Lookin' Good at 58

Sunday, January 6, 2013

NHL Owners of Hockey Teams versus the Players

As a Canadian you cannot help but watch the lockout of the National Hockey League season and what is reported today that some settlement has been reached and we may get a season albeit a short one after all.

I for one couldn't care less whether the season began or not. I don't buy tickets, sweaters, caps or anything else for that matter. There are far too many other things that I would prefer to invest my money in.

But I have to mention that some people think that the owners have lost money the last few months with no hockey being played. No it is in fact the players who have lost money not the owners.

For those of you who think the owners have lost money yes they have with regards to hockey but during the last 4 months they have probably made millions in their other investments. They were long time billionaires before they invested in a hockey team. In fact I would guess that most of them just bought a team to show a loss in something so they could write off some acquisitions they made in some other lucrative business they run.

Owning a hockey team is just a hobby for many of them. Sure they may enjoy the game but most of them probably have never laced up a pair of skates. You see this often when somebody thinks they can open up a restaurant and be successful at it when they don't know the first thing about operations. They lose money and get out. These people are not smart and they are not billionaires either. They do not have money making investments the world over to draw from. These people are the normal joes just trying to eke out a living and think by owning a restaurant will make them money and satisfy their ego at the same time.

Is signing a player to a 20 year contract at a few million dollars a year a good investment? No I think not but some owners still did it but why? I think it is just a write off against something else that they is making them tons of money.

It is the way of the world these days. The billionaires keep making more money and the people below including the hockey players who most have no business sense at all just hang on to that hope that the owners will be boxed in a corner and capitulate.

The owners don't need hockey but the hockey players do. The few smart hockey players will invest their million dollar salary in to something long term so when they retire they can make more money. The others hope for a pension.

Tim Horton did it and he was quite the entrepreneur. He did it when salaries were like a minimum wage today. Now that guy would be worth millions today and not from hockey.

All I am saying is the owners started out like that as well. With nothing but they brought themselves right up. The hockey player is just the employee. A different mentality altogether.

A self made billionaire is not greedy. Just a smart businessman.




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