My NHL Includes Winnipeg
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Myth #6: Salary Cap



"A higher salary cap hurts Winnipeg."



Myth: Busted



Fact: The cap grows as league revenue grows.

It's very doubtful that Winnipeg’s revenue won't keep pace with the NHL average. And its' also very doubtful that Winnipeg will average less than 14,000 sold seats per game. These are the 2 conditions for revenue sharing, assuming Winnipeg will need it. If it does, revenue sharing will be there to offset a growing salary cap.

The same can't be said for some of the teams already financially troubled.



Download NHL Financial Scenarios Spreadsheets Here



The above summary was derived after reviewing many news items. We have included links to various news articles, video clips and audio files in chronological order. Each item is saved as its own web address allowing for easy viewer reference:

A team-by-team look at all 30 NHL franchises

While some of the predictions during the lockout were overly negative, this article presents each team's payroll pre-lockout as well as their announced attendance averages. This may be helpful hindsight in understanding how bad and for how long things have been bad in certain NHL cities.

TSN.ca
December 15, 2005

Source

CBC: Ron MacLean and Gary Bettman, All Star Game, Part 1

Gary Bettman responds to Ron MacLean’s questions at the 2007 All Star Game in Dallas, Texas. The NHL Commissioner does think that Winnipeg can support the NHL again with the new CBA.

CBC, Hockey Night in Canada
January 26, 2007

(Link not available to source)

CBC: HNIC Hotstove

A week following Mr. Bettman’s supportive comments about Winnipeg, the group of reporters speak about some NHL governors support for it, a potential local ownership group has already reviewed two NHL teams books and concluded that the NHL would work in Winnipeg with the current MTS Centre at 15,003 seating capacity.

CBC, Hockey Night in Canada: Hotstove
January 28, 2007

(Link not available to source)

CJOB 680 AM: Gary Bettman's comments at the 2006-07 NHL All-Star Game

Local media reaction to Gary Bettman's comments at the 2006-07 NHL All-Star Game about Winnipeg's return to the NHL. Paraphrasing Bettman: "Under the current CBA, Winnipeg could probably support the NHL." Both David Asper and Mark Chipman attended the game and festivities in Dallas, Texas.

CJOB 680 AM Radio
January 28, 2007

(Link not available to source)

NHL fans have left the building

Gate receipts paint real picture of a false economy

Mark Spector of the National Post examines the NHL’s gate receipts by game and by team and finds that without the spin doctoring, the numbers for some teams are very bleak. Canadian teams proved to be among the most financially sound. These numbers allow Manitoba Mythbusters to compare how a potential Winnipeg team’s ticket prices at the MTS Centre and gate revenues would show against the existing 30 teams.

Mark Spector, National Post
February 10, 2007

Source

Continue to be Passionate: Bettman

Tim Campbell’s complete one on one interview with NHL Commissioner Gary Bettman included questions like “Did you really mean leaving Winnipeg was wrong?” and “Do you have rules on seats or luxury suites?”. Mr. Bettman’s responses were both fairly candid and positive and ended much worry over whether the MTS centre met NHL minimum standards.

Tim Campbell, Winnipeg Free Press
May 30, 2007

Source

Winnipeg, NHL silent partners?

City's slow, steady, quiet approach best way to land team

Both True North chairman Mark Chipman and CEO Jim Ludlow were invited this past January to make a presentation to the NHL's executive committee in a meeting which operators of the MTS Centre preferred to keep hush-hush. "Because we've expressed interest in knowing more about their plans in the past and a desire to be considered in whatever plans they might have, we were invited with some other cities to go and... explain to the executive committee how our market might fit into whatever plans they're contemplating," Chipman said. "I think the (NHL is) just beginning to contemplate the possibility of expansion and I think they want to know what's out there." Chipman added, "we described our existing organization. We described the building that we play in. We described what we judged to be the market capacity. And if they were considering either expansion or relocation we felt we were capable of going to the next step." Chipman was not aware if the NHL had established any pecking order of potential markets. Ludlow said the message of the presentation was to inform the league's executive committee on the overall success of the MTS Centre, in terms of Moose attendance and the strong entertainment component of the new arena. Chipman explained, "I think we were treated very fairly and very respectfully, and I think the comments you've seen have been a reflection of that presentation and the ongoing dialogue after that." In regards to the CBA and an ever-evolving salary cap, Chipman said, ""We want to understand it in the event an opportunity does come forward because we want to be ready for it."

Randy Turner, Winnipeg Free Press
July 07, 2007

Source

Mike Beauregard reports; Peter Mansbridge with Mark Chipman

Mike Beauregard reports from Winnipeg focusing on the state of pro hockey, past, present and future. Following Mike’s report is a live, candid discussion between CBC television newsanchor Peter Mansbridge and Mark Chipman, governor of the Manitoba Moose hockey club, regarding the various aspects of the return of the NHL to Winnipeg.

CBC Newsworld
February 06, 2008

(Link not available to source)

Mother of All Mailbags

Content not related has been removed

From his mailbag, John Buccigross anwsers a reader question from San Jose about lamenting the Jets White-Out and why there aren't more Canadian teams. He says that the NHL may want any new team to be able to stand in its' own without the need for revenue sharing. (Our financial scenarios found here validate that Winnipeg would not need revenue sharing to sustain itself.)

John Buccigross, ESPN.com
April 23, 2008

Source

Winnipeg Sun: Five Minute Major

Winnipeg Sun's Five Minute Major - Program discussing NHL free agency and its effect on Winnipeg's chances in the NHL.

