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Nobody wins the auction but the NHL wins

If the NHL ultimately prevails in litigation on these issues and the team has already moved to Hamilton in the interim, there will have been no adequate protection of the NHL's interest.  Such an ultimate outcome is apropos to the old adages about closing the barn door after the horse is long gone and how do you un-ring the bell.  The obvious refrain to the first adage is, "it's too late," and to the second, "you can't."  In the final analysis, the court can not find or conclude that the interests of the NHL can be adequately protected if the Coyotes are moved to Hamilton without first having a final decision regarding the claimed rights of the NHL and the claims of the debtors and PSE.....

This conclusion effectively is the end for the efforts of PSE, Balsillie, Moyes and the Coyotes to force a sale and relocation of the hockey team based upon the claimed powers in Section 363(f)(4) of the Code; i.e. those efforts and related motions are denied with prejudice.....

There has been no determination that the Moyes and Gretzky claims are not "legitimate creditors".  It would be inherently unjust for this court to deprive them of their possible rightful share of any proceeds without first providing all involved a fair trial on their claims.

For the reasons set forth above, the NHL bid is denied without prejudice.  The denial of the NHL's bid is done without prejudice because it seems to the court that the defect in the NHL's bid could be easily cured by the NHL.  In hockey parlance, the court is passing the puck to the NHL who can decide to take another shot at the sale net or it can pass off the puck.

"From the beginning, my attempt to relocate the Coyotes to Hamilton has been about Canadian hockey fans and Canadian hockey.  It was a chance to realize a dream.  All I wanted was a fair chance to bring a seventh NHL team to Canada, to serve the best unserved hockey fans in the world. I believe I got that chance.  I respect the court’s decision, and I will not be putting forward an appeal." 


"Nobody can deny that we are now a big step closer to having a seventh NHL team in Canada.  It doesn’t matter who owns that team.  When that day comes, I will be the first in line to buy a ticket to the home opener."
 
"I want to take this opportunity to thank my family for all their love and support. I also want to thank the more than 200,000 fans who supported the bid online and the countless others who contacted me personally to show their support. This bid always was about the game we all love."

— Jim Balisillie

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I didn’t care for his tactics and I can see why the owners wouldn’t want him as a partner based on his tactics but the NHL just lost a guy with deep pockets and a love for the game at a time where there are a few franchises in trouble.

He has bowed out gracefully; I hope the NHL can be gracious in its win.

by hockeycountry on Sep 30, 2009 8:22 PM CDT reply actions   0 recs

I can be ungraceful about this win though right?

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by OdinMercer on Sep 30, 2009 8:40 PM CDT up reply actions   0 recs

yes

anytime anyone tries to steal your team away from you, you can gloat when they fail.

"Life is just a place where we spend time between games. Hockey is where we live, where we can best meet and overcome pain and wrong and death." - Fred Shero

by Karina on Sep 30, 2009 10:15 PM CDT up reply actions   0 recs

At least for one year until the NHL does the exact same thing.

by Resolute on Oct 1, 2009 9:36 AM CDT up reply actions   0 recs

This is what the NHL lost.

And as far as Southern Ontario goes, get ready for an expansion team coming to a neighborhood near you soon (although probably not in Hamilton).

You are validating my inherent mistrust of strangers.

by zyllyx on Sep 30, 2009 10:59 PM CDT up reply actions   0 recs

Wait, what?

Laymen’s terms please. “the NHL bid is denied without prejudice” and “This conclusion effectively is the end for the efforts of PSE, Balsillie, Moyes and the Coyotes to force a sale and relocation of the hockey team” looks like “tough shit, maintain the current situation, which can’t really be maintained, or we wouldn’t be here in the first place”.

http://sacrificethebody.blogspot.com/
Sacrifice the Body - Examining the NHL through statistical analysis, reasoned thought, and blind conjecture.

by IAmJoe on Sep 30, 2009 8:51 PM CDT reply actions   0 recs

the NHL can submit another bid to be approved

Balsille can file an appeal of the court decision but lost his right to bid for the team

Praise Him!!

by Hawk is God on Sep 30, 2009 9:14 PM CDT up reply actions   0 recs

Honestly, this shouldn’t be a surprise ruling to anyone. The real surprise is that it took Baum almost 2 full months from the time the NHL rejected Balsille’s application [and over 5 months from the point the Coyotes were put into bankruptcy] to conclude that the NHL had the ability to select who joined the league and that the league’s rights could not possibly be protected if the team were allowed to move in the interim.

Then again, I can’t figure out why in the world Baum (A) held an “emergency hearing” on mediation knowing full well the NHL wasn’t going to participate, and (B) entertained a change to Balsille’s bid after the “bidding is closed, no changes will be accepted” ultimatum … but that seemed to be par for the course throughout this – avoid making a ruling [even when requested to do so] and hope things magically sorted themselves out [regardless of how apparent they weren’t going to].

Clearly all of this has caused significant damage to the Coyotes footprint in Phoenix – damage that I suspect won’t be overcome [unless the ’Yotes go on a magical tear through the regular season].

by Irish Blues on Sep 30, 2009 8:53 PM CDT reply actions   0 recs

Agreed, all along this judge said he wasn’t about to set a precedent; which meant this was the only outcome that could happen…..But he still let all the proceedings drag on. Perhaps he liked the spotlight?

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by Hooks Orpik on Sep 30, 2009 9:11 PM CDT up reply actions   0 recs

or

he felt that the information needed to become public

"Life is just a place where we spend time between games. Hockey is where we live, where we can best meet and overcome pain and wrong and death." - Fred Shero

by Karina on Sep 30, 2009 10:16 PM CDT up reply actions   0 recs

or...

…he desperately hoped that JB and the league would iron out their differences and come to some kind of agreement, thus sparing him the need to render a decision.

by BleedBlue42 on Oct 1, 2009 3:37 AM CDT up reply actions   1 recs

It seems to me that the real problem here is the NHL’s prosess for vetting their new owners. There have been way too many people with money problems and or legal issues{ ie, Nashville} awarded teams by the NHL in recent years. Moyes may not have had money problems when he bought the Coyotes, his decision to move to Glendale has caused the ones he has now. Maybe it’s oversimplifying, but that seems to be where the Phoenix problem started. The question is now, how to remedy the situation. This ruling puts the whole thing back to square one. Hopefully, all involved will see it that way.

If you don't wanna get hit, KEEP YOUR HEAD UP!

by dlw66 on Sep 30, 2009 9:58 PM CDT reply actions   0 recs

It is an oversimplification. It is also a canard repeatedly trumpeted by the meager group that constitutes Phoenix Coyotes fans and their allies.

While I appreciate that those of you in that group are happy that your team will live to see another day in the desert sun (I would too), I think it is useful to be a little more appreciative of the facts.

The Phoenix Coyotes – even prior to the move to Glendale – have lost money in every single season since moving from Winnipeg. They have never turned a profit. Not once.

Despite claims to the contrary, playoff appearances and a competitive team are no panacea. Even when the Coyotes made the playoffs (five times in their first six years) and were a legitimately competitive team, they did not generate a meaningful turnout of fans, nor did they generate sufficient and sustained interest beyond a niche group in the Greater Phoenix area.

This franchise, dearly though that small few of you out there in Arizona might love it, is for all intents and purposes an abject failure. Not simply on the ice because, of course, they weren’t an abject failure on the ice for the first five or six seasons after arriving. It is an abject failure because even under competitive market conditions it has not been able to make money and evidently has an insufficient base of sustainable support.

It is as simple as that.

by Robert J on Sep 30, 2009 10:51 PM CDT up reply actions   0 recs

Want a simple fact?

The home opener is sold out.

And I have eight tickets that I’m going to use to take my family and friends to see hockey in person.

That’s the fact, Jack. Everything else is pissing in the wind.

You are validating my inherent mistrust of strangers.

by zyllyx on Sep 30, 2009 11:05 PM CDT up reply actions   0 recs

Ha!

I don’t mean to be flippant, but you can’t honestly be serious.

