Jump to content
The Official Site of the Vancouver Canucks
Canucks Community

(Article)Gallagher: Canucks cap hit isn’t confined to just the team


naslund.is.king

Recommended Posts

It's a demand and supply story..

There is more demand to buy a Vancouver Canucks ticket than a Tampa Bay lighting ticket, thus the team can charge more for a ticket.. I can agree that it would be a positive thing if the prices were lower so more people could afford to go to the games, but still there is only a limited amount of seats and those who are capable and willing to pay 315 dollars for a ticket will buy a ticket and enjoy the game. Yes its unfair that a fan in Tampa Bay can go in and pay maybe 20 bucks for the whole package for a game but that's reality.

The price of sand will be higher on the North Pole than in the Sahara.. stupid article with barely no apparent understanding of how a business works.

Link to comment
Share on other sites

It's a demand and supply story..

There is more demand to buy a Vancouver Canucks ticket than a Tampa Bay lighting ticket, thus the team can charge more for a ticket.. I can agree that it would be a positive thing if the prices were lower so more people could afford to go to the games, but still there is only a limited amount of seats and those who are capable and willing to pay 315 dollars for a ticket will buy a ticket and enjoy the game. Yes its unfair that a fan in Tampa Bay can go in and pay maybe 20 bucks for the whole package for a game but that's reality.

The price of sand will be higher on the North Pole than in the Sahara.. stupid article with barely no apparent understanding of how a business works.

Link to comment
Share on other sites

This is the most thorough explanation I can find of how Revenue Sharing works now:

http://rangers.lohudblogs.com/2013/08/14/guest-blogger-ilb2001-a-look-at-revenue-sharing-under-the-new-cba-2/

The first step is to determine the amount of total redistribution commitment—the money that will help low income teams to stay competitive, and have sufficient funds to stay above the salary floor, and closer to salary mid-point. The formula is total HRR from the preceding year multiplied by 6.055 percent. For the 2011-12 season the HRR number was $3.303B, so the amount of total redistribution commitment would be $200M.

The second step is funding of that amount. It consists of 3 steps:

  • 50 percent (in above case-$100M) comes from the Top 10 highest income teams based on preseason and regular season income. This is when it may become interesting. If you look here (http://www.forbes.com/nhl-valuations/) you will notice that only three teams (Maple Leafs, Rangers, and Canadiens) are truly making money. So those three teams contribute together the largest amount, and teams at the 8-9-10 spots contribute the minimum. Luckily for Mr. Dolan, however (not that we should worry about his financial well-being), the number is capped at 25 percent of total amount per each team.

  • Next step is interesting. The 16 teams participating in playoffs, regardless of their income during the regular season, will have to surrender 35 percent of their playoff gate receipts. That’s right, ‘heads, playoffs aren’t pure income to teams as some people still think.

  • If those two steps produce insufficient funds, the rest of it will be funded by the league using its centrally generated revenues, and partially by the players escrow funds.

I would like to see how the Top 10 income earners's commitment are calculated on the individual team level, but to give up 35% of gate receipts from your playoffs income is pure robbery.

Link to comment
Share on other sites

It's a demand and supply story..

There is more demand to buy a Vancouver Canucks ticket than a Tampa Bay lighting ticket, thus the team can charge more for a ticket.. I can agree that it would be a positive thing if the prices were lower so more people could afford to go to the games, but still there is only a limited amount of seats and those who are capable and willing to pay 315 dollars for a ticket will buy a ticket and enjoy the game. Yes its unfair that a fan in Tampa Bay can go in and pay maybe 20 bucks for the whole package for a game but that's reality.

The price of sand will be higher on the North Pole than in the Sahara.. stupid article with barely no apparent understanding of how a business works.

Link to comment
Share on other sites

Thanks for posting this article. Gallagher has a way of getting under one's skin but he also kicks in with some good stuff.

Reading this makes me think about Phoenix and the league propping that joke up for the past season.

