I’ve been following the plight of the Nashville Predators with great interest over the past few weeks since Research in Motion’s CEO Jim Balsillie agreed to a deal in principle to purchase the team from Wisconsin businessman Craig Leipold. On the record, Bettman, Balsillie and Balsillie’s lawyers have refused to say anything but that the team will remain in Tennessee. Leipold was the only one to suggest the loophole in the team’s current lease that would allow them to leave as early as next season if they fail to average 14,000 butts in the seats for the season.
The saga was probably the most interesting story during an otherwise dull Stanley Cup final between Ottawa and Anaheim, with the Ducks quite easily copping the cup in 5 rather ho-hum matches. A week after the season ended, it’s not losing any momentum. A day after the announcement of the pending sale of the franchise, it was reported Balsillie had purchased 27 acres of land near Cambridge; this was followed up this week by word of the usual “save the [insert franchise name in peril here] season ticket drive” by die-hard Preds fans in an attempt to show the evil, greedy Canadian businessman that pro hockey really can work in Nashville; and in turn that move was followed up by Balsillie accepting deposits through ticketmaster for “Hamilton Predaors” season tickets after extending an existing agreement with Copps Coliseum.
The way I see it, it’s a pretty simple equation: unfortunately for the good fans of Nashville, if the sale goes through, this team is coming to Southern Ontario. NOT Kansas City, NOT Vegas, NOT Winnipeg, NOT anywhere else. Balsillie is an Ontario businessman and has no interest in operating a team long-term anywhere else. Why do you think he immediately backed out when the NHL wouldn’t finalize the Pens deal without language in the contract to keep the team in Pittsburgh? Don’t kid yourselves – he’s done his homework and wouldn’t be going through with this (and overpaying handsomely) unless it’s pretty much a done deal…
What Balsillie has done by paying such an exorbidant sum for this team, is make it almost impossible for the NHL to say no. Why? The other owners, including Bettman may be annoyed at his arrogance through all of this – but he just made all of them some serious coin by driving up franchise values, which you have to think were steadily dropping with the lack of positive media coverage in the U.S.
The NHL has also admitted this week that expansion is on their radar. Expansion means that big money is going to be lining the pockets of NHL owners soon. The inflated price at which Balsillie plans to acquire the Predators means that expansion fees are going to be in the $160 million range because of this $220-240 million sale. Expanding to two more teams at that cost means 30 owners splitting $320 million – without Balsillie joining ‘the club’, you’d have to think the fees would be $20-$40 million less.
Also, no matter how angry he is at Balsillie for showing him up, there is no way that Bettman is going to block this sale after Leipold has been losing millions owning this franchise over its 10 years of existence. What’s he going to say? “Just hang in there Craig – you’ll get a local offer sooner or later.” I don’t think so. What message does that send to other owners looking to get out, trying to maximize their profits? If Bettman and the Board inexplicably do try to block the sale, again, I have to assume Balsillie has done his homework and this thing will be settled in court – in his favour.
Overall, this is a good thing for the NHL – again no, I’m sure they’re not impressed by Balsillie securing Copps Coliseum, buying land in Cambridge and selling seasons tickets for the Hamilton Preds (all of the aforementioned seems to be a ploy to discourage the ticket-buying fans in Nashville so they don’t meet the minimum season ticket requirements, I think), but there’s no way in hell the league turns this down. I feel sorry for the rabid, new hockey fans and kids in Nashville, but here’s the truth: the NHL will have zero, I repeat, zero negative effects from losing Nashville as a hockey market. What – is NBC going to pay less for the rights to broadcast NHL hockey now? (they pay exactly zero dollars, remember). Is Versus going to demand Nashville have a team in order to maintain their (laughable) ratings? The fact is, Canada is carrying the NHL right now (TV-wise and profitability-wise), and Southern Ontario can easily support another team. Winnipeg? Quebec City? I still don’t think so. I think each of those cities would still struggle gaining enough corporate support (especially Quebec City – oh yeah, and they don’t have a suitable arena…). Southern Ontario with a large, increasing population, strong economy and actual real hockey fans, is a no-brainer.
