The Financial Effects for the NHL: Michael Burns

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Trump optimistic pro sports can return to having fans in stands by ...

   
     Many hockey fans tend to only focus on the product on the ice, but what about off the ice? Due to Covid-19, the NHL, just like all other professional leagues, currently have their season on pause. This has lead to detrimental losses of revenue to all leagues, including the NHL. But what if the NHL were to cancel their entire season? If this were to happen then the NHL would miss out on over 500 billion dollars! Also, it would be expected that some teams wouldn't survive such as financial loss and maybe wouldn't be able to play next year. Small markets could be very vulnerable such as Arizona and even our hometown team, the New Jersey Devils! Also, a slightly larger market like Nashville relies mainly on their ticket sales and with no more season, this could be a terrible situation for the organization. 
     As the virus seems to be calming down, president Donald Trump claims that sports could return very soon. Although if sports such as hockey return, they will be played in empty arenas in locations with very few cases. The governor of New Hampshire, Chris Sununu, has been currently making a push to have the state be a possible location if they resume play. Even Florida can be an option in Panthers arena, the BB&T center or the Lightning's Amalie Arena. This is because Florida's governor Rick Scott has deemed sporting arenas and stadiums as essential services meaning that sports can resume there only if there are no fans in attendance. 
     Weather if the season continues or not, the NHL will lose money. Possibly the biggest issue for most teams is how this pause will effect the salary cap. The salary cap is the amount of money a team is allowed to spend. For the NHL, the cap is currently $81,500,000 and will most likely drop, the main question is, how far? Most teams in the league are very close to the cap and will have to trade away players or not resign some of them if the cap were to drop. An idea that has been thrown around is the Compliance Buy Out meaning that you can buy out a contract and it won't affect the cap. I personally love this idea so my favorite team can buy out our goalie Sergei Bobrovsky who is under preforming and is signed at 60 million dollars over the next six years. If every team were to get one or two compliance buy outs, then it makes a salary cap drop a lot easier and then the cap can go back to where it was the following year (2021-22). 
     For not only hockey fans. but for all sports fans, we can just hope that this virus gets resolved and we can watch our favorite athletes again soon. 
Commissioner Bettman releases statement on Board of Governors meeting

Comments

  1. DanielleApril 22, 2020 at 9:48 AM

    There are so many concerns that we haven't even thought about or addressed yet.

    ReplyDelete

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