They are (Money) essentially part of everything. What is the source of money of the most prestigious hockey league? How much best paid players earn?
For the league is an essential goal increasing popularization of the hockey teams and expanding fan base worldwide. Very clever is also increasing the number of teams playing in the NHL. Today that figure is 30 teams. And there is still a possibility that the number will increase. In matter of fact there are cities where the teams have already played NHL (Quebec or Minnesota). The City of Coca-Cola Atlanta also once played NHL under the name Atlanta Flames. The club moved to Calgary, and resides there until today. The most prestigious hockey competition returned to Atlanta too, Thrashers play now there. There are more similar cases like this one. The hockey conquered Phoenix, where they do not know ice and snowat all. This is the same case with two Florida clubs and although the audition attending matches is not as big as in Toronto, there is, and that’s most important. In Los Angeles they have a lot of other sports clubs (basketball and especially baseball) that are more popular than hockey Kings. But at the end of the 80-ies Wayne Gretzky has moved there and interest in hockey in L.A. has risen. It also means an overall increase in revenues.
Tough Fight On All Fronts:
NHL has its own financial system. Only companies that really nicely invest their money may have the team in NHL. NHL economic system must be able to face internal and external influences. External influence can be an other sports competition, which may become more popular than hockey. Yes, hockey is not No. 1 sport in the U.S., but still holds a solid position and NHL future does not need to worry yet. In addition there is a Canadian neighbor, where hockey is fortunately unbeatable unit. Internal impacts is that the NHL must not submerge itself. Financial operations of the league would have to be stabilized. The running costs of NHL competition must not increase, just opposite, any reduction of running costs is a plus. By formation KHL (Continental Europe Hockey League) NHL received a strong blow below the belt because KHL attracts NHL players and offer them higher salaries than they have in the NHL. Canadian-American competition will not allow this, because by leaving the best players the number of the audience will drop and thus competitiveness against the other sports. Player union (NHLPA ) is also an obstacle because they are trying to protect the league staff – players – fighting for their rights and conditions.
Lock-out has stopped the league several times and all the stadiums were closed. Such a interruption is inconvenient for the league because of the big financial loss. Club owners and managers of the NHL players have now several collective contracts with players to bypass the lock-out . Financial analytics however quickly determined that the club owners were concluding the contracts victory. One of the agreements is the agreement of the salary cap. This means that the club can put together to spend on players a maximum payment of fixed amount, which applies to all clubs. NHL club can’t pay for the players as he wants. At the same time it increases equalization of the league as the clubs can’t afford to buy all the best players. After lock-out the salary cap was $39mil. Salary cap continues to grow and now the club can spend on payments up to $56.7mil. This means that NHL revenue is growing and financial NHL engine is getting stronger.
Where is a will, there is a road.
Of course, club managers are looking for some catches. There are known dubious contracts of Ilya Kovalchuk and Marian Hossa. General manager of the New Jersey Devils Lou Lamoriello wanted to bring to his team precious star Kovalchuk. But practically it was not possible because Kovalchuk desired salary far exceeds the salary cap. Devils therefore conclude with a player a contract worth $102m which it will be gradually paid for an incredible 17 years. This means that Kovalchuk will play in the year 2026/27 and that time he will be 44 years old. How did they do it? Easily. Lamoriello has used the imperfection in the collective agreement. It says that the sallary in the contract of player is the average annual salary and not a specific salary in specific season. Kovalchuk earns in each of the first ten seasons for about $10mil. In the last five years, his income falls below 0.5 million USD. This means that for the salary cap will not count 10mil USD for Kovalchuk in the first season he earns, but only the $6mil.
Because this is average salary. Clever, isn’t it? NHL thus had to register the contract and accept as valid, if they liked it or not. The question is how will Kovalchuk in his last seasons chase for the puck in such a high age for such a low salary.
Here is a ranking of the highest paid NHL players. These revenues are for players in the season 2010/11.
10,000,000 USD – Vincent Levacalier / TB / Roberto Luongo / VAN /
9,000,000 USD – Sidney Crosby / PIT / Evgeni Malkin / PIT / Alex Ovechkin / WAS /
8,000,000 USD – Duncan Keith / CHI / Scott Gomez / MTL / Chris Drury / NYR / Jason Spezza / OTT / Danny Heatley / SJS /
7,900,000 USD – Marian Hossa / CHI /
7,800,000 USD – Brad Richards / DAL /
7,750,000 USD – Henrik Zetterberg / DET / Henrik Lundqvist / NYR /
7,600,000 USD – Chris Pronger / PHI /
7,500,000 USD – Zdeno Chara / BOS / Eric Staal CAR / Rick Nash / CBJ / Marian Gaborik / NYR /
7,200,000 USD – Joe Thornton / SJS /
7,000,000 USD – Jarome Iginla / CGY / Mika Kiprusoff / CGY / Daniel Alfredsson / OTT / Daniel Briere / PHI / Kimo Timmonen / PHI /
7,140,000 USD – Brian Campbell / CHI /