When Sports Take the Back Seat

It is now getting rather tiresome this talk of internationalisation of the Swedish ice hockey. The human incarnation of the Devil, Håkan Loob, has now come out to say he will step down from the Medvedev/Gazprom/KHL sponsored committee that is looking into the different options for 'The Future of Swedish Ice Hockey'.

Nice looking chap that Loob

Apparently, they are no longer looking into expatriating the 'top' (read 'economically most successful' or 'potentially economically most successful') Swedish teams into KHL. There has been a change of heart. Why one could ask, but the answer is so blatantly clear it would be a waste of energy to do so; People would not be interested to watch this. In itself, that would not be a problem for Loob and his cronies, but apparently the sponsors and the TV channels would not be as interested to splash the cash if that would be the case.

The latest configuration being looked at is branded EHL. Now, according to Loob, it would be based in Sweden. This would of course make Swedish fans happy; We want international hockey, but fuck having to travel to watch the games. The league would like the NHL be a closed one - entry through application only! Now this is more like it. Loob has always been an advocate for a closed system. Apparently it is too big a risk for a club (or 'profit making limited company' as he most likely would call it) to be relegated. This is of course true (I know, I'm a Leksand fan) - but much more so since he and his cohorts have made the distribution of money in the existing Swedish league so massively scewed that it is near enough impossible for the to HockayAllsvenska teams to compete even with the bottom ones in Elitserien. And this economic apartheid is allowed to grow even more year on year. The difference in TV money alone is next year going to be in the region of SEK 28-29 million - approximately the cost of two average HA squads. On top of that you can add the difference in sponsorship, gate income etc etc. Having said this, promotion and relegation is a cornerstone of any European sport. They did close the Finnish league a few years back, this was quickly revoked as it proved unpopular with the crowds. But the effect of the closed system was interesting, some teams actually took 'sabbaticals' with playing the youth team one season in order to amass enough money to buy all the best players and win the league following. Well, why not? Surely better than mid-table mediocrity year after year

Back to the EHL... Any applicants approved to join have to show a sound organisation and economical environment Again, the sporting aspect is of no or very little relevance. Its is all about the money, and they don't even try to pretend otherwise anymore. Those who are under the impression it's not really have to go and check that their cognitive functions are still intact.

 The Future of Hockey - I'll give you £50 if you can spot the puck.

Teams are then supposed to play 60% of the games against domestic opposition, 20% against Nordic opposition and 20% against European opposition. I don't think it's too jumping to conclusions too much if I assume it will, like the NHL, be different conferences with KHL being one of those. Let's assume KHL, (mainly consisting of teams from the old Soviet states, just as now), a Nordic one (Sweden and Finland + potential teams from Norway and Denmark - not that they'd be good enough, but did I by chance mention it is not from the sporting aspect these teams are chosen? Copenhagen and Oslo are however good potential 'markets') and finally one Central European (Czech, Slovakia, Germany, Austria and Switzerland). This, I guess, makes sense. But to get a 60-20-20 configuration in this system, the conferences will have to have smaller conferences within them and the system will at the best become near enough impossible to grasp. But then again - it is about the dosh, not the sport!

What saddens me is that there seem to be very little critique of this in Swedish media and the arm-chair fans seem exited about the developments. The proper hockey fans (I mean the ones who actually care and pay the money to watch the games), seem to be more split with some, like me, being very sceptical about what is going on. I don't make any secrets about my feelings regarding Loob and his plans, but I can understand the frustration of the current system. Sadly they forget that him and his mates in Frölunda and Linköping to a great extent were the architects for the developments in this area over the last ten years. Not only did they fuck up the Swedish league, but now they've got the stomach to complain about it and create another league. Am I exited about this prospect? Sure, in the same way as I am exited to find how it feel to masturbate with a cheese grater!

Hmmm...

