2011-08-02

Socionomics Alert—NBA, NHL Contraction


Contraction talk is picking up for hockey and also a bit for the NBA.

Sprint Center doing fine without NHL or NBA franchise
“A prospective owner or management group is going to look at the attendance potential, because ticket sales are so much more important in hockey than it is in other sports,” said Patrick Rishe, an economics professor at Webster University in St. Louis. “In other sports, ticket revenue is the second-leading source of revenue. Media is first. In hockey, ticket revenue is first, and media revenue is second.”

NBA commissioner David Stern told The Star in April that his league hasn’t ruled out Kansas City as a potential market. But while the New Orleans Hornets are often rumored to be a relocation candidate, Rishe has his doubts, even if LeBron James and the Heat sold out the Sprint Center for an exhibition game last fall.

“They have more revenue overall, but 17 of 30 teams are losing money,” Rishe said of the NBA. “… I think if you’re going to see anything in the NBA, it’s going to be contraction of two teams at some point in the next couple of years rather than seeing a relocation.”


Islanders arena vote fails: What now?
Hamilton: We have to throw it on the list because, quite frankly, the number of markets is drying up fast for the NHL to move in to. You have to wonder if Gary Bettman and the Maple Leafs would be OK with another team in southern Ontario when faced with a possible alternative of contraction. No commissioner wants to have that on their resume.


NBA Lockout: CBA Changes NBA Must Make During Lockout
Some are calling for contraction, and I am one of those people.

It's like pruning a nicely kept yard. If your bushes get too big, you cut them back down to size, don't you?

The league doesn't need 30 teams. Not at all. The league could conceivably contract 4 or 5 teams and be perfectly fine, if not better off, on even just a competitiveness level.


Sports leagues expand during periods of rising social mood and they contract or go bust during periods of declining social mood.

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