The team has been practically giving those tickets away.

Filling the building by distributing tickets that are literally not worth the paper they are printed on is not a way to turn a profit. Sorry.

by Robert J on Sep 30, 2009 11:09 PM CDT up reply actions   0 recs

Convenient dodge of the relevant facts, too.

I’ve read your posts for a long while on this site. While I certainly admire your dedication to the cause of the Phoenix Coyotes, I am astonished at your tendency to play fast-and-loose with the realities of that franchise, historically and contemporary.

by Robert J on Sep 30, 2009 11:11 PM CDT up reply actions   0 recs

I should add that practically giving tickets away to generate a “sell out” is under no possible circumstances evidence of a burgeoning and reliable fan base, either.

by Robert J on Sep 30, 2009 11:20 PM CDT up reply actions   0 recs

I am serious, because right now that’s all I care about.

See, the problem with posts like yours is that it’s entirely, completely useless to discuss them because nothing I say will sway you. No amount of context behind the “facts” you present will enter your brain as more than something to be dismissed or ignored. You are so married to your assessment of the “facts” that trying to base a dialogue on it is simply useless.

Moreover, your tone is offensive because you aren’t, in fact, sorry about anything. You are couching disdain in crocodile tears, coming across as being tragically sad to have to deliver this truth that virtually everyone but the five Coyotes fans that exist accepts as gospel truth.

So when I say you’re pissing in the wind, I mean exactly that. What are you accomplishing other than either preaching to the converted or trying to make ALL FIVE OF US Coyotes fans feel as badly as possible?

Like I said, I’m going to go watch hockey live and in person. How the building gets filled at this point doesn’t concern me because I GET TO SEE HOCKEY. If you believe I ought to go to the game and spend two and a half hours worrying myself about the financial future of this team and the “realities of [the] franchise,” then you and I have two very different concepts of why people buy season tickets to sports teams.

You are validating my inherent mistrust of strangers.

by zyllyx on Sep 30, 2009 11:35 PM CDT up reply actions   0 recs

I should also point out that I’ve spent SIX MONTHS listening to and reading proclamations of doom like yours. Why you’d begrudge me taking a long-awaited break from that crap thanks to the start of the regular season, I don’t really know.

You are validating my inherent mistrust of strangers.

by zyllyx on Sep 30, 2009 11:41 PM CDT up reply actions   0 recs

Because despite this, it is still likely to be the last season that the NHL has a team in Arizona.

Enjoy it while you can…

by Ebscer on Sep 30, 2009 11:49 PM CDT up reply actions   0 recs

I thought I made it clear that I fully intend to.

And since you’re a Sabres fan I’m not sure why you’re not happy with the outcome yourself, considering that a Hamilton franchise would be a significant detriment to your own team. In keeping with the sentiment in this thread, shouldn’t you be chewing your fingernails off in dread of Balsillie eventually getting his way or the NHL expanding into Hamilton?

If this is the final season of NHL hockey in Arizona, so be it. It’s more than Balsillie wanted to give me, and the fact that that egotistical faux-patriot and his pet Rodier got it served to them in court makes me very happy indeed.

You are validating my inherent mistrust of strangers.

by zyllyx on Oct 1, 2009 12:06 AM CDT up reply actions   0 recs

Good call on the crocodile tears, zyllyx. It makes me sick to read posts form people who profess to be sooooo sooorry, and then proceed to make comments like the poster above. I know that I am perceived to condescend to some of the posters here, but I can definitively say that such a tone is responsive to the disgusting sense of elitism among “real” hockey fans.

The fact that they are so disingenuous about their being so sorry about the PHO fans nver fails to get me going.

by Gerald on Oct 1, 2009 12:42 AM CDT up reply actions   0 recs

I’ve made plenty of those “soooo sorry” posts, but I hardly think its elitist or condescending. Its a fact that this whole situation sucks for the fans of the Coyotes, like Odin, Zyllyx, and the (too few) others. I have never had my team uproot on me, so I can’t say I personally know what it feels like or whatever, but I can definitely feel sympathy for them, because it is an overall shitty situation for them.

Unfortunately, its also a fact that consistent big money losers like the Coyotes hurt the league overall. And, it might not be 100%, but right now there is a mountain of evidence larger than Everest pointing to the idea that the Coyotes will not be able to recover from where they are now and become a successful franchise. There’s a lot of reasons why the product has failed there, but it seems fairly clear that it has indeed failed.

What many of the rest of us are saying, that its unfortunate, but probably for the best that the Coyotes franchise relocate to a (hopefully) better location for the good of the NHL as a whole. There is nothing elitist or disingenuous about that statement. You can try to turn it around and say “oh, well, what if it was your team”, and if it were, that would suck for me, but if it were best for the league and its member teams, then it would be the right thing to do, despite that personal disappointment.

http://sacrificethebody.blogspot.com/
Sacrifice the Body - Examining the NHL through statistical analysis, reasoned thought, and blind conjecture.

by IAmJoe on Oct 1, 2009 6:30 AM CDT up reply actions   0 recs

Whether the Coyotes relocate or not is irrelevant to the league. People seem to think that moving the Coyotes to [insert your favorite city that “deserves” a team here] will get rid of a team requiring revenue sharing while eliminating the burden on the top-10 revenue teams, and somehow make everything better.

It won’t. While the latter part is probably true [burdens on teams already paying in may be slightly reduced because the newly relocated Coyotes will be taking up that slack], it will also kick the team with the 15th highest revenues down to #16, making them eligible for revenue sharing – and the increased revenues from the newly relocated Coyotes will increase the amount of revenue sharing the teams already in the bottom half need.

by Irish Blues on Oct 1, 2009 6:58 AM CDT up reply actions   0 recs

I’m not saying that moving PHX from #30 in revenue to #10 is going to reduce revenue sharing. It still exists. But revenue sharing exists to help teams in smaller markets or through rough times, not to hold them up in perpetuity. Ideally, the teams in the receiving end of the spectrum change, as teams get better or worse, and can change their on-ice fortunes to become more profitable.

The problem here is that the situation in PHX appears completely hopeless. Maybe that’s more a factor of timing, and if this didn’t happen during a recession, someone would step up with the cash to save the team, but in the end, unfortunately, it is what it is. That being the case, I don’t think its incorrect at all to say that it is bad for the league to have revenue sharing near-completely and near-permanently support a team that is otherwise without a pulse. If the Coyotes move to Hamilton, and are even halfway successful as a franchise, that will strengthen the league to have another stable franchise, and unfortunately for PHX fans, probably put more money into revenue sharing to help prop up other dying teams.

Again, maybe its just unfortunate timing that PHX looks to be the first to fall and move for the benefit of 29 other teams, and maybe if say NSH (or even a team with troubles on the horizon, like TB) had actually gone under, they could’ve moved to Hamilton, and in turn, actually helped save the Coyotes. But, that’s not what happened, and the situation must be handled how it actually exists.

http://sacrificethebody.blogspot.com/
Sacrifice the Body - Examining the NHL through statistical analysis, reasoned thought, and blind conjecture.

by IAmJoe on Oct 1, 2009 4:31 PM CDT up reply actions   0 recs

Nail on head.

I’m not being disingenuous insofar as I do feel bad for the small amount of Coyotes fans in Phoenix who will be upset to lose their team.

And I am sorry that, despite how many cheap gimmicks are used to bring people in to watch the team, the fan base (based on 13 years of empirical evidence) is not sufficient to sustain an NHL team in the Phoenix market. Or, more specifically, I am sorry for the aforementioned people (the zyllx’s of the world) who wish that such measures made the reality different than it is (based on 13 years of empirical evidence).

I am certainly not sorry that this team’s number is up. I have lived to see cities in markets with reliable and sustainable fan bases (Winnipeg, Minnesota and Quebec) lose their franchises largely because some white knight wouldn’t build a state-of-the-art arena. This has been rectified in Minnesota but not in the other two cities. Of course, that is not about the Phoenix Coyotes (not directly anyway) but I certainly shed no tears for the end of that franchise as a matter of principle (sympathetic though I can be to individual fans).

