Here's a short blog about something that peaked my interest. A viewpoint from someone with a keen mind for business who has not been following the CBA shenanigans. My Dad.
My father followed hockey in the 70s but lost interest by the time I really got into it. I think the focus of building his business, raising a family and being an awesome father consumed his time. My father sold a successful business that he had built from the ground up and retired comfortably at 55.
We went out to dinner with the family last night. My wife was busy chatting with my mother in the back seat while my Dad and I chatted up front. My father said to me "I heard the owners eased up and offered the players a 50-50 split. Sounds like a good deal". I told him that was the source of the problem. The NHL players consumed 57% of revenues last year and the owners were trying to correct that. He was shocked. He asked if that 57% included shares of revenue. I answered that was the share of revenue profit or loss. So, asking for clarification, he asked if these salaries were tied in any way to profit/loss and wether any costs were absorbed by the players. Without getting too complicated about escrow payments I answered these were pretty much guaranteed contracts with no real risk tied to revenues. I commented that labour at 57% must be a challenge for the owners. He returned 50% is far to high a number to commit to labour. He couldn't have built his business successfully if labour had absorbed that much of his cost structure.
This was a simple conversation that punctuated the real problem the NHL is facing. It's players feel a grossly inflated sense of entitlement. They don't want to trim a dollar from their share and "grow" into a 50-50 split with the owners. This is absolutely absurd. Donald Fehr has empowered this union to levels never seen before. This all adds up to a potential disaster for this season. It already has. This last round of talks seemed encouraging but it appears the players are not budging an inch. This current crop of players are starting to plant a very bad taste in my mouth. This doesn't bode well for my interest in hockey going forward.