I am not saying it is wrong to look at a system like this, but unless there are some major adjustments I will not see the latest suggestion as a viable option. First of all, it must be an open league with relegation/promotion from the domestic ones. This is essential and I will not approve of any other system in sport. Secondly, money comes into the sport when you have a well functioning product - you can't create traditions, rivalries and culture. The step looking at being taken opens the path for Franchises and a level of commercialism not seen in European hockey before.  Call me an old stooge or a fuddy-duddy if you wish - I'd be proud to be one!

Well, I'll try and contain myself until the 2012/13 season, when it is supposed to get off the ground, but until the I've got important things such as HockeyAllsvenskan and Kavalserien to keep me on my toes. God forbid that something interesting actually happens on the ice.

AIK Denied Move

The Swedish Hockey Association has finally had their meeting to discuss AIK's motion for a move to KHL. As predicted, the Asssociation denied AIK this with the motivation that 'A united domestic ice hockey movement is in the best interest of Swedish hockey and its development'. They also point to the benefits of international collaborations and competitions but state that international cups would be the best way to achieve this.

The Trans-Siberian railway track will not be extended to Stockholm.

Would AIK make the move [they have stated they will not go against the decision of the Association, and IIHF would most likely not allow the Russians to take in a Swedish team without SHF approving it - so in effect this will not be happening], SHF states that the club would have to start from the bottom tier should they want to rejoin the Swedish league. This in combination that there was no proviso that this decision would possibly change would other teams come up with a similar plan, is a right kick in the nuts for Loob and the Nordic Trophy teams, who are looking into joining KHL/starting a 'Nordic' conference of the Russian league. Basically, the Swedish Association will not allow them. At long last, someone is standing up to the 'big five'.

KHL Chaos - TBC

AIK has had a members meeting to decide if KHL is the way to go or if the club should stay in the Swedish system and fight a losing battle to survive.

The meeting, attended by 200 odd supporters, voted in favour of KHL, but with the proviso that the board should investigate the actualities in more detail before another meeting will take place where the final decision will be made. This meeting will only be scheduled once the Swedish Ice Hockey Association has had a meeting to decide if AIK will be allowed to enter a foreign league.None of these meetings have been officially scheduled yet.

There are some major complications occurring due to this non-decision. KHL wants a final answer be April 1 for entry to the 20010/11 season. Qualification to the Swedish Elite League, through Kvalserien, starts in the later half of March. AIK has already budgeted for participation in this and look like they will qualify for the competition. A representative of the national association has however made a statement saying AIK will have to play in Sweden next year if entering Kvalserien.

So, what did we decide again?

I find it strange that the AIK members have given these I-will-but-I-won't messages to the world. It would have made much more sense to say nothing and await the more detailed study to be made by the board, or a clear Yes or No. This leaves the Swedish Association unable to make a decision in the question as they do not know what AIK's application to KHL would entail, KHL has been clear from the beginning in stating the deadline for an application (oh yes, AIK would have to apply to see if they actually fulfil the criteria set out by KHL, so an application is no guarantee), but are now facing requests from AIK to push back this deadline so the club can try to qualify for the Elite League. Talk about aksing to marry your girlfriend, on the proviso that you can hook up with you ex for a week long shag-fest. If she gets preganant you might go with her instead. Fair enough!

AIK has put themselves in a very precarious position and I am unsure who will make the first move. Something will have to happen before March 21, so story to be continued.

Da? Niet? Whatever...

KHL AIKSupporerts of AIK are heading to the ballots tonight, voting for a possible future in the KHL or if the club should remain in the confines of the Swedish hockey league. It's a hot topic within the Swedish hockey community and has divided the fans opinions, transcending club allegiances. The only main issue is that members seem to be a bit confused as to what they are actually voting for. There are no economical forcasts made public, nor details of how this is supposed to work practically. It seems the AIK board has already adapted to the Russian ways...

It is no secret the KHL wants to expand - it was written in a document as the league was formed - but they have been rejected German and Austrian teams. The only other letter of intent that has ever been signed is by Czech team HC Energie Karlovy Vary. This has however failed to materialise due to the economic downturn. Negotiations are also underway with another Czech team, Hradec Karlove HC.