And, again, my only point (having Gerald Carpenter of all people call it condescending probably made my day in terms of amusement) about the fans who love the Coyotes facing reality is that they should reflect on whether it is appropriate to trumpet canards like “this team only started to fail when it moved to Glendale”, “if only this team wins, fans will come watch”, and “this situation is no different to any other city where the team is unsuccessful”. The empirical evidence (some of which I have alluded to) indicates that not one of those claims is true. Everyone involved in the debate (regardless of the perspective taken) would do well to start acknowledging that.

by Robert J on Oct 1, 2009 7:29 AM CDT up reply actions   0 recs

(Nail on head was intended at IAmJoe, of course.)

by Robert J on Oct 1, 2009 7:30 AM CDT up reply actions   0 recs

And to you, Robert – spare me. Your disingenuousness shows itself with unblinking clarity with every post. You simply cannot make it through a single post, even after being called on your disingenuousness, without referring to “the small amount of Coyotes fans” and “cheap gimmicks”. It is transparent that you take great schedenfreude in the entire affair, and if PHO fans get hurt in the process, oh well, they are collateral damage and there are not enough of them to matter.

Disgraceful. I would ask you to own up to your beliefs like a grown man, but I take comfort in the fact that you are sufficiently ashamed of it to at least want to cover it up.

by Gerald on Oct 1, 2009 12:13 PM CDT up reply actions   0 recs

Joe, the difference between your solid posts and the disingenuous drivel that the above poster is spewing is that (so far as i have read)your posts are free of gratuitous cheap shots and snide asides and constitute reasoned, thoughtful attempts to look at the damaged landscape. I would concede that my previous post cast too broad of a net; I would have hoped that those who do take a reasoned approach wold be able to distinguish their efforts from the dopey rabble that post stuff like that poster above (to which I am referring).

by Gerald on Oct 1, 2009 12:06 PM CDT up reply actions   0 recs

The resort to ad hominem attacks is always the sign of a person with reasoned and logical argument as their primary weapon. I think I’ve written more than enough throughout this post to indicate I am prepared to put forward reasoned, thoughtful and evidence-based claims. Regardless of whether you might agree with them or not, I’m not sure how you’ve failed to notice this.

by Robert J on Oct 1, 2009 12:11 PM CDT up reply actions   2 recs

Ahem, “evidence-based claims” like your assertions regarding VAN, CAL and EDM? Right. They performed dismally in every respect, but they were still okay because, well, EVERYONE was still so interested.

[rolls eyes]

by Gerald on Oct 1, 2009 12:15 PM CDT up reply actions   0 recs

Yes, Gerald. Put in proper context, those were used as evidence to support claims I made in the particular context relevant to that particular point.

Forgive me for pointing out to you again that I was/am saying that those markets could sustain (a) poor on-ice performance, (b) poor management and © declining attendance precisely because there was/is a reliable and sustainable fan base, a corporate sector that sees economic opportunities to exploit in the particular market (i.e. involvement with a team that has the interest of a significant number of people in the market), and dependable revenue streams over the long-term.

Do you wish to dispute any of these claims?

by Robert J on Oct 1, 2009 12:19 PM CDT up reply actions   2 recs

See, the problem with posts like yours is that it’s entirely, completely useless to discuss them because nothing I say will sway you. No amount of context behind the "facts" you present will enter your brain as more than something to be dismissed or ignored. You are so married to your assessment of the "facts" that trying to base a dialogue on it is simply useless.

Anyone on the other side of the argument could just as easily and credibly write these words to you.

And that’s fine – you’re as entitled to your opinions and feelings as anyone – but it’s absolutely the truth.

by dzuunmod on Oct 1, 2009 10:23 PM CDT up reply actions   0 recs

I’m glad you didn’t lose your team this way. And I’m happy for you that the home opener will be great – nothing like a full rink!

by hockeycountry on Oct 1, 2009 4:45 AM CDT up reply actions   0 recs

Tthe Coyotes can give every ticket for every game away like they did for the home opener. It will look nice in the box score, but they will still lose money hand over fist.

The downside to papering the house is that you devalue your tickets to the point of being worthless. A lot of people who will go to the home opener because it costs practically nothing wont come back unless they can get more tickets for practically nothing.

by Resolute on Oct 1, 2009 9:42 AM CDT up reply actions   0 recs

Were the mid-90s Winnipeg Jets "profitable"?

Would the Coyotes have turned a profit in their playoff years if a salary cap had been in place?

How many 1967-and-on expansion teams could turn a profit after years of disinterested ownership and woefully inept management?

Moyes’ actions in dragging the team and the league through bankruptcy court could possibly have poisoned the well in Phoenix beyond recovery. But the biggest problem in Phoenix (even more than the arena’s location or the terms of the lease) is that the Coyotes haven’t been competitive since before the lockout. That’s squarely on the owner, the GM, and the coach. People will pay to see a bad team that’s getting better; they won’t pay to see a bad team spinning its wheels at the bottom of the standings.

by BleedBlue42 on Oct 1, 2009 4:15 AM CDT up reply actions   0 recs

More facts

The Phoenix Coyotes haven’t had competent ownership or management since they moved from Winnipeg. Not once, that, and not the location, is more likely the reason they haven’t turned a profit.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 8:32 AM CDT up reply actions   0 recs

The Phoenix Coyotes haven’t had competent ownership or management since they moved from Winnipeg. Not once, that, and not the location, is more likely the reason they haven’t turned a profit.

I agree with this. If the product is strong and the team is winning, the building will fill. That’s hockey in America. Look anywhere: Dallas, Tampa, Carolina, Pittsburgh, Washington, Chicago, Boston…..Give the people something to cheer for and they’ll support you.

Obviously a place like Miami or Atlanta is never going to rival the passion of a Toronto or Montreal, but I think hockey would do well in virtually any major market it the on-ice product is strong.

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by Hooks Orpik on Oct 1, 2009 9:33 AM CDT up reply actions   0 recs

Not only that...

…but if you set a strong baseline, then the team can survive intermittent dropoffs. Look at Dallas and Colorado now.

The team doesn’t have to always be good — if that’s the case in a market, then yes, the market is questionable. What a team needs to attract and hold fans is hope, and that’s something the Coyotes have been short on now for years.

That 17-year-old Hokie sitting in the rafters in Greensboro didn't see any of this coming.

by JoshCVT on Oct 1, 2009 9:37 AM CDT up reply actions   0 recs

Except for the facts that keep being ignored (much to my chagrin):

The Coyotes were competitive and did inspire hope (at least among some pundits) in their first five or six years in the market. Building on the foundations of a team that had improved considerably in its final years in Winnipeg (Khabibulin, Tkachuk, Doan, etc.) the Coyotes were a solid, competitive (though certainly not elite) team. And this held true for a sustained period (5-6 years).

And, yet, the team lost money every season. The team generated little interest in the city beyond a niche market of fans. Revenues from ticket sales, advertising, sponsorships and merchandise were relatively paltry (compared to other NHL franchises).

It was thought that if a team moved to a new building, that would help. It didn’t. Now, we can argue about whether Glendale was/is the appropriate location but it is the location if the team is going to play in the Phoenix market. The team still couldn’t make money in a brand new arena.

Now that the team has slid considerably in terms of quality, some would have it that the team doesn’t make money because the team isn’t good enough and doesn’t inspire hope. The reason the team isn’t good enough is, in part, because even when they were playing well and inspiring some hope they couldn’t generate sufficient revenues to maintain a competitive payroll.

The Coyotes franchise (good or bad on the ice, old or new arena) have never shown any indication of being able to generate sufficient revenues in the market to turn a profit and sustain a competitive salary structure.

The only possible way in which this franchise can be sustainable is if an owner comes in with a willingness from the outset to absorb considerable losses until such time as the market changes to yield a sustainable fan and revenue base.

