NHL Lottery payments

Three or four years ago, when the Canadian dollar was at a discount and NHL players
demanded compensation in U.S funds there was a great fear among the “swells”
that they could lose their hockey team. No one really questioned where these
teams would go. There didn’t seem to be a great line up of takers in the U.S.

No matter.

Owners of the teams had their hands out and there was pressure on the politicians,
obviously created by these owners, for subsidies for the honour of hosting these
teams. One presumes that there was already an element of subsidy for the arenas,
if not in capital costs, at least in the area of reduced municipal taxes.

That program wasn’t enough. They wanted real subsidy, and it’s called cash. It
wasn’t long before the politicians created the “climate” that enabled the teams
to mooch off the public trough. Even the Vancouver Canucks, who probably made
$25 million in their last playoff run, were divvying up lottery money with
healthcare and educational needs in order to pay Luongo $10 million US a year. I
guess it’s only $9.7 million now.

In the Vancouver case, it comes through a lottery subsidy. An educated guess is that
we’re talking about at least $2 million a year and it’s possible that the other
hockey teams are drinking the same milk. I’m sure there are other cases and
even less visible programs. But now the Canadian dollar is $1.05 compared to
the US dollar. You would think that the owners, grateful for the support in the
past, would offer to reduce or eliminate any subsidies.

What do you think the chances are that this will happen?