Thursday, March 03, 2005

Hockey Buyout?

$3.5 billion for 30 all NHL teams, nearly $116 million per team, a hefty price. Two Boston based companies are acting together to offer this proposal to the NHL team owners. With a loss of $500 million over the past two seasons, is it enough to coerce the owners to sell? Clearly, the 116 million offer per team outweighs the cost of nearly 16 million per team, but are there other benefits that are strictly not monetary? Perhaps wealth man with too much money and time on his hands owns a team simply because of his love for the sport or tax shelter.

I'd like to view this somewhat as a contract zone..... Is there a bargaining area? Being as that the league has to make a unified decision vs. team by team buyouts, will the demanded price increase? Perhaps the proceeds from the buyout wouldn't be evenly split among the owners, but maybe it would resemble something like profit sharing. It's highly probably that the big market teams like New York and Boston will demand a bigger piece of the pie so to speak.

Will they sell?

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