NAHL Changes Moving Forward

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NAHL changes moving forward

The North American Hockey League Board of Governors voted yesterday via conference call to allow the following teams to declare dormancy for the 2012-2013 season. The declarations of these teams does not mean the team is folding, and it does not prohibit any of the teams from selling to a new ownership group that will keep the franchise active. According to sources in the NAHL a few teams are working on sale agreements with new ownership.

Traverse City North Stars – Working on sale agreement – Deadline for sale agreement is the end of February a meeting for the 21st is rumored

Wenatchee Wild – Working on sale agreement and move under USA Hockey’s exigent circumstance provision – Johnstown PA has been mentioned

St Louis Bandits – Potential survival

Dawson Creek Rage – Not likely to return

Alaska Avalanche – Not likely to return

Fresno Monsters – Likely to be moved

Michigan Warriors – Not likely to return

The Springfield Jr. Blues have not committed for the 2012-2013 season, but are expected to do so.

Changes in hockey, at every level are not uncommon. Unfortunately for the NAHL its rapid expansion and failure to fill in gaps in their travel footprints are the main factors in the adjustment they now face.

The effects of these changes though will be felt by other teams staying in the league. These changes will also effect the NAHL’s ability to continue to expand in the future, as well as the value of franchises within the NAHL.

Currently an NAHL expansion franchise is valued at $300,000.00. That is due to the business plan and largely do to the leagues ability to obtain USA Hockey approval for expansion. However, if all of these franchises become available for purchase, there becomes an excess inventory in the marketplace.

Like every other product or commodity, when the market is flooded, values and consumer costs typically plummet. Increased inventories also cause values for continuing franchise owners to drop.

When you have the potential to loose roughly 25% of your business, and have that happen over night, which is what the NAHL is facing, it is no small loss to over come.

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