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An Advisers Life – How Free Is Free? Lets Do The Math

As an Adviser its my job to put my clients in a position for them to be successful.  Its also my fiduciary responsibility to put them in that successful position for as little cost to them as possible.  This is why our companies support all free to play hockey.

So as someone posed the question, “how free is free”?  Lets do the math.  The real math.

The USHL;  Free to play.  You pay for nothing as a player.  As a parent you pay your own expenses to watch your son play on line or when you travel to watch him.

The NTDP;  The National Team Development Program is also participating in the USHL.  The NTDP too is free to play.  That is, unless you leave the program before your commitment to the NTDP has ended.  There is a $50,000 early exit fee from the NTDP.  Many people are not aware of that exit fee.  It protects USA Hockey from people leaving after receiving benefits that could be taken to another team.

That exit fee is waived if you are released by the NTDP.  The fee is intended to recoup development costs incurred on behalf of the player.  This is probably the smartest piece of business done by USA Hockey.

The NAHL;  Free to play but families pay for billeting.  Parents must also cover their own costs to watch their child play.  Contrary to what some may say, the NAHL freely admits that “tryout camps” and “pre draft camps” play a large part in funding the NAHL team operations.

Do the math.  150 players at a camp costing $300 is $45,000.  After expenses they will net roughly $30,000 on a camp.  If the team runs three or more camps, that money adds up quickly.  If you operate on a $400,000 a year budget with close to $100,000 coming in from camps, that’s 25% of your budget.  Saying that camps aren’t a significant part of the NAHL’s budget is disingenuous at best.

The NCDC;  Free to play but families pay for billeting.  Parents must also cover their costs of watching their child play.

The NCDC adopted a similar penalty plan as the NTDP for players who leave teams early without fulfilling their obligations.  The early exit fee is $10,000 for a player who leaves the team after committing to the team.  That fee only applies to players making the NCDC team.  No different basis than the NTDP early exit penalty.

“Tendered” or “drafted” players can leave at any time before making the team without paying anything.  That’s just smart business.

In case you didn’t know, you can not leave any USA Hockey team and go play for anyone else in USA Hockey or Hockey Canada unless you get a release from your team, and that usually costs money.  Costs usually are in the $1000 to $5000 range.

Yes, there is a league administration and insurance fee for each player of $400.00.

Billet fee’s are varied from team to team, just like every other league.  All are in normal and acceptable ranges.

All equipment, other than skates and traditional “under” equipment like shoulder pads is provided.

All road expenses including meals are also provided.

There are no other costs.

Canada;

Some leagues in Canada charge fee’s to play.  Some charge nothing.  Some say everything is free, and it is not.

Going to Canada costs money too.  There is an IIHF transfer fee that has to be paid.  Sometimes the team pays it, sometimes the player pays it.  That money goes to the team that the player is leaving.

Hockey costs money.  I know you parents who have been around the block know this.  There is always a cost associated with hockey somewhere.  The USHL and Major Junior are the only leagues where it costs the players nothing for everything.

So, looking at the real discussion between the NCDC and NAHL there are only a few differences.  Lets examine them directly;

The NCDC administration and insurance costs $400.  The NAHL insurance is through USA Hockey and runs roughly $50.

The NCDC puts the early exit penalty fee in writing.  The NAHL does not, as there is no contract to sign. So when you get to a new team after leaving the NAHL the new team pays the old team, and you may end up getting the bill from the new team.

These are the two real differences between the NCDC and NAHL.  Outside of how each team actually pays its operating expenses that is.

Again, we support all free to play hockey and we want to see more of it.  Personally, I don’t care what set of initials any league carries.  Leagues and teams come and go all the time at every level.

What I care about is opportunity.  Opportunity for players and parents to get a great value whether they pay for nothing, or they pay $10,000 a year for Tier III.

There is clearly a battle going on between the NAHL and NCDC.  Its never going to take place on the ice unfortunately.  So, the battle will continue to be for the top Tier II talent in the United States.  The battle is also for “real estate”.  The “real estate” in who gets what territories and who controls which markets.

The real difference on paper is $350 or so.  If that is a big issue for anyone, then you haven’t purchased a new stick or pair of skates lately.

The real difference in actual out of pocket in season costs depends on where you call home and where you end up playing.  Those travel and billet costs are the real costs.  Play close to home and you pay next to nothing.  Play across the country or in a different country, and calculate your airfare, hotels and meals for mom and dad to watch you play.

The bottom line for you parents and players is simple;

Competition is good for business.  Choice is a good thing to have.  Make the right choice for you.  Don’t get caught up in propaganda.

Joseph Kolodziej – Adviser

[email protected]

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