Merry Christmas and Shabbat Shalom Weekend Reading Edition

Just in case you have a little time on your hands and want to escape the crush of relatives this weekend, or live in the Midwest or Europe and need a respite from the snow storms, here are a few stories that caught my eye this week that I think you will find interesting:

Toronto Maple Leaf fans turn to Eggos to express their frustration with management (Globe & Mail

Vanity Fair sits down with Sid the Kid in advance of the Winter Classic (Ovetchkin interview in print edition (VF)

Money may buy the Yankees pennants, but it won't buy NFL titles (NYTimes)

Don't hit anybody with your ball or club on a golf course in New York or you'll pay (NYTimes via Sports Law Blog)

Starting January 2, Florida Panthers are offering a money-back guarantee that you'll have a good time at their games, not that they will win, mind you, just that you'll have a good time (Sun-Sentinel Business of Sports)

ESPN says Bud Selig wants a salary cap (ESPN via The Big Lead)

Hawai'i Makes it Official; Boise State Rejoins the WAC

Okay, the headline is a bit misleading - Boise State didn't officially rejoin the WAC, but with Hawai'i now joining the Mountain West for football only that makes four schools that have left the WAC for the Mountain West.  With Utah, BYU and TCU leaving the MWC, the reputation of the conference in the eyes of the football world now rests on Boise State and Nevada, just like the WAC did before the four schools decamped.  I know this is not the conference they all had in mind when they left. 

The benefit to the new MWC members will come in increased media exposure as even with the mtn network's limited distribution, the MWC has better media contracts than the WAC.  Whether those contracts will survive realignment is another issue entirely.  Not only did the departing threesome take much of the conference's football rep with them, BYU and Utah take much of the long-term basketball rep as well.  Sure, San Diego State and UNLV have good teams this year (despite UNLV's exposure at the hands of Louisville today) but Bristol's interest in MWC basketball will be significantly reduced when Utah and BYU go out the door, and none of the incoming members have basketball programs with national reputations to replace them.  All in all, the media contracts, once renegotiated, may turn out to be little better than they were in the WAC. And for Hawai'i, it may actually be worse since it must be a differential to its new conference mates in both the MWC and Big West (which it's joining for other sports) to cover the cost of travel to the islands.

Reid Trying to Stick Online Poker Legalization into Tax Bill

Say what you will about the tax cut deal cut capitulation by the President, and I tend towards calling it abject surrender by the President to Senator Howdy Doody from KY (for those of you under the age of 50, Mitch McConnell closely resembles a certain marionette who was a breakout children's TV star of the early '50s), the implementation bill may be the vehicle for legalization of online poker, or so hopes the casino industry's favorite Senator.  

Senate Majority Leader Harry Reid is making the rounds and discussing the possibility of inserting the online poker proposal into the tax cut legislation.  His proposal would allow existing land based casinos to conduct online poker games in a regulated environment. The proposal does not allow for online casino table games or sports betting, both of which face significantly greater opposition than does poker.

However, Senator John Kyl, Republican of Arizona and a member of Republican leadership has said that the proposal has "zero chance — no chance whatsoever that would be part of the tax deal. I don’t think it would be the right thing to do.”  Reid, however, who has carried the water for the casino industry for years, seems determined to get the online poker legislation before the Senate in this lame duck session somehow.   He knows it will be that much tougher to pass  next year in the new more Republican Congress.  

The tax cut deal is facing steep opposition by progressive Democrats and it's not all clear right now that the bill will clear either the House or Senate in its present form, leaving plenty of time and opportunity for negotiation on amendments.   

Possible Sale of Three NHL Clubs Highlights Difference Between Rich and Poor

As the NHL Board of Governors gathers for its winter meetings, the sale of three clubs tops the agenda.  The sale by the league of the Phoenix Coyotes is the most urgent since should a sale not close by the end of this month, the Commissioner Gary Bettman has said that the club is free to leave Arizona.  Florida businessman Matt Hulsizer has been approved as a potential owner but he still needs a lease. There is no deal in place with the City of Glendale on a lease for the use of Jobbing.com Arena, which has been the major sticking point in the sale.  Winnipeg, the 'yotes former home, is standing by with bated breath for New Years Day to arrive without Glendale's approval of a deal.

The other two sales on the agenda are the Sabres and the Stars.  The Sabres are being sold to Terry Pegula, a businessman from western Pennsylvania who has lived in Buffalo and whose wife is from Rochester.  The Stars, whose current owner Tom Hicks, is experiencing some financial difficulties with his investments in sports, may also have a sale to discuss although a buyer has not yet been disclosed.

What the sales also demonstrates is the current financial state of the NHL.  What we have now, in year six post lock-out is a two-tiered league.  On one side are seven clubs who generate a combined $241 million in operating income, with no club generating less than $13 million.  On the other side are 16 clubs in the red, with six biggest money losers generating a combined $63 million in operating losses.

Why such a big disparity?  Like Major League Baseball, the difference among clubs is primarily based on revenue from a club's local television contract and premium seating.  Toronto, Montreal and Dallas each make at least $25 million from television and $40 million from seating.  In contrast, clubs at the other end like Phoenix, Atlanta and Tampa Bay earned less than $10 million from television and less than $15 million from premium seating  It's worthy of note that only one Canadian club, Ottawa, falls into the group of sixteen money losers.

Hornets Sold to NBA as No One Found to Buy Team

The NBA is buying the New Orleans Hornets from George Shinn and Gary Chouest, as Shinn was unable to complete a deal with minority owner Chouest.  It's likely that the combination of financing difficulties and the uncertainties surrounding the Hornets lease at the New Orleans Arena made the deal untenable for Chouest.

The question now is did Stern step in to buy the Hornets in an attempt to keep the team in New Orleans, as is being stated publicly, or is this the first step in a possible league contraction in conjunction with, or as a result of, the upcoming negotiations on a new collective bargaining agreement with the players association. According to Stern, the owners have lost around $380 million in 2008-09 and another $350 million in 2009-10.  It would take at least $750 million in salary reduction for the owners to break even and you can bet that the players association isn't about to give up that kind of money without a fight.

The dynamics for contraction may actually be in place, although it's still a longshot.  Sacramento is having a tough time getting an arena deal done and the Maloofs are going to be faced with the prospect of selling, convincing the league to allow them to move to Las Vegas or perhaps buying another franchise while selling the Kings back to the league to contract.  The third option would leave the league owning two teams it could then immediately shut down.  There are enough other franchises on the market, even some with portability, that the Maloofs should be able to cut a deal to buy a team, move it to Vegas and everyone will be happy - well everyone but the players that is.  But I think Stern and the owners are betting that the players won't be able to make it through a long lockout and will ultimately cave.