That is plainly and simply not a viable economic framework no matter which way you parse up the circumstances surrounding the team.

by Robert J on Oct 1, 2009 9:58 AM CDT up reply actions   0 recs

I agree with your overall point, that the Coyotes, as they stand now, are probably not viable in Phoenix. What I disagree with is the insinuation that Phoenix isn’t a viable market because of the fans. That’s where my biggest beef with everyone who claims the “market” isn’t viable. No mismanagement has rendered the overall fanbase apathetic, but this would happen with mismanagement in any market outside of Toronto, NY (Rangers only) and Montreal.

What most fans (and unfortunately) don’t realize is that the southern expansion was always (or should have always) been a long-term project. You can’t just throw a team into a city and expect sell-outs and merchandise sales every night, but this has nothing to do with hockey or southern markets. This is how professional sports teams work. Fan bases need to be built, and entering a new market means absorbing losses for a few years as you grow the fanbase. If it’s mismanaged teams will fail, and blaming the fans, or the common euphemism for fans “the market” is missing the entire point.

The point is that did Phoenix lose money early on because of fan support? Or because they were probably going to lose money no matter what as the franchise was laying the foundation for success. They laid a faulty foundation and the results are obvious to anyone.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 10:35 AM CDT up reply actions   0 recs

This leads me to a question – if the Coyotes do ever leave, would their mistakes sour the Phoenix market on NHL hockey in general? How temporary or permanent would such damage be? The North Stars relocation did not hurt the MN market enough to hinder the Wild, but that was a long-established hockey hotbed. In Phoenix, however, they’re still trying to grow the game as a whole. The mishandling of both on-ice performance and the off-ice affairs of the Coyotes could set the market back a few decades. It would be a horrible ending to the story, but it’s one I could sadly see happening.

by Arenacale on Oct 1, 2009 10:51 AM CDT up reply actions   0 recs

“they’re still trying to grow the game as a whole”

Y’know… I’ve always wondered through this whole drama, Did the NHL do anything to actually build a consumer base in Phoenix prior to relocating the Jets there? Y’know fund/build up midget/bantam/high school leagues stuff like that or did they just drop AHL and then NHL clubs in the region and expect that fans would just invariably follow?

by Parallex on Oct 6, 2009 4:50 PM CDT up reply actions   0 recs

In regards to the comment about mismanagement of teams, some comparisons are instructive.

The Vancouver Canucks lost consistently for the first 20 years or so of the franchise’s existence. Whereas attendance was initially quite strong, it certainly declined in the mid-1980s. The difference (when comparing to Phoenix) is that this was much more a case of fan protest against total incompetence by the team’s management (a succession of GMs and coaches throughout the decade). The interest in hockey was still intense and pervasive (I grew up in the city during that period), and as soon as the team improved a little the attendance returned to its previous levels. Of course, in addition to attendance, the Canucks also had the capacity to and did make money because of corporate sponsorships and advertising revenues. Even when abysmal on the ice, the Griffiths family knew the team could and would make money. In Phoenix, even when times were good (as I’ve cited, the first five or six years in the desert), none of this held similarly true and the team couldn’t generate sufficient revenue or interest when times were reasonably good (in terms of on-ice product).

Consider also the Calgary Flames of the 1990s. When the team was brutal and among the worst in the western conference for a few years, attendance did eventually decline. Coupled with economic conditions at the time (i.e. an uncompetitive Canadian dollar) the team was struggling off the ice, too. The difference, compared to Phoenix, is that the support base and revenue potential (corporate sponsorship, advertising, fan interest) was unquestionably there (as proven throughout the 1980s). All the club required was a brief respite from the trouble caused by the low Canadian dollar and it would be able to turn things around (as it did once that situtation passed).

There are other examples, too. While I take (and agree with, at a certain level) your point about the relationship between mismanagement and declining interest among fans, there are qualitative differences that have to be recognized. While some markets can sustain such circumstances even for long periods (Vancouver and Calgary come to mind), others can’t (Phoenix, for one).

To be sure, this isn’t a problem with the fans in the market (even in Phoenix). Rather, the problem is that there is neither an adequate and sustainable fan base in the market nor a corresponding capacity to generate sufficient revenues from attendance, corporate sponsorship, advertising and other residuals related to the primacy of the team in that marketplace to sustain the existence of the team in the long-term. That applies to Phoenix as a prospective hockey market, not the small number of fans (no matter how dedicated) that exist in that market. I hope it’s clear that I am in no way criticizing the latter.

by Robert J on Oct 1, 2009 11:12 AM CDT up reply actions   0 recs

And the difference is that Vancouver and Calgary also had decades to build their fan base up. Obviously Canada has higher natural hockey support than the United states, especially a location like Phoenix, but the idea of going into the southern markets was a long term effort to build that interest. It wasn’t going to happen based on 5 playoff seasons in the first 5 years. That’s a start.

Hell Pittsburgh and Buffalo (and Ottawa and Edmonton) nearly lost teams because of poor management, and no one would argue that those are all poor hockey markets. Hell 3 years ago Chicago had one of the smallest fanbases in the league. It was all due to mismanagement, but when a southern franchise has similar problems everyone falls over themselves to blame “the market”.

As I’ve said before I think there are 3 markets able to withstand the amount of mismanagement, both on and off ice, that has happened with the Coyotes: Toronto, Montreal, and NY (Rangers only). The Phoenix franchise would be having these problems no matter where it was located. The newness of the market (ie small fanbase that was never given a chance to properly grow) probably will hinder the recovery which is why I don’t think the Coyotes are salvageable in it’s current form. But i do think Phoenix is a salvageable market.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 11:45 AM CDT up reply actions   0 recs

I feel like this is going nowhere, but at the risk of beating a dead horse there are a few points that I can’t let pass.

1) Vancouver and Calgary didn’t need decades to build the fan base up. I wonder if you read my post. I said they were supported well from the get-go and that only after prolonged failure did attendance decline. And the point here was/is that this decline could be absorbed because the fan base was there (hockey still being intensely popular and widely followed in both cities) and merely withholding its attendance. Phoenix has never had the attendance, nor a satisfactory level of interest (be it fans, corporate support, media exposure, etc.).

2) Five years of success off the hop is incredibly fortuitous for a transplanted team, irrespective of the market. The fact the Coyotes couldn’t generate either a sustainable fan base or sufficient revenue streams during those (comparitively) halcyon days is testament to the abject failure of the franchise in Phoenix.

3) Ottawa and Edmonton were not in financial distress because of any other factor than the abysmally low Canadian dollar. When the league instituted the temporary economic protection for those clubs to ride out that storm, the teams flourished (and continue to do so now that the Canadian dollar has stabilized). Edmonton has been poor for a few seasons since making the Stanley Cup Finals. No matter what, those two franchises can count on things a franchise such as Phoenix can’t (and possibly never can): a dedicated fan base; a corporate sector that wants to exploit perceived economic opportunities in terms of involvement with the hockey club precisely because of the dedicated fan base and the interest in hockey in the market; and sustainable streams of revenue.

4) Pittsburgh and Buffalo had arena/ownership issues that were resolved and returned each franchise to some stability. Phoenix has built a new arena and had a succession of many owners only to continue facing the same old problems. The absence of a sustainable fan base, a corporate sector willing to invest in the team (advertising, promotion, boxes, etc.) based on its perception that there are economic opportunities to exploit (i.e. reaching a dedicated and significant fan base through involvement with the team), and, ultimately, insufficient streams of revenue to improve the team on the ice.

5) No one – certainly not me – is saying that the “market” is the problem whenever a southern franchise has problems. What I am saying is that there is not a shred of evidence that indicates that Phoenix, in particular, is a viable market for hockey.

by Robert J on Oct 1, 2009 12:07 PM CDT up reply actions   0 recs

1)

Vancouver and Calgary didn’t need decades to build the fan base up. I wonder if you read my post. I said they were supported well from the get-go and that only after prolonged failure did attendance decline.

