NHL Commissioner Gary Bettman and executives from
Canada's six NHL teams appeared before a House of Commons
subcommittee yesterday and asked Members of Parliament (MPs)
to "help them remain competitive by treating them as an
industry eligible for financial incentives such as tax
credits," according to Jack Aubry of the OTTAWA CITIZEN.
Bettman and the team execs "used tax charts and a video
during a dramatic two-and-a-half hour presentation."
Bettman "attempted to win some political hearts with a
sentimental video on Canadian hockey" that featured Celine
Dion's theme song from "Titanic" with clips of the now-
defunct Jets and Nordiques. Aubry: "One interpretation to
be drawn was that Canadians love hockey but it is a sinking
proposition." While the group was "short on specifics,"
Senators Chair Rod Bryden "pitched a tax-credit scheme which
would see the federal and provincial governments deduct a
percentage of the teams' revenues from their tax load." The
group also told the committee that the league creates about
12,000 jobs in Canada and that the six teams pay more than
$300M in wages and benefits and have spent almost $1B this
decade on new rinks and capital improvements to older
buildings (OTTAWA CITIZEN, 4/29). Bettman: "NHL hockey
represents an important industry, a significant and vital
part of the Canadian economy, particularly in the cities
which our teams are located" (Toronto GLOBE & MAIL, 4/29).
COMMITTEE SAYS WATCH SALARIES: In Toronto, Scott
Feschuk writes that several MPs told the group that "tax or
other fiscal concessions would be very tough to justify
politically unless the teams strive to help their own bottom
line by capping salaries." Liberal MP David Iftody: "If
salaries continue to rise, any tax relief from the Canadian
people is not going to help." Bettman said that any halt in
salary increases will be opposed by players and could lead
to labor trouble: "I'm not overly optimistic that this will
come without a price" (GLOBE & MAIL, 4/29). Bettman added
that the need for government help "transcends the salary
issue" (Jim Smith, NEWSDAY, 4/29). During the hearing,
Canadiens President Ronald Corey said the team would open
its books to the subcommittee. The committee will give its
report this fall (Roy MacGregor, OTTAWA CITIZEN, 4/29).
NATIONAL REAX: In Ottawa, Roy MacGregor reports the day
"could hardly have gone better" for Bettman and company as
the presentation "was slick, informed and to the point"
(OTTAWA CITIZEN, 4/29). In Montreal, Jack Todd writes that
while Bettman's "league looks more and more like a shaky
house of cards," the Canadiens "deserve some consideration.
... At the very least, they deserve a tax break" (Montreal
GAZETTE, 4/29). A GAZETTE editorial suggests the league
enact greater revenue sharing (Montreal GAZETTE, 4/29).
TORONTO REAX: In Toronto, Stephen Brunt writes that
while Bettman "polished his message a bit since its first
disastrous airing" a few week ago, the teams are "businesses
that employ few people and have a negligible economic impact
... despite the voodoo Bettman is trying to spin" (GLOBE &
MAIL, 4/29). Also in Toronto, Terence Corcoran notes the
quest for aid and writes, "How the hell are comedy writers
going to make a living in Canada when real life produces
such hilarious material?" (GLOBE & MAIL, 4/29). The STAR's
Dave Perkins writes under the header, "Pro Sports Subsidies
An Inexcusable Waste" (TORONTO STAR, 4/29).