I'll go with laughing-boy!

But even if AIK's members would vote in favour of joining the Russian league there are several objects in the way to doing so. A big one is that the likelihood of the Swedish Hockey Association allowing them to do so is minimal. To leave the association is unprecedented and possibly impossible as the KHL are affiliated under IIHF and IIHF would most certainly back the national association in this case, leaving KHL forced to refuse AIK entry and abilty to participate in any competition.

Also, KHL have in their statement regarding AIK signing the letter of intent, stated that AIK would be welcome to participate from 2010-2011, provided AIK observes all the terms and conditions, and meets all KHL admission criteria. I have yet to find any information as to what the admission criteria is.

Personally I think this is a bit of a non-event as I can't see how AIK would be allowed to join in the ranks of  KHL teams. I would hope it acts as a wake up call for the Swedish league to sort out its problems and restructure the current system to become more competitive. As for AIK, I can see them wanting to do this to cover their bases in case they fail to advance to Elitserien. The last few seasons has shown the club will face a long, slow death unless they get promoted. However, I don't think they'd fare that much better in a Russian league.

AIK Ltd while waiting for the rubels

The saga of AIK goes on. The team yesterday lost at home against promotion hopefuls Malmö at home. Not too surprising, but AIK fans are really letting the team down. Just over 2.500 spectators came to this important game between two of the top teams in the division. AIK has budgeted for 4.000 attending per game, and at the moment the average is a paltry 2.077. For a team with economical problems this is obviously disastrous. Some could even say it's slightly ironic for a team who claims to be the most supported team in Sweden under the slogan 'We're Everywhere'. Everywhere apart from in Johanneshov that is. The club lost SEK 8.000.000 last season and had hoped to break even this season - with falling attendances and a tough sponsoring market, this has now been adjusted to a prediction of of about SEK -8.000.000 again.

The Weekly Echo

Before the game, an announcement was made regarding the future of the club: The hockey section is going public in order to get the funds to meet the rules of not being in debt for two years running. The club is aiming to raise SEK 9.350.000 through issuing and selling shares. The offer is for SEK 12.50 per share for a minimum of 200 shares. This is a  cost of SEK 2.500 per post. Even though this is a substantial sum for most people, it should usually be manageable if you are a big fan. However, people only have 10 days to sign up, and adding to that, the deadline is just before Christmas. If money ever is tight, it is during the jolly season. Or are they hoping for this to be a stocking filler??? The timing could obviously have been better, and the notice period could also have been made a little bit longer. It seems as if they are trying to make things difficult for themselves...

'Are you selling those pesky shares?'

The club, in its statement, reiterates its ambition to join the KHL and somewhat strangely adds that the efforts to join the Swedish top league is not conflicting with their ambition to join the KHL. Ehhh...??? At the same time, Viacheslav Fetisov has been is Stockholm on a crash visit to check out the credentials of AIK. He says KHL would be proud to be welcoming AIK with its long tradition and many (sic!) fans. He also indicates KHL would help AIK sort out its economic issues if needed. That'd be a nice russian bear-hug if anything.

Its obvious AIK is stuck in between the proverbial rock and hard place. There really seem to be only three options for the club:

• Advance to the Swedish top league at the end of this season. Not looking likely the way things are looking on the ice, but not impossible. The extra SEK 28.000.000 in TV money would certainly not hurt.
• Join the KHL. I don't think that is the future, but it certainly beats folding. It is a lifeline, and KHL seem just as desperate as AIK to make this work. I do however think this is likely to be stopped by the Swedish Hockey Association.
  
• Fold and start again from the bottom under a new name. Not an ideal situation, but the club can not keep going as is at the moment.
  

Nordic Trophy, or how to do sports the Loob way

The little fat guy is at it again. Sticking his dirty little fingers where they don't belong. Now, Håkan Loob has appeared in Umeå, the home of Björklöven, to investigate the possibility of them joining him and his clan of retards in the 'Nordic Trophy' investigation. This is supposedly a future league with teams from Sweden and Finland, a kind of permanent extension of the current Nordic Trophy, possibly [read 'most likely'] as a nordic conference of KHL - oh yes, we must not forget the token teams from Norway and Denmark.

