Friday, June 12, 2009

NHL has never collected a relocation fee

When Judge Renfield Baum suggested that it was quite reasonable for the NHL to receive a relocation fee to move the Coyotes to Hamilton he likely caught everyone by surprise. The NHL has had numerous franchise moves but has never requested a fee. However, Judge Baum was likely aware that other sports team do collect a relocation fee. When the Montreal Expos moved to Washington, there was a $45 million relocation fee. The Judge understands that if an agreement can be reached on a relocation fee then that might go a long way to resolving this dispute.

There are suggestions that the fee might be as high as $300 million which would include indemnification for Toronto and Buffalo. That price would be highway robbery and would create quite the precedent. My research suggests that the six recent relocations did not include a relocation fee. However, when the Colorado Rockies moved to New Jersey in 1986 they did pay an indemnification fee of $35 million. That stands as the highest amount paid by an NHL franchise. In 1972 the expansion Islanders paid an indemnification fee of $4 million. In 1993, the Ducks refused to pay Los Angeles an indemnification fee but Gary Bettman was so desperate to have Disney as an owner that he game half of the $50 million dollar franchise fee to the Kings. The highest expansion fee collected by the NHL has been $80 million.

So the NHL may very well be using a form of extortion in order to get its blessing for a move to Hamilton. Of course, Gary Balsillie can always walk but most people doubt he will.

YEAR

TEAMS

FEES

1967

California Seal

Los Angeles Kings

Minnesota North Stars

Philadelphia Flyers

Pittsburgh Penguins

St. Louis Blues

$2 million (Ex)

1970

Buffalo Sabres

Vancouver Canucks

$6 million (Ex)

1972

Atlanta Flames

New York Islanders

$6 million (Ex)

+ $4 million (Ind – NY only)

1974

Kansas City Scouts

Washington Capitals

$6 million (Ex)

1976

Kansas City Scouts became

Colorado Rockies

None

1976

Oakland Golden Seals became

Cleveland Barons

None

1979

Edmonton Oilers

Hartford Whalers

Quebec Nordiques

Winnipeg Jets

$6 million (Ex)

1980

Atlanta Flames became

Calgary Flames

None

1982

Colorado Rockies became

New Jersey Devils

$35 million (Ind)

1991

San Jose Sharks

$50 million (Ex)

1992

Ottawa Senators

Tampa Bay Lightning

$50 million (Ex)

1993

Minnesota North Stars became

Dallas Stars

None

1993

Florida Panthers

Mighty Ducks of Anaheim

$50 million (Ex)

1995

Quebec Nordiques became

Colorado Avalanche

None

1996

Winnipeg Jets became

Phoenix Coyotes

None

1997

Hartford Whalers became

Carolina Hurricanes

None

1998

Nashville Predators

$80 million (Ex)

1999

Atlanta Thrashers

$80 million (Ex)

2000

Columbus Blue Jackets

Minnesota Wilds

$80 million (Ex)