Hamilton is only temporary – Kitchener/Waterloo/Cambridge is the perfect location and the ultimate destination for this franchise – lots of people, lots of corporate money (including Toronto businesses shut out of the Leafs) and guess what – it’s just out of both the Leafs’ and Sabres’ 80km veto range. Not only would they draw from the tri-cities, but from along the 401 corridor from London to Mississauga, and of course, Hamilton. What does this mean for Miltonians? Well, if Balsillie did indeed purchase the 27 acres outside of Cambridge to build a state-of-the-art RIM Centre, we could be 20 minutes on the 401 away from an NHL franchise…. That may just be enough to trade in my blue and white jersey for one with a big sabre-tooth tiger on the front…
It’s laughable however, to suggest the Leafs would be negatively impacted by this (they’ll be embarrassed more than anything now as the third best Ontario team) – the Sabres will take a hit, but I think Western New York will step up in the absence of a few Ontario fans (many from Hamilton and Niagara will keep going to Sabres games – it won’t be easy to get tickets for a new Hamilton team). Again, sorry Preds fans – I feel for you, as I did for Canadian cities that unfairly were robbed of NHL, NBA and Major League Baseball franchises. I feel bad for the die-hards and especially the kids that have started playing hockey in Tennessee that I keep hearing about. Those people probably think they deserve a team, but this is business. No matter how hard this is for you Nashville, I think it still pales in comparison to the tragedy of the Jets leaving Winnipeg, MLB ’stealing’ the Expos to force them into an unfit D.C. market, and what is known by even most American basketball experts as the “worst trade in NBA history:” Vancouver for Memphis.
As a resident of the Greater Toronto area, specifically Canada’s fastest growing city over the last five years, I’m looking forward to attending the “Hamilton/Cambridge/Kitchener/Waterloo/Ontario Predators” games in the coming years with my son. After living through the Ballard years as well as the recent post-lockout era as a Leaf fan, I’ve realized that things will never change. That franchise is flawed from its ownership on down. They’re not in it to win a Stanley Cup. It’s not a fluke that almost every other franchise in the league has been to a cup final since the Leafs last made the final (their last victory in 1967). The recent re-signings of players like McCabe, Sundin and Antropov only reinforce this belief (that’s a blog for another day – soon). I would love for my son to grow up cheering for the “Predators” and their renegade owner. An owner who aggressively decided it was time to end the failed U.S. hockey experiment and finally bring a team back to a market that actually cares about hockey (the last statement is not meant to be ‘American-bashing’ – these are the facts – teams like Atlanta, Florida and now Nashville have had their chance, but they’re failing. Simple as that. Hockey has always been a ‘niche’ sport in the U.S., very fragmented and regionalized – even in the original six days and during the 12-team league with 10 based in the U.S.).
If Balsillie gets his way, and again, I don’t think he’d be doing any of this unless he was pretty sure he could pull it off; you know what kind of an owner he’ll be. He’ll go after a championship hard and he will win one. For fans who’ve put up with the Leafs for decades, you will see what the real difference is between a club owned by a large corporation, and one owned by a hockey-mad maverick billionaire…
Fasten your seatbelts…
I think the Preds moving is a great thing. The NHL needs to rethink their past expansions into non hockey markets. No matter where they put a team in the US there will never be a sweetheart tv deal period. The NHL might as well move these teams into areas that will fill the buildings. As for anyone thinking that the deal won’t go thru you have to believe that Betman slipped Basillie the phone number for Nashville with a wink and probably told him a possible price. Basillie over paid by $45 million to get out of the current arena deal.
If the New York area can support 3 teams ( Rangers, Isles and Devils) then south-west Ontario can easily. Heck leave the Preds in Hamilton and move the Thrashers to Kitchener! The Leafs can keep their rich fans and the rest of us can pay fairly to watch good hockey.