Please tell me how this is different from the Coyotes? Because Phoenix did have the attendance, it was the arena, mainly, that caused lost profits the first few years (and for that matter it’s still the arena that’s causing a majority of them)

2-5) Again you’re proving my point. When other, non sun-belt (or Hockey-worthy as many see it) markets have problems people fall all over themselves to explain them away and rationalize them. Poor Canadian Dollar, Arena Issues, Poor management, whatever.

When a Sun-Belt team has financial trouble they immediately pull the “Bad Market” card. In Phoenix’s case there’s a lot of the very same issues you mention above; Housing Crisis which hit Phoenix especially hard (economic problems), Arena issues (even the new arena), and management/owner issues describe Phoenix to a tee, yet there’s a large contingent, including yourself, screaming "Market, Market, Market, conveniently ignoring the details of the situation.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 12:51 PM CDT up reply actions   0 recs

Well, it appears we’re talking past one another. You keep returning to the broad strokes of ‘southern teams’ and ‘teams in the sun belt’ but I’ve only been talking about Phoenix. I’m not sure how much more specific I can be.

And, I’ve tried to point out a number of different pieces of evidence that suggest why the team is not sustainable (even under more ideal conditions) in Phoenix. Either you’re not willing to consider them, you have considered them and don’t find them compelling, or I’m not making the argument well enough.

I still don’t see how you’ve addressed my concern about Phoenix ever showing signs of being a viable hockey market. I gather you certainly think it could be (one day) but I don’t think that does, in fact, address the point I’m pressing.

At any rate, we’re not on the same page, evidently, so I think I’ll agree to disagree and leave it at that.

by Robert J on Oct 1, 2009 1:28 PM CDT up reply actions   0 recs

ither you’re not willing to consider them, you have considered them and don’t find them compelling, or I’m not making the argument well enough.

Or I’ve agreed with you that this particular team, the Coyotes in their current form, are not sustainable. But it has little to do with the reason’s you’ve mentioned, which have been nebulous “fan base” and “market” arguments. Even if the Coyotes filled their building every night they would still lose money, that’s not a fan base problem.

Furthermore I said “Sun Belt,” but then brought it back to the Phoenix specific case. Substitute “Phoenix” anywhere I generalized and the point holds. All the factors that you pointed out for Calgary, Vancouver, Pittsburgh, Ottawa, Edmonton,. and Buffalo are true for the Phoenix case. (poor management, economic problems, and on-ice problems).

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 1:58 PM CDT up reply actions   0 recs

Sorry, just to address a point you made about the difference between Calgary/Vancouver and Phoenix.

From a post of mine further up the thread:

“Forgive me for pointing out to you again that I was/am saying that those markets could sustain [a] poor on-ice performance, [b] poor management and © declining attendance precisely because there was/is:

- a reliable and sustainable fan base;

- a corporate sector that sees economic opportunities to exploit in the particular market (i.e. involvement with a team that has the interest of a significant number of people in the market);

and dependable revenue streams over the long-term."

by Robert J on Oct 1, 2009 1:42 PM CDT up reply actions   0 recs

Again

Vancouver and Calgary were allowed to build their fanbase, and the hockey fanbase, over decades, through their previously successful team and and years of WHL teams etc.

And I agreed with you that a recovery in Phoenix is likely to be more costly and harder than recovery in those areas, mainly because they haven’t had the foundation to build upon. That doesn’t change the fact that when winning went away, those markets struggled, again indicating that success has a lot to do with management and not the nebulous “market”.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 2:05 PM CDT up reply actions   0 recs

Okay, I think I see where we are definitely not on the same page.

What I am saying is that attendance really isn’t the deeper issue (in terms of the market). The issue, in terms of the market, is the level of interest (call it fan base or call it something else) among people in it. These are two very different things (and explains why attendance can drop in Vancouver and Calgary and both can remain viable whereas Phoenix is not viable even when attendace is decent).

First, in markets where this a lot of interest in hockey, the teams can charge more for tickets, especially when the going is good (on-ice product).

Second, in markets where hockey is of paramount importance (e.g., Canada, Detroit) or where it captures enough interest in a large market (e.g., Chicago, New York, Boston, Philadeplhia, etc.) there are economic incentives and opportunities or businesses to exploit by investing in the team (through advertising, sponsorship, luxury boxes and other residuals). Why? Because these businesses want to reach sufficiently large numbers of people and sufficiently large numbers of people care about / are interested in hockey. So hockey provides the conduit for growing your business, reaching potential customers/clients, etc.

Neither of these points is nebulous, in my mind. I think both involve very basic economic propositions.

There is more money to be made from tickets (and, therefore, attendance) when fans care enough to pay more (and prices can be driven even higher when the team is doing well).

And, there is money to be made by associating yourself with a hockey team in these kinds of markets (thus increasing revenue for the team).

At the end of the day, these are the differences between Canadian markets and many successful American hockey markets and Phoenix.

by Robert J on Oct 1, 2009 2:25 PM CDT up reply actions   0 recs

Agreed and understood

I don’t have any problems with that view at all, but that’s not the root cause of the Coyotes problems. The root cause of the Coyotes problems are the same things that caused all the teams listed above to faulter (economy, management, and owners).

The problems you described is going to affect the recovery.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 2:36 PM CDT up reply actions   0 recs

Here’s your disconnect:

1) Vancouver and Calgary didn’t even necessarily need to build the fanbase up in terms of loyalty to the team, because they already had an inherent hockey-centric culture in the area. They already had kids playing hockey, they already had rinks, they already had plenty of interest in hockey. Thats a cultural thing that is a large strength to Canadian franchises, because it helps them ride out tough times, because of loyalty and inertia towards supporting hockey in all its forms, including major leagues. The thing is, the two of those are not relevant comparisons to Phoenix in this instance, because (as Jibble is saying), part of the strategy with moving into markets with next to no hockey culture whatsoever should’ve been a long-term (very long-term) aim of cultivating that hockey culture, which is your fan base for a hockey team.

When the Coyotes got to town, they, just like any of the other southern expansions during that time, should’ve known they didn’t have a pre-existing fan base to see the franchise through tough times like EDM/VAN/CAL did. They needed to succeed first (and for longer than marginal success over 5 years) and they needed to manually build that culture and fanbase. The problem is, they never built that fan base, and the team completely face-planted and didn’t have a fanbase to help push it back up. Until that fan base is created, which is a 20+ year process, a franchise in the area will not be able to face-plant for very long, or it won’t get back up. It is wrong to dismiss the fanbase, such as it currently is, for not supporting that franchise, because that fanbase was never given a chance to grow.

2) 5 years of making the playoffs wasn’t much success. Remember, you had a solid handful of teams like Calgary, Vancouver, Columbus, etc. that had taken up permanent residence in the Western Conference basement. Realistically, it should’ve been something like 10-12 teams competing for 8 playoff spots. Besides that, maybe I’m remembering it through the red and white colored glasses of a 13 year old Wings fan at the time, but what did they do when they made the playoffs anyways? All I remember is that weird goal where Fedorov dumped it, it bounced off the boards, hit the goalies skate, and went in. I don’t remember the Coyotes of that time as anything more than cannon fodder for Dallas/Detroit/Denver in the first round. Furthermore, the kind of success needed to help build that franchise was not just make the playoffs and expect everyone to shell out cash for tix, but to consistently make the playoffs, have some serious runs, and to grow the sport locally. I can’t speak to what the Coyotes did to grow the sport locally, and increase the visibility of hockey in general, but I think I can say that they never came up with any memorable playoff runs or even fantastic series. One thing that helped San Jose succeed so much was some early playoff success, and failing success, at least putting up a hell of a fight.

