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Thank you all for such a warm “welcome back”. You can go back and check out comments at the link above. I want to spend a few moments talking about the financial picture, and some interesting issues that are starting to come about.
Budget cuts are coming you can be darn sure that if the Pegulas are looking to cut spending, at least 20 other teams are concerned as well. As far as owners go, Mr and Mrs. Pegula have never been afraid to spend. Unfortunately, they’ve never been afraid to over spend either (Skinner). If you read the above article, you’ll see that the coaching staff was approached about taking a pay cut. They declined. However, it is mentioned that Bruce Cassidy and staff have turned down their playoff bonuses. There is something special in the water in Boston. Up and down the organization are people willing to take less to see the team be successful.
Before the COVID shutdown, the league was about 1 billion short on the break even mark. When the plans were announced on what it would cost to hold the “bubble” playoffs, it was mentioned that daily testing and sterilization services could cost 30K each day. Just under a million dollars per month. The loss of gate $ for playoffs could be astronomical. If the average rink size is around 17000 seats and the average playoff ticket is around $100, that’s about 1.7 million per game that front offices aren’t getting. That money goes directly to the bottom line, as players salaries aren’t paid out as normal. They come from a pooled source and is paid out after teams exit. (IE - 10K for one round of play, 20K for two rounds, etc). The bubble didn’t come cheap, and it probably won’t pay for itself.
If I remember correctly, Kooleus talked about players taking a salary reduction (as they did after one of the last shutdowns). That may have to be brought up again, good catch K. Buffalo and Pittsburgh are both said to be contemplating “internal caps”, and that is surprising news. The free agent market just got weirder. We may be looking back in 10 years and realize that the Tavares/Matthews/Marner deals were the very height of Free Agent payouts. It could be a while until we see numbers like those again. As a side note, next year’s bonuses have already been paid out as well. The Players are finding themselves even deeper in the hole than normal (per the 50/50 split)
As much as the losses hurt Free Agents, teams with a negative operating (or even break even) differential are going to be in trouble. Toronto’s earnings act as Santa Claus for the lowest earning teams. The Rangers as well. The bottom earning teams count on those funds. Luckily, each team got a big paycheck from Seattle that doesn’t go into the pot. I hope they socked it away.
Atlanta was the last market to move out due to poor revenues. The move to Winnipeg looked like a smash hit! They sold out of season tickets for up to 5 years in minutes. The decline in the Canadian dollar greatly devalued their revenues (which, ironically, is part of the reason the original Jets ended up in the desert).
So, you ask, what on earth does all this have to do with Detroit? The Illitch family are quite wealthy, to be sure. I do believe there is an upside for Yzerman. He has waited a LONG time to get deals figured out. And for good reason. As these numbers get reported, player agents have time to explain why their clients are going to have to take less on a deal. The sure fire 6.5 mil players may become 5.5 mil. All of a sudden, is Krug to Detroit as crazy as we thought?
Personally, I don’t think it will happen. Krug has the desire to win. If he takes a 6 or 7 year deal, it’s got to be one where he believes he can at least compete. The actual salary cap is now going to be overshadowed by the “internal” salary caps. For some reason, the buzz about Krug to Detroit won’t go away. (Neither did the Stamkos to Toronto buzz). I just have a hard time believing that Yzerman is going to drop the money necessary to bring Krug to the rebuild. I would love it if I’m wrong.
As for goalie news, most of us knew Lehner wouldn’t get to Detroit. In fact, he is working on an extension with Vegas. Could the Knights let Fleury go? Or keep him to send to yet another new franchise? I would love to see the flower in net. His attitude is insanely good. And, he stops pucks. Good grief, we need them to be stopped.
A final thought for you, the consumer. The league is going to be trying harder than ever to get butts back in seats. Your dollar and participation may be more valuable to them than ever. If there are things that bother you, and have you considering leaving the sport, write or call your GMs and let them know. You have a voice, and it may be more amplified than ever. Ted Lindsay was always cognizant of the fact that fans pay the bills. Until his passing, Ted made time for the fans. He sat in the rain, under an umbrella, signing autographs. The best possible outcome of all of this mess is that athletes regain the perspective of making millions for playing a game in front of people who make far, far less than that. There has always been a humility to our sport, but it seems to be evaporating. Perhaps a massive, and tragic, loss of disposable income will help everyone to appreciate each other a little bit more.
Detroit Red Wings Blogger • 
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