The Hockey News: Ryan Kennedy's blog: THN.com Blog: Winning comes at a price

THN.com Blog: Winning comes at a price

Brian Campbell was traded to the Sharks at the deadline because the Sabres couldn't sign him to an extension. (Photo by Don Smith/NHLI via Getty Images)

Ryan Kennedy
2008-03-07 11:59:51

I don’t want to sound like a broken record when it comes to one issue, but when yet another NHL owner comes out and claims the bottom line could hurt his team’s on-ice performance, I feel that’s cause for rebuttal.

In an interview with CBC’s Elliotte Friedman on the weekend, Buffalo Sabres owner Tom Golisano was roughed up by the sharp reporter on several fronts, but most illuminating was Golisano’s claims the Sabres may not make money this year. To which my heartfelt response is:

So?

Last year you owned one of the most positive entities in a geographical region that hasn’t exactly set the economic world on fire recently and had about 50,000 watts of goodwill bestowed upon you by the locals in the process.

Then, infamously, you proceeded to let three of your best players go (Briere, Drury and now Campbell) due largely to financial squabbles.

You remember that you’re a billionaire, right?

So what if the Sabres don’t make money this year? You are clearly very adept at making money in other ventures. Even if the Sabres lost you $10 million this year, you could probably find that in your couch cushions; it’s like an average person spending $20.

Think I’m exaggerating?

Golisano spent more than $90 million on three failed runs for governor of New York. And he did it as a third-party candidate, meaning his chance of winning was slim, no matter how much money he threw at the cause.

Personally, I’m starting to warm up to owners like Charles Wang on Long Island or Alan Cohen in Florida. Have you heard those two whining about competing with the Rangers or the Leafs of the world since the lockout? Nope. In fact, despite not having stellar attendance, the Islanders signed Rick DiPietro to a big, long-term contract and have made a concerted effort to market themselves to the local community.

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As for Cohen, his interview with floridapanthers.com last summer illustrates exactly why his head is in the right place:

“We lost $10 million last year, but we’re committed to building a winner. Sure, I’d rather have the higher revenues of the bigger market teams. Then money wouldn’t come out of my pocket. But until we create that revenue, we’ll continue to spend and support the team.”

Cohen, like Ottawa Senators owner Eugene Melnyk, made his fortune in pharmaceuticals, not hockey. Maybe at the next owners’ meeting, one of them can slip Golisano a reality pill.

ROLLING ON
For all you Year of the Ram fans out there, Roseau blasted Blaine 8-2 last night, setting up a semifinal contest with the Hill-Murray Pioneers tonight at the Xcel Energy Center.

Ryan Kennedy is a writer and copy editor for The Hockey News magazine, the co-author of the book Hockey's Young Guns and a regular contributor to THN.com. His blog appears Wednesdays and his features, The Hot List and Year of the Ram, appears Tuesday and Thursday, respectively.

For more great profiles, news and views from the world of hockey, Subscribe to The Hockey News magazine.

COMMENTS (12)

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Ron-jon Posted
(2009-04-30 06:04:27)

Using the Islanders and the Panthers as examples of spending to win weakens the argument. I would have thought that a professional journalist would have done a better job at bolstering his case rather than just sounding as if he were blowing off some steam. Weak!

Ben Posted
(2009-04-30 06:04:26)

I say, give each team a "Designated spender", the Billionaire businessmen buys the team, and the DS does all the spending, and to top it off, the DS has to be the most hockey loving canuck there is available.I hate the leafs, but Can you imagine if the leafs were run by their fans, not those poser suits, they'd have more cups than a starbucks.

Kaspar Posted
(2009-04-30 06:04:26)

Here is what I don't get; The CBA determines the payroll ceiling for every team ( 52 Million); that total is based on "SHARING REVENUE"; repeat: all salaries are dependent on REVENUE; Small market teams even get a kick-back donation from the big-boys........so, if "payroll" is determined by "profits from the prior season" how in the world can an owner cry about losing money because of salaries.....It seems that the system should exclude the players salries from being the reason a team loses money...it just can't be that reason.....its poor marketing thats the reason, not cashing in on alternative streams of revenue.....and selling off your best players is probably the easiest way to succeed at losing those other profits centers....

