Hockey—In Canada and Abroad

Introduction:

Good afternoon ladies and gentlemen. My name is Tony van Straubenzee and, on behalf of all the Directors and past Presidents of the Empire Club, l want to welcome you back to the 1989 season of the Empire Club of Canada.

We want to wish you a very happy and prosperous New Year. There is one person I particularly want to wish a Happy New Year and a Happy Birthday. That is Robin Younger, one of the finest executives on Bay Street, who arranged a dinner for me to meet Michael Wilson and a former partner of mine, Jean Claude Blanc.

It was at that dinner that the Finance Minister arranged for us to host the dinner for President Ronald Reagan and Prime Minister Brian Mulroney during the June summit. It was also at that dinner that Mr. Blanc agreed to speak to Audrey Hepburn, who will be with us April 27.

Needless to say, we are indebted to you Robin. Thank you from the bottom of our hearts.

Canadians are not generally known for boasting about our resources, whether human or otherwise, and we tend too often to hide our light under a bushel. As much as we might try to do that, it's not an easy task with Alan Eagleson. It's not an easy task because - like Niagara Falls or the Rocky Mountains - he's larger than life.

I recently caught a Pierre Berton interview with Alan Eagleson on his show The Secrets of My Success. Berton was no doubt right on when he said that no other lawyer in Canada, or perhaps even internationally, has had such success in the sports field as an agent, a manager and an entrepreneur.

Alan Eagleson is the founder and executive director of the NHL Players' Association. He is also a player agent who, at one time, represented 200 NHL players in contract negotiations and on business matters.

Eagleson is on the board of Hockey Canada - the agency responsible for Canada's 1988 Olympic Team. He represents the NHL in all negotiations involving international hockey. And he is probably most appreciated for his creation, The Canada Cup Tournament, played every four years.

His partner, Bill McMurtry, says "He is such a dynamic and energetic guy; he's such an original, he will do things that others would never do, good or bad:"

"I don't think you can expect anyone to achieve what he has achieved without being outrageous, and as a result becoming a target."

In addition to hockey, Eagleson has been heavily involved in politics. He served as president of the provincial Tories for 10 years, after having represented the riding of Lakeshore in the legislature for four years.

He has received many awards, too numerous to mention. But one award stands out - the 1987 Lester B. Pearson Man of the Year Peace Award for his contribution to world peace and Canadian unity. In October, he was elected to Canada's Sports Hall of Fame.

Eagle, as he is known, sits on the Board of a number of charitable organizations and companies and constantly acts as chairman and cheerleader of fundraising events.

Someone should write a book about the Eagle and tell some of the wonderful stories that some of our head table guests have about his many exploits.

My favourite goes back to the wonderful Canada-Soviet hockey series of 1972 when Paul Henderson scored that exciting last-minute goal. During the game, Eagleson was doing his usual thing, shouting at the officials. He thought they were tampering with the clock. He was so vociferous that two very large Red Army officials moved over to remove him from behind the timekeeper's bench and were about to remove him from the rink.

At this point, Peter Mahovlich, a six-foot, four-inch player not noted for timidity, came to the rescue. In the melee that followed, our guest was rescued and all that was seen on television was the Eagle walking back across the ice toward the Canadian bench, giving a rather well-known gesture to the whistling crowd. So famous did this gesture become, that it was later used by a former Prime Minister in one of our Western Provinces. Mr. Eagleson is known for his pranks. After a pleasant dinner with a number of hockey officials, the group came out of a Czechoslovakian restaurant only to discover no taxis were available. No problem. They comandeered an ambulance, paid the driver off and, with sirens wailing and lights flashing, found their way back to their hotel.

He has always been a colourful and exciting ambassador for our country. To quote Victor Hugo:

King of the Peak and Glacier, King of the cold, white scalps, He lifts his head at that close tread, The Eagle of the Alps.

Alan Eagleson:

On the last occasion I spoke to the Empire Club I was introduced by a younger Ian Macdonald, and I made such an impression on him I was able to persuade him to undertake the chairmanship of Hockey Canada some 10 years later.

Many Canadians hear the two words, Hockey Canada, and ask me what it is. To put it very simply and concisely, Hockey Canada means international hockey at its finest. Hockey Canada was formed in 1966 to create opportunities for Canada's best hockey players to play against any other country's best players.

We have achieved that goal over and over again.

