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globeandmail.ca
NHL okays lottery money to aid teams
League willing to allow use of logos,
trademarks to help Canadian clubs
BILL BEACON
Canadian Press
Saturday, September 18, 1999
The National Hockey League is willing to join forces with provincial lottery corporations to help keep six Canadian-based teams in Canada.
In a position paper released yesterday, the NHL said it is committed to maintaining a "healthy and viable presence in Canada" but fears some teams may fold without government help.
The Canadian teams -- the Ottawa Senators, Vancouver Canucks, Edmonton Oilers, Calgary Flames, Toronto Maple Leafs and Montreal Canadiens -- pay substantially higher taxes than the 22 U.S.-based clubs. Their ability to pay star players is further eroded by the weak Canadian dollar.
The NHL said Canadian-based clubs are willing to guarantee they'll stay until 2004 if they get either tax relief or a share of hockey betting revenues from provincial sports lotteries.
At the same time, the league has asked the NHL Players Association to reopen the collective labour agreement that isn't due to expire until 2004. The league sees the agreement as the cause of escalating player salaries.
"It is my understanding that the league's official position is that it would prefer to open the agreement early," said Senators governor Rod Bryden, who has threatened to move his club by next fall if his taxes aren't lowered.
"But it is certainly the position that -- we have an agreement, we'll live by it."
Departing from the antibetting stance of other sports leagues, the NHL is even willing to allow the lottery corporations to use its logos and trademarks to help increase the estimated $171-million Canadians bet legally on hockey games each year.
"There's no arguing that there's money being bet on sports lotteries," said Ron Bremner, vice-president of the Calgary Flames. "Since it is, doesn't it make sense that we receive some of the benefits?
"Doesn't it make sense that the hockey teams get a portion of that because it's our games they're using as a basis for betting?"
The NHL said it would ask the U.S. franchises to agree that all money received from the lotteries would go only to the six Canadian teams.
By increasing revenues of Canadian teams, the U.S. clubs are likely to pay less into the revenue-sharing pool, which has cost the teams $42.1-million over the past four years.
Jean-Pierre Roy, spokesman for Quebec's lottery corporation, said a decision on whether to co-operate with the league would be made at the political level.
However, he doubted using team logos or other "intellectual properties" would boost hockey betting.
"People know if they see Detroit versus New Jersey that they're betting on a hockey game," Roy said. "We've been doing this for nine years."
The National Basketball Association granted franchises to Toronto and Vancouver only on the condition that NBA games not be included in sports lotteries.
But hockey betting is popular and the lotteries and provincially owned casinos regularly buy advertising in NHL rinks.
The NHL said it is prepared to extend two programs until 2004 -- a revenue-sharing plan and another program that helps Canadian clubs match offers made to its restricted free agents. Both agreements are due to expire in the next two years.
The league has already taken steps to boost local television revenues for Canadian teams and the league pointed out that the Canadian clubs have tried to control player payrolls in recent years. In return, it wants tax relief. |
