Jyrki21
Rebel Sell + Moneyball = Life
Joined: 18 Oct 2007
Posts: 1393
Location: Ottawa, ON
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 Posted: Mon Mar 31, 2008 3:03 pm Post subject: Competition Bureau: NHL's relocation policies OK |
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My new employer says the NHL's OK when it comes to keeping teams away from the GTA and such:
http://www.competitionbureau.gc.ca/epic/site/cb-bc.nsf/en/02640e.html
| Competition Bureau wrote: |
In particular, the inquiry focused upon whether the NHL's policies as applied to the attempted acquisition of the Nashville Predators by Mr. James Balsillie constituted a practice of anti-competitive acts that lessened or prevented competition substantially in a relevant market, contrary to section 79 of the Act.
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In summary, the Bureau found that the NHL and its individual members did not engage in conduct that is reviewable under section 79 of the Act. As described in greater detail below, the Bureau recognizes that properly circumscribed restrictions on the relocation of sports franchises imposed by the NHL and other professional sports leagues serve legitimate interests, such as preserving rivalries between teams, attracting a broader audience, providing new franchises with an opportunity to succeed and encouraging investment in sports facilities and related infrastructure by local municipalities. The Bureau concluded that the policies implemented by the NHL were in furtherance of such legitimate objectives and did not constitute a practice of anticompetitive acts. Further, in respect of the proposed acquisition by Mr. Balsillie, the Bureau did not find evidence that the NHL's conduct was undertaken for the purpose of preventing competition or for any other anticompetitive purpose.
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The Bureau found no instance where a "veto" was exercised by an incumbent team to protect its local territory from entry by a competing franchise. Since at least 1993, no franchise has been permitted to exercise a veto to prevent a team from entering into its local territory. Further, under the NHL's rules and procedures, in respect of the proposed relocation of a franchise to Southern Ontario, the NHL would not permit any single team to exercise a veto, but would only require a majority vote. The Bureau may have concerns under the Act if a single team were entitled to exercise a veto to prevent a franchise from entering into its local region within Canada, but such concerns would have to be evaluated having regard to the facts and law applicable at the time such an event occurred.
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