One can only hope that this is not just another relocation fiasco the NHL is famous for! Basillie has the right motives and the cash (apparently) to make it happen but will Betman and the owners really let this happen?
Having another NHL franchise in Ontario, especially Mid-Western Ontario (K-W-C) would give tens of thousands of hockey fans the opportunity to see real-life pro hockey for probably less than the inflated costs charged to watch the Leafs flounder for another season. The market is keen here in Ontario, from Windsor to Toronto, from Lake Erie to Barrie. Even the NIagara Penninsula will provide some fans, however Buffalo may still offer them a better deal with travel times and possibly in ticket pricing until the passport restrictions finally kick in in mid 2009.
There are many in the league who are still pinning their hopes on seeing more US cities involved in the NHL. Without expansion and relocation of struggling franchises in the US, how are they ever going to solve the poor response to TV ratings and fan support? They believe they have to keep plugging away at the sluggish US market and try to win over their fan base to make the NHL as lucrative as the NBA or NFL. Will Betman et al succeed, Gawd, I hope not! Bring hockey back to those who enjoy it and will support it. Hope Basillie sticks to his guns with regard to moving the team to Ontario and is not just playing some kind of parlour game to enhance his own stake at the big table of NHL governors for future expansion revenues and revenue sharing income. More disappointments, we don’t need ‘em!
I think you nailed this one, Milton Sports-Guy. (And it needed nailing, as the TV sports networks seem to be dropping the ball on this one.)
I had no idea there were any kids playing hockey in Tennessee. I assumed it was a completely foreign sport to them.
I’m still about “50-50″ on whether this thing happens. Historically, NHL owners have tried to avoid an “Al Davis-type” owner, so they may not let Balsillie into the club, even though he’s throwing big bucks around.
I’m assuming Copps is a temporary home, until the Toyota-Dojo is ready, although the sale of Copps luxury (?) box deposits was pretty impressive.
Attention Torontonians: South-western Ontario is rife with auto-industry money. It’s the black-gold of central Canada. Also, do not underestimate the power of the 401 (average speed between Chatham and Plattsville = 133km/h, but another lane will have to be added from London to Kitchener), and its ability to draw folks from a relatively long distance away.
Attention Winnipeggers: from my standpoint you need at least 3 things to have an NHL franchise in your city: a population large enough to create a solid (interested in hockey) fanbase, who are obviously willing to fork over some of their hard-earned cash for tickets; a new arena (that can create some buzz on its own, even if the team stinks), with a “sweet-heart” lease deal; and an owner with deep pockets (not only willing to pay the up-front cost, but pay the yearly losses, which will be gi-normous). Until somebody with access to about $500 000 000 in cash (to start) steps up, I don’t wanna hear about how you “deserve an NHL team”.
I wouldn’t invest $1 into an NHL team starting up in Las Vegas, or anyplace where iguanas/scorpions/kangaroo mice/rattlesnakes threaten to over-run the city. They don’t/can’t play hockey – they (the people, that is) don’t understand it, and I don’t think will ever fill an NHL arena, long-term.
Unfortunately, I am unable to jump ship (to the Predator-Hybrids) so easily. I am from the last Maple Leaf Gardens generation, and anyone who was there will understand how I can’t just leave Sylvanus Apps, Teeder Kennedy, Dave Keon, Daryl Sittler, Wendel Clark, and Doug Gilmour (don’t even get me started on the 48th Highlanders, or Bob Cole) behind, even as the current Leaf organization probably deserves being punished.
Great post East-Coast-Sports-Guy!
Yes, the ‘experts’ on the Sports Networks seem to be getting too caught up in what’s being said on the record by the various parties… who knows. The fact is, Balsillie has one plan. He will drop out faster than you can say ‘Kimmo Timmonen’ if he has to operate this team in Nashville for any longer than a year. The other rumour is that he apparently has some connection with the Kansas City arena guy, but if he’s coughing up that much coin to get into the NHL boys club, methinks he’s bringing the team home.