Hockey Canada brought Canada the most historic hockey series ever played - the Canada-Russia series in 1972. I will devote some time to that series later in my speech. Hockey Canada organized the 1974 Canada-Russia series with WHA players. Hockey Canada organized the Canada Cup tournaments of 1976, 1981, 1984 and 1987.

Hockey Canada organized our Olympic program which brought Canada back into the Olympics in 1980, 1984 and 1988. Hockey Canada is the creator of Canada's National Team concept headed by Dave King. Hockey Canada is the organization that brought Canada back into the International Ice Hockey Federation World Championships in 1977.

It is an umbrella organization for hockey groups across Canada. It functions well because of the commitment of people such as Ian Macdonald, our chairman, the knowledgeable Sam Pollock and Mr. Justice John Sopinka of the Supreme Court of Canada. These men and several others share a labour of love.

International hockey in Canada and abroad is enjoying tremendous success. You can pick up any Canadian paper during the winter months and read of a Canadian team playing overseas and of a foreign team playing in Canada.

Four Soviet teams are in North America this week - Moscow Red Army and Dynamo Riga are touring NHL cities. The Moscow Selects are playing in Western Canada against Canada's National Team and the Soviet Juniors just completed the World Junior Championships in Anchorage, Alaska.

During 1989, our Canadian National Team will visit Russia, Czechoslovakia, Sweden, Switzerland, Finland and Germany. In addition, teams from Russia, Czechoslovakia and Finland will tour Canadian cities. All of this adds up to hockey excitement for hockey fans in North America and Europe.

The International Ice Hockey Federation is expanding every year into countries where hockey is becoming an important sport. China and Korea will compete in the D Championships against teams from New Zealand and Australia.

Australia is hosting the Group D Championships in 1989, the first time an Ice Hockey World Championship has been played in the Southern Hemisphere.

Player transfers from country to country are becoming more prevalent. We are all aware of the increasing number of Czechs, Finns, Swedes and Germans who now play in the NHL. Few Canadians are aware that there are 442 Canadians playing hockey in the United Kingdom and Europe.

British ice hockey is undergoing a Renaissance. There are four leagues and more than 24 teams in England and Scotland. They are so organized that the NHL Players' Association has been approached to assist the new U.K. Players' Union.

The importance of hockey in Sweden was underlined in recent reports from Stockholm. Stockholm's new arena, The Globe, is the home of the 1989 World Championships in April.

There has been a dispute concerning television rights. The headline read: "Threats of murder of I.I.H.F. treasurer if there is no TV of World Championships."

Two anonymous letters were received by Mr. Berglund, saying they would do to him what was done to Mr. Palme, the late prime minister.

Hockey is expanding around the world in areas other than at the professional level. Germany has been awarded the World Ice Hockey Championships for Women in April 1989.

Switzerland will host the A pool World Championships in 1990. Canada will host the Junior World Championships in 1991. Spain, Hungary and Yugoslavia are all bidding for the B pool World Championships in 1991. Japan has offered to host a tournament in 1990 with teams from Canada, Russia, Czechoslovakia, Sweden and Japan.

Canada has sent university hockey teams to China on tours which assist the Chinese hockey program. The most unusual aspect of the games was that the Chinese would stop to pick up any Canadian player whom they knocked to the ice. They couldn't understand why our players wouldn't do the same.

A recent report from Russia stated that a Soviet team might wish to enter a global league or play a half-schedule in the NHL. This is the most recent example of Glasnost and Perestroika. Glasnost - openness - and Perestroika - economic restructuring and self-sufficiency - are the two touch words in any East-West dialogue today. These words have only come into public focus since Gorbachev came to power.

At the hockey level, I have been dealing with Glasnost and Perestroika for more than 20 years.

The exchanges we started in 1969 with the Soviets have become an important part of the North American hockey culture. This openness - except in Toronto with Harold Ballard - has continued even during the days of the Olympic boycotts.

The Perestroika philosophy was obvious from the start. Once the Soviets saw how successful the 1972 series was they decided that their teams should be considered on an economic basis as well as on a sports basis. Gorbachev is going to try with the rest of the system what hockey has been doing for two decades.

I was in Russia in December at the Izvestia Tournament. It was a true example of Glasnost and Perestroika. Ordinarily the defending champion of the Izvestia Tournament is given the first day of the tournament as a free day. Ticket sales were important this year for financial requirements. Bingo - Change! The opening game is Canada vs Soviet, which should have been the last game of the tournament. Glasnost was evident when a Soviet player was quoted after the 7-1 victory as saying: "We wanted to get even for last year and we knew the Canadians would be tired after the long flight."