3) I have a special place in my heart for Edmonton, because they blamed the Canadian dollar for all their problems before the lockout, and since the lockout, with the exception of a lucky SCF run, have pretty much proved that Kevin Lowe and everyone else in management still couldn’t win, because they still don’t have a clue what they’re doing. Given that they weren’t very good before the lockout, and they haven’t been very good since the lockout (except for about 3 very well-timed months), maybe its fair to say the team actually had a problem that went further than the Canadian dollar. Besides, after they nuked a dynasty, if I were a fan, I’d be pretty pissed off too. It’d be like if the Wings traded Lidstrom and Yzerman for Hal Gill and Rico Fata. To my way of thinking, almost all the problems Edmonton has ever had since they traded Gretzky lie solely on their shoulders. If I were an Oilers fan, I’d tell ‘em to fuck off too. Even still though, the big difference here is that, like with VAN and CAL, even if the team hadn’t been there long (like in the Senators’ case), the hockey culture already existed. That culture and fanbase never existed in Phoenix, but it exists everywhere in Canada. That is an advantage every Canadian franchise has, and one that many US franchises do not, but it is not truly indicative of the success of a non-traditional US market, if the market hasn’t even had a fair chance to build that culture.

4) Again, you’re running into the same issue. Buffalo in particular, being so close to Canada, has significantly more influence from Canadian culture than Phoenix does. Its more of a traditional market, even if it is a smaller one. There is some amount of hockey culture there, and the team existed for several decades before hitting some very hard times in the early 00’s. They had an existing hockey culture, and they were able to build on it for a very long time. Then, when the franchise had trouble, they were able to use that culture to help get them through it. Pittsburgh is similar, in that they had an awful long time to build some hockey culture. Especially helpful in that regard was actual playoff success and having some star players. Winning Cups and having stars like Lemieux and Jagr goes miles in building those fan bases. Phoenix has had neither, which doesn’t make the process impossible, but it doesnt make it harder and longer.

Ultimately, the bottom line is that Phoenix is not really comparable to any team north of probably San Jose/Nashville. When you get north of that, you’re mostly working with locations that had inherent hockey interest and often teams with long term presences in their areas, creating fan loyalty across generations. It appears from your arguments that the Phoenix market is a failure (at least so far) because they have not created a complete team-sustaining hockey fanbase in their first 13 years of existence, the last 6 of which have been marred with a lockout and a downright awful team, for whom all excuses for failure have been removed by parity and cost certainty under a salary cap, while the first 6 were of very moderate and not very memorable success in an area that was just discovering hockey. I think Jibble and I are both contending that it takes significantly longer than that to build the fanbase, and that you can’t properly judge the market because the fanbase was never properly built by the team. Further, comparisons to other areas with already established (PIT/BUF) or inherent (Canada) fanbases are invalid, because its apples to oranges.

http://sacrificethebody.blogspot.com/
Sacrifice the Body - Examining the NHL through statistical analysis, reasoned thought, and blind conjecture.

by IAmJoe on Oct 1, 2009 5:43 PM CDT up reply actions   0 recs

The point is that did Phoenix lose money early on because of fan support? Or because they were probably going to lose money no matter what as the franchise was laying the foundation for success. They laid a faulty foundation and the results are obvious to anyone.

Jibble might be turning into my favorite person!

I’m totally with you on this, and I disagree with Robert J on the same point. Losing money in the first couple years was pretty much a given, because a fanbase in a completely non-tradition market has to be cultivated, and that doesn’t happen overnight. However, if the team was good for a long enough period of time, say a solid 10 years or so, then you are able to have started ingraining it into the culture of the area. People get geared up for the annual playoff run, kids go to hockey games, then turn into adults and go to hockey games and take their kids to them, etc. etc. etc. It takes time to build that kind of hockey culture and fanbase in a non-traditional market, but it is doable, and there are plenty of success stories in that regard.

Part of the problem at the time that the Coyotes were decent was that they were good in an uncapped NHL, and they were good in a period of time where Denver, Detroit, and Dallas just made the Western Conference their bitch. Remember, those 3 plus New Jersey owned the Stanley Cup for what was it, 8 years? Given that 3 of them were in the West, and that St. Louis was just a tier below them (and yet, oh so far!), anyone making it into the Western playoffs’ bottom half seeding was being pushed in front of a firing squad.

Since the lockout, Phoenix should’ve been given a much better chance at being successful, given the increased parity in the league. At that point, mismanagement really sank the franchise more than anything else, because even in a league where Phoenix wasn’t having their payroll tripled by their opponent’s, the team still sucked. I don’t blame Phoenix fans for not going to see it, because I wouldn’t want to pay to see that team either. In a market with a stronger hockey culture, maybe that could’ve been overcome, at least for a little while longer, but that doesn’t mean the market is an abject failure. It just means it hasn’t had a fair chance to grow that culture, and has been constantly sabotaged by circumstance (pre-lockout) or management (post-lockout).

http://sacrificethebody.blogspot.com/
Sacrifice the Body - Examining the NHL through statistical analysis, reasoned thought, and blind conjecture.

by IAmJoe on Oct 1, 2009 4:53 PM CDT up reply actions   0 recs

Depends on the market and the sport, now doesn't it?

The difference between the NHL and other leagues is that when other leagues enter a new market, there is typically a previously-existing high-demand for the sport there: people in Arizona really wanted baseball before the Diamondbacks, people in Oklahoma City did a phenomal job supporting the Hornets after Katrina before the city had earned the right to an NBA franchise…

Leagues make mistakes, sure: MLB with Florida and even the almighty NFL with Jacksonville, but the difference with those leagues is that those mistakes are exceptions.

The NHL just threw a lot of franchises at random points on the map through the 90s and early-2000s and just kind of assumed that since they were major league the demand would be there whether the teams had good management and ownership or not.

I’m willing to admit that the NHL has failed some of these markets, not the other way around. But it doesn’t change the fact that the Rangers, Oilers and Wild could probably all survive (relatively speaking for each) a decade or more of losing teams on the ice without damaging their brands so much that most fans would move onto something else. That’s not the case in many of the places the NHL went over the past 20 years. When you move into new territory as much as the NHL has over that time, you have to figure that at least a few of those franchises are simply going to be lousy – you just can’t bet on every franchise going to the finals or winning a Cup fairly quickly like Florida, Carolina and Tampa Bay.

by dzuunmod on Oct 1, 2009 10:43 PM CDT up reply actions   0 recs

No

The NHL failed these markets because they went for a quick cash grab, and didn’t realize what needed to be done there, so they allowed owners in who weren’t willing to put the effort in needed.

The Sun Belt teams are an investment, but part of the investment is to go out in the city and make them hockey fans, not just local team fans. Soem locals, the ones with good management, did this. San Jose, Dallas, and Carolina have all done a good job cultivating their fan bases, that’s why they are successful. It’s probably why Tampa is going to easily survive this ownership mess too.

Atlanta, Phoenix, Nashville and Florida didn’t do nearly as good a job. Obviously I agree with Joe above that the situations are different. My main beef is when people say the team failed because of the market, because that’s garbage. Every single market has shown signs that it can be prosperous. What’s causing failure in some of these towns, like Phoenix, is the same thing that caused failure in the northern towns. Bad Ownership/Management. Maybe the effects are amplified because the market is still more immature, but that’s no the cause.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 2:09 AM CDT up reply actions   0 recs

I guess no was too strong, since we essentially agree. Obviously every team won’t be great every year, but there has to be effort to improve and also there has to be a commitment to the community. I just don’t see it all that much in the struggling franchises.


The NHL just threw a lot of franchises at random points on the map through the 90s and early-2000s and just kind of assumed that since they were major league the demand would be there whether the teams had good management and ownership or not.

I agree that this was a huge problem. They didn’t plan accordingly.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 2:10 AM CDT up reply actions   0 recs

So, who do you intend to ask to lose money for a couple of decades while they build up the fan base?

by J. Michael Neal on Oct 2, 2009 7:12 AM CDT up reply actions   0 recs

That was the NHL’s strategy, and I think it was a good idea with some seriously flawed execution. The league stretched itself too thin in that regard and expanded too quickly. I don’t think it takes decades to build a fanbase, but it does if you add 10 teams in 10 years…

But a good fanbase can be built relatively quickly with competent ownership. Hell even the Coyotes had a decent size fanbase until mismanagement destroyed it.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 9:50 AM CDT up reply actions   0 recs

I agree with this. If the product is strong and the team is winning, the building will fill.

