What do people think happened during the lockout?

The NHL Shoots the Economy Down

The NHL lockout is negatively affecting North-American economies. My mom and I love hockey, we watch every game and we go to some games occasionally. When we heard about the lockout my mom and I wee devastated. My mom didn’t know what to do with her self when hockey was canceled. But when we heard that hockey was back we were so exited. The sport we loved was back but I don’t think that every one knows what the repercussions will be from the lockout.

            The NHL lockout was resolved in early January and is sett to start on the 19th but, there is still many economic problems that people know about. When I asked my mom which economy has been more damaged from the lockout she immediately stated “I think that the people who work at the stadiums and the stadium its self” I then told her that actually the most effected economy was merchandise to both the teams and fans. This shocked my mom and I can under stand why, because yes there are 30 stadiums that have lost money but the merchandise companies are in a way worse position. When I told her that the Canadian company CHE had lost 30 percent in revenue she was stunned. “I had no idea that in four months a huge company can lose that amount of money in that amount of time.” Now that the NHL is back the company will surely gain back money but it could take years for that process to happen.

            

How did the lockout effect certain economies?

The NHL Shoots the Economy Down

            The NHL lockout is negatively affecting North-American economies. Now while the lockout has been resolved, many economies are still in ruins from the four-month lockout. People are hoping that the economy will bounce back but some are still left in despair.

                  The long delay of the hockey season has lead to the Canadian hockey business, CHE, left in ruins. The company CHE sells merchandise to fans but also sells equipment to Canadian hockey teams like the Toronto Maple Leafs. The company has lost thirty percent in revenue since last years season. They dropped seventeen percent in team owned merchandise and thirteen percent in fan merchandise. This company has had to lay off two percent of workers, who worked in the offices, one percent in factories, and two percent in shops. Now the company is still doing decently in revenue because the company still sells to other leagues in Canada, like the OHL but they wont nearly get as much money as they got from the NHL. Now that the lockout is resolved they will sell equipment to the teams again but they wont be able to sell the same quantity of the equipment because the season will only have half as many games. This particular company gained in revenue 3.5 percent every year since the 2005-2006 lockout but it will take this company another five to six years just to get the same amount of money that they were making before the lockout, and hire back all the people who got laid off. I think that it is very good that there will still be a season but in the numbers it shows, that it will be years before North-American companies that are dependent on the NHL are back to the state they were in before the lockout.

What is Happening?

The NHL lockout is negatively affecting North-American economies. The Lockout started because the NHLPA (National Hockey League Players Association) couldn’t make a deal with the teams’ owners. They had until September 25^th to come to an agreement of how much money the players get, and how much the owners get. Since they did not meet the deadline the season was officially delayed.
                  Last year the NHL had its all time popularity rates, the merchandise rate went up 22% and the T.V. rates went up 29%. Many people are afraid that duo to the lockout that the rates will fall again because following the 2005 lockout the T.V. viewer rates went down 19%. If this happens again to the league when it comes back then the tickets to the games and the merchandise will increase so the league can get back to its popularity. The delay of the season is damaging many companies such as CHE (Canadian Hockey Enterprises). This company makes hockey equipment for twenty of the thirty teams in the NHL. This company has lost forty percent in revenue and has had to lay off five percent of their employees due to the fall in profit. Most of North America are already in economic problems and the fact that people are being fired due do a cancelation of a sport is horrible. The NHL lockout had also affected certain neighborhoods such as Pittsburgh. The Pittsburgh Penguins play in the Consol Energy Center which is only used for the hockey games so many people ran their vender, merchandise sellers, and people who clean the ice. Now that the season has been canceled all of these people have lost their job. Again the economy in North America is all ready so bad and the delay is just making it worse than it already is. Now that the lockout is resovled the NHL will have 48 games statrting on January 19th.