Monday, September 20, 2010

European Expansion of NHL Not Likely

By FarParker's Scott Simpson 

Following the NHL’s exhibition season that saw the Ottawa Senators and Pittsburgh Penguins play games in Prague and Stockholm, talk again ramped up about the possibility of the NHL expanding into Europe.  Let me state something clearly right now – this is pure folly and completely irrational, and will not happen in the next 20 years, or perhaps ever.  Here’s why.

Let’s first look at why the NHL may wish to consider European expansion.  First, to grow the game internationally.  Sure, makes sense.  Second, to increase the size of their fan base.  Elementary, my dear.  But the number one reason the NHL would wish to expand across seas is more self-serving; and yes our beloved NHL is not above making self-serving decisions.  Expansion to Europe would mean a substantial boost in league revenue.  There I’ve said it, more greenbacks!  New teams = hundreds of millions in expansion fees, ticket sales, and merchandising.  From the players’ union perspective, things don’t look too bad either.  More teams means longer careers from some union members, and sizeable membership growth which means more dues revenue and more financial stability for the union.

Now this all sounds so positive and “win-win” so let’s just get the wheels rolling to get it done, right?  Well not so fast.  We need to remember that currently there is not one single major sports league (including mega-dollar sports such as soccer – “football” for our European friends, or the NFL) that has regular cross-Atlantic travel for its teams as part of its regular season.   Let’s look at some of the road blocks. 

Geographical logistics  

There’s been talk establishing a European division with North American teams making one or two European trips a year to take on their foreign counterparts.  Conversely, the European teams would play 18 games in North America each year, or three trips cross-ocean trips.  First, this means that the European teams would be making more trips across the pond, and playing more inter-divisional games than the American and Canadian teams.  Today’s fans will, and should, not accept this kind of regular season inequity. 

Alternatively, some have spoke of the North American champion meeting the European champion for a 7-game showdown for the Stanley Cup.  Is this really what we want?  Isn’t it logical to assume that two to five of the 30 North American teams would be stronger squads than one of the six or seven European teams?  Again, too much inequity.  Even if some kind of logical, equitable schedule could be worked out and agreed upon by all, the logistics and cost of transporting professional sports teams across the ocean for games is too much to overcome.   It’s not just flying 24 athletes and three coaches per team, but their training staffs, medical and video personnel, medical equipment, and hockey equipment.  With flights of that length, teams could not just fly over and play the next day, an extra day would be needed to allow the players’ bodies to adjust to the jet lag, and large time difference.  The same would apply upon their return to North America.  The regular season would need to be shortened, or league schedulers would need to become magicians to avoid dragging the season weeks longer.

European Rinks

Besides adjusting the size of the European ice surfaces to the smaller North American dimensions, very few European rinks sport the seating capacity and luxury boxes necessary to deliver the gate-revenue needed by NHL franchises.  Major infrastructure investment would be needed.

Finding Potential European Owners

Relative to football, baseball and basketball teams, the cost of an NHL expansion franchise is a bargain, but to “average Joe’s” like you and me, the approximately $150 million in expansion fees needed and all the start up costs is a large bill.  Finding six or seven new owners at one time with that kind of money is a daunting task.

Established European Hockey Leagues

Does the NHL expect long-established elite European hockey leagues and their teams to just roll-over and allow the big bad NHL to encroach on their markets without a huge fight?  I’m willing to bet for example, the Swedish Elite League and their teams and their lawyers would have more than a few things to say if the NHL decided to locate a European team in Stockholm. Not to mention Russia’s new KHL and their well-funded owners.  

To the NHL’s credit, it has been partly the talk of some players and owners, and largely the work of the media that has fuelled this on-going story, not the league. While some like Senator’s owner Eugene Melnyk and players Daniel Alfredsson and Jarkko Ruutu have expressed great optimism and desire for European expansion, Gary Bettman, NHL Commissioner, has been far more tempered in his comments.
 
He was recently quoted as saying, “We want to develop a more permanent, more regular presence in Europe, (but) permanent doesn’t necessarily mean franchises on the ground or ever.  That might happen at some point of the future.  It might not.  It’s not on the drawing board.”

Not exactly a ringing endorsement, but one that does show that the NHL is acutely aware of the many challenges facing such an undertaking.   I think players, fans and owners have to realize that the NHL plans to grow its season-launching games in Europe in the coming years.  Two years ago, two teams played two games in London, this year four teams played four games in two different European cities. Next year, the plan is to grow it again.  Is this not the perfect solution?  Without all the logistical and financial nightmares, the NHL accomplishes its two main objectives – growing the game internationally and exposing its product to a wider audience.  It seems like problem solved to me. 

Read more postings by Scott at FarParker's "Did You Know?" Section!

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