With the teams in Florida being heavily subsidized the expansion of northern teams makes sense in a revenue sharing scheme for the poor earners. The league could boast higher revenue even though the lower revenue teams will make no more. Of coarse Mr Aquillini will go for it because he won't have to kick in as much.

Some one weigh in. Do I see this right?

Link to comment
Share on other sites

Oh Gallagher. Your attempt at reconciliation via empathy and solidarity with the average fan who cannot afford a Canucks game is beyond pathetic.

The patern is still there; give a couple of medieval dance-like compliments to a few, then bombard the rest of the league with a major complaint.

The attempt to put Vancouver amongst the richest of the league is also rather pathetic. Canucks owners are not related in any way to the Sultan of Brunei.

If you can't afford a Canucks game, Gallagher, just move to Tampa Bay...

Link to comment
Share on other sites

Thanks for posting this article. Gallagher has a way of getting under one's skin but he also kicks in with some good stuff.

Reading this makes me think about Phoenix and the league propping that joke up for the past season.

With the teams in Florida being heavily subsidized the expansion of northern teams makes sense in a revenue sharing scheme for the poor earners. The league could boast higher revenue even though the lower revenue teams will make no more. Of coarse Mr Aquillini will go for it because he won't have to kick in as much.

Some one weigh in. Do I see this right?

Link to comment
Share on other sites

Don't like Gallagher. Don't like his ratio of ten conspiracy-theory laced articles and whining and witch-hunting of Canuck players to one article of placating the Vancouver fan base. Don't like him personally; as in I don't like who he is as a person.

However, there are at least some things to take away from this article, even though it won't change my opinion of Gallagher.

1. MG did do a good job of getting cheap contracts over the summer, and when the cap goes up astronomically next summer, this team will be in a good position to spend (dependent on Aquilini's financial state).

2. Supply and demand does dictate that Tampa fans should never have to pay the same prices for games as the Canucks. However, I think an important point Gallagher introduces, although he does not really explain, is that the salary cap this season has handcuffed teams so severely that regardless of supply/demand differences, the quality of the team will be relatively the same. Thus, fans can demand that owners provide a more competitive team; however, owners can do nothing to improve supply.

Link to comment
Share on other sites

The NHL wants a NATIONAL TV contract in the US. To achieve that goal they need nationwide interest. It can't be achieved with regional or worse yet more Cdn teams. That's the goal and so they need to subsidize the areas of the US where there is lesser footprint. In many US states Hockey is demoted to the last page of the Sports section in the papers ( if at all ) and fall behind tractor pulls on TV. The cost of getting their presence out there nationwide is expensive but obviously a risk they wish to take.

Link to comment
Share on other sites

It's pretty ironic when you think of how the yanks decry evil communism..yet Karl Marx would probably admire their league rev sharing & more. Also poor 'little people' don't get the security of them nasty unions anymore, in this 21st century-they Jimmy Hoffa'd all of us. Now rich sporting stars or elite entertainers?..Hmm, said they,"Them unions seem like a swell idea, let's have'em." In a nutshell probably 40~80 dollars of every NHL ticket us Cdn suckers buy, is sponsoring a 5~10 year excellent US homestay for about 300 of our gifted & lucky young male citizens. Meanwhile, our franchises get abused and/or used as a farm system(middle-ground between AHL & NHL)

Link to comment
Share on other sites

It's pretty ironic when you think of how the yanks decry evil communism..yet Karl Marx would probably admire their league rev sharing & more. Also poor 'little people' don't get the security of them nasty unions anymore, in this 21st century-they Jimmy Hoffa'd all of us. Now rich sporting stars or elite entertainers?..Hmm, said they,"Them unions seem like a swell idea, let's have'em." In a nutshell probably 40~80 dollars of every NHL ticket us Cdn suckers buy, is sponsoring a 5~10 year excellent US homestay for about 300 of our gifted & lucky young male citizens. Meanwhile, our franchises get abused and/or used as a farm system(middle-ground between AHL & NHL)

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...