The Toronto Maple Leafs have fired Brian Burke from his four-year post as president and general manager (GM) of the team. With the pro-hockey season soon to resume, people are asking who will replace Burke. Well, I'm late to the update-Dave Nonis, Burke's assistant, got the job.
http://www.thestar.com/sports/leafs/art ... n-era-ends
The NHL Board of Governors has approved the Collective Bargaining Agreement (CBA), which now goes to the players for ratification.
Someone has determined that cycles in NHL business parallels cycles in Austria's economy-really. Have a look at the logic:
http://reason.com/archives/2013/01/08/h ... xplains-th
There is, however, an economic explanation for the recent lockout mania that parallels Austrian business cycle theory. The Austrian theory holds that government manipulation of interest rates leads to a period of malinvestment followed by liquidation—the boom-bust cycle. The sports business cycle operates along similar lines, only instead of a central bank manipulating the price of money, a league tries to control the price of labor through collective bargaining. Each such attempt inevitably results in a period of malinvestment followed by liquidation—the lockouts—before the cycle begins anew.
Even folks not versed in Austrian economics seem to instinctively sense there is a business cycle, especially as it applies to the NHL. Much of the initial social media reaction to yesterday's announced settlement was, “See you at the next lockout in 2020.” This isn't cynicism. The 2012-2013 lockout marked the third consecutive occasion where the expiration of the NHL's labor agreement resulted in a management lockout. After the prior lockout in 2004-2005, the NHL's leaders claimed they finally had a rational system in place to “control costs” and maintain 30 competitive franchises. Yet eight years later, those same leaders claimed that system had failed and a new round of central planning was necessary.
An interesting find in that article about the economic theory-Mitt Romney's former Bain Capital company was involved in the NHL?
One way to break the sports business cycle would be to abandon the franchise model altogether and restructure the NHL as a single entity. In fact, Bain Capital proposed to do just that during the 2004-2005 lockout, offering $3.5 billion for all 30 NHL teams. Under Bain's management, the NHL would have been a single corporation with 30 divisions, as opposed to a cartel of 30 partially merged firms. As Deadspin's Barry Petchesky observed, this would have turned NHL teams into “[f]ast-food franchises, if you will, with extremely limited autonomy.”
Don't forget to read the related story about Mitt Romney and Bain Capital from July 2012:
http://www.boston.com/news/politics/art ... ?page=full