The NHL lockout is approaching its sixth month and even with NHL commissioner Gary Bettman's recent announcement that the season is cancelled, no one is sure whether the 2004-05 hockey season is really dead. All through this indecision, the Buffalo economy is still feeling the effects, as Buffalo businesses, restaurants and bars lose an estimated $2 million to $4 million per missed Sabres home game, according to The Buffalo News.
This weekend, hockey legends Wayne Gretzky and Mario Lemieux were asked to help hammer out a deal to save the season, but fans, media and local businesses are fed up with the owners and players constant tease of a deal. As of now, it seems the Great One and Super Mario's presence in talks were unable to help, and it should be the final nail in the NHL's coffin. The two sides' callous treatment of fans has irreparably severed the tie between the league and its fans.
The players' and owners' unwillingness to reach a deal stems from the fact that neither group has lost much with games not taking place. Both organizations have funds set up so every player and owner will be paid well for at least two years. The true economic impact of the NHL lockout lies not with the labor dispute between two groups of very rich men, but with the loss in revenue businesses such as restaurants, bars, and even parking lot owners dependent on the revenue a Sabres game brings.
People dependent on seasonal work at HSBC Arena and the surrounding businesses also lose, as these jobs just do not exist without NHL games. While these part time jobs might not pay more than $50 a night, a pittance compared to the $10,000 a month NHL players receive every month for not playing, that extra income translates to a month's car payment, a week's groceries, or maybe a month's rent. According to an ESPN report there are about 600 people working at HSBC Arena. Factor in the bartenders, parking attendants, security guards, waiters, taxi drivers, and line cooks and the total number of people dependent on Sabres games for income could more than double.
While some of these part time workers moved on to other part time jobs to replace those lost because of the lockout, others waited on the NHL to strike up a deal - not an unreasonable idea, considering no major U.S. sport has lost an entire season due to work stoppage. Unfortunately, both owners and players are prepared to cope quite comfortably with constantly "nearing a deal," being "close on the numbers," or "hammering out details." By leading on those dependent on the league, players and owners are sticking these businesses and their employees in financial purgatory, not knowing whether they should cut their losses and move on, maybe relocate, or even stay closed.
The NHL has struggled financially for the past 10 years, losing attendance, television revenue and merchandising dollars while trying to expand into markets like Phoenix or Miami, where no kid would ever think to don ice skates for a pick up game on a frozen pond. For this the owners are to blame. At the same time players are responsible for not understanding a salary cap protecting owners from salary explosion is necessary to maintain competitive balance necessary for a pro league. In order to save themselves and the league for the long-term, the two sides need to compromise. Otherwise the ripple effect hurting their fans and dependent businesses, caused by their stubbornness, will leave the NHL sucked under by an undertow of irrelevance.



