The Canadian Federal Government "will offer" financial
aid to Canada's NHL teams, but "only on the condition that
municipalities, provinces and the league join the bailout
plan and carry most of the burden," according to Brown &
Brennae of the CP, who cite "highly placed federal" sources
as saying that the federal contribution "will be capped" at
25%, with the remaining 75% coming from other sources.
Federal Industry Minister John Manley "will not announce any
dollar figures" at a news conference today, as sources say
that he "doesn't want the government bound by any preset
numbers." Manley will announce that Montreal attorney Eric
Maldoff "will be appointed to negotiate details and put
together a final package" for federal aid. There is
"speculation" that the government's "share of the tab" will
range between C$12-20M per year, and sources say that the
money -- "to be delivered in the form of outright subsidies
rather than a tax break" -- will be distributed annually
until 2004, when the CBA expires. Brown & Brennae: "Any
team that leaves Canada for the [U.S.] while the agreement
is in effect would have to pay back 100 per cent of the
federal money." But Canadian Parliament Member Carolyn
Parrish said she was "honestly flabbergasted" that federal
aid has "gotten this far. We are being pressured by a few
jocks [in caucus] and an obviously very charming hockey team
owner" in Senators Chair Rod Bryden (CP, 1/18).
SURE TO BE A LIGHTNING ROD: In Toronto, Dave Perkins
writes that the federal aid package may set a dangerous
precedent: "Once the NHL owners and their multi-million-
dollar superstars are fed with public money, it shouldn't be
denied to the other pro teams out there." Perkins adds that
Bryden "provided a scenario by which the nasty feds were the
bad guys and too many people bought it. Unless there's an
immediate change of heart, our governments don't have the
balls to say no" to aid (TORONTO STAR, 1/18). Also in
Toronto, James Travers writes, "When it comes to putting
public money into professional sport, good intentions lead
to bad policy." Travers adds, "By losing control of
payrolls, NHL owners exacerbated hockey's other problems.
Its fan base in the U.S. is suspect, the game is
deteriorating and the league continues its pyramid-like
scheme of expanding into marginal markets." More Travers,
on federal aid: "It represents an unacceptable transfer of
wealth from the less to more wealthy and it insulates owners
from the predictable results of their business practices"
(TORONTO STAR, 1/18). CBS SportsLine's Keith Gave wrote,
"The NHL -- with or without the help of the union, must find
a way to get salaries under control. Canadian taxpayers
won't roll over like this again" (CBS SportsLine, 1/16). At
the AHL All-Star Game in Rochester, NY, Maple Leafs
President Ken Dryden said that the NHL is "skating on thin
financial ice." Dryden: "Something is going to have to give
in the next few years, or a lot of people are going to take
a tumble." Dryden adds, "I think we have just about reached
the limit in terms of the ticket prices we are asking of our
fans. ... Asking [players] to go backward in salaries is
unlikely, but if we could just at least hold the line. It's
going to be a challenge" (DEMOCRAT & CHRONICLE, 1/18).
YASHIN SAGA: In Ottawa, Allen Panzeri writes that
"before one nickel" of federal money is given to the
Senators, team Chair Rod Bryden "should be compelled to give
an ironclad guarantee that he will not" trade holdout C
Alexei Yashin before his "status is determined" in the
summer. Panzeri: "If the Senators give in and trade Yashin,
it will puncture any claims about a commitment to salary
reform and send the players a clear message that they don't
have to honour their contracts because, eventually the
owners will give in" (OTTAWA CITIZEN, 1/18). Senators GM
Marshall Johnston, on whether the team is listening to trade
offers for Yashin: "If we're going to trade him, we're going
to do it when we want to do it" (OTTAWA SUN, 1/18).
