Advertisement

Hockeyland Joins Disney’s World : Expansion: Franchises in Orange County and South Florida give league some needed capital.

Share
TIMES STAFF WRITER

Fifty million dollars can help put a club like the Tampa Bay Lightning on the ice in its first year of existence and make it an exciting, skilled team that even led the Norris Division for several days this season.

Or, $50 million can get you the hapless Ottawa Senators, winners of three games.

For the record:

12:00 a.m. Dec. 12, 1992 For the Record
Los Angeles Times Saturday December 12, 1992 Home Edition Sports Part C Page 4 Column 3 Sports Desk 2 inches; 57 words Type of Material: Correction
NHL expansion--A story in Friday’s editions incorrectly identified the Manufacturers Life Insurance Company as one of several organizations found in a Canadian court to have wrongly diverted $21 million (Canadian) in NHL pension funds. No allegations were made against the insurance company, which was a party to the court proceeding only because the annuity contract in question was bought from it.

More important, though, from the NHL owners’ standpoint, the money the league stands to realize from the two conditional franchises awarded Thursday to Orange County and South Florida couldn’t have come at a better time. Last month, Justice George Adams of the Ontario Court ruled that the NHL, the NHL Pension Society and Manufacturer’s Life Insurance Co. had wrongly diverted $21 million (Canadian) in pension funds.

Lawyer Mark Zigler represented seven retired players--Gordie Howe, Bobby Hull and Andy Bathgate, among them--and said that, with interest, the NHL could owe the former players as much as $41 million.

Advertisement

The decision is under appeal, but there is a similar lawsuit making its way through the federal court system in the United States that could hold the NHL responsible for treble damages.

With the NHL’s continued lack of success in court cases, the feeling among the Board of Governors was that the timing was excellent for a significant cash infusion.

The franchises were awarded by a unanimous vote at the Board of Governors’ meeting in Palm Beach, Fla. This is the third time the NHL has expanded in the last three years. San Jose joined the league last season, and Tampa Bay and Ottawa began play in October.

For King owner Bruce McNall, who is chairman of the Board of Governors, it had special significance.

“This probably is the most important thing I’ve ever done,” said McNall, the man who brought Wayne Gretzky to Los Angeles in 1988 from Edmonton.

“(It’s important) because we brought in two huge companies with these two franchises. This is the first venture for Disney in any sport. They’re not in baseball. They’re not in anything like this. To get people of this caliber is tremendous.”

Advertisement

Others around the NHL echoed McNall.

“You’ve got to look at the caliber of people involved,” said Toronto General Manager Cliff Fletcher, an alternate governor.

“It’s great ownership. It’s great for the game. These guys are major league.”

Those around the league are more impressed by the quality of this ownership than that of the two groups two years ago. Tampa Bay’s financing looked shaky, and its effort wasn’t solidified until a Japanese group came forward at the last minute. Ottawa’s new arena project has faced strong civic opposition and ground still has not been broken there.

No one is doubting the financial wherewithal of Disney--which got the Orange County franchise--and Blockbuster. The league has had its eye on the South Florida market, and several governors predicted that Miami would get a franchise if suitable owners came forward.

Wayne Huizenga, the chairman of Blockbuster Entertainment Corp., also owns the Florida Marlins, an expansion baseball team; is part owner of the Miami Dolphins and holds 50% interest in Joe Robbie Stadium, where the Dolphins play.

Initially, it appears that the South Florida entry will play at the Miami Arena, but there is speculation that Huizenga will build an arena near Joe Robbie, establishing a sports complex similar to the Meadowlands in New Jersey.

Orange County will have a ready-made facility when the Anaheim Arena opens in June. The proximity of the new franchise to the Kings, however, prompts concern as to whether Southern California can support two hockey teams.

Advertisement

McNall apparently is not concerned.

“It became an easy answer for me because it was Disney coming in,” he said. “It might have been different, a harder decision, if it was another team or another group. We spent too much time and energy building up hockey in L.A. It would have been different if it had been a franchise that was failing financially.

