NHL Has Been Recession-Proof, So Far

Is the recent restructuring of the National Hockey League after the lockout helping save the league?

It very well may be.

Every major sports league in the United States has cut its workforce over the past month. The NBA cut nine percent of its workforce, the NFL announced plans to slash 10 percent of its employees and the majority of Major League Baseball teams have many of their seat prices frozen for next year. Even the once darling powerhouse of NASCAR, in the face of a massive bailout of the auto industry, is cutting jobs and expenses to the bone.

Every league has their weak franchises but the NHL is thriving under their new hard salary cap that has effectively made all the franchises viable on one scale or another. Only the owner's finances could be an issue. NHL teams as a whole are down only an average of 193 fans per game through December 1 or 1.1%. As a comparison, the NBA is down an average of 2,056 fans across the league per game.

And we didn't even talk about the depreciating Canadian dollar, which is now worth 17 cents less than the American dollar.

Padres For Sale?

Because of the sagging economy and because of President-Elect Obama's restructured tax plan that will heavily tax the wealthy, there is a belief that we will see more teams put up for sale in 2009 than we've seen in the previous several years combined.

The San Diego Padres have started that parade by hiring Goldman Sachs to search for a potential buyer.

Most sports owners make their money off of the value of the franchise increasing over the course of their ownership - but most teams are operated at a slight profit or even a loss from year to year. So if you are a cash strapped owner, you probably can't afford to run your team at a loss and you may be needing the equity you've made from your franchise value to support the other businesses in your portfolio.

Values were up in 2008 according to Forbes. However, the current economic climate could make 2009 a down year.

It's Official: AFL Cancels 2009 Season

The Arena Football League canceled its 2009 season Monday pending an agreement with its players union. The decision throws the future of the 22-year-old league into question just days after it said next season had not been suspended.

The AFL's owners voted against playing next year during a conference call Sunday night. It was unclear what had changed since the league issued a statement Wednesday night that said the 2009 season had not been suspended "despite rumors and reports to the contrary."

The league said in Monday's statement it was "developing a long-term plan to improve its economic model."

"Every owner in the AFL is strongly committed to the league, the game, and, most importantly, the fans," acting commissioner Ed Policy said in a statement. "Owners, however, recognize that, especially in light of the current unprecedented economic climate, the AFL, as a business enterprise, needs to be restructured if it is to continue to provide its unique brand of this affordable, fan-friendly sport."

Last week's statement came after a meeting of the league's board of directors and did not say the AFL definitely would play next year.

The AFL's woes come at a time when the world of sports, once thought to be largely recession-proof, has felt the economic chill. The NFL has said it would cut 150 jobs, while the NBA and NASCAR also have laid off dozens of workers. The NHL is in a hiring freeze while the Internet operation for Major League Baseball also has trimmed positions.

The AFL had been in limbo for weeks. With rumors swirling about its viability, the 16-team league delayed indefinitely the start of free agency, the release of next season's schedule and a dispersal draft to award players from the defunct New Orleans Voodoo.

The AFL has not selected a permanent replacement for longtime commissioner David Baker, who abruptly resigned from the 22-year-old league two days before the ArenaBowl in July.

Source: AFL