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The National Hockey League has been experiencing its second
lockout in seven years. This lockout
finally concluded early Sunday morning, when the players union agreed to a
collective bargaining agreement that is expected to be ratified by both players
and owners sometime this week.
The agreement is expected to last about 10 years and split
revenues 50-50 between owners and players similar to the CBAs in the NFL and
NBA. Unlike the lockout that the NHL
experienced in 2004-05, in which the entire season was cancelled, they have
agreed to a shortened 48-50 game season opposed to the usual 82 game season,
similar to the agreement made last year in the NBA lockout.
Contrary to popular belief, NHL attendance
actually increased after the lockout of ’05 at an average of 5% per team, with
some teams like the Pittsburgh Penguins experiencing a 33% gain. Only 8 teams fell in attendance after
2005. So it seems that the fans fave the
NHL a pass for the first lockout, will they do it again for a second time in
under 10 years. NHL teams derived 47% of
their revenues last season from arena revenues controlled by the fans. No other sport had a higher percentage, which
means the NHL is most dependent on its fan base for revenue. The NHL simply does not have the media rights
fee the other sports possess. The NHL’s
main U.S. broadcast partner, NBC sports, has the most invested in the NHL’s
return more than just about any other organization.
The NHL signed a 10-year deal with NBC Sports
in 2011 worth about $2 billion for media rights. NHL telecasts averaged over 600,000 viewers
last season which was over 400,000 more than any of the network’s top rated
shows.
The NHL was growing before this
lockout reaching about $3.4 billion in franchise values and hitting an all time
high of about $282 million on average.
Will this growth continue? It all
depends on the return of the fans. It’s
in our hands!
Are you excited to see NHL games begin again? Who is your favorite team? Let us know on our Facebook page, linked HERE!
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