“Disney made it very simple. Maybe we can make hockey more of a Southern California sport. Of the 17% (season-ticket holders) from Orange County, I don’t think we’ll lose all of those. We might pick up some new fans. It was certainly a factor. We will have to work that much harder to sell hockey.”

McNall will benefit from a large cash infusion. He will get a $25-million territorial indemnity from the Walt Disney Co. Another $75 million in franchise fees from Disney and Blockbuster Entertainment will be split among the 23 other NHL teams.

While McNall’s hockey team has been profitable and playing to sellout crowds without the injured Gretzky, some of his other business ventures have not fared as well lately. The most prominent example is his football team, the Toronto Argonauts of the Canadian Football League, which he owns with Gretzky and John Candy. That franchise has lost about $7 million in the last two years.

In the long term, Disney ownership could prove to be a very competitive element for the Kings.

“Disney is such a first-rate operation, you know they’re going to run it well and there’s going to be competition in the L.A. market,” King President Roy Mlakar told reporters at the NHL meetings. “But Bruce, as chairman, had to do what was right for hockey. It means we’re going to have to work harder.

Advertisement

“That’s my job, as president. And that’s why I’m bald.”

During the news conference, NHL President Gil Stein and McNall frequently mentioned the quality of the Walt Disney Co., its reputation and commitment to “family values.”

Michael D. Eisner, chairman and chief executive officer of Disney, was asked about the league’s recent emphasis on the reduction of fighting in hockey.

Did it have anything to do with Disney’s pending involvement?

“I don’t think even before the new direction there’s been a problem with hockey as far as image,” he said. “It’s a great sport. I can show you a couple of Goofy cartoons where he’s playing hockey pretty aggressively. We’re pleased with the redirection to finesse and increase of skill in the game.”

So, who will put together Orange County’s hockey team?

Because several NHL sources have indicated that they think both teams will start play by next season, Eisner will have to act quickly to hire a general manager or director of hockey operations.

Among those possibly available immediately are Montreal scout Jack Ferreira, who was the Sharks’ general manager in their expansion season and former general manager in Minnesota. Ferreira was the victim of a power struggle in San Jose last summer.

Mike Keenan, former Chicago Blackhawk general manager and coach, is unemployed but probably won’t be much longer. Keenan was interviewed on radio last week in Calgary and said that he is “ready for any challenge,” including coaching an expansion team.

Advertisement

Other general manager candidates could include former Vancouver coach Bob McCammon, Edmonton assistant general manager Bruce MacGregor and director of player personnel Barry Fraser.

Hiring a coach right away wouldn’t be as pressing. Keenan could do both. So can McCammon. If the Orange County team only needed a coach, possible candidates would be Michel Bergeron, former Nordique and Ranger coach. Those not available immediately include people such as New Jersey’s Herb Brooks, Minnesota assistant Rick Wilson, Kings’ assistant Cap Raeder and Robbie Ftorek, formerly of the Kings, now coaching the Devils’ top farm team.

Brooks, it is believed, has a multiyear contract, as does Wilson.

NHL Expansion Chronology

* Original teams (pre-1967): Boston Bruins, Chicago Blackhawks, Detroit Red Wings, Montreal Canadiens, New York Rangers, Toronto Maple Leafs.

1967-68 season (six teams): California Seals (became Cleveland Barons, then merged with Minnesota North Stars), Los Angeles Kings, Minnesota North Stars, Philadelphia Flyers, *Pittsburgh Penguins, St. Louis Blues.

* 1970-71 (two teams): Buffalo Sabres, Vancouver Canucks.

* 1972-73 (two teams): Atlanta Flames (since moved to Calgary), New York Islanders.

* 1974-75 (two teams): Kansas City Scouts (became Colorado Rockies, then New Jersey Devils), Washington Capitals.

* 1979-80 (four teams from World Hockey Assn.): Edmonton Oilers, Hartford Whalers, Quebec Nordiques, Winnipeg Jets.

Advertisement

* 1991-92 (one team): San Jose Sharks.

* 1992-93 (two teams): Ottawa Senators, Tampa Bay Lightning.

* 1993-94 or 1994-95 (two teams projected): Anaheim, South Florida.

* RELATED STORY: A1

Advertisement