NHL Franchise Boys

Pending approval from the NHLPA, the yet-to-be-named four conference set-up to be in place starting with the 2012-13 season.

The new alignment enables the NHL to create a balanced schedule in which all teams will play each other at least twice every season, once at home and once on the road, giving fans a chance to see every team and superstar in the league. The remaining games will be played within the conferences.

In the seven-team Conferences, teams would play six times — three home, three away. In the eight-team Conferences, teams would play either five or six times in a season on a rotating basis.

As a result of the new four-conference alignment, the Stanley Cup Playoffs will follow a different format as well. The top four teams in each Conference will qualify for the playoffs. The first-place team in each conference would play the fourth-place team in the same conference; the second-place team would play the third-place team. The four respective Conference champions would meet in the third round, with the survivors playing for the Stanley Cup.

The average hockey team is now worth $240 million, 5% more than last year due to a 5% increase in revenue during the 2010-11 season, to an average of $103 million per team. The sport’s popularity on television is up, as is the revenue from those platforms. Sponsorship and merchandise sales have also been increasing. But margins are getting squeezed. During the 2010-11 season the league posted operating income of $126 million, 21% lower than the previous year. Main reason: Player costs increased 11%, to $59 million. Last season 18 of the league’s 30 teams lost money even before they had to pay bank loans or write down assets, compared with 16 the prior year.

The league’s most valuable team, the Toronto Maple Leafs, is now worth $521 million and generated $81.8 million in operating income last season. The New York Rangers earned $41.4 million last year and are the NHL’s second-most valuable team, worth $507 million. And the Montreal Canadiens, placing third with a $445 million valuation, earned $47.7 million. Thus the top three teams posted an aggregate operating profit greater than the rest of the league combined.  The average NHL team is worth 47% more than it was before the lockout that cancelled the 2004-05 season. Let’s hope a the NHL can get a more economically sound CBA without having another work stoppage.

Rank	Team	Current Value ($mil)	1-Yr Value Change (%)	Debt/Value (%)	Revenue ($mil)	Operating Income ($mil)
1	Toronto Maple Leafs	521	3	25	193	81.8
2	New York Rangers	507	10	0	169	41.4
3	Montreal Canadiens	445	9	65	165	47.7
4	Detroit Red Wings	336	7	0	127	16.3
5	Boston Bruins	325	8	35	125	2.7
6	Chicago Blackhawks	306	2	0	118	8.7
7	Vancouver Canucks	300	15	37	146	23.5
8	Philadelphia Flyers	290	-4	22	111	3.2
9	Pittsburgh Penguins	264	12	38	110	-0.2
10	Los Angeles Kings	232	8	66	101	-2.0
11	Dallas Stars	230	1	126	90	-1.1
12	Washington Capitals	225	14	58	94	-7.5
13	Calgary Flames	220	7	15	105	1.1
14	Minnesota Wild	213	5	53	97	-5.9
15	Edmonton Oilers	212	16	47	96	17.3
16	San Jose Sharks	211	9	21	96	-7.8
17	Ottawa Senators	201	3	65	100	2.8
18	Colorado Avalanche	198	0	12	83	6.1
19	Anaheim Ducks	184	-2	35	84	-8.4
20	New Jersey Devils	181	-17	144	100	-6.1
21	Tampa Bay Lightning	174	20	26	87	-8.5
22	Buffalo Sabres	173	2	46	87	-5.6
23	Carolina Hurricanes	169	4	77	81	-4.4
24	Winnipeg Jets	164	21	61	71	-5.2
25	Nashville Predators	163	10	52	82	-7.5
26	Florida Panthers	162	-4	59	81	-7.0
27	St Louis Blues	157	-5	81	78	-2.7
28	Columbus Blue Jackets	152	-1	66	80	-13.7
29	New York Islanders	149	-1	67	63	-8.1
30	Phoenix Coyotes	134	0	26	70	-24.4

How will the NHL realign the divisions? Is it a simple one-for-one team swap or could it be a domino-like swap where one team moves, then another, followed by yet another team? Perhaps the NHL should abolish the six divisions and go back to four.  Here are a few options being considered, starting with the most likely scenario to the least likely. 

One-for-One Realignment

This one has been discussed before, but it’s to move the Detroit Red Wings to the Eastern Conference and move the Winnipeg Jets to the West. Another option could be the Columbus Blue Jackets. However, the move that makes the most sense here—at least for a one-for-one team swap—could be the Nashville Predators moving to the Eastern Conference due to their proximity to the Southern states. This would result in fewer miles traveled by both clubs over the course of the season.

The NHL realignment would not change much and be shifted to:

Northeast: Boston, Buffalo, Montreal, Ottawa, Toronto

Atlantic: New Jersey, New York Islanders, New York Rangers, Philadelphia, Pittsburgh

Southeast: Carolina, Florida, Nashville, Tampa Bay, Washington

Central: Chicago, Columbus, Detroit, St. Louis, Winnipeg

Northwest: Calgary, Colorado, Edmonton, Minnesota, Vancouver

Pacific: Anaheim, Dallas, Los Angeles, Phoenix, San Jose

 

The Domino Realignment

This one is a realignment that almost serves as a domino effect. 

Northeast:  Buffalo, Detroit, Montreal, Ottawa, Toronto

Atlantic: Boston, New Jersey, New York Islanders, New York Rangers, Philadelphia,

Southeast: Carolina, Florida, Pittsburgh, Tampa Bay, Washington

Central: Chicago, Columbus, Dallas, Nashville, St. Louis, 

Northwest: Calgary, Colorado, Edmonton, Minnesota, Winnipeg

Pacific: Anaheim, Los Angeles, Phoenix, San Jose, Vancouver

 

The Complete Overhaul

This is the doomsday of scenarios for the current NHL setup. Why not go back to the time when hockey was at its best… bring back the Prince of Wales and Clarance Campbell Conferences. With each comes the Adams and Patrick divisions (Wales) and the Norris and Smythe (Campbell) divisions.

Prince of Wales Conference

Adams Division

Buffalo, Boston, Carolina, Detroit, Montreal, Ottawa, Toronto,

Patrick Division

Florida. New Jersey, NY Rangers, NY Islanders, Philadelphia, Pittsburgh, Tampa Bay, Washington

 Clarence Campbell Conference

Norris Division

Calgary, Chicago, Columbus, Edmonton, Minnesota, Nashville, St. Louis, Winnipeg

Smythe Division

Anaheim, Colorado, Dallas, Los Angeles, Phoenix, San Jose, Vancouver

This may be a stretch but it could create the best regular season money could buy. The Eastern Conference, or Prince of Wales Conference, would have solid matchups night in and night out. Four of the Original Six reside in the Prince of Wales Conference, offering up historic matchups. In the Patrick Division, the battle of New York and Pennsylvania continues, as does the Ovechkin versus Crosby matchup. The Campbell Conference also offers great matchups. Minnesota versus Winnipeg, Calgary versus Edmonton, Anaheim versus Los Angeles and many more are there for the fans to enjoy. The most critical part of this setup is travel. Every team will have a reduced travel schedule, or at least reduced air miles on their season.

The most likely team to move conferences will likely be the Nashville Predators; however, there is an outside chance the Detroit Red Wings or Columbus Blue Jackets make that move to the East. Stay tuned.