Quote:
Originally Posted by Major Major
There is a critical hole in your logic that you think is so sound. The league, as in 31 owners who all want to maximize their bottom line, just like Edwards, will NEVER allow the flames moving.
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I think we need to apply some logic to your argument as well..
First of all, the other owners don't share in the revenues of the Flames. The
players do - it's the
players (NHLPA) that would be worse off if the Flames went to a city where revenues were lower.
However, for each individual owner, or ownership group, it might actually be
beneficial for them if the Flames moved to a city with lower revenues. As long as that city didn't need subsidization. Here's why:
Each team has its own, independent revenue stream. But their primary
expense is a joint function of total revenues. What this actually means for individual teams is that lower total revenues (due to lower revenues of a different team) means a lower salary cap, which means lower expenses, with no impact on their own individual revenues. In other words, an improved income statement. And on top of that, many of the US teams would
rather have another major city like Houston role in once or twice a year, than have Calgary come to town (meaning their own revenues might also be enhanced).
Yes, again, if the new city were failing, and required revenue subsidization, then this argument wouldn't apply, and they would be worse off. But as long as Houston could hold its head above water, most owners would be better off with Houston than with Calgary, even though Houston's team revenues were lower than Calgary's.
Then there is the little matter of the relocation fee. I am pretty sure every owner would be in favour of that.
And as far as the Sportsnet TV deal goes, I don't see that as a concern for them either. All it means is fewer broadcasts (which is mostly positive), and eliminating one of the two least-watched teams, and replacing them with more Leafs coverage. Plus, adding Houston to the US TV market most likely has a larger
positive impact on the next US TV deal than losing Calgary would have on the Canadian TV deal (or at the very least would partially offset it).
So IMO, I don't think the 'the league will never allow it' argument holds much water. In fact, I think the opposite is true.