The NHL (national hockey league) lockout was a result of a labor dispute between NHL and NHLPA. The dispute lasted for 5 months on January 6th, 2013 when a 16-hour negotiation finally put a stop to the lockout. The expiry of a collective bargaining agreement deal triggered the lockout after the two parties failed to come up with a deal before the earlier struck collective bargaining agreement expired.
This lockout affected many sectors, but, the impacts on the economy were worse. With the downtrodden millionaires pitted against their billionaire employers, the real victims were the countless people whose income depended on others playing the game on ice. This was the reason for canceling the match of the Maple Leafs vs Montreal Canadiens, and not only these teams.
At the time it was only natural to assume that the effects will become worse. The bank of Montreal’s deputy chief economist stated that a canceled hockey season would bring down the gross domestic product of Canada by 0.1% an estimate of $1.8 billion. South of the border the bureaucrats at St. Paul, Minns claimed that the city took a US$60 million blow during the lockout prior to the 2012-2013 NHL lockout.
Economists and experts were predicting a $60 million loss if the NHL season failed to start. The two franchises in the dispute had their losses, according to Gary Bettman, the business lost around $18 million to $20 million a day while the players lost $8 to $10 million a day.
Over the next season, the companies were likely to increase their sales tax intake to recover the loss during the previous. As a result, the income earners were likely to take a blow. The affected sectors The general assumption was that the two parties were a major influence in the host cities.
For instance, the out of towners would probably spend the night in nearby hotels have food and drinks in the nearby restaurants and fans would buy tickets which in the long run bolstered the host cities. Most lotteries were hurt economically.
The sales in some companies experienced a significant trim due to the lack of sales in the arenas. During the lockout, the NHL had to make financial changes. Among these changes were the pay cut-offs and some employees being laid off. The office workers pay was cut off by 20%.
The National Hockey League
The National Hockey League believed that the money that would be used for the upkeep of the NHL was sucked out of the economy. The connection between the arena and lockout was more significant that of the lockout and local businesses.
The verdict After the lockout as called off, the impacts were less adverse than earlier anticipated. The argument behind it was the revenue was redistributed from one business to another. Perhaps it was a matter of following the easy story rather than focusing on the economic reality.
Yes, there were businesses affected since a number of games were not played during the 5 months as Tyler Dellow tweeted, the evidence clearly reveals that the money will be spent elsewhere the other business will grow. The overall net result was not a loss to the city.