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Sports Column: Can minimum wage work in the OHL?

Minimum wage could be a major issue for the Canadian Hockey League
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It’s been said that Ontario Hockey League players should be paid.

The matter has gotten to the point that it’s before the courts after a lawsuit brought against the Canadian Hockey League by former players who say the league is breaching Canada’s minimum wage laws.

The suit has been in the court for nearly two years.

The players are the reason the leagues that make up the Canadian Hockey League run, there’s no denying that.

The issue at hand is that many teams may not be able to afford the cost of wages on top of what players already receive.

Consider that the average OHL team has anywhere between 20 and 25 players and the minimum wage in Ontario is $11.25 and schedule to increase to $11.40 on Oct. 1, 2016.

If a team carries 23 players throughout the balance of the season from training camp at the end of August to the end of the regular season on Mar. 19, a team would be looking at an additional $300,000 in expenses to pay out the salaries, and that’s if a team doesn’t make the playoffs and players are only paid for 40 hours per week.

Sure that doesn’t seem like a lot of money when you consider that some of the bigger market teams bring in millions of dollars in revenue every year.

But consider this: the OHL’s Kitchener Rangers financial statements are audited and presented to its season ticket holders annually.

In a July 2014 letter, Rangers COO Steve Bienkowski outlined the organizations operating costs for the 2013-14 OHL season.

Bienkowski confirmed a media report that had the Rangers gross revenues listed at $6.2 million. The money included revenue from ticket sales ($3.6 million), sponsorship/advertising/other income ($2.1 million) and licensed merchandise ($470K).

The letter also outlined the Rangers operating costs, which included player programs such as schooling, equipment, billeting, travel and player expense reimbursements, facility rentals and staffing among other expenses.

The operating costs for that season were $6.1 million. That left the team with a surplus of just over $100,000.

To show the numbers aren’t that far off from season to season, according to the Waterloo Region Record, the team made just over $96,000 during the 2014-15 season.

So in two seasons, the Rangers made a shade under $200,000. Add on another $300,000 per season for player wages and all of a sudden the Rangers have lost in the neighbourhood of $200,000 in both seasons instead of a small profit.

Some may say big deal. That’s a team that’s well off losing a little bit of money season-to-season.

Remember that not every team is as well off as the Kitchener Rangers. Bienkowski has also gone on the record saying the team has little by way of increasing revenue from here on. So if all things stay the same, the profit numbers aren’t going to go up any time soon.

For teams to make wages work that this level, it may come down to some of the perks already in place being pulled back.

Don’t forget that many of the costs associated with being on a high-level team are covered when you play in the OHL.

Need a new pair of gloves? That’s covered.

Playing in Sault Ste. Marie and you’re getting ready to head out on a five-day road trip? No need to worry about travelling, it’s all covered too.

This isn’t to say that the players don’t deserve some perks during their time in major junior hockey. The issue in the long run will be the fact that you’ve got to give a little to get a little.


Brad Coccimiglio

About the Author: Brad Coccimiglio

A graduate of Loyalist College’s Sports Journalism program, Brad Coccimiglio’s work has appeared in The Hockey News as well as online at FoxSports.com in addition to regular freelance work with SooToday before joining the team full time.
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