Tuesday, October 30, 2012

Classic Indecision





  With the work stoppage, a long list of unanswered questions have been looming surrounding the NHL and NHLPA’s inability to salvage a season, or at least part of one At this juncture. One of the main talking points was headed by NHL Commissioner Gary Bettman as he hinted at the very real possibility that the famed NHL Winter Classic could be lost in the mix.




"It takes a lot of time and it takes the commitment of a lot of money in order to put on the Winter Classic," NHL commissioner Gary Bettman said. "My understanding is at some point in the not-too-distant future we will have to commit many millions of dollars if we're going to play the Winter Classic on Jan. 1. Obviously under these circumstances and all the uncertainty, we're not going to commit the many millions of dollars if we don't think we're going to have a deal.

"And so the Winter Classic time frame, in terms of making that decision, is probably rapidly approaching."

  The NHL’s Winter Classic, slated for the new year ever since the 2008 season which saw the Buffalo Sabres host the Pittsburgh Penguins has been a mainstay and a delight to all of sports fans, and has generated a great deal revenue and interest the sport of hockey.

  The Classic was set to break records for the National Hockey League in many lights. The fact that two of the NHL’s historic ‘original six’ hockey clubs in the Detroit Red Wings and Toronto Maple Leafs was only the tip of the iceberg. The NHL has expected to eclipse the record attendance of the 2010 NCAA “Big Chill” matchup at the University of Michigan which saw 104,173 fans. The cancelation would also extend to the alumni, junior, college and American Hockey Leagues games that were set for a second outdoor venue at Comerica Park in Detroit.

  The decision is quite possibly to come through on Friday at the end of this week. Unfortunately enough for the enthusiastic fans that planned on attending this mega event, the hands of the league may be tied – largely by its’ own indecision.

  The deal that was agreed upon between the NHL and the Michigan Stadium last February does indeed carry with it a ‘work stoppage clause’ which states that the NHL can call off the game as late as the aforementioned Friday of this week for a stiff penalty of $100,000, the exact amount that has been paid as a deposit to the stadium. The total rental fee for the stadium is a hefty $3 million, $250,000 of which is due this Friday in the first of a five-payment installation. Not only does  the NHL have to be concerned with its’ commitments to the stadium and fans that have painstakingly gone through the process of acquiring tickets for, and planning for the event, they must also take into consideration the sponsorship groups that have held strong through the lock out in which has no clear end in sight.

  Brian Cooper, CEO of S&E Sponsorship Group, has highlighted the importance of a steady plan moving ahead to an event with such great prominence in the sports world and in the marketing world.

"While the game may be Jan. 1, I knew that (a decision) was coming sooner than people thought," Cooper said Monday. "Say you're a bank and you're going to bring down your top 150 wealth management clients and they're going to block off New Year's Day -- you have to give that a lot of advance, especially if it's New Year's Day."

  Cooper also revealed his insight on the importance to the Canadian markets, given the fact that a Canadian franchise has been invited to the Winter Classic, something that the hockey crazed nation has been surprisingly left out of outside of its’ Heritage Classic appearance in 2003 between the Edmonton Oilers and Montreal Canadiens, and 2011 in Calgary with the Flames hosting the Candiens once more.

"This is the first year that it really affects Canada," said Cooper. "There was going to be a lot of in-market (sponsorship) activations, there were going to be a lot of hosting opportunities, there were going to be consumer promotions. ...
"This was a big date."

  Not only is it a big date for Canada, but it was a big date for the state of Michigan. The game at the “Big House” was seen as a much needed large economic boost for the struggling state. Cooper estimated that the event, by far the largest in NHL history, was poised to generate in upwards of $3 million in corporate sponsorships, not including ticket and merchandising sales.

  The thought of canceling the NHL’s most glorious and spectacular day is quite the reality. With the league losing money since the lock out began on September 15th, it, as a whole, have been far from a solid agreement with the NHLPA as to when or if a season will be played. Even just the potential loss of such an event is another major blemish to the sport loved by so many.

- Kendall Grubbs

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