Capitals owner Ted Leonsis has been the target of criticism since he was named a “hardliner” during the NHL lockout. We’ve observed the decline in his prestige, documented some fan protests, and even proffered a scheme to repair relations with the fans. Addressing the media at Thursday’s Caps Fan Appreciation Night at Verizon Center, Leonsis finally had the chance to discuss his role in the lockout, and he amiably rejected the hardliner label ascribed to him.

Regarding the “hardliner” claim, Leonsis laughs it off. He cites an opposing negotiator who called him “Uncle Ted” and says Leonsis was “really nice” during the talks. To Leonsis, the league and the union were the main parties in the discussion, and his role was more as a proxy.

Leonsis states that his main interests in the negotiations were a 50/50 revenue split and a long-term deal. He got both of those things. So…  was it worth it?

Leonsis has every right to try to make his business profitable. He says he’s never made “a penny of profit” from owning the team, and that is certainly damn good motivation to make a change.

If this is truly the time for reconciliation, then I guess we have to root for Leonsis to make some money, considering that his business has already brought so much positive externality* to the community.

So I ask again: Bygones?

* And yes, I did just use positive externality in an article about hockey. If I can work in bespoke by the trade deadline, Ian has to buy me Qdoba.

I guess it’s appropriate to start by saying that we’re all unimaginably happy about the return of hockey. That said, we’ve learned a lot over the four-month lockout, and this seems like the appropriate time to take stock.

Lesson 1: Mario Lemieux was right

The NHL is a garage league. I’m not talking about riff-raff players spoiling up the staid finesse hockey of a bygone era; I’m talking about business competence. Since my adolescence, the NHL has lost part or all of three seasons. Fans who have been following hockey for a decade have seen 20% of that time obscured or obliterated by lockouts.

Imagine running a business where you do work 80% of the time. The rest of the time you’re struggling to master a skill most functionally social humans learn in kindergarten: sharing. Your business plan is flawed.

The last lockout saw the NHL exiled to cable wilderness, almost literally. In an effort to limit salary expenses, the NHL ended up limiting their TV exposure for years, which had to have an appreciable effect on revenue. Revenue-sharing was at the heart of this lockout, so in some ways this lockout was just an extension of that one.

Or perhaps it’s an extension of expansion. We know many teams– particularly expansion teams– are drowning in red ink. Columbus and Phoenix have solubility problems. Nashville would be in dire trouble too if they weren’t such a good hockey team with a surging fan base. These teams exist because the NHL saw fit to spread itself into non-traditional (read: not northeast US and Canada) markets, but those teams have always struggled. Phoenix for a time was underwritten by the league itself.

I propose that the friction between established teams and small-market teams had as much to do with this lockout as friction between owners and players. In fact, the PA’s negotiating strategy initially tried to wedge the two apart. It seems hard to defend expansion as a business strategy when you consider a) the league has had to bail these teams out, b) the gap between small teams and big teams underpinned many of the NHL’s concerns in the lockout, and c) it’s ice hockey in the freaking desert– how is that a good idea?

I guess what I’m trying to say is: Gary Bettman is not good at his job. Feel free to agree or disagree.

Lesson 2: DC is not a hockeytown

Or at least, it isn’t right now. Flashback to April 2012: the Caps had captured the city’s imagination with a gritty style of hockey. The city’s football team was atrocious and without a good draft position. The city’s baseball team was plagued by injury and youth. The city’s soccer team had missed the playoffs a few years in a row. The city’s basketball team was a disgrace.

Since then, Dan Snyder made some deals to draft Robert Griffin III second overall, and RG3 then vaulted the team to an NFC East Championship. The Nationals were fantastic and made the playoffs (so did Baltimore, nyah nyah). Under coach Ben Olsen, DC United had its best year since they won  the MLS Championship in 2007. The city’s basketball team is still a disgrace.

The stack ranking of DC sports has flipped. It seems for now that the Washington Capitals’ moment has passed. It can certainly be recaptured, but right now we’re taking stock and that stock has definitely dropped.

Part of that is Ted Leonsis’ fault. The Capitals owner was listed among the league’s so-called hardliners spurring the stubbornness that led to breakdowns during negotiations. Unfortunately, Ted probably can’t comment on the CBA or his characterization as a holdout. When he talked about the NBA salary cap in September of 2010, Leonsis was fined $100,000. He’s not really in a position to defend himself, which is fine, because we’re not really in a position to give him a hard time about it. After all, he did keep the Capitals staff on payroll for the duration of the lockout.

Leonsis has the benefit of the doubt. Up until now (and excluding the Jagr era), he’s been a good owner for the fans. This is now his opportunity to reconcile with a community that has cooled towards him.

