Team Ownership Structure: The Good, the Bad, and the Ugly
When it comes to professional sports teams, ownership structure can play a crucial role in their success or failure. In hockey, like other major sports leagues around the world, there are different types of team ownership structures.
The Good – Community-Owned Teams
One of the most unique ownership structures in hockey is community-owned teams. These organizations are owned by fans who buy shares in the team and have a say in how it is run. It’s not just about making money for shareholders but also about giving back to the community.
Community-owned teams have been successful in Europe for years with clubs like FC Barcelona and Real Madrid being owned by their respective fanbases. But it’s recently gained traction within North American sports as well.
In 2019, Green Bay Packers President Mark Murphy talked about how he sees community-owned models as an option for smaller-market NHL franchises that struggle financially. Some examples of this include:
– The Green Bay Packers (NFL) which has more than 360k shareholders
– The Green Bay Gamblers (USHL) who have over 900 shareholders
These teams’ ownership structure allows them to remain competitive while still being able to give back to their communities through charitable activities.
The Bad – Corporate-Owned Teams
While community-owned models might be idealistic; corporate team ownership structures are often profit-driven and less focused on engaging with fans or philanthropic efforts.
Corporate-owned teams prioritize profits above all else; they aim at maximizing revenue streams through ticket sales, sponsorships deals, merchandise sales etcetera – even if that means putting winning on hold for some time.
In some cases where corporations own multiple brands across various industries such as media or food products may integrate their businesses into cross-promotion campaigns with their team assets becoming part of those plans too!
Another point worth mentioning here is that corporate owners aren’t necessarily deeply involved in running these clubs themselves. They often hire professionals (general managers, coaches) to take care of everything on the ground level.
The Ugly – Private Ownership
Private ownership is where things can get complicated in hockey. Private owners have complete control over their teams and are not accountable to fans or shareholders outside their inner circle. This model has been criticized for its lack of transparency and accountability.
Take a look at how Eugene Melnyk’s leadership came under fire for his poor management of the Ottawa Senators franchise. Fans staged protests against him as they believed that the team wasn’t performing because he refused to spend money on top-end talent or invest in scouting and development programs.
Moreover, private ownership structure suffers from issues with continuity – what happens if an owner dies? Or becomes incapacitated? Will it be inherited by a family member who might not know much about running a sports team?
A prime example here would be James Dolan’s tenure with The New York Knicks (NBA) and Rangers (NHL). His interference in basketball operations led to years of losing seasons; he fired well-regarded executives and coaches; wasted draft picks; signed big contracts for washed-up players all resulting in negative publicity for both franchises.
Conclusion:
Hockey team ownership structures vary widely depending on different factors such as location, market size, fan base etcetera but what remains constant across all models is that ownership structure plays a significant role in determining the success or failure of these organizations.
While community-owned teams may seem idealistic, corporate ownership focuses solely on maximizing profits while private ownership lacks transparency and accountability which could lead to potential disasters down the line.
As fans continue to demand more involvement with their favorite teams – one thing is clear: It’s time for NHL franchises’ owners to start looking beyond profit margins & prioritize building relationships within their communities while still maintaining financial stability!