I’m about 60-40 – as an Ontarian, it seems too good to be true that another NHL team could be arriving. Apparently a handful of owners aren’t happy with his tactics, but a bunch want him and his high tech money in the league desperately. Again, my take on this is that as much as his tactics may be a tad aggressive for the league and the other owners, money talks and for the reasons stated in my original post – they may publicly make it seem as if they’re giving him a hard time (I’m sure Bettman will ‘put the hammer down’ at some point to make it look like he’s still the boss and isn’t Balsillie’s bee-atch – but he is), but in the end it’ll go through. Selling/moving a couple of teams combined with expansion is probably how the league should/could solve the problem of ridding themselves of failing markets, getting back into stronger hockey markets and experimenting with more new markets to keep pushing for the big U.S. TV deal.
I can’t see the ‘peg getting a team. The new rink is there – but they need to expand it by 3-5,000, and I just don’t know about corporate support. I’m sure they’ll fill the place, but strong corporate support is needed to keep a team in the black. That’s why they left in the first place.
Apparently Nashville has this burgeoning minor hockey system according to guys posting on this topic on sites like ESPN.com – All of the ’save the Preds’ folks keep going on about how much this will hurt the city and region…. I dunno…
You wouldn’t know this because you’re in Halifax, BrotherShayne, but that extra lane is already being constructed on the 401 between Woodstock and K/W (Toyota alley). Great point about the highway – yes, to outsiders, it seems weird thinking of having an NHL team in the region because there is no one large city as a base – all medium sized cities (Guelph, Waterloo, Kitchener, Cambridge, London, Hamilton) – but the 401 allows for easy access for all, especially if the RIM Centre ends up near Cambridge.
The first pro sports franchise in Vegas may do ok – but probably only for a limited time. The Vegas economy is different – they have a large population, many of whom make low salaries, and remember the shifts are different – most Las Vegasers work in the evening and have the days off. I can see many tickets being scooped up by Casinos and then being given to patrons, which won’t make for a full-building most nights… My point is that it’s a huge risk at best – there may be some excitement for the first franchise in town, but if the NBA were to go there next, the NHL would take a back seat and that would mean the failure of yet another American sunbelt franchise….
It would be tough to jump ship from Leafs to Preds (or whatever they call them), but I think it’s only natural to eventually become a fan of: a) a team you can actually watch play live; and b) the better-managed organization.
out.
Hats off to Basillie for giving us all hope. I’m sick of paying WAY too much to go to a Leaf game to get decent seats and watch a miserable team. I’ve been a loyal Leaf fan for over 30 years – and let me tell you it feels like 100 years of gutwrenching anticipation – but not much anticipation due to normal failures to make the playoffs, or to make it far when they do back in. I come from a long family tradition of cheering on the Leafs – but I think even both of my grandfathers, if still alive, would agree the Leafs deserve to lose tonnes of fans to a closer team that will no doubt be a better contender with more aggressive acquisitions, etc. I always like to support the most “local” team, and a K-W team would be perfect. I also think putting in a few years in Hamilton will truly help build an even stronger fan base – if Hamilton knows up front that they only host for a few years than they can’t get all teary-eyed or huffy when that time passes and the team moves down the 403 to a new venue. I’ve heard rumour the final arena may be built in the Ayr area – which is West of Cambridge down the 401 – pretty much right in the centre of Cambrige, K-W and the booming auto town of Woodstock – this would draw on lots of the SW-Ontario population. I’ll be writing my MP regarding getting a Go-Train set-up between London and Ayr asap.
If the team was to stay in Hamilton permanently I’d remain a Leaf fan, as I’ve never been a big fan of the city of Hamilton – however if they as soon as it is official that the team would eventually be moving elsewhere (towards London) then I’d dump the Leafs in a heartbeat and support the new local team.
