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GLINDA

Articles Posted: 5  Links Seeded: 1076
Member Since: 9/2006  Last Seen: 5/08/2012

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The Economics of Mediocrity: Why it's your fault the Leafs stink

Seeded on Sat Oct 27, 2007 6:41 PM EDT
Read ArticleArticle Source: Toronto Star
sports, money, nhl, hockey, toronto
Seeded by Glinda
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Our gilded franchise will only get better if it has to. An academic makes the case that a second team is the only way to improve pro hockey in Toronto

You could stay away from the Air Canada Centre to voice your displeasure. But you've already chosen not to do so. And with so many seats held by corporate concerns, there's little likelihood of forcing Leafs management out of its complacency by voting with your bums. So here's another solution: Fight to get another team in the Toronto market. While New York boasts the Rangers, Islanders and Devils within its metropolitan area, Toronto NHL fans are stuck with the only show in town.

The club makes money, which is exactly what its majority owners, the Ontario Teachers' Pension Plan, want. But the evidence suggests it is not interested in spending more to produce a winning team: their investment is already paying them handsome returns (see Rick Westhead's story on Page 1). There is little incentive to spend on an asset that is already delivering on the bottom line.

The only sure way to change things is competition in the Toronto market. That would give fans a choice about where to spend their hockey dollars.

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  • Groups: Canadians
  • Regions: Toronto
  • Public Discussion (4)
Glinda

The documents also reveal that, for every dollar Maple Leaf Sports generated in fiscal 2007, 21.8 cents was profit. (By contrast, Royal Bank of Canada, the country's largest bank, reportedly had a profit margin of 13.3 per cent for its last fiscal year.)

Asked to confirm the figures, Maple Leaf Sports president Richard Peddie said, "I'm not going to say yes or no. However you got your numbers you got them. I'm not going to discuss any financials. That's been my consistent stand for the past 10 years."

Peddie acknowledged the team's financial forecast for upcoming years is "rosy but with some challenges."

Most businesses would have such challenges.

I was very disappointed that the attempted move of Nashville Predators to Hamilton did not go through last year - these anti-competition rules should not apply in Toronto where you literally cannot buy a pair of tickets except from a scalper.

  • 1 vote
Reply#1 - Sat Oct 27, 2007 6:44 PM EDT
greer

As a Leaf fan, I've heard this argument more times than I care to count, and it is seriously flawed.

The argument implies that MLSE doesn't spend enough money on player salary, and that spending more would produce a wining team. I disagree with both of those points.

Firstly, the Leafs' payroll has been on the high side of the league average for a long time, well before the salary cap and salary minimums were put into place. ( I can't find a reference for this unfortunately, but it is fairly widely understood.)

Secondly, it has been shown time and time again, that you can't buy a Stanley Cup, no matter what you spend. Ask Rangers fans, they'll tell you. I don't have the data to check, but I'm willing to bet highest total payroll doesn't correlate well with Cup wins.

The Leafs' problems are not about payroll, they have enough money to work with, they just don't necessarily use it in the best way.

    Reply#2 - Mon Oct 29, 2007 12:49 PM EDT
    Glinda

    I don't read the argument that way at all - isn't it saying the Leafs don't play to win because they don't have to. The ACC is filled to capacity regardless of how they stink - if they had to compete for those bums in the seats, they would be more motivated.

    I agree, money alone won't do it.

      #2.1 - Mon Oct 29, 2007 1:46 PM EDT
      Glinda

      edit:
      - isn't it saying the Leafs don't play to win because they don't have to ?

        #2.2 - Mon Oct 29, 2007 1:47 PM EDT
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