Every day we hear about athletes earning, or about to earn, mega millions for service rendered. It’s so common today that most sports fans speak of contract values or the terms of a player contract long before individual performance. There was a time when the only discussion would be about goals, assists and team standings.  Today that’s secondary to the economics of sports. Sports have changed dramatically over the last 20 years.

From my perspective I can’t think of anything more contemptuous of fan base than a league which has a salary cap. The unintended consequences of a salary cap are being felt by many professionals sport leagues, of which the NHL (National Hockey League) is one. The NHL just finished its regular season, and not one team in Canada will compete for hockey’s Holy Grail, the Stanley Cup. However, at least three of the seven Canadian teams probably could have qualified if they were free to spend at will. Based on published reports I have come across, Vancouver, Montreal, and Toronto have the financial wherewithal to buy talent. Yet the current NHL collective barging agreement precludes them for doing so. In essence the CBA was negotiated to ensure parity amongst all the teams, and to ensure that all franchises would be profitable. So if you’re a fan of the Canucks, Canadians, or Maple Leafs you should be willing set aside your passion and allegiance to your team for a higher and nobler aspiration. Like the profitability of team playing hockey in the Arizona desert or the Lone Star State. How sporting is it that for your team to get better, and maybe one day challenge for the Stanley Cup, you first have to gut your team, and try to lose. Today it’s about shedding player contracts and drafting kids, that’s code for cheap labour. Today teams are built to lose, and then wish upon a star that one day they will come out stronger on the other side. Of course there’s no guarantee that “tanking” works. Just ask the poor fans of the Edmonton Oilers. The NHL is not alone in this. Have a look at the Philadelphia 76′s of the NBA, (National Basketball Association). Their record this year is 10 wins, against 70 loses, as of writing this post. Last year their record was 18 wins versus 64 loses. A record this poor has to be intentional, because there’s no other explanation for this level of ineptitude. Frankly, the WWE (World Wrestling Entertainment) has more integrity than many of the Main Street sports leagues. The WWE at least is open and admits that the results are predetermined. 

My passion for hockey has waned over the years. That has a lot do with the fact that my childhood idols, the Toronto Maple Leafs, have been abysmal for decades. When I do pay attention I’m floored by (more…)

Uber Technologies (funny how they don’t refer to themselves as having anything to do with the taxi industry) is reported to be worth an estimated $51 billion. It took them a whooping 5 years to reach this mind boggling value. This is the reality in the new digital economy.  Massive evaluation seems to happen today in what feels like a blink of an eye. Companies like Uber are the new frontier. They innovate, challenge conventional practices, defy you to stand in their way, and if need be they have no qualms about poking the bear in the eye. Über is the poster child of an industry provocateur and disturber.

For those who have not heard of Uber, they’re a technology company that connects people who have cars, with people who need a ride; sounds a lot like the taxi industry – but not in Uber’s eyes. That’s the essence of what makes Uber a disturber. You look like a duck, you walk like a duck, and you quack like a duck, so you must be, well, not a duck according to Uber; just a technology company. Many jurisdictions have tried to regulate Uber out of their markets, and in some cases Uber has been told to cease and desist, but Uber has demonstrated that they will scratch and claw to protect their turf. A lost battle for Uber in the courtroom is a setback, not a final resolution. You know what it means to have a company worth $51billion? It means you can employ a lot of lawyers.

Full disclosure, I’ve been using Uber for about a year. I love the service, and I’ve never had any issues. I have no dog in this fight, meaning I have no financial interest in Uber’s success. Maybe I should.  The reason I continued using Uber was that I enjoyed being driven in a clean car. I like the fact that the driver is not on the phone while driving. I like the fact that the sounds of screeching brakes don’t puncture my ear drums. (more…)