. In 1917 the NHL had its first full season and all of the five teams were from Canada. By 1934 there were only two

teams left in Canada but those two teams (the Montreal Canadians and the Toronto Maple Leaf's) are still in the NHL after 93 years.

Privet research firms have done studies for professional sports franchises to see if moving their franchise is more profitable than their current location. Currently three of the six Canadian markets are more profitable than the open locations in the United States (Dryden 2). A study done by J.C.H. Jones and D.G. Ferguson has come to the conclusion that the quality of a location directly affects a teams profitability. Also take into the consideration that the quality of a location also impact the quality of the athletic talent.

"Finally, the one pervasive element in the empirical analysis is the significance of a Canadian location. The "hoser" variable is simultaneously a proxy for Canadian sporting ...

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...it $10 Million."

The Gazette (Montreal) 19 Jan. 2000: A1

Jones, J.C.H. and D.G. Ferguson. "Location and survival in the National Hockey

League." The Journal of Industrial Economics Vol . XXXVI (1988): 443-57.

Manley, John. "Financial challenges confronting Canadian NHL teams"

From the office of Minister of Industry 18 Jan 2000.

May, Kathryn. "Bryden stows For Sale Sign." The Ottawa Citizen 27 Feb.

2000: C1

Robinson, Walter. "Federal Aid for NHL Teams way Offside." Weekly Journal

3 July, 1999 1-2.

Sandomir, Richard. "Hockey: Canada Kills Subsidy Plan for 6 NHL Teams."

The New York Times 22 Jan. 2000: D1.

Swindell, Dave. "Who benefits from the presence of professional sports teams?"

Public Administration Review 58 (1998) :11-20

Warren, Ken. "Rod Bryden has few options to weigh." The Ottawa Citizen 27 Feb.

2000: C1

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