Lesson 3: Evgeny Kuznetsov and Dale Hunter were right to leave

Throughout 2012, Evgeny Kuznetsov vacillated over playing in the NHL or staying in the KHL. His new marriage and the upcoming Sochi olympics probably factored in to his eventual decision to stay in Russia for two more years, but the loss of half this NHL season makes that choice even more prescient. We’re no longer inclined to criticize a player for making a business decision that has worked out great for him so far.

Same goes with Dale Hunter, a coach for whom I had no shortage of criticism last season. Hunter chose to leave the Caps after just one partial season as head coach. He’s back in Ontario, coaching a team he also owns, which plays in a league that doesn’t implode every 7-10 years. However we disagreed with his coaching tactics, Hunter’s choice was the smart one for him, his family, and his farm. Even Bourne agrees.

Lesson 4: There was a cost

As The Washington Post’s Katie Carrera wrote last month, the lockout has been devastating to businesses near Verizon Center. The end of the lockout will come as great news to the Penn Quarter/Chinatown neighborhood, who rely on the collective thirst and hunger of Caps fans to pay their bills. Here’s hoping all our favorite joints can staff up in the coming weeks.

Same for the workers at Verizon Center, who lost hours due to the lockout.

Then there’s the marginal players who couldn’t make a pro roster once the ranks got crowded with eligible NHL players.

And don’t forget the esteemed hockey writers who had to lower themselves to menial and demeaning tasks like writing about football just to fill up the hours.

There’s lots of people with jobs related directly or tangentially to the Caps, and most of them had a leaner Christmas than usual because of the lockout.

It’ll take time for the coffers to fill and the wounds to heal, but it will require a spirit of reconciliation for that to happen. That’s why I’m not supporting any kind of boycott. Just the opposite actually: I want to go to Iron Horse and Clyde’s and Rocket Bar and scarf down a ton of food and a few too many adult beverages. I want to tip the good workers at Verizon Center and tell them how glad I am to see them again.

And I harbor no hard feelings towards Evgeny Kuznetsov or Dale Hunter for making the right choices for their careers and their families.

And I hold no grudge against Ted Leonsis for whatever role he played in the lockout. He’s got a sterling record of fan outreach, and I bet that will continue.

Gary Bettman, on the other hand? Well, let’s just say that when the Stanley Cup Finals arrive, I’ll be joining in on this tradition:

Alright, that’s my piece. What did you learn from the lockout? What did I get wrong?

Reader Stephen C. forwarded us this email. On Monday, Ticketmaster sent him a campaign promoting the December 4th Capitals/Islanders at Nassau Coliseum. Except there’s this lockout thing going on, so that ain’t happening. We figured it was just a screw-up in the system, some email marketing intern noob flying off the handle. Stephen thinks it is a sign that “our long (inter)national nightmare is nearing an end.”

On Wednesday night, I got this apology in my inbox from Ticketmaster.

NHL Fan,

As you may have noticed from an email we sent Monday (where certain canceled NHL games were showcased) those of us at Ticketmaster really miss hockey!

Given the league’s recent announcement regarding canceled games through December 14th, tickets are not available to be purchased. Please disregard any indications that tickets for those games are currently on-sale. We apologize for this error, and we look forward to seeing you at future NHL events!

Ticketmaster

Bummer.

Photo credit: atlant-mo.ru

Let’s start with a disclosure: we aren’t actively covering the lockout. Financial negotiations (and their public face) are all about posturing, tedium, and equivocation, whereas our principal interest in hockey has always been scoar, moar, and goals. That said, our Alex Ovechkin has spoken out about the ongoing melee between NHL ownership and players, and it’s definitely newsworthy.

Talking with SovSport’s Dmitry Ponomarenko after Saturday’s game, Ovechkin gave his spin on the NHL’s offer to the players earlier this week, dismissing the proposal as “nothing new” and “good only after a quick look.” Ovechkin continued:

If we speak in Russian, the NHL provided a beautiful dream to the media and fans, but in reality it’s a lie. It’s showboating. The league is trying to show that they are kind of working, trying to save the season, but they offer nothing new. It’s all the same, just in different words.

In the interview, Ovechkin carries some water for the players’ association, but he ends with a bombshell: he is willing to walk away from the NHL if the new CBA is no good.

For starters, Ovechkin is not optimistic for a timely outcome to the lockout until the NHL changes:

If NHL bosses keep making us such “profitable” offers, [the lockout] will last for a long time. We’re far from a compromise.

Ovechkin echoes comments made by Ilya Kovalchuk, who had harsh words for Gary Bettman on Friday:

I don’t think lockout will end soon. Bettman decided to throw the dust in our eyes because media isn’t talking about him very well lately. But actually the offer they gave is the same one, just in other words. A great person [Donald Fehr] is the head of the union with great experience. He’ll break it down, explain to us, and we’ll make the decision.

