SensFan71 wrote:so is it possible we see a contraction of teams, or maybe perhaps some relocation? I am certain the league cannot survive the impending expansion that Ek said was imminent, 2 more teams added, yeah right.
A reduction in player salaries is one of the most logical steps to reducing team liabilities, which also pre-empts the contraction scenario.
IMHO Bettman is moving towards an NBA-style model--remember he worked for the NBA under David Stern for years--whereby the relocation of franchises becomes a viable alternative when teams underperform in a particular geography.
Reduce the operating costs, and buying a franchise becomes more attractive.
In terms of possible expansion, not to give Eklund any credibility, but if money is available from investors who believe an NHL franchise provides a solid return, Bettman would certainly look at it.
This opens the door to Canadian money men like Balsillie, and Calgary's Brett Wilson who has already taken a stake in the Predators.
A market like the Greater Toronto Area has the economic bandwidth to support a second hockey franchise.
If Las Vegas and Kansas City are being discussed, it's because the due diligence has already been done and those metro areas have been validated. In Kansas City's case, an NHL arena is already built.
Contraction is NOT a desirable option from an economic perspective. It reduces the size and scope of the revenue stream, and creates more problems--in everything from cash flow to contractual liability--than it solves.
That does not eliminate the possibility of contraction. But think of it this way: you have a retail chain with 30 stores in thirty different cities. You close a few locations outright. You've reduced your ability to generate cash, but you still have the obligations associated with closing the store.
That, basically, is why relocation is more feasible than contraction.
Again, look at what the NBA (and NFL) have done. Franchises have moved without creating negative impact on these leagues. IMHO Bettman is trying to move in that direction.