WWE Dream Match Team Canada vs. Team USA?

It's all about economics (and Bettman is the only NHL President/Commissioner who has actually tried to fix the problems). Two things are required to make a team successful. A fan base that can afford to go to games, and a corporate economic base that can offset costs.

In both of these, Canada is lacking. The problems began with the 1967 expansion because the move to 6 new American markets forced the NHL to move their head office to New York City permanently in 1965...although Clarence Campbell chose to stay in Montreal. The 10 US/2 CDN teams created a rise in salaries that has yet to subside.

There is a tax situation. Personal Income Taxes in Canada are huge compared to the states, and until my father died in 2008, I was living in Chicago for 6 months +1 day so that I was domiciled in the US rather than Canada for tax purposes, the difference ise several thousand dollars a year. There is the TV situations.

Teams use Radio/TV deals to survive and Canada just doesn't have enough stations who make oodles of money. There are US based teams that radio deals that are larger than the combined radio/TV deals of Calgary/Edmonton/Ottawa. We will take Winnipeg as an example.

The average revenue needed for an NHL team for the 2009/10 season is $73MM dollars ($56MM in salaries + other expenses like management, facilities, other staff, marketing, etc). So, somehow a team needs to make that money through the various streams like gate receipts, TV revenue, radio revenue, and corporate sponsorship, plus the teams share of merchandising revenue after it's shared with the players. Winnipeg has a large population base by Canadian standards, but small by North American standards, and it's radio and television market share is 78th in North America. Here are Winnipeg's estimated expenses using the maximum of the current salary cap Players $56,700,000.00 USD Staff $5,000,000.00 USD Manitoba Taxes $1,000,000.00 USD Winnipeg Taxes $ 300,000.00 USD Winnipeg Arena Lease $ 2,000,000.00 USD (the city is willing to waive this but there are lobbyist groups in Winnipeg that are strongly against any decrease in city revenue) Travel Costs $ 3,000,000.00 USD.

You've pretty much gotten the answer at this point. I'll just add one more thing that might help drive it home for U.S. fans: Assuming the NHL won't return to the Canadian markets where hockey failed, further NHL expansion in Canada would mean focusing on second-tier cities like Regina, Saskatoon, Halifax, and so on. That would be the equivalent of putting a bunch of Green Bay Packers in the NHL.

That works in the NFL because of the TV contract and the revenue-sharing agreement. But it would be financial disaster for the NHL. Such small markets simply couldn't support pro hockey teams.

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