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March 04, 2005

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h. coorab

I can't see anything good coming from having only one owner in the NHL. Am I missing something?

DF

Having only one owner would lead to a partial monopsony (a monopoly but on the purchasing end) for top-level hockey players in the US/CN, thusly bringing down salaries in the short term*. Relatively high salaries have been killing the NHL's bottom line recently, and what's worse is that the income side of the equation is not doing so great either.

*In the long term salaries would approach the quasi-equilibrium price point vis-a-vis hockey leagues elsewhere, thus negating part of salary decrease.

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