NHL Players Moving East
It was deemed official this past weekend that the NHL will be on lockout due to the new salary cap the league wants to enforce. The players in the league have a different outlook this year as well and it involves moving east. Hockey players in the NHL get 75% of the revenue the league makes and it is very obvious that this current situation is not going to last. There is no way to fund the league if the players are making all of the money. So what happens now? Ratings are very low, the league is not m September 21, 2004
Current Events Paper
arketable right now, and expansion has hurt rather than cured many of the problems in the NHL. That is why the NHL is trying to come to an agreement to place a cap in the league in order to make some much-needed revenue. The players are not having this new idea, and they are now welcoming a different home.
More than 150 players have signed to play in the European leagues. Jaromir Jagr has agreed to play in the Czech Republic for a team named Kladmo. Marcus Naslund has agreed to play in Sweden for Modo. Llya Kovalchuk has signed with AK Bars Kazan in Russia. These are just a few names, but other players are already signed as well and are playing games as we speak. The Russian league has signed 33 NHL players, the Swedish league has signed 30 NHL players, the Czech league has signed 47 NHL players, and the Finnish and Slovakia leagues both signed nine NHL players apiece.
So how can this current situation be resolved? There are few options right now, which makes it seem like this is really going to hurt the league economically. Most of the players in the league have a lockout clause in their contracts making this problem easy for them to deal with. All they have to do is wait out this lockout while being involved with a different league and when the lockout is over they can automatically resume their previous positions in the NHL. This situation however, is not going to be resolved that easily. If the players do not agree to have a salary cap in the NHL then there is not quite an alternative. Where can the league make up this money? If there were a bigger demand for the sport than there would not be a problem.
Ultimately, there are three exceptionally important criteria for deciding on good candidate for an expansion team. The first criterion is that the stadium must be controlled or owned by the baseball team. The stadium is a crucial aspect because most of the team’s revenue is generated in relation to the stadium. This stadium revenue comprises of ticket sales, parking, merchandise and concessions. Thus, without a stadium, the team will not be able to generate a stable source of revenue. The second criterion is that local ownership must have strong roots within the community. Without ties to the community, fan attendance could decrease. This is because fans could eventually perceive that the owner(s)’s only goal for the MLB franchise was to be profitable. The third criterion is the city must have long-term political support in the community. It is vital to have political support in order to gain financial support throughout the team’s years of existence, especially in tax payer monies. Particularly, this is significant when the team experiences issues or fights that involve the stadium and the land around the stadium. If there is a lack of political support, the expansion teams will not be able to obtain enough for money for stadium renovations, repairs, or to build new stadiums for the same team within the same city. This circumstance was apparent when the New York Yankees used tax revenue generated by New York City to fund the building of their brand new stadium for the 2009 season. Therefore, expansion committees believe it is necessary to confirm that the prospective cities will have enough political support because this political factor will help stabilize and financially support the prosp...
B. The owners claim that it would not be profitable to keep playing baseball in Montreal and Minnesota.
Anyone who has been involved in an organized sport, whether it is backyard football or a high school sports team, knows that these sports all have organizations that are responsible for setting rules, determining conditions of play, and penalizing individuals who infringe the rules. Some of the organizations like the National Football league and the MLB are familiar to most people, the rules they follow are not generally understood by anyone who is not closely associated with the sport. Most fans and sport critics assume that what is happening inside these organizations are of little concern to them. However, this is not the case. In the MLB, the New York Yankees spend an excessive amount of money every year to obtain big name players. A luxury tax was put into effect for teams that go over the spending limit. However, the Yankees are the only team that pays the tax because they are the only team that exceeds the spending limit. The players, coaches, fans, and I have argued that a salary cap would be the best possible way to allow teams in the Major Leagues an equal opportunity getting to the World Series.
Cutting two leagues would save clubs over $600,000 per year in player expenses alone (See Figure 3). And while there are many benefits to adopting the NHL model in regards to draft rights retention, having more players in college would decrease the amount of players in the lower minors and decrease the amount of competition. Having college baseball in effect replace the lower minor league levels will remove the need for these levels as well as giving MLB a way to balance out the costs of increasing salaries.
Labor market theory is one of the most integral economic theories needed to dissect the inefficiencies in professional sports. Looking first at the type of market these leagues function in, one can see that they do not necessarily meet all the criteria that a competitive market requires. The big four sports leagues in the US have a set number of teams which creates barriers for entry. Only when an expansion is agreed upon by the league, such as NHL has done for the upcoming season, are teams allowed to enter, and even then, it is limited to a maximum of a few teams in recent history. Additionally, the league makes it virtually impossible to exit, as selling of a team is the closest they come to exiting the market. Through
A salary cap gives all the teams an equal chance to sign players. It also keeps teams with a lot of money not able to acquire every all-star they want , or any player who is a free agent. Some Major League Baseball teams like the Anahiem Angels and the Atlanta Braves are owned by very wealthy people and companies. The Anaheim Angels are owned by Disney.(Worisnop, 128) So with no surprise the Angels can produce a team which can be very competitive, and have several all-star players. Just recently they exercised this advantage by signing Mo Vaughn for ninety million dollars over seven years.(Antonen, 2) There were at least four other teams that wanted to sign this all-star, but the Angels easily had the money, and outbid everyone who wanted to sign him. If there was a salary cap in Major League Baseball then the Angels would have thought twice about giving that much money to one player. With the its roster for one year. So giving one player 12.8 million dollars for one year does not really make sense if the salary cap is fifty million dollars a year. That would leave only 37.2 million dollars for the twenty-four other players, which equals each player getting on average a little less than one and a half million dollars a year.