The other example of Glasnost this year was that Fetisov - the great defenceman from Red Army - was stripped of his captaincy, not by Harold Ballard, but by the Soviet coach. Fetisov, much like some of our North American professional players, had a few beers, broke curfew, and had a mix-up with a fan outside a Russian night club.

In the old days Fetisov would have been "sick" for two or three games and returned to the lineup. Under Glasnost, everyone in the Soviet Union was made aware of his antics. Fetisov may be wanting Glasnost to end.

Even Czechoslovakia is responding to Glasnost and Perestroika - Statutarni Hraci - Special Status. The top team, Kosice last year, will be able to put seven stars into the special status, second to fourth place, six stars; fifth to eighth place, five stars; ninth to 12th place, three stars. So now they have more incentive to win the championship.

After watching its best hockey players leave for Canada and the U.S., the Czechs have decided that their sporting teams should join the capitalist money-making ways. They know that the Finnish and Swedish Hockey Federations are paid by NHL clubs for Finnish and Swedish players. They realize that players are defecting to North America for dollars, not political reasons. They want their piece of the pie.

Juri Hrdina of Calgary is the first example of a player under

30 to be released to play in the NHL. There are many advantages to this change in attitude by the Czechs. Firstly, it gives money to their hockey federation. Secondly, it permits players to play in the NHL when they are in the prime of their career. Thirdly, and perhaps most important, the player and his family move back and forth between North America and Czechoslovakia without any problems and without fear of reprisal against family members.

Another example of Glasnost and change in Czechoslovakia is the number of younger men now being given the senior positions in international hockey negotiations. The retiring president is 72, his replacement is 42. The retiring secretary is 70, his replacement is 35. This change is apparent throughout other Czech departments, both in sports and government. Five members of the Czech Politburo are under 55, and they replaced men with an average age of 70.

Perestroika has had another major impact on Soviet hockey. Until last year, Red Army had the unlimited right to recruit players from any teams in any city. As an example, Tretiak was taken from his hometown at age 11 to prepare for his new Red Army position - not as an army cadet, but as a goaltender. It is difficult to recall that Tretiak, in 1972, in the big Canada-Soviet series, had just turned 20. Anyone who remembers those games will understand how well Tretiak learned his Army, I mean goaltending, lessons.

With this recruiting advantage, Red Army had the league championships wrapped up by December of each hockey season. In the Soviet Union, until last year, there were no playoffs. Perestroika brought with it many changes. Teams can now tell Red Army to stay away from their players. They can make them trade for their players. In addition, there is a playoff system. Many teams make the playoffs and they have a two out of three-game final series.

When Harold Ballard economic policies reach Russia, they will double the capacity of the arena by cutting seat sizes by 50 per cent, and they will play four out of seven-game series for the concessions values as well as the hockey values.

That will give you an indication of what is happening around the world in hockey.

In Canada, we are more active at the international level than ever before. In 1981 Hockey Canada organized Canada's National team program. The international chairman was Sam Pollock. The team general manager was Dave King and I was chief negotiator. Hockey Canada's board decided that a National Team program would be beneficial to hockey in this country. It has proved to be a major plus for Canada both at home and abroad.

Since 1981, our National Team has played more than 350 international games. More than 400 players have had the glorious opportunity to represent Canada in an international hockey game. Of these 400, more than 100 have played in the National Hockey League after their National Team career. At the present time more than 10 per cent of the Canadian players in the NHL have had some experience with Canada's National Team. Many of the players who were not good enough for the NHL, or who weren't interested in pursuing a professional hockey career, have become doctors, lawyers and engineers.

Many of the players on our team continue their studies by correspondence and at the University of Calgary. There is ample opportunity afforded to studies. It depends entirely on the attitude of the player. Our National Team program is also important for another reason. The support of Labatt and Esso and Safeway has helped us bring international hockey to small-town Canada.

In early December, our National Team played the Moscow Selects in Saint John, New Brunswick, Yarmouth, Nova Scotia, Summerside, P.E.I. and St. John's, Newfoundland. In late December and early January the same two teams will play in Saskatoon, Prince Albert, Brandon and Yorkton. In March another Soviet team will tour small Western Canadian cities.

With such an audience of business representatives I must spend a few moments on The Business of Hockey. There are several reasons why hockey is a good business for players and owners. The average salary is $200,000 a year. The pension is better than most businessmen receive. A five-year, 400-game player receives a lump sum of $250,000 at age 55 as a senior player benefit in addition to his pensions.

