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Friday, July 08, 2005

nhl- Deal is good for the NHL

from the LA Times, The NHL's adoption of a hard salary cap linked to 54% of league-wide revenues, tight entry-level salary limits and other cost controls in the soon-to-be-finished collective bargaining agreement will give the league a solid economic base and enhance its competitiveness by putting teams on a closer footing, a prominent sports marketing expert said Thursday.
Paul Swangard, managing director of the Warsaw Sports Marketing Center at the University of Oregon and an avid hockey fan since childhood, said the foundation of the labor agreement as outlined in The Times on Wednesday "is the economic model we've all believed was needed, those of us who follow this as a business. It sets the league up to be successful in the only way it could be successful."
However, he said that the NHL might be miscalculating if it bases its $37-million salary cap, $24-million payroll minimum and other provisions on projected revenues of $1.8 billion. The league had revenues of $2.1 billion in 2002-03 but has since lost its TV deal with ABC/ESPN and is likely to lose sponsors because of the lockout imposed by Commissioner Gary Bettman last Sept. 15.
"The idea of $1.8 billion seems ambitious," Swangard said. "Is it impossible? No. It's not a number that you laugh at. But you sort of worry that it's going to be ambitious. The silver lining is teams will have the ability to tie personnel expenditures to whatever that number will bemore...