So what has this got to do with the struggling Swedish second tier outfit from Umeå?

Well, apparently they might be thinking about building a new stadium - or 'events facility' as the man from the council proudly said. 

Ok, but surely a new arena does not mean you qualify for this league. There are more than 20 teams in Sweden who are better at the moment.

Ok, here's where the Loob-logic comes in; they want a team from northern Sweden in this league.  

Fine, but surely Skellefteå, MoDo, Timrå or Luleå would be the more obvious contenders - they are at least in the top league in Sweden.  

Yeah, you would think so, but according to the Loob-logic, this is irrelevant. It's all depending on the size of the town, its infrastructure and the fact that Umeå has a 'different economic climate' than the rest of the region.  

Aha...

That's hockey the Loob way; it doesn't fucking matter what goes on on the ice, all that matters is that they can have fat prawn sandwiches with beluga caviare and a 1972 Chateau Lafite Rothschild to swallow it all down with in the board room. And, of course, an infrastructured heli-pad so they can get home in time for CSI.

Good game!

Are people really so blind that can't see what this man and his cronies are up to? Personally, I am shitting myself.

Don't take me wrong, I am not against some kind of Nordic Trophy. Sweden and Finland has a long standing rivalry in sports and this could be an idea. However, when Loob claims the TV money will be around SEK 60.000.000 (compared to 29.000.000 currently in Elitserien and a meagre 1.500.000 in Allsvenskan), he has clearly not understood the market. Sweden is by far the biggest market for hockey out of the four nations considered. In Norway and Denmark, hockey is a marginal sport at the best. Finland has a market, but economically it is much smaller than it's western neighbour. To double the money I think is a very optimistic calculation - at least if he gets his wish through for a closed league without relegation etc.

But that won't matter for most of us. We either won't have the 'economic climate' or 'infrastructure' to be part of the chosen ones. No one has informed us that putting the puck in the back of the net no longer matters. Maybe I'm just a bit conservative, but I say we continue with this old way of doing sports for the time being.

In the case of my beloved Leksand, I don't think we have the 'economic climate' suitable for the new league. The infrastructure is most certainly below the worthiness of the big shots, not to mention the size of the town (has anyone told Loob size doesn't matter - it is what you do with it that counts...He, if anyone, should  know that...). And it seems we're not the only ones with these problems - apparently any team outside a big city is not qualified for having a decent ice hockey team. But in Europe we have this weird tradition, a team belongs where it is, not that franchise crap that NHL has established. Now, can't we all stand up and hold hands and sing... We Shall Not Be Moved.

But seriously, can someone please stop this man before he causes any permanent damage?

What the fuck is going on???

So the latest news regarding the Russian take-over of Swedish/European ice hockey has now broken: Malmö and Leksand has been approached by KHL as well - not a concrete offer to join as such, but looking into fan-base, arenas and other infrastructure. Bertil Daniels, chairman of Leksand, is leaving his options open. 'We'll follow what happens and take it from there'.

Don't let them cross the Dnepr!

This stinks of KHL's desperation to broaden it's catchment area. And it also shows that the Swedish hockey association has failed completely over the last few years. They have let themselves been controlled by the 'big' teams, led by Färjestad and Hakan Loob who has had no other interests at heart but their own. In essence the top league has all but been closed for promotion/relegation, money is not filtered down through the system and top clubs can freely 'steal' any promising youngsters from teams below without having to pay any/much compensation.

Had the system been working in Sweden, the KHL would not be an option (and should really still not be), but it seems frustration with the current set up is luring clubs to look elsewhere. Hopefully this can act as a wake-up call for the association to get their thumb out of their arse and do something about the situation.

AIK goes KHL?