Winnipeg Sun sports writers talk about the cap being upped $6 million a year and the resulting July 1, 2008 free agent spending spree. Discussion turns to how much tougher it will be for the troubled markets being able to reach the salary cap floor of $40.7 million (assuming they don't qualify for full revenue sharing.) Following that, questions surround whether the growing cap has any influence of Winnipeg's changes for a return. The writers seem to think that a growing cap is driven only by a growing revenue pool which should be matched by a Winnipeg team due to a rising dollar and potentially the use of revenue sharing should it be required.

Winnipeg Sun
July 03, 2008

(Link not available to source)

Silly season in the NHL

Using the kickstart to free agency as a backdrop, Iain MacIntyre's main point is that 6 to 12 teams are driving the salary cap up while that rising salary cap floor may render some teams as also-rans at best or unsustainable at worst.

Iain MacIntyre, Vancouver Sun
July 05, 2008

Source

Hockeycentral with NHLPA's Paul Kelly

The Fan 590: Paul Kelly, NHLPA Executive Director, joins Hockeycentral to discuss the financial state of the league and relocating franchises to Canada. Paul Kelly directly points to Hamilton (even with territorial rights issues), Winnipeg and Quebec City. A second team in Toronto would sellout every night, Paul Kelly says as well. Paul also indicates that some teams may be in financial difficulty. Further, he indicates if they can't be resolved after 3 to 5 years of losses, those teams should be relocated with those Canadian prospective cities at the top of the list of destinations.

The Fan 590
July 25, 2008

(Link not available to source)

CJOB 680 AM Radio: Bob Irving

Daily Sports Commentary with Bob Irving, with comments regarding NHL expansion to Europe, his reaction to Wayne Gretzky's and Jim Rutherford's recent comments, and how he believes Manitoba Premier Gary Doer and Mark Chipman will come up with the "deal of the century" in the next decade to bring the NHL back to Winnipeg.

Bob Irving, CJOB 680 AM Radio
September 15, 2008

(Link not available to source)

All quiet on the expansion front

Due to the impending econmic cloud coming to North America in general and pro sports in particular, so much talk about possible expansion has been put on the NHl's backburner.

Tim Wharnsby, Globe Sports
September 17, 2008

Source

CJOB 680 AM Radio: Richard Cloutier with Mark Chipman

CJOB Radio: Richard Cloutier talks corporate support in Winnipeg with Mark Chipman. Mark calls Gretzky's comments about Winnipeg not having that corporate base "folklore" and that Gretzky "very well may be" wrong. Mark also says how much stronger the corporate community has become since 1996 and that a team would not come here without proper validation on a high degree of certainty. The committments for season tickets and corporate-base revenues streams would need to be demonstrated before an ownership group could move ahead and purchase a team. Those committments could not be for just for 1 or 2 years. Mark Chipman believes that with his group owning the arena and all its revenue streams, that they would love to become owners of an NHL team in almost any way conceivable. As an illustration of the robust economy, Mark Chipman says that currently, there is a waiting list of over 50 companies for the MTS Centre. Mark also presents the Manitoban economy as one of the most stable that can be pointed to.

Richard Cloutier with Mark Chipman, CJOB 680 AM Radio
September 24, 2008

(Link not available to source)

Daren Millard and Mike Brophy with Chris Mackie

HockeyCentral at Noon on the Fan590 had Manitoba Mythbusters’ Chair Chris Mackie as guest. Both Darren and Mike seemed emotionally supportive yet financially skeptical at the start of the conversation. But as the flyer’s numbers showed over the course of the chat, the brain wins out over the heart and still supports Winnipeg’s return.

The Fan 590
September 24, 2008

(Link not available to source)

Trouble ahead

Gary Bettman recently reported a sunny forecast for the NHL. A closer look tells a different story

Eric Duhatschek takes stock of the number of teams having financial difficulty. He then questions if the NHL has its’ head in the sand, with seemingly overly rosy descriptions of the near future in the economic downturn. He goes on the explain that expansion talk is gone, corporate sponsorship is a concern and keeping upright is the league’s chief aim, or should be. Eric speculates on what salary cap changes may occur in the following year.

Eric Duhatschek, Globe & Mail
November 29, 2008

Source

ShawTV's Sports Talk with Mark Chipman

ShawTV, Sports Talk: Hosted by Jim Toth, this week Manitoba Moose owner Mark Chipman talks about his team, the possibility of Sean Avery playing for the Moose and his push to bring the NHL to Winnipeg.

ShawTV
December 11, 2008

(Link not available to source)

CJOB 680 AM Radio: CJOB sports director Bob Irving comments on the possible return of the NHL to Winnipeg.

Local radio sports director Bob Irving talks about Phoenix needing NHL advances on revenue sharing and league shared revenues as well as the troubled teams having no chance for success. He further states that by not having fans directly participating in the great game of hockey there will never be that connection to the game, which puts hockey teams at a huge disadvantage to the main sports football, baseball and basketball. Thus there chance for success is razor slim. When these teams finally face this reality, many cities will be interested especially those in Canada. There will be an opportunity for the local ownership group to relocate one of those teams to Winnipeg in the next couple of years. It will require large cheques being signed by that group and significant involvement by the provincial government will be required (such as loan guarantees, hockey bonds, etc.) beyond direct ownership.

CJOB 680 AM Radio
December 24, 2008

(Link not available to source)



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