Bob Vila Posted
(2009-04-30 06:04:24)

Larry Quinn is a horrible, unethical operator who has an out placed ego. All of these players offered to stay for term deals at what were below market rates...not once have I heard the Sabres say, "we brought everyone into a room and explained to them that we thought we had something special here but it would take everyone co-operating as on the financial front to keep this together." It is critical to note that Quinn's compensation is exclusively based on a percentage of profits. No profit, no income. He also dismantled a REGIONAL SPORTS NETWORK arguably one of the most valuable assets any franchise can have...to the point, it will always be worth more than the franchise. Why do these guys never talk about the ancillary income they are collecting, like operating the arena. Tonight Bruce Sprinsteen played there, guess who made money...Tom Golisano...tomorrow their lacrosse team will play in HSBC, yes they got that too in the BK. It is such a load of manure they are spinning. At the end of the day, the most telling question about the interview is that Golisano cannot honestly say that he is in this for the long term. Give him one more year of horrible press and loosing and he will be looking to exit stage left.

bill Posted
(2009-04-30 06:04:24)

maybe the nhl should move all these franchises back to canada also. I being from nashvegas , am sick and tired of hearing how nashville doesnt deserve hockey because we lose money. its just a reality of the economic times in which we live. a lot of the teams are losing money or just scraping by. the difference is some of the owners have deep pockets and the others are in over their heads. as the case with leiopold. he doesnt have any business owning a club because his pockets are not that full. jim basilly(wannabee nhler) on the other hand or the guy who just bought edmonton can not find all their money that theyve got buried in their backyards. but, we shouldnt expect them to just lose money for the heck of it. they are business men and they owe us nothing. if u dont like the way they conduct their business than dont buy their product. they will change their business strategy to become more sucessful. the simple truth is that nhl salaries are way too high for the amount of revenue the league generates. this league is not the nfl or mlb and never will be even though i wish it would. but the salaries are getting close in range to those leagues who have much more revenue. the key to sucessful nhl owners is their lease agreements. like nashvilles new owners, they will be getting most of the revenue the sommet center generates off all other events booked there including concessions. their management company runs the building so they have lots of incentive to keep the building booked. they will not make much on hockey but they will make a profit after they factor in the other events. plus they have stated as long as they break even they wil be happy. why, because in 10 more years a hockey franchise will be worth more than 300 mil instead of the 190 mil they paid. thats were the owners make their money is when they sell. poor leipold lost all that money here yet he sold a franchise he paid 70 mil for a mere 190 mil 10 yrs later. a pretty good rate of return even if u lost 7 mil a year as he claimed. whatever they do, raising ticket prices is not a option anywhere. they have already priced most individuals out and corporates will have to start making cost cutting decisions due to the economy that looks very grim for the next 2-3 years. entertainment expenses will be the 1st cut. oh well, enough of my wining and rambling. NHL is still the coolest game!!!

Kurt Simer Posted
(2009-04-30 06:04:21)

I could not agree more with Jack. This is a business! If it is alright for the players to treat it as such, then it is ok for the owners to treat it as such. Businesses exist to make money, not blow it. Golisano didn't become a billionaire by throwing away money. Why should he do it now. We do live in a capitalist society, after all.

Craig Posted
(2009-04-30 06:04:19)

If I had billions and could afford a hockey team, I'd be the Cuban of the NHL and do whatever it took to win. Why is the NHL bereft with owners who are more passionate about money then the sport. More owners who own teams because they love the comunity and the game and fewer (or preferably none) who are hoping simply to turn a quick buck off the enthusiastic good will of a city is what this league needs. Say what you want about Steinbrenner, but he goes for it every year. Same with Jeremy Jacobs (with the patriots), or Robert Kraft, or Jerry Buss. These guys head the iconic franchises in their sports and appreciate the privelege regularily swinging for the fences. What does the NHL have, a feuding board of governors in Toronto, a frustrated managing partner for a cable company in New York and Tom "wow is me I might only be the 87th richest man in the world if I pay to keep my scouting staff in tact) Golisano. Ownership is ruining this league, and it's sad... actually, it's pathetic.

zak Posted
(2009-04-30 06:04:18)

It is about time some one took the blame to the top, Tom Golisano. He and Larry Quinn have stripped the team of talent. Mismanagement is to blame and ignorant ownership. The fans who supported the team are forgotten by Big Tom and Little brain Larry. Let's hope the rumors are true and the team gets sold soon to an owner who knows and cares about hockey.

Rocco Russo Posted
(2009-04-30 06:04:17)

For a supposed smart business man, what Golisano doesn't realize is that by not spending the money, and trying to prevent losing money, the team suffers. As they start to have less success, and possibly miss the playoffs, the franchise likely doesn't continue to increase in value, at least like it has since he bought the team (purchased for $50mil, now worth $150mil) Not only has he made money the past few years, but he's made $100mil+ just off the success of a winning team, as the value of the franchise shot up. So yes, if he can't see the big picture that spending money now helps put a winning team on the ice and results in a more valuable franchise, then he needs to get out of the way for a real owner. He also knows nothing about hockey, which bugs me. And between Larry Quinn and the other managing partner, they only care about the bottom line, and not the team or the fans.

Jack Meahoffer Posted
(2009-04-30 06:04:17)

What a bunch of garbage. Why should the owner run his hockey business any different from his profitable businesses. Shouldn't this same logic apply to the well paid hockey players who bolt for a better salary. If the league wants to protect small market teams it can establish an effective salary cap and have stronger revenue sharing. The goal of the owner is to make as much money as possible . . . period. This socialist thinking makes me sick.

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