As long has there has been business, Management and Labor have warred against each other for a bigger piece of the pie. Major League Baseball is no different. In the early years of professional baseball the owners controlled the salaries of the players and decided where they could play and what they would be paid. The players were bound to their team by the Reserve Clause that stated, the services of a player will be reserved exclusively for that team for the next season. This resulted in keeping the player’s salaries artificially low because the players were not allowed to offer their services to any other team. The Reserve Clause was in effect for more than One Hundred years of baseball history. It was challenged several times but the owners had won every time, until in 1970 when the St. Louis Cardinals traded outfielder Curt Flood to the Philadelphia Phillies. Flood refused to play for the Phillies and sued to become a free-agent. Flood’s case was in court for several years going all the way to the Supreme Court. He was never able to play in the Major League again. While he did not win his case, he laid the groundwork for a later case that involved two pitchers, Andy Messersmith and Dave McNally who filed a grievance against the league contending that, because they didn't sign contracts with their previous teams they were free agents. The owners and the Players Association agreed to submit to binding, impartial, arbitration in order to settle this case. On December 23, 1975 the arbitrator Peter Seitz ruled in favor of the players and the Reserve Clause was broken, and the era of free agency began in the Major Leagues. In 1976 when free agency began the average player salary was only $52 thousand dollars, but it has increased steadily ever since. By 1990 the average salary for a Major League Baseball player had risen to $589 thousand dollars. This Year baseball will start the 2001 season with an average player salary of more than $2 million, about 40 times higher than the typical wage in 1976 when free agency began.
The 1994-95 baseball strike was the fourth strike in 22 years and has been known as the worst strike in sports history. The major impact was approximately 948 games canceled along with the World Series resulting in millions of dollars lost. Team owners proposed a salary cap agreement to the players due to difficult financial situations the league was experiencing. The owners said that teams needed to share broadcasting revenues to make it equal amongst the teams to prevent market clubs from falling. This meant that smaller teams would not lose their bigger players to teams that c...
Any real baseball fan needs to read a copy of Bob Costas' "Fair Ball." Costas addresses the issues pressing Major League Baseball, its owners, its players, and its fans. Everything that caused the 1994 work stoppage could happen again after next season. However, Costas very thoughtfully lays out a plan primarily for the owners, since they should be able to master what they own.
...he most powerful of men, corporations, or societies. When it is one’s ignorance and negligence to not know when they have enough and crave for more than they will ever need, will they hurt the people that have gotten them where they are and will take them where they need to go? Do the owner’s not know that they cannot survive without players and more importantly, the fans they are hurting in this process? I think it is time they step up to the plate and seriously try to meet the player’s negations points to end this lockout and let the players play and the fans watch football.
Ice hockey is a sport that is played and loved all around the world. The hockey culture is like no other. I have firsthand experience with this culture and it’s different from many things. Hockey gets the reputation as a brutal sport with a bunch of goons trying to kill each other, but most people don’t get to see on the other side. Hockey brings people together whether you are a different race, have different beliefs, or a different gender it’s like one big happy family. Ice hockey wasn’t invented or it didn’t have a specific year it began. It all started around the 1800’s in Windsor, where three college students from King’s College, adapted their knowledge of the game field hockey to the ice, where a new winter sport was born. The boys called the game Ice Hurley which later got called to what we know today as Ice Hockey. As the years went by, the game was being played by soldiers across Canada, where it was carried o...
Hockey would not be hockey without the players. The NHL is famous for its five on five play. Roller hockey, on the other hand, is four on four. Strategically in ice hockey two players stay primarily on defense while the other three are sent forward for offense. Roller hockey, however, with only two forwards for offense, one of the two defense-men must move up to join the attack in order for teams to have an effective attack. While causing a minor headache to defensive players, having four players on the floor allows more open ice to skate and make plays in. This too has a downfall though, four players doing the work of five can be tiresome to players leading to the need for shorter periods.
The debate on whether college athletes should be paid to play is a sensitive controversy, with strong support on both sides. College athletics have been around for a long time and always been worth a good amount of money. This billion dollar industry continues to grow in popularity and net worth, while they continue to see more and more money come in. The student-athletes who they are making the money off of see absolutely none of this income. It is time that the student-athletes start to see some of this income he or she may by helping bring the National Collegiate Athletic Association. There are many people who do not think this is in the best interest of the student-athletes or Universities, but that being said there are also many people who are in favor of the change.
The problem with this is the inflation of players' salaries. When players are drafted young, they demand to be paid what they want; teams pay them millions right out of college.
...ecks and be treated as a farm system for the NFL, NBA, or MLB. If these athletes started getting paid now, at the college level, then the major leagues of these sports would suffer tremendously and lose marketability and money. A final solution to not having players get paid or receive certain benefits is maybe these head coaches of certain universities should not be getting the average 2 million dollars a year to be a coach, in some cases more than the presidents of these universities.(Chicago Tribune) There could be major strides made by simply merging that athletes shouldn’t get paid in whole dollars, but should receive paid benefits in which they would not have to worry about starving, losing scholarships due to injury or sub-par play. That I think would make the world for college athletes a better place, where both the schools benefit and the players benefit.