Meaningful progress seems unlikely until both sides adopt a spirit of compromise. When asked about the players’ willingness to make concessions, Ovechkin made this point:

There are a lot of nuances, a lot of hidden rocks. And all of them are in the league’s favor. Why in the world should our salaries be cut down? They say: let’s shorten the contracts to five years, then take 24 percent back. And what will be left? You offered that salary and now you take it back? That’s why there’s a lockout.

Most of that is right on the money. The recently expired collective-bargaining agreement and all the contracts made during its term were the result of the 2004-05 lockout and the player-owner compromise that ended it. While without context it may seem fair to start negotiation with 50-50 revenue sharing, the league and players already stipulated that 57-43 was “fair.” This current lockout exists because the league shifted its definition of fair and now requires concessions from players to bridge the gap it created.

The economic realities of the NHL aside, it’s hard to characterize this negotiation as anything except the owners wanting to pay the players less than they said they would. It’s probably inevitable that will happen, but how much less could be a problem. A big problem if you take it from Ovi.

Should the new CBA be unfavorable to Ovechkin, Ponomarenko asked if he might stay in Russia:

If the negotiations between you and the league will not lead to compromise, can you see yourself continuing your career in Russia? Is it possible/doable in a legal perspective?

I think yes. If my contract will be cut down greatly, it would be possible to annul it through the court.

That is not a Donald Fehr talking point.

Is it an empty threat, or is Ovi the Keyser Söze of hockey? Is he willing to do what the other guys won’t? Is he willing to disappear from North American hockey forever? (And is that even legally possible?)

I doubt it. If playing pro hockey were just a financial calculation for Ovechkin, he’d be wearing Dynamo blue every year, collecting a massive tax-free* salary, and cavorting with the superior women of Russia. But it’s not just about cash money for him. The NHL, when it actually plays games, has the best talent in the world, and D.C. has been Alex’s home for nearly a decade.

So I recommend we mark this down as hollow brinksmanship, more of that posturing and equivocation we at RMNB have been so reticent to write about up until now.

Translation by Fedor Fedin and Igor Kleyner.

UPDATE: Fedor informs me that as of 2012, Russia has instituted a 13% income tax for residents.

Leonsis and Bettman attend a screening of ‘Nanking’ back in 2007. (Photo credit: Brad Barket)

On Wednesday, Gary Bettman and Donald Fehr exchanged new proposals to once again try and avoid a lockout. The NHL sweetened its offer to players, proposing a new six-year deal that would initially give the NHLPA 49% of all hockey revenue (down from 57%) and not force a rollback of salaries. The NHLPA countered with a deal that would start them off at 54.3%, and which over time would drop their slice of the pie to 52.7%. Bettman is also threatening to take the NHL’s current proposal completely off the table if it’s not signed by Saturday.

There have been no new developments since then, however, and the actual signing of a new CBA before midnight on Saturday still seems unlikely. So in that vein, Washington Capitals majority owner Ted Leonsis sent out an email to the Caps season ticket holder base early Thursday evening explaining protocol on what would happen if there is a work stoppage and declaring “that the NHL’s priority is to reach an agreement with the players.”

The full text of the email is below.

Dear [Season Ticket Holder],

As you know, the National Hockey League and the Players’ Association are in the process of negotiating a new collective bargaining agreement. The current CBA expires Sept. 15, and while we hope to successfully reach an agreement by that date, there remains the possibility that negotiations for a successor agreement will not be concluded and a work stoppage may ensue. If that happens, training camps may not open on time and games may be cancelled. If that occurs, we have adopted a set of policies and procedures regarding your season-ticket holder account.

Obviously we will not charge your account for any NHL game, preseason or regular season, that is not played. If an agreement is not reached by Sept. 15, we will suspend our monthly payment plan and your account will not be charged until further notice. In appreciation of your continued support and loyalty we would like to provide you with a 1% APR interest on the funds you have on account related to games that are not played. In the days ahead you will receive additional information that goes into greater detail regarding the interest and refund policy.

I want to assure you that the NHL’s priority is to reach an agreement with the players. We all want to talk about exciting games, upcoming opponents and great plays, not the nuances of labor negotiation. We get it – and I empathize with you.

All of us at the Capitals appreciate your support and the passion you bring to Verizon Center. In a few short years you have turned our arena into one of the best and loudest buildings in the NHL. We all appreciate your loyalty, and I hope to see you all very soon at Kettler Capitals Iceplex and Verizon Center.

With my appreciation and gratitude,
Ted Leonsis

With only two full days left in negotiations, it’s not looking too good.