Sunday, April 18, 2010

Killing The Game We Love

Sunday morning, if you're a real hockey fan, you woke up to watch a tournament that is under appreciated year after year in Canada. The under 18 World Championships are something that just haven't consistently gotten a whole lot of media attention. The fact that the tournament consistently starts around the same time as the first round of the NHL playoffs doesn't exactly make it an easy sell to the typical fan of the game. It is a great tournament though, and it gives the diehard fan a chance to peak into the future of the NHL. It's also a great indication of where the national program is heading, and this year, more than any other, I'm terrified about the future of hockey in Canada.

That's right, I said terrified. That's not meant to belittle the young men who have dedicated themselves to the game and earned the right to wear the maple leaf of their chests. The young men playing for Canada put up a valiant effort in their game against Sweden this morning. There is no doubt about the heart and the courage that they showed. They even showed that typical Canadian hockey attitude that says you never ever give up, and you're never out of it. For that, those young men can't be faulted. Still, the result is cause for concern. A lot of concern.

For those that haven't been following here are the pool standings before Sunday's loss:



Now, in fairness, Canada has never done particularly well at this tournament. The fact that is conflicts with the CHL playoffs means that there are still many eligible players that aren't on Team Canada's roster. Still, there should be more than enough players available to make Canada competitive, just as it has been in the past. This year is a sign of something different.

There has to be great concern at this point, that we are pricing talent out of hockey. Hockey has never been a cheap sport to play. I can't remember a time in my involvement in the game that parents have chosen hockey for their kids because it's cheap. The fact is that hockey will always be a financial obstacle for most families. It should never be a financial impossibility though; and that's precisely what it has become.

All one has to do is consider the cost disparity between rural or small urban organizations, and large urban population centres. I grew up playing the vast majority of my minor hockey in Carleton Place, Ontario. Carleton Place is a bedroom community to Ottawa, loaded with government employees and small industry. This is what their current registration pricing looks like:


Without question, the current pricing structure creates huge access issues. Most families simply can't afford $500 for one child to play hockey. Especially when the cost of equipment, and travel enter the equation. There is one particular detail that I want to point out though. There is no pricing based on talent or potential.

Next, the pricing structure for Nepean Minor Hockey, Ottawa's largest minor hockey association:

The cost is still prohibitive, but notice there are still no stipulations based on skill. It is assumed that parents will be willing to shell out for the additional costs that come with having a child play at a more competitive level. For the most part, that's true. In addition, competitive teams from these smaller organizations are encouraged to seek out sponsorship deals with local businesses to offset those additional costs. So, while the cost is prohibitive, Ottawa has a high median income, and it's assumed that the cost is not crip
pling.

In Toronto, we can see how the future of hockey costs will absolutely cripple the sport. Playing house league in the GTA will see parents shell out at least $450 in registration costs. That's on par with the locally based associations in Ottawa. Competitive costs, however; are through the roof.

The Leaside Kings Hockey Club, an organization within the Greater Toronto Hockey League, requires $1350 per player in registration alone. A payme
nt of $850 is due at the time of registration. The total cost of registration is nearing three times the cost of minor hockey in Ottawa. In addition, players are charged just to enter the rink, and parents and family members are charged to watch games.

All of these costs are being passed on from an association that has over $1 million in savings according to their 2009 financial statements, and still continues to lose money in the area of $150,000 a year. This is also an organization that controls all of the advertising revenue for their arenas, their website, and their magazine. Clearly, there are issues with the cost management of hockey in Toronto, but they are common with associations all over Canada.

Most associations see the majority of their money spent on arena rentals. The cost of ice time, which is purchased by associations in large blocks has increased steadily, but dramatically over the last twenty years.

Unfortunately, in this case, it's not the cost of ice time that is providing for the differential between the costs in Ottawa and Toronto. Here are the rate plans for Ottawa and Toronto:

Ottawa:



Toronto:


The costs of ice time are remarkably similar despite the massive cost disparity in the two cities. In some cases, ice time is actually cheaper in Toronto than it is in Ottawa. So why does the disparity even exist? If both organizations are non-profit, as they both claim, and if both rely on volunteers to make their associations work, then what is making hockey so expensive?

There aren't many arguments that you can come up with that would support the exorbitant cost that parents in the GTA are having to pay for their kids to play hockey. Looking at the typical costs for a minor hockey association, there's just no excuse, as the costs are common between all organizations. Obviously, every organization needs insurance coverage, and every organization has to pay referees, and book board rooms for meetings. Every association has advertising costs, and marketing costs, and other receipts related to information dissemination. There simply is no cost related area that justifies as organization, that claims to be non-profit driving up the cost, when their own expenditures are not increasing. There's also no reason to drive up cost and charge parents to watch their own children, when your "non-profit" association is holding over $1 million is savings. Especially not when you allocate only $75,000 annually to emergency contingency funds, as the GTHL does.

This is the future of the cost of hockey, though. As it exists in Toronto, so it will soon exist in other cities not only across Ontario, but across Canada. And you can already see the affect it is having on Canada's hockey development program.

Outside of the truly talented players, who always seem to find a way, the quality of Canada's emerging draft classes has been speculated to fall off very soon. This year's under 18 team was considered by many scouts to be among the weakest in over a decade. And large urban centres are producing fewer and fewer elite level talents. That's leaving rural associations, with less access to resources, and with much greater dependency on volunteers and local business support to pick up the slack. While the GTHL is garnering sponsorship deals with Reebok and Pizza Pizza, teams supported by Bob's Vacuum Repair are turning out the next generation of stars. But, Bob's Vacuum Repair is not the future of the sport in Canada, and as great a guy as Bob may be, he can't find a way to drive down costs.

Now, as much as you should always propose a solution when you discuss a problem, space does not permit. I've gone on long enough as it is. But, with more time, and with the renewable resource that is blog space, I'll look to address some of the many solutions that could help save Canada's game. Not just for the superstars yet to be found, but for the kids just looking to fall in love with the sport we all cherished from the first time that cold, crisp air hit our lungs.


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