Glen from Calgary sent along this entirely kickass picture of a pumpkin that he did with a dremel tool. Wow. Even more impressive for a guy from Calgary, his email was contained no spelling mistakes and made sense gramatically. I’m only vaguely aware of what a dremel tool is but this is impressive nonetheless. Well done sir.
Two of the hockeyosphere’s more philosophical types wrote about Dave Nonis’ whining that the new age for free agency has destroyed Pittsburgh’s chance to recoup all of the development money that they’re pouring into the black hole that is Sidney Crosby. I’ll pass on the chance to kick at him for sheer stupidity of suggesting that they’re pouring development money into Crosby that they won’t get a return on and talk about the philosophical aspects of this.
The problem that I have with the Nonis’ complaints is his introduction of the development costs that Pittsburgh supposedly will not recoup as an issue. I see this as distinct from the issue of whether players should be owned by a certain team for a longer period of time. The first issue is economic and, as I’ll explain, I think Nonis’ point is full of holes. The second issue goes to what’s best for the game. This issue is the one that I think James Mirtle seized on. In many ways, it’s a subjective one and one on which reasonable people can disagree. I think that a lot of Tom Benjamin’s agreement with Nonis falls on this side of the debate as well. Tom doesn’t like how good teams now have to shed talent because of the salary cap. Fair enough. That’s got nothing to do with development costs though.
To take Nonis’ first point though, let’s think this argument about development money through. In the old NHL, you had the rights to the product that you developed until that product reached the age of 31. Now you have the rights to that product until it’s been in use for seven years or reaches the age of 27. Realistically, if we’re talking about development costs, the team owns the player until he’s 27 - guys who come into the league at 18 or 19 don’t cost a dime to develop, generally speaking - they’re playing junior somewhere.
Why do teams invest money in developing players? Presumably, they do it because they generate a return on that money. That return comes in the form of having players on your roster who you can pay less than you otherwise would. The logical thing to do with this change to the system is to re-evaluate whether or not the return on the development costs invested still justifies that scale of expenditure. In Sidney Crosby’s case, it obviously does. If in fact the line at which the return disappears has moved, it certainly hasn’t moved that far.
I’m not at all convinced that the line has moved so far as to make the development of prospects uneconomical though. You’d think if that was true, we’d see more teams doing what the Oilers have done and running without their farm team. You’d think that we’d see teams desperately trying to get rid of their picks after the second or third round or picking players for whom the development cost is negligible, like college players, far higher than they otherwise would. If I was the owner of the Canucks and my GM didn’t think that there was money to be made in developing hockey players, I’d be on the phone to him right away, asking “Why in the hell do we have a farm team in Winnipeg then?”
That’s why I think Nonis is wrong here, at least insofar as he bases his argument on unrecouped development costs. If there’s no money to be made on developing hockey players, teams should stop doing it. They haven’t. Therefore, on the basis of their actions, I’m willing to assume that there’s still money to be made in developing hockey players. There might not be as much as there was before, but what does anyone who isn’t an NHL employee care about that? MOreover, this is where the tradeoff comes in - there’s less money to be made in developing hockey players now but there’s presumably a hell of a lot more to be made off of veteran hockey players and at a younger age than ever before. Dave Nonis got the best goalie in the league for $6.8MM annually. To get a goalie of Luongo’s stature in the old NHL, the going price would have been $8MM. Plus he would have had a hell of a lot more miles on him because he wouldn’t have got him until he was 31.
Benjamin makes the point that the young age at which players attain free agency didn’t necessarily have to be the cost of the salary cap, for the owners. Again though, the NHL might have been able to have it both ways, they just had to be willing to invest more foregone revenue in the lockout. They weren’t. Presumably, they weren’t willing to invest because they didn’t think that the risk was worth the return, or as he suggests, because they’re happy with a young free agency age.
It’s important to note as well that the development costs aren’t just thrown away by the leaguea as a whole either - if a player that a team has spent $1MM developing signs somewhere else when he becomes a free agent, the team who lost him will presumably go find another player from some other team to fill his spot, thus stealing the fruit of someone else’s development investment. On the list of people who have a legitimate gripe that they’re coming out on the short end of their investment in developing hockey players, Nonis and the NHL probably take a back street to Pavel’s boys in Russia.
My point, in a roundabout way, is that an inability to recoup development costs doesn’t suffice as a rationale for criticizing this current setup because teams can simply stop investing money if there’s no return there. They have an option. Even if developing hockey players is something at which you can no longer make money, it’s undeniable that, taken as a whole, the return on a dollar invested in the operation of an NHL team is significantly greater now than it was a year ago and to complain that certain aspects are now less lucrative is to miss the point. What kind of businessman would complain if he was told that his profits would increase but a certain aspect of his operation would get more expensive, and there’s nothing that he can do about it? It’s not how much money you make, it’s how much you keep. NHL teams now keep more than they used to and even if they can no longer make money developing hockey players (which I don’t believe for a second), they’re better off now than they used to be.