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Tuesday, November 9, 1999
Flames race against clock
Like a hockey team trying desperately to preserve a last-minute lead, the Calgary Flames ownership group now finds itself in a critical race against time.
With player salaries destined to rise until the league's Collective Bargaining Agreement expires in 2004, the Flames are focusing on making ends meet until a new, "more common sense" CBA is reached.
And while expansion payments of $4 million this year and $8 million next year will help bridge the gap, the Flames are well aware the odds are stacked against them surviving until 2004.
"We have to get from here to there," said co-owner and NHL governor Harley Hotchkiss, who co-owns the club along with Doc Seaman, Grant Bartlett, B.J. Seaman, Murray Edwards, Ron Joyce, Al Libin, Allan Markin and Bud McCaig, "and the only way we can get there is by getting our attendance back and equivalent to Edmonton's, where they have 4,000 more season tickets. If we can do that, it would let us carry on to the next CBA, even though we might take some financial hits."
The 4,000-seat difference between the two Alberta clubs accounts for more than $7 million in revenue, which is roughly the difference between the Flames payroll of $20.5 million US (24th in the league with the New York Rangers at No. 1 with a $59-million payroll) and the Oilers tab of $26.6 million US (22nd in the league).
The extra millions allow them to sign players like Bill Guerin and Doug Weight, who go a long way towards selling tickets and making a team competitive.
A large part of the Oilers' success at the box office stems from the faith fans have in GM Glen Sather. Frustrated by a slow start and three straight years without playoff hockey, Calgarians have clearly lost faith in the club's front office and have responded with an average attendance of 14,370 so far this year. It's a crowd count that jeopardizes a league-sponsored currency equalization handout of $3 million the club has counted on for four years.
"Calgary is an entrepreneurial city -- a city of winners, so the challenge is to build a winning team," said Bartlett, who figures fan apathy began to grow following the players' strike in 1994-95 and the botched reallocation of season ticket seats after 'Dome renovations a year later.
"On the one hand, we're a small market, so we can only sell so much merchandise and get so much TV revenue. But on the other hand, there's lots of cash in this city. There are a lot of challenges, but we still believe it can work here."
Hotchkiss believes his club is much better than its record shows, but knows a sad reality of sports is you can't win every year.
"Everybody wants to win but every business goes in cycles -- look at Pittsburgh and Montreal," said Hotchkiss. "With some support and patience, we'll be back."
The team's continued on-ice struggles stem from the fact management has rebuilt while at the same time trying to stay competitive. The result: the club has been just bad enough to miss the playoffs and just good enough to miss out on the top draft picks that can turn a franchise around.
Well aware of the fact a winning team would likely turn the club's fortunes around, team president Ron Bremner points out in the NHL, you can't simply buy
a winner, even if the Flames did have the money.
"Just because you spend $2 million on a player doesn't mean he's going to pan out," said Bremner, citing the current state of the New York Rangers.
"Would we like to have more money? Sure, but the reality is you've got to do the best job with the dollars you've got. When we've got the market the size we have, the economic challenges that we have ... we have to know that we may not be able to get to work in the same kind of car that the other guy gets to work in. The key is, once we get to work, what do we do then."
Among the club's off-ice challenges include the low loonie, high salaries and government handouts south of the border. The team reaps relatively low dollars from a local TV deal with Molstar. After all, viewership on RDTV/Calgary 7 is down from 110,000 in 1993 to 70,000 last year, a decline station president Jim Bagshaw attributes to a combination of the team's declining performance and the increased amount of hockey, and channels, available on TV.
Flames merchandise sales rank last amongst Canadian teams (10th overall) in national sales. Unlike most clubs in Canada, the Flames aren't burdened by high taxes, paying only a $350,000 education tax on a building they don't own. That being said, the club is still pushing hard for government assistance in the form of revenue generated by Canadian sports lotteries.
Citing the fact league losses surpassed $200-million last year, Hotchkiss points out the current climate created by the CBA has caused problems for many clubs. That's why he's convinced "common sense and rational behaviour" will prevail in 2004 when the owners and players bargain hard for a new deal.
"It may mean there'll be a lockout, yes," said Hotchkiss. "I hope not, because that's a tough way to settle anything. But I believe out of the new CBA will come a better working relationship between all parties involved."
The question is, will the Flames be one of those parties?
EXCLUSIVE POLL RESULTS
Here's a selection of the questions asked in an exclusive poll commissioned by The Calgary Sun and CFCN Television on the state of hockey in Calgary. The study, by John Yerxa Research, consists of a quota sample of Calgary-area residents. Only residents of the sample area (18+ years of age) were eligible. The 400 respondents were contacted by telephone between Oct. 13-17, 1999. Margin of error is 2.14%
* In your view, how financially successful do you think the Calgary Flames hockey organization is right now? Would you say that the Flames are ...
1. Financially Successful 25%
2. Financially Unsuccessful 47%
3. Neither/Probably break even 9%
Don't know 19%
* Would you be willing to pay higher ticket prices if it meant keeping the Flames in Calgary for at least the next five years?
1. Yes (Probably) 25%
2. No (Probably not) 70%
Don't know 5%
* In your view, how likely is it that the Flames will make the playoffs this season? Would you say their chances are ...
1. Excellent 2%
2. Good 16%
3. Fair 41%
4. Poor 34%
Don't know 8%
* Do you think the quality of play within the NHL has increased or decreased over the past decade?
1. Increased 33%
2. Decreased 53%
3. Remaining the same 5%
Don't know 9%
* Given the size and nature of the National Hockey League today, do you believe NHL player salaries are too high, too low, or about right?
1. Too high 82%
2. Too low 0%
3. About right 15%
Don't know 9%
Have your say! We want Calgarians' reaction to our eight-part series Calgary on Hockey. Just send us your thoughts by e-mail at calsport@sunpub.com or by fax, 250-4180. Please keep your comments brief and sign your full name. We'll be publishing a selection to conclude our series next Sunday.
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