A Profile Of Gary Bettman

Profile: Gary Bettman
By Thomas Kingsley

NHL Commissioner Gary Bettman is a regular feature in the sports media. In over 16 years at this position, he has experienced many highs and lows, and has been a major influence on the league's evolution. Some believe he has accomplished a great deal in this time, others believe his autocratic decision making has damaged the league's traditions and history. Whatever viewpoint you may take, Gary Bettman will certainly go down in league history as a truly influential and memorable commissioner.
History

Gary Bettman began his career as a lawyer in New York City, before joining the NBA in 1981 as an executive dealing the league's marketing and legal responsibilities. He would hold this position for 12 years before making his transition to the NHL.
Beginning his tenure as NHL commissioner in 1993, there were immediately questions as to whether Bettman was the right man for the job. His legal experience and his time with the NBA demonstrated he had skills as an administrator, but there were doubts about his level of understanding and appreciation for the sport itself and what effects this would have on the league.

His original mandate was to 'grow the game'. This meant expansion into the large untapped American markets, employing new marketing tactics for the United States, and securing television deals. For the league's longstanding following in Canada, where hockey is deeply engrained in the nation's culture, these instructions were seen by some as a threat to the history and identity of the game. An example of this is his decision to immediately rename the leagues conferences and divisions with geographical identities, instead of the existing names that were tributes to the league's pioneers. Changes such as these were viewed as pandering to prospective fans in markets who were unwilling to adopt the game, at the expense of its core following.

1st Period: First NHL Lockout
During the 1994-1995 season, a lockout shut the league down for over 3 months before a new labour agreement was reached. At the heart of this dispute were the league's failing small market teams, who simply could not keep up with the growing salaries being absorbed by the larger markets.
Though Bettman and the owners wanted a salary cap, they decided to compromise with smaller measures including a cap on rookie salaries, greater limitations on free agency, and changes to salary arbitration.
Despite these changes, 4 small market teams where lost during this period. They were:
· Minnesota North Stars 1993 (to Dallas, Texas)
· Quebec Nordiques 1995 (to Denver, Colorado)
· Winnipeg Jets 1996 (to Phoenix, Arizona)
· Hartford Whalers 1997 (to Raleigh, North Carolina)

There are two points of view in the minds of hockey fans when it comes to Bettman's role in these relocations. Some defend his position, as he had been the head of the league for a short time, and inherited an antiquated labour agreement from his predecessors. The other side is that if Bettman had done more during the first lockout, like demanding a hard salary cap at that time instead of 10 years later, it would have not been too late to save at least some of the these franchises. Some even contend that this was a part of his plan to sell the game to new markets at the expense of its established ones.

2nd Period: Television and Expansion
In the second half of the 1990s, on the heels of the exciting and historic New York Rangers' Stanley Cup victory, Bettman was able to secure long-term television deals with two major American networks; a first for the league. They included Fox (best remembered for their cartoonish FoxTrax puck streak), and ABC/ESPN (of the Disney company). While this was an impressive feat, ratings would remain poor during that period. One issue was that new viewers found it difficult to follow the small, fast-moving puck on the large ice surface. Another was that the sports culture in many American television markets was such that sports (or pastimes) like bowling consistently received better ratings than the NHL. Despite the fact that four small market teams had already been lost to larger, less hockey-friendly markets, Bettman felt the next move to improve the television ratings and league revenues was expansion.

When Bettman was first hired as commissioner in 1993, the league's expansion was already underway, with two new franchises having been awarded to California, two to Florida, and one new franchise in Ottawa, Ontario. While the clear focus was on American markets, establishing a franchise in the small market of Ottawa (with two of the most devoutly supported franchises in league history within a 400 kilometre radius) showed the league was willing to at least consider the hockey-culture of a city when selecting a location for expansion.
By the end of the decade, Bettman had expanded the league to 30 teams, with the number of divisions having increased from 4 to 6. While Minnesota was given a second chance, the others were more southern and less hockey friendly locations, including Nashville, Tennessee, and Atlanta, Georgia, where the Atlanta Flames had failed 20 years earlier.
One downside is that this rapid expansion put tremendous financial pressure on the league, with teams carrying hundreds of millions of dollars of debt combined. This coupled with a low Canadian dollar and severe ownership turmoil meant that teams like the Ottawa Senators (who went bankrupt before being saved by billionaire Eugene Melnyk) and the legendary Edmonton Oilers franchise were in jeopardy of being lost to larger American markets. Even storied American franchises like the Pittsburgh Penguins and Buffalo Sabres (who entered bankruptcy protection) were in danger of relocation due to this troubling financial situation.

3rd Period: Second NHL Lockout and Rule Changes
The entire 2004-2005 season was lost due to this lockout. The unresolved issues from the first lockout had snowballed, with players' salaries accounting for over three-quarters of revenues at that time. During the 2002-2003 season alone, NHL clubs amassed a combined quarter of a billion dollars of debt. It was clear that this path would lead to more bankruptcies and relocations, so Bettman decided that more band-aid solutions comparable to the outcome of the last lockout would not be acceptable.
The buzz word Bettman and the owners were trumpeting throughout this ordeal was 'cost certainty'. This meant protection for clubs and the league from skyrocketing player salaries in the future. The NHLPA director Bob Goodenow rejected all 6 of the NHL's proposals, refusing to let go of their open marketplace concept for player salaries despite its long-term consequences. These events would lead some to observe a seemingly personal battle going on between Bettman and Goodenow's egos, with the players and fans feeling like the victims.
In the end, a new collective agreement was adopted, which included a salary cap. It took over 300 days and severely damaged the league's relationship with its fans. Bettman achieved the goals he had set at the beginning of the dispute, while Goodenow ended up signing an agreement that was harsher than many of the league's original proposals. This failure marked the end of Goodenow's tenure, and he was asked to step down.