The news has today revealed that AIK has been approached by KHL to join the league. AIK with a very precarious economic situation is of course interested. So what does KHL want with a team from the second Swedish division? Well the answer is very simple; KHL is desperate to expand its borders and AIK is a well supported team from the Swedish capital (even though they are supposed to be a Solna club, they are actually playing in Stockholm). Sporting-wise they should obviously look towards HV71 and Färjestad - even though I am not excluding these teams from potentially joining (I rather expect it following the faux invstigation currently spear-headed by Färjestad's Håkan Loob regarding the future of Swedish ice hockey - kindly sponsored by KHL), I imagine Medvedev is hoping for the big cities in order to up the profile of the league in the rest of Europe. I imagine Malmö has already been approached.

АИК?

What I do not understand is why people expect their teams to somehow gain both sporting and economical profits from this move. Let's start with the budgets. Before the 2008/09 season, Dinamo Riga published the budgets for the KHL teams on their website. These were the figures;

1. AK Bars Kazan - $55 mill.
2. Salvat Ulaev Ufa, SKA St. Petersburg, Avangard Omsk - $50 mill.
5. Metallurg Magnitogorsk - $45 mill.
6. Lokomotiv Yaroslavl - $40 mill.
7. Atlant Moscow - $35 mill.
8. Dinamo Maskava, Sibir Novosibirsk - $25 mill.
10. CSKA Moscow - $22 mill.
11. HK MVD Balashikha, Torpedo Nizhny Novgorod - $20 mill.
13. Spartak Moscow - $18 mill.
14. Amur Khabarovsk - $17 mill.
15. Dinamo Minsk - $16 mill.
16. Severstal Cherepovets, Neftekhimik Nizhnekamsk- $15 mill.
18. Metallurg Novokuznetsk, Vityaz Chekhov - $13 mill.
20. Lada Togliatti - $12 mill.
21. Dinamo Rīga, Traktor Chelyabinsk - $11 mill.
23. Barys Astana, Khimik Voskresensk - $10 mill.
source: http://www.dinamoriga.eu/en/news/view/season-budgets-of-khl-clubs-revealed

Looking at Swedish teams we have a slightly different situation. The top Swedish teams would be in the bottom half of this table.

So how are these figures supported by income. Again we'll look at some figures.

The average attendance in KHL and Sweden (as comparison) has over the last few years been as follows;

             KHL       Sweden (Elitserien)
2009     5.142         6.260
2008     5.325         6.288
2007     4.815         6.315
Source: http://www.hockeyarenas.net/

Of course there are major disparities between teams, but it still works well as an income indicator. In the NHL,  roughly half of the income is through ticket sales. This is obviously impossible in the case of KHL looking at the figures above. Or are we expected to pay more than our monthly wages to see AIK v Dinamo Riga? On top of this of course you have merchandising, TV money etc. I have not been able to find figures for any of this in regards to KHL, but suffice to say I very much doubt the income in any of the clubs even remotely equals the costs. I doubt it would even cover the players' salaries. Of course there is the Gazprom money. But to throw yourself into any venture that is unsustainable on its own feet is an obvious recipe for disaster. Something AIK is no stranger to. But in essence, KHL is not a viable business - with or without teams from Sweden. And what happens when the oligarchs get fed up with their expensive toy?

LOOBotomized?

Even if a Swedish team does decide to join in the Russian fun,  what can you expect? Well, for starters, income tax is 13% in Russia. That's right. In Sweden you'd really have to double the wages they pay in Russia to cover taxes, social fees etc. Sweating yet Loob? So this is the simplest reason we will not see Zetterberg returning home earning as much or more that he would in the NHL. I can't really see the teams being able to afford different players than they can today. KHL is not the gold-mine some people seem to imagine. There is talk of Gazprom injecting 5 million Euro into any Swedish team that joins. As if that will help. Actually, it would help AIK - they need to get their hands on 1.8 million Euro or they will hit the wall.

Then what?

It's not like they'd actually survive for long in the Russian winter anyway. Just ask the last guy from Stockholm who tried...

Yeah, they're still shitting on you!