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Hamilton: Sabres bracing for financial hit in new NHL season

With the NHL looking toward a season without fans, the Sabres could be in for heavy financial losses. Sabres/NHL Insider Paul Hamilton has more.
Credit: AP
FILE - In this April 13, 2013, file photo, Buffalo Sabres' owner Terry Pegula and his wife, Kim Pegula, pose for cameras during groundbreaking ceremonies at First Niagara Center in Buffalo, N.Y. The Pegulas took a step closer to buying the Buffalo Bills after their NFL-record $1.4 billion purchase agreement was unanimously approved by the league's finance committee Wednesday, Sept. 17, 2014. (AP Photo/Gary Wiepert, File)

BUFFALO, N.Y. — The NHL and its Players Association have decided to abide by the new collective bargaining agreement they signed over the summer. That means the owners will get no more financial relief for the upcoming season.

The NHLPA was willing to budge, but only if the salary cap went up from the $81.5 million it’s currently at and the NHL said no.

Many feel that there are some owners that aren’t happy with this arrangement and would rather not play. I think the Pegula’s are one of those owners, but I don’t think they’d vote to block a season. They tend to be loyal to Gary Bettman and the league.

According to Forbes magazine, the Sabres lost $10.9 million dollars last season, but that to me is misleading. Terry Pegula bought the Sabres for $189 million dollars and according to Forbes, the value of the franchise has more than doubled meaning Pegula has made 104% on his investment.

I’m hearing that if the proposed 56 game schedule is played without fans, the Sabres could possibly lose close to $60 million this season.

Getting back to the logistics of the season, it all depends on COVID-19. The league would like to have everybody in training camp by January 3rd or 4th. Since they didn’t make the playoffs, the Sabres might be able to get to camp by Dec. 28.

I just don’t see how the NHL and NBA can start seasons with COVID at its worst and completely out of control. We will just be coming out of the Christmas and New Years holiday and New Years Eve gatherings will likely start showing up in hospitals just about the time the NHL wants to start on Jan. 13.

Winnipeg would be able to go to training camp as restrictions have been eased there, but Montreal and San Jose could have problems and might have to go elsewhere. Testing protocols will have to be agreed upon and players will also have to quarantine when they get to their cities. If I were the Sabres, I would be demanding my players be on their way back to Buffalo now so they could start quarantining. 

Talks are now focusing on roster sizes. There’s an idea of adding one forward, one defenseman and a goaltender to the rosters making the final total 26 instead of 23. The two sides are also talking about a four player taxi squad, but players would make their AHL salaries if they were there. Teams have to have the extra players in case there’s a COVID breakout on or close to game day.

The league also wants to build in some extra time at the end of the season to play games that are postponed due to the pandemic.

In the end, the NHL can make all the plans that it wants to, but over 20 college football games are being postponed every week and now college basketball and hockey games are also being postponed due to the virus. The NFL has seen games moved throughout the season. COVID is completely and totally out of control and there are too many people that aren’t following protocols, so nobody can predict when it starts getting better.

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