Also during this period, Bettman made numerous changes in an attempt to 'modernize' the game and increase offense. The league added a second referee, moved the goal lines and defensive-zone circles, moved the blue lines closer to centre ice, and created a trapezoid behind the net where goaltenders were allowed to play the puck
There were also rule changes that were implemented with the hope of improving the speed and flow of the game. Obstruction penalties were more strictly enforced, two line passes were permitted, and hurry-up line changes were adopted. Also, the size of goaltenders' equipment was reduced by about 11%. These changes were not popular among some of the game's purists, but Bettman firmly believed that creating more offense was the way to attract new fans.

Overtime: Financial Impact and the Future
With league revenues growing from $400 million to over $2.5 billion during Bettman's tenure, the league has certainly enjoyed impressive growth numbers. However, one outcome of the second lockout has been that the league's relationship with many of its long-time fans had been damaged. This was exacerbated by the fact that throughout the lockout, the NHL promised that the stoppage was in the best interests of the average fan. They claimed that NHL games would be affordable to real fans, and no longer would so many of the best seats belong to corporate buyers. As it turns out, this was categorically untrue. Despite the 'cost certainty' that teams now enjoy, ticket prices have been rising across the board, with jumps as high as 10% in a single year some markets (like this year in St. Louis). Some teams have 'frozen' ticket prices, and only a few teams have actually lowered their ticked prices this season (including Tampa Bay).
This problem particularly frustrates many fans in Canadian markets. During the 2007-2008 season, the 6 Canadian teams accounted for 31 per cent of league ticket revenue; which meant a contribution to the tune of $341 million US. The teams with the highest average ticket prices in the league in US dollars are currently:
1. Toronto Maple Leafs: $76.15 (up 3.5% this season)
2. Montreal Canadians: $64.26
3. Vancouver Canucks: $62.05 (up 2% this season)

The fact that there has only been one Stanley Cup awarded between these three franchises in over 20 years demonstrates that there is an unwavering passion for hockey in these regions, where fans are willing to pay a premium for what is often a mediocre product. This year, the NHL has been running advertisements called "Faith: Is this the year?" These are very appropriate because this faith is key to their product offering in their most lucrative markets, where actual winning is a distant memory.

In terms of further league expansion, 30 teams appear to be the limit for the foreseeable future. However, the league’s rapid expansion in a short period of time coupled with the emergence of the KHL has lead many observers to perceive a dilution in the talent level of the league. If Bettman was truly concerned with the quality of the on-ice product, reducing the number of teams would in fact greatly improve the average skill level of NHL level players, and truly deliver the best hockey in the world.

In the coming years, the NHL will continue to evolve. The foundation has been laid by Gary Bettman, centering on his vision of growth in new markets for the league. More recently, regular season games have been played overseas in Europe and even Japan. This could be a sign that Bettman wishes to arouse interest in the league overseas to create new franchises for a more global league in the long run. From the point of view of the league's ticket holders, this seemingly undying desire to expand the league does little to serve their interests. Bettman on the other hand is more interested in creating longer-term cash flow for the league, even if it requires some undeniable damage to the league's traditions and relationship with its core following along the way. Most fans will agree that a more balanced approach between league growth and a respect for wishes of the ticket holders and television audience who are paying the leagues bills would be more desirable, as opposed to autocratic overhauls that take many of the leagues stakeholders for granted.



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Canadian teams accounted for 31 per cent of league ticket revenue, pegged at $1.1 billion US


Had its profile across North America dramatically raised. The NHL's licensing and sponsorship income now rivals that of other big professional sports leagues. Ten years ago NHL teams competed in 11 U.S. markets. That number has doubled to 22. Licensing revenues have grown 700% to 1.2 billion.



Expansion - 30 franchises, questionable markets

Bettman's strategy to "grow the game" has also made it difficult for hockey to survive in Canadian markets. Some fans in Quebec and Winnipeg still blame Bettman's expansionist plan for the Jets' move to Phoenix and the Nordiques' move to Colorado. Annually, the Vancouver Canucks, Edmonton Oilers, Calgary Flames and Montreal Canadiens must find ways to compete despite financial constraints. The Ottawa Senators went bankrupt.



http://www.cbc.ca/sports/indepth/cba/who/bettman_gary.html

http://www.sportsecyclopedia.com/nhl/comish/bettman.html

http://www.nytimes.com/1992/12/13/sports/hockey-the-nhl-employs-a-head-for-business.html

http://en.wikipedia.org/wiki/Gary_Bettman

http://sports.espn.go.com/nhl/columns/story?id=2107128

http://iml.jou.ufl.edu/projects/Spring05/Hughes/power.html