The owners are doing well after some rough years for some of them. Our union will be seeking a larger slice of the pie when our agreement comes up for negotiation in 1991.

The players, in most cases, determine the value of the franchise. A good team makes the franchise a financial success. Toronto is the major exception to this rule. Maple Leaf Gardens is known as the Carlton Street Cash Box with good reason. Its stock on the TSE has been one of the most outstanding and successful in the past 20 years. Imagine if we ever had a winner.

The Pittsburgh Penguins in 1983-1984 lost $3 million on cash flow and about $5 million including debt service. In June 1984, they draft Mario Lemieux. In 1988-1989, the Penguins will probably earn $5 million.

In June 1984, the franchise was worth $10 to $12 million. Today it is worth $50 to $75 million. Who gets the credit? Mario. Who makes the money? The Owner. Although Mario won't suffer with his $2-million-a-year contract.

There are many other examples and the Wayne Gretzky trade is the most obvious. Peter Pocklington bought Gretzky from Nelson Skalbania for $750,000 in 1979. He sold Gretzky for $15 million in 1988. That is a nice return on one's investment. Gretzky's move to Los Angeles brings some other numbers to mind. In the 1988 season Los Angeles lost $2.5 million. In June 1988 LA Kings are worth $15 to $20 million. In August 1988 LA buys Gretzky for $15 million and in the 19881989 season the LA Kings will make $2 to $3 million.

Wayne Gretzky gets a salary of $2 million but the club received an increase from cable TV and their average attendance has increased by 3,000 per game (approximately $50,000). With 40 home games, there's $2 million for Wayne's salary.

I wonder how Peter Pocklington feels now. With Gretzky,

Edmonton was worth $100 million. Peter sold Wayne for $15 million. But now the Oilers are probably only worth $50 to $60 million. Considering Peter only paid $100,000 for the franchise, it is still a pretty good return on investment.

There are several other examples I could cite for you today but, instead, I wish to spend some time on the 72 series and on the 87 Canada Cup.

The series nearly had to be cancelled. We overcame what I call The Russian Tank issue. That story involved a young Montrealer whose car had been smashed by a Russian tank in Prague in 1968 when the Russians visited Prague. He seized the Russian equipment on a judge's order the night before the first game. We had to pay him off. After losing 7-3 on September 2, 1972,I wished I had let him keep the equipment.

I remember every aspect of that tournament. The loss in Montreal; the win in Toronto. Pete Mahovlich's goal. The tie in Winnipeg. The booing in Vancouver. The loss in Game 1 in Moscow, September 22, 1972. The wins Sunday the 24th, Tuesday the 26th and Thursday the 28th. And of course, Espo and Paul Henderson. That eight-game series will remain as the most outstanding sports spectacle in Canadian history. Every Canadian remembers what they were doing when Paul Henderson scored his goal.

I went back to Moscow in 1973. I needed a taxi. I used Henderson's name, Esposito's name. Then I said Eagleson. He took me right to their jail.

The 1987 Canada Cup was the most spectacular of all. The round-robin was very exciting. We tied Russia and the CSSR and beat Sweden, U.S.A. and Finland.

In the semi-final we were down 2-0 at the end of the first period. Then Mario and Wayne went to work. We won 5-3. In the first game of the finals we were losing 4-1, came back to lead 5-4 with two minutes left and lost in overtime. In the second game we were leading 3-1, then 5-4 with one minute left. We won in overtime on a goal by Lemieux from Gretzky. In the third game, we were down 3-0 to Russia at the eightminute mark of the first period. We went into a 5-4 lead. The

Russians tied it and then with just over a minute to go, Mario and Wayne went to work again.

It was a spectacular, exciting, astonishing play. It brought back memories of 1972.

All of our '87 Canada Cup players play for their pride in their country and our hockey. As long as that pride exists, I will be happy to organize tournaments against the world's best teams.

Hockey is part of the Canadian mosaic. If you dissect every team that represents Canada you will see how true this is. As an example, in the '87 Canada Cup we had Irish-Canadians, Ukrainian-Canadians, French-Canadians, Polish-Canadians, and even a few representatives of the WASP community.

Such a cross-section shows how persons with common interests and desires can work together and reach great heights. Canada is a young country 121 years old and it has become a melting pot of many traditions from other countries. If you could travel as I do, and see what I see in other places around the Globe, you would understand why I am so proud to be a Canadian.

The appreciation of the meeting was expressed by William R. McMurtry, Q.C., Toronto lawyer and former chairman of a commission into hockey violence.