The problem is that winning is zero sum. For every strong team, there must be a weak team. If success is dependent upon every team being successful in the standings, then success will not occur.

It’s worse than that for the more marginal markets, though. It is always going to be the case that weaker ownership tends to congregate in weaker markets. Everyone saying that hockey in Phoenix can succeed if only they have competent ownership had better have a fallback plan in case they don’t get competent management, because that’s the more likely outcome. Wishing that it were otherwise, or speculating on what it would be like if it worked out differently, doesn’t get you very far.

by J. Michael Neal on Oct 1, 2009 1:30 PM CDT up reply actions   0 recs

It’s worse than that for the more marginal markets, though. It is always going to be the case that weaker ownership tends to congregate in weaker markets.

I think this is more a case of causality. Poor owners make poor markets, not the other way around (for the most part). No one would argue Chicago’s a poor market, but they were for a long time under Wirtz.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 1, 2009 2:01 PM CDT up reply actions   0 recs

I knew someone would mention him. That’s why I said “tends to.” Sure, there are going to be exceptions. As a general rule, though, stronger ownership is going to tend to end up in stronger markets. The potential is there to make more money, or have more successful teams, in stronger markets, so they are going to draw a better quality of owner.

And if you think that the causality runs in the direction that poorer markets follow poorer ownership, you’re nuts. Phoenix is inherently weaker than a city that is larger, wealthier, or has an inherent interest in the game of hockey. As a combination of those factors, it ranks near the bottom.

by J. Michael Neal on Oct 1, 2009 5:41 PM CDT up reply actions   0 recs

So… Craig Leipold became a better owner when he sold the Predators and bought the Wild?

by BleedBlue42 on Oct 1, 2009 6:38 PM CDT up reply actions   0 recs

No, but his point is sound. Better markets, like Toronto, Montreal, Detroit, Chicago will over the long haul tend to attract better ownership, because the opportunity is better, for a multitude of reasons. One of those is the fact that those markets have long-term loyalty to the team, and have a hockey culture in place already, so that doesn’t need to be built, at the short-term financial cost of eating losses and building the sport as a whole.

How often do you see teams like the Leafs, Canadiens, Wings, and Hawks get sold? Not that often, because they’re giant cash cows for their owners, as long as they don’t completely try to eviscerate the franchise (hello, Bill Wirtz!). These owners hold on to these consistently profitable investments, and they’re not allowed to own other teams, so they choose to stick with their current good investment. This also pushes the price up much higher, because these teams are a much safer bet.

Other markets see a lot more in the way of the sales of teams because their markets are not as valuable, for reasons that are relative and unique to each market. These other teams are also cheaper, because they are less valuable investments, and so they are more open to the random rich idiots who don’t know what they’re doing (Koules + Barrie), the guys who think they can flip it for a quick profit, downright liars (Boots, a million others), or real estate investors who hope to use the team as just another asset to try to make another project work (Phoenix’s move to Glendale).

There are always exceptions to any rule (Wirtz in Chicago is a bad owner in a strong market, there are several good owners out there making it work in non-traditional or weaker markets), but for the most part, J Michael Neal’s contention holds true. The better the opportunity, the better a quality of owner you tend to get.

http://sacrificethebody.blogspot.com/
Sacrifice the Body - Examining the NHL through statistical analysis, reasoned thought, and blind conjecture.

by IAmJoe on Oct 1, 2009 6:52 PM CDT up reply actions   0 recs

Better markets, like Toronto, Montreal, Detroit, Chicago will over the long haul tend to attract better ownership, because the opportunity is better, for a multitude of reasons.

Disagree. Toronto had Ballard for a long time, Montreal has been kind of a nightmare with Gillet & Co. , Jacobs and Dolan haven’t been great either. The only original 6 with good consistent ownership has been Detroit.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 2:01 AM CDT up reply actions   0 recs

Really? In what sense has the Bruins’ ownership, or the Leafs’ ownership, or the Canadiens’ ownership, or even the Hawks’ ownership, ever lived on the edge of bankruptcy? Even when they aren’t any good at building winning teams, the Original Six teams don’t have any trouble attracting ownership that are properly capitalized. When was the last time the Rangers saw a circus like the clown car that is the Tampa ownership?

by J. Michael Neal on Oct 2, 2009 7:19 AM CDT up reply actions   0 recs

Just because they didn’t live on the edge of bankruptcy doesn’t mean they are great owners. Ballard, Wirtz, Jacobs and Dolan could never get away with the crap they have pulled in weaker markets. The fact that they were in strong markets covered up their piss-poor management. But they were still poor owners.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 9:53 AM CDT up reply actions   0 recs

Bingo.

Owning a team in a strong market doesn’t make for better owners; instead, it allows below-average owners to hide their incompetence. In weaker markets, owners either get good or get out; they don’t have the cushion to absorb half-assed commitments.

If Bill Wirtz had pulled his shenanigans in Pittsburgh or Vancouver or anything less than the third-largest city in the NHL, he’d have lost his shirt. Being in a strong market is what allowed him to run his team into the ground and treat Hawk fans like crap for so long.

And here’s a question: if strong markets attract good owners, shouldn’t it follow that the most lucrative market must have the best possible owner? And if that’s the case, why do so many people mock the Ontario Teachers Pension Plan?

by BleedBlue42 on Oct 2, 2009 11:09 AM CDT up reply actions   0 recs

I think most Habs fans were very skeptical about George Gillet at first, but came to appreciate him part-way through his ownership.

Good ownership certainly helps create success on the ice, but failure on the ice doesn’t necessarily mean ownership has been lousy.

What mistakes exactly did Gillet himself make during his tenure as owner, would you say?

by dzuunmod on Oct 2, 2009 6:50 PM CDT up reply actions   0 recs

I meant a nightmare financially, not on-ice. Not the extent of Phoenix, but Gillet’s current finances aren’t exactly noteworthy.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 6:58 PM CDT up reply actions   0 recs

Sure, but if it never really affects the hockey operations (and it didn’t), how does that make him a bad owner?

by dzuunmod on Oct 2, 2009 7:07 PM CDT up reply actions   0 recs

In the context I was relying to J. Mike Neal we (well I) were talking about finances and/or on-ice product.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 7:54 PM CDT up reply actions   0 recs

Fine

What about Toronto, have they had good owners since the 60s? Jacobs hasn’t been the greatest either, and neither has James Dolan. I think saying “weaker markets draw weaker owners” is patently false. Weaker markets may expose them a little better, but I don’t think there’s any evidence to say they specifically attract them.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 2:00 AM CDT up reply actions   0 recs

I don’t think he is saying “weaker markets DRAW weaker owners” as much as “weaker owners are far more likely to wind up in weaker markets.” A weaker market is going to likely cost less to buy into in the first place, and is more likely to be for sale since very few businessmen have the patience or ability (and in any other business, not just hockey) to wait out years of losses for profitability to happen, so a weaker and less profitable market is more likely that a stronger one to be for sale because the existing owner is trying to flip the team for a quick buck or get out before things deteriorate any more.

A weaker market is always more likely to be for sale than a stronger market, for good and bad owners alike. But a more financially flush owner can afford a team in a stronger market that is more expensive to buy, and might be more inclined to wait until the team he wants is available. A less well-funded owner can’t afford a team in a stronger market because of the higher price, so if he wants to own a team he has to buy a fixer-upper and hope that he can find competent people to update the electrical before modern appliances overload the circuits and start a fire.

Weaker markets don’t so much attract weaker owners as offer an opportunity for weaker owners to get into the business. That is how I think of it.

"For myself I am an optimist - it does not seem to be much use being anything else." -- Winston S. Churchill

by Baroque on Oct 2, 2009 3:09 AM CDT up reply actions   0 recs

I get the logic behind it, but I’m not convinced that the evidence is there to back it up. For every Phoenix, there’s a Pittsburgh. if it’s 50-50 does that mean there is a correlation?

In all probability there’s too small a sample size to make any conclusions.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 10:16 AM CDT up reply actions   0 recs

I wonder if there's a disconnect...

