In September of 2004, the NHL closed its doors and locked out its players as a new collective bargaining agreement could not be struck with the NHL Players' Association. Ask a hockey fan about the season that wasn't, and you will still be met with anger. But eight years (and an additional lockout) later, the 2004-05 season appears to be a major critical juncture that launched the NHL into relevancy once more.
In the decade preceding the lockout, the NHL operated as a highly extractive league allowing richer teams to prey on smaller markets. The NHL was plagued by massive disparity between elite teams and chronic bottom feeders, and the on-ice product suffered considerably. Fans stopped coming and revenues stagnated and fell in many markets. The game was in despair as the league's unsustainable business model was being exposed.
The lockout presented an opportunity for the NHL and NHLPA to tackle its fundamental issues head on. The collective bargaining dispute was polarizing, highly divisive, and a major frustration for fans of the game, but it paved the way for the implementation of inclusive institutions, namely the salary cap, that allowed for upward mobility for teams that were previously trapped in the basement. As a result, the on ice product dramatically improved with higher parity, and record revenues were established in the NHL for each consecutive year following the lockout. Additionally, franchise values skyrocketed across the league, and the long-term health of small market teams was finally established.
While the lockout is a sore spot for many fans, it also serves as a critical juncture that fostered tremendous growth around the league as a result of the inclusive institutions that it implemented.
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