Originally Posted by big_news_1
Hmmm.... I just read a little of that transcript. What'* the deal with their profit sharing idea? I'm not really a hockey fan, so it doesn't really affect me either way, but I don't think I like the idea of profit sharing. It seems to fly in the face of good business sense in a free market economy. What are your thoughts on this aspect of the NHL'* offer?
I agree that profit sharing seems unfair.. it would be like Microsoft giving money to Nortel. But this is not uncommon. Canadian provinces share money known as Transfer Payments to help fund things like health care and education. I suppose the logic for the Profit Sharing is to make the league competative and to retain fan base. Who would want to see a league where 5 teams dominate the standings every year. The weaker teams would end up losing fans and losing money, thus the teams might go bancrupt. Popularity in the league would decrease and revenue on a whole would drop. All in all, Profit Sharing would be a good idea so that the league will remain stable. I dont know what other leagues do .. baseball has a similar system right?