PINDER: Humility and the great success of the Bettman NHL

What a difference winning makes. With the Edmonton Oilers getting ready to contend with the Florida Panthers for the Stanley Cup on June 8, Canadians have a heightened passion for hockey today. Even people who aren't Edmonton fans are Canada fans, after all. Go Oilers, go!It makes it easier to forget that three or four decades ago, many of us questioned whether the National Hockey League was even a major league sport. Weak leadership, many owners with legal — even criminal — problems... an aggressive Players Association strike after a near-unanimous vote, a dearth of television income and the spectacle on the ice less enjoyable for fans than international games.The NHL had still not fully adjusted to the shock of the 1972 Summit Series and the skill of Soviet players (notwithstanding a spectacular Canadian win in the eight-game series.)An overdue but poorly conceived expansion, doubled the number of teams but increased the disparity among them.What has changed?Well, Gary Bettman. Almost 32 years ago, he was appointed Commissioner of the NHL. A graduate of Cornell University and law school at New York University, he was previously Senior Vice President and General Counsel for the NBA..My brush with him came a few years ago, when as chairman of the-then Business of Hockey online program at Athabasca University, it was my job to present the 'Hockey Executive of the Year Award' to Bettman, and to Senior Vice President Bill Daley.What had they done? That is the question I posed a few years ago, in a half-hour interview they granted me prior to the presentation. .One of Bettman’s first positive steps was to hire Bill Daley from a high-brow New York law firm. This informal partnership has together reconstructed the NHL such that it rivals and perhaps exceeds the other three major sports of baseball, football, and basketball. This executive duo has been deliberate in recommending ownership changes to the board of governors. New owners, including nine new franchises, now bring capital, business expertise, integrity and often prestige to the league.To exaggerate only a little, it was said that then-President John Ziegler would present problems to the governors at meetings, and by midnight owners were throwing empty pizza boxes at each other. Hyperbole or not, any issue is now brought to the table for a vote only after the requisite Committee and key Governors are supportive. Bettman manages the agenda and the meetings.The leadership has been patient in making franchises work, especially as hockey was introduced to the south. With the very notable exception of Phoenix, recently moved to Salt Lake City, hockey across the US south is flourishing. The final four teams this year included the Florida Panthers and Dallas Stars. (Although as of last night, Dallas has gone, thanks to the Oilers.)In other words, the product on the ice has never been more in demand, as evidenced by increasingly significant television contracts of local, regional, national, and international broadcasts. Total NHL revenues, including media, are at least four times the $2 billion at the turn of the century.Bettman also stared down Bob Goodenow and the players with a lengthy lockout. Just another issue for the commissioner but the dispute was highly personal for Bob, who eventually lost his job. Smart guy, but no match for Bettman.There are few complaints about player compensation under the current collective agreement, even with the imposition of the reviled salary cap system.Like the salary cap, the amateur draft featuring the suspense of a lottery, also brings parity to the league. This is evidenced by the difficulty in predicting which of the 16 playoff teams will emerge with the Stanley Cup this year. The games in this year’s playoffs have never been closer, goal-scoring lower, or featured as many overtimes. Coaching has become a profession rather than a sinecure for former players. Endless gatherings and seminars are enhancing the profession, many led over the years by Hockey Canada.Star players more challenged, solid defensive structures and short-handed strategies, blocked shots and more, reflect the impact of better coaching, parity and the discipline of players.Under the Bettman/Daley regime, the rules have been revised creating more open ice, speed, and skill. Great athletes allowed to perform, enabled by rule changes and more competent refereeing (including the two referee systems,) are a big part of the mostly sold-out buildings throughout the NHL.The same growth theme includes the globalization of hockey. League games are being played in different countries, the schedule usually accommodates NHL player participation in the Winter Olympics and ever more non-North American players compete in the league, many at high levels.The league leadership has been strategic in presiding over expansion. The first major sport to discover Las Vegas, its expansion draft in 2017, was the first to expose quality players. This enabled early Golden Knight competitiveness towards an improbable Stanley Cup only five years later. The early success of the Las Vegas team helped raise the NHL franchise fee from $500 million to $650 million for the next expansion team in Seattle. Franchise fees are distributed among owners; players do not participate. More smart business by Bettman.There is however, one important long-term decision that the NHL may in due course regret.Other than Calgary, all teams have state-of-the-art facilities that will likely be in place for decades. But no provision for ice surface expansion has been made to accommodate ever larger and faster players. It can be frustrating looking at the backsides of players fighting for the puck along the wall for extended periods. International-size ice surfaces are often longer and almost always wider with results you would expect. Preferences go back and forth as to the ideal size. Only time will tell, but it could be an unfortunate strategic oversight not to have built-in optionality. To prepare remarks for the presentation, I interviewed both Bettman and Daley for about half an hour. Both expressed gratitude for the other and the opportunity for this unusually successful partnership to lead a major sport. The Commissioner — "please call me Gary" — was not as I expected. On television, he often appears uncomfortable. But what impressed most is his genuine humility. At the end of the interview, to the final question about any other issues he wanted to talk about, or the contrary, his response was “Just keep it brief”.At the ceremony, I reviewed the incredible performance of these leaders, by then over three decades. In coming forward to receive the recognition, Gary's only comment was “not brief enough.”Remaining humble enables this executive team to work together and continue to deliver outstanding management key to their success and long tenure. Important for Canadians is a record seven franchises featuring strong ownership and modern buildings (Calgary in process.)Without a Stanley Cup since the Canadiens in 1993, it is only ownership, management, and players who can remedy that. Commissioners do have their limitations, even Gary Bettman.

PINDER: Humility and the great success of the Bettman NHL

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