As expected, negotiations broke down yesterday with the National Hockey League and its board of governors, forcing a lockout of its players and a blackout for sponsors.
The collective bargaining agreement expired at midnight Wednesday, and the teams will not play again until there is a new economic system.
“Twenty of our clubs are losing money. There have been too many bankruptcies and too many other close calls,” said NHL commissioner Gary Bettman in a statement. “I have had too many owners tell me they will get out of this game if the economics are not repaired.”
According to published reports, the league has advised clubs to avoid refunding its sponsors unless 25% of the season is cancelled. Instead of returning cash to those sponsors, the league is telling teams to reduce the rights fee for the 2005-06 season.
Andrew Judelson, NHL VP-corporate marketing, told PROMO last month that several league sponsors have signed long-term extensions in the past year, and that brands such as Best Buy, Sirius Satellite Radio and Home Depot Canada recently came aboard as first-time sponsors. He said the sponsors support the league’s decision and do not seem to be concerned about the long-term effects of a work stoppage.
League sponsor MasterCard International did not return calls, though MasterCard Canada recently said it would take a wait-and-see approach with the lockout. Best Buy said last month that the company would not talk about any adjustments to its sponsorship based on a lockout and did not return calls yesterday.
No timetable has been set for a return to the ice, though, NHL Players Association members said they are willing to sit out the entire 2004-05 season.
Network