I also think this new team would be a great opportunity for so many family and friends that have bitter sports loyalty rivalries to bury their hatchets – I would hope at least one if not both of my idiot brother-in-laws that cheer for the Habs would also trade allegiances for the KW team – then we’d have some common ground and be able to enjoy cheering for the same team instead of constantly pointing out weaknesses in eachothers current NHL teams.
Good day.
A great article from Thursday, June 21st’s Toronto Star by Damien Cox which brilliantly speaks to Bettman’s incompetence, his ridiculous comments yesterday, and the utter nonsense which has been the process of the Preds’ sale to Balsillie:
Why is the NHL so scared of Canada?
Gary Bettman’s worst trait as a public speaker is that when he attempts to be clever, he comes off as being disingenuous.
The NHL commissioner’s words out of yesterday’s board of governors meeting in New York pertaining to Jim Balsillie’s attempted purchase of the Nashville Predators and relocation to Hamilton were a prime example of Bettman baloney.
Example A: “I’m not exactly sure why people are focused on the Nashville Predators being anywhere other than Nashville at this point in time.”
Well, golly gee, Gary, could it be that the team’s attendance sucked huge last season despite a 110-point performance and the current owner, Craig Leipold, activated a clause last week notifying the city of plans to break the lease if attendance is lousy again?
Could that possibly be it, Mr. Commissioner?
Only Wayne Gretzky himself was openly discussing yesterday the slam-dunk success the Predators would be in Hamilton in a U.S. talk show interview.
“If the franchise is able to move into that area, it’ll be tremendously successful,” said Gretzky. “We all know that.” Well, everybody except Bettman, apparently.
The commish went on to make himself look even sillier by saying, “I’m not in favour of doing anything to destabilize an existing franchise.”
And what does he think is happening with the Preds while they float in uncertainty? Two prime free agents are already gone, with Peter Forsberg and Paul Kariya next to head out the door. Most in the hockey world believe Leipold is determined not to sink another dime into the team and will reduce it to the lowest possible payroll.
Gosh, that’ll certainly stabilize things in Music City.
It could well be that by being so obviously insulting to the incredibly successful Balsillie, an entrepreneur and businessman whose jock Bettman couldn’t carry, the NHL czar is hoping Balsillie will ultimately become so annoyed by the process that he’ll walk away.
Worked with the Pens, after all.
Perhaps the most insulting bit of noise Bettman directed Balsillie’s way was to say yesterday that no application had been completed and therefore the quarter-billion dollar ownership transfer couldn’t possibly even be discussed.
Not sure, but when Michael Eisner and Wayne Huizenga were being courted in nauseating fashion, it’s hard to remember anyone raising a stink about filling out correct dates of birth.
And those fellows sure were dedicated to being long-term owners, weren’t they?
Fact is, the guvs already know Balsillie very well. They unanimously approved his purchase of the Pens before Bettman and lieutenant Bill Daly drove him away.
It’s beyond bizarre why the NHL commissioner now appears intent on treating the RIM impresario like a grubby panhandler.
The most reasonable process for Bettman to follow would have been to invite Balsillie to Manhattan yesterday to make a presentation to the board and answer a few questions. Nothing formal. No vote on the ownership of the Predators.
Just one businessman quietly talking turkey with 29 prospective partners. Balsillie’s got his own plane. He certainly could have rejigged his schedule. Maybe he could have offered a thought or two on how the NHL might achieve greater success in the wireless world.
Instead, Bettman avoided dealing with the issue at all. The biggest news of the day then became that Jeremy Jacobs, Bettman’s No. 1 supporter, who has singlehandedly remade the once proud Boston Bruins into a failed franchise, is now chairman of the board.
The battlefield is now well-defined. Three Americans – Bettman, Daly and Jacobs – dedicated to defeating Balsillie’s bid to bring hockey to the world’s richest hockey market.
And never having to really explain why.