… in the definition of “strong owner”. I don’t view a strong owner as one who seeks to maximize immediate profit, or one with deep pockets and not much else; rather, I see a strong owner as one who seeks to build a winning team on the ice, and a larger and more passionate fan base in their home city.

By that definition, the Pre-Expansion Six teams have one strong owner, three middling-to-weak owners, and two new owners whose commitment has yet to be tested.

by BleedBlue42 on Oct 2, 2009 11:21 AM CDT up reply actions   0 recs

I’m defining strong ownership as a group that isn’t running on a financial shoestring. The ability to not live on the edge of bankruptcy is extremely important. In fact, we are looking at some of the consequences right now in Phoenix.

In the sense that people have been talking about, namely stability and the ability to absorb losses for a period of time, this is far and away the most important definition of “strong.” It is not the same thing as competent. Again, Bill Wirtz wasn’t very competent, but there was never a fear that he was going to go belly up.

If you don’t have that kind of strength, then you can’t be sustainable in a weak market, because you will have down periods, and you will have incompetent ownership. What are your plans for dealing with that when it happens? A,ll I’m hearing is a bunch of wishful thinking.

by J. Michael Neal on Oct 2, 2009 12:01 PM CDT up reply actions   0 recs

I’m defining strong ownership as a group that isn’t running on a financial shoestring.

Well I’m glad that’s the only possible definition of strong ownership.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 3:34 PM CDT up reply actions   0 recs

Would you care to make a case for something more relevant in this context?

by J. Michael Neal on Oct 2, 2009 5:14 PM CDT up reply actions   0 recs

I didn’t realize the only point of owning a hockey team, or any business for that matter, is not going bankrupt. There’s also growing your market, increasing market share and all the other generally accepted parts of running a business.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 5:25 PM CDT up reply actions   0 recs

Pittsburgh is neither a very large not a very wealthy market. It’s got inherent strengths that Phoenix doesn’t have, but it isn’t my idea of a particularly strong market.

by J. Michael Neal on Oct 2, 2009 12:03 PM CDT up reply actions   0 recs

You really aren’t very clear on the phrase, “tends to,” are you?

by J. Michael Neal on Oct 2, 2009 7:14 AM CDT up reply actions   0 recs

No

Please explain it to me. Because disagreeing with you obviously means I don’t understand what you’re trying to say.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 9:57 AM CDT up reply actions   0 recs

As best as I can figure, Michael, for you “tends to” appears to mean “it is the case, except when it isn’t, but those ones don’t count”.

by Gerald on Oct 2, 2009 11:23 AM CDT up reply actions   0 recs

So, Gerald, which large market ownership groups have been as weak as the ones in Phoenix, or Tampa? Surely, since you’re prepared to shoot your mouth off like this, you can make a case, right?

by J. Michael Neal on Oct 2, 2009 12:03 PM CDT up reply actions   0 recs

Wirtz never lost money, but does that mean he was a good owner, or was he a poor owner.

The problem seems to be in your narrow definition of “poor ownership” and not my understanding of the word “tends to”

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 3:33 PM CDT up reply actions   0 recs

If we’re discussing ownership that can withstand lengthy periods of losses, do you have a better definition than having enough money to withstand a lengthy period of losses? If we’re discussing teams surviving, do you have a better measure of ownership than never losing money?

by J. Michael Neal on Oct 2, 2009 5:16 PM CDT up reply actions   0 recs

If we’re discussing ownership that can withstand lengthy periods of losses, do you have a better definition than having enough money to withstand a lengthy period of losses? If we’re discussing teams surviving, do you have a better measure of ownership than never losing money?

Again we’re not on the same page here, because that’s not what I was discussing at any point, nor was that how I ever defined weaker ownership.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 5:27 PM CDT up reply actions   0 recs

more

because my whole point was that poor owners in good markets, such as Wirtz, won’t lose money because they are in good markets. But being lucky enough to be in a good market doesn’t magically make them good owners.

Like I said (and you are actually saying) being in a weaker market may amplify a teams problems, but I don’t see any correlation between weaker markets and weak owners.

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 5:32 PM CDT up reply actions   0 recs

Harold Ballard

by Gerald on Oct 2, 2009 4:03 PM CDT up reply actions   0 recs

Okay, that’s one. Not recent or anything, but you got to one.

by J. Michael Neal on Oct 2, 2009 5:15 PM CDT up reply actions   0 recs

Gillet

The 2009-10 Colorado Avalanche: Aiming for the Charity Point
Jibblescribbits: C'mon over and waste some time

by Jibblescribbits on Oct 2, 2009 5:29 PM CDT up reply actions   0 recs

Your proposition is that weaker owners “tend to” (sure you’re not a lawyer??) congregate in weaker markets. Putting aside the malleability of your terms, there are incredibly “strong” owners in some of the “weaker” markets – guys who could buy out the stronger market owners several times over before they broke for lunch, if they so desired. You are the one that has to demonstrate correlation, seeing as it is your proposition.

I merely pointed out some (VERY) low hanging fruit.

by Gerald on Oct 2, 2009 5:37 PM CDT up reply actions   0 recs

100%, Jibble.

Unfortunately, the previous ownership/management and this whole fiasco has probably irreparably destroyed what fanbase exists there. I think PHX could definitely work as a future expansion market, given 10-15 years for people to move on from the recent mess, and be hopeful for a new (and hopefully competently managed) franchise. Thats why I kind of feel that if the team is to be relocated, which is nearly inevitable at this point, it’s best to just bite the bullet and do it hard and fast right away. Like ripping off a band-aid. That way, you can start the healing process for that market sooner.

The likely result now is for the new owner to buy the team with one of those clauses along the lines of “If in X number of years, we haven’t made Y amount of money, we can relocate,” but that’s the worst way the relocation could be handled for the Phoenix fanbase, because if basically creates a dead team walking for a couple of years, it creates more and more ill will between the franchise, the NHL, and the Phoenix market, and it keeps the process of healing and eventually considering a new team from happening sooner.

http://sacrificethebody.blogspot.com/
Sacrifice the Body - Examining the NHL through statistical analysis, reasoned thought, and blind conjecture.

by IAmJoe on Oct 1, 2009 4:40 PM CDT up reply actions   0 recs

When you can figure out how to predict someone is going to have problems at some point in the future [before anyone else knows], start calling Fortune 500 corporations. You’ll be able to make billions in your sleep.

by Irish Blues on Sep 30, 2009 11:20 PM CDT up reply actions   0 recs

Matter of time

Was hoping for Hamilton sooner rather than later, though.

by Rob Luker on Sep 30, 2009 10:05 PM CDT reply actions   0 recs

likely later – much much later. Maybe your-(grand)kids-as-adults later.

by hockeycountry on Oct 1, 2009 4:46 AM CDT up reply actions   0 recs

I prefer never.

by Afino on Oct 1, 2009 7:18 AM CDT up reply actions   0 recs

Here’s hoping this opens the NHL’s, and the NHL’s team owners eyes.

We can easily handle two more teams.

by wlittle on Oct 1, 2009 9:18 AM CDT reply actions   0 recs

No, we can't.

Hamilton, yes. But I don’t see a good location for team 32 at all.

Seattle and Portland just aren’t interested. Kansas City has an arena, but the pro sports market there is awfully crowded — not that it appears that’ll keep the NHL from trying it, but I don’t think it’s a good idea. Nowhere else in Canada has the population or corporate base to pull it off.

That 17-year-old Hokie sitting in the rafters in Greensboro didn't see any of this coming.

by JoshCVT on Oct 1, 2009 9:44 AM CDT up reply actions   0 recs

Eventually maybe, but not now. Not in this economy, and certainly not with so many teams currently struggling. Regardless of where they would expand to, it would come off as the NHL saying, “Hey, our last expansions were too rapid, and not handled correctly, but hell, cowboy up! Let’s expand again!”

by Arenacale on Oct 1, 2009 10:40 AM CDT up reply actions   0 recs


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