COVID-19 Impact on Generating Revenue and Motivating Employees in National Hockey League

Impact of COVID-19 on Generating Revenue and Motivating Employees in National Hockey League (NHL)
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Impact of COVID-19 on Generating Revenue and Motivating Employees in National Hockey League (NHL)
Introduction
The COVID-19 pandemic has significantly impacted the National Hockey League (NHL) and its ability to generate revenue. The league has cancelled all games until further notice, and it is unclear when the season will resume. Recently in 2021, the league announced to postpone all cross-border play between the USA and Canadian teams, and more focus needs to be put on wearing masks and daily testing instead of three days period, which has increased the cost for the organization (Guérette et al., 2021). It has resulted in a significant decrease in revenue for the league. The league has also had to lay off employees, and additional employees will likely be laid off. The league has also cancelled its annual awards show, which was to be held in Toronto on June 22. It has resulted in a loss of revenue for the league and its sponsors (Ehrlich et al., 2020). Overall, the COVID-19 pandemic has had a significant impact on the NHL’s ability to generate revenue, and this will likely continue to be an issue for the foreseeable future. The report aims to address the problem arising due to the contemporary issue of COVID-19, and the problem is analyzed based on organizational culture and leadership to resolve these challenges. Figure 1 shows the contemporary issues leading to the significant problem in NHL:
Figure 1: Problem Identification Diagram
Potential Issues in National Hockey League due to COVID-19
A few potential issues could arise within the National Hockey League (NHL) if COVID-19 continued to spread. One issue could be player health. If multiple players were to contract the virus, it could cause games to be cancelled or postponed. It could lead to financial losses for the league, teams, and players. Another issue could be fan attendance. If large numbers of fans were to become infected, games would have to be cancelled or postponed to prevent the spread of the virus. It could lead to a decline in fan attendance and impact team finances. Finally, there is the potential for lawsuits. If players or team owners believe that they have been harmed due to COVID-19, they may be able to sue those responsible. It could cause further financial losses for the league and teams (Carlin et al., 2021). Overall, it is likely that there will be some negative impacts stemming from COVID-19 within the NHL. However, it is still unclear exactly how these impacts will play out.
Uncertainty of Losing Job Among Employees
The first aspect was seen in the low morale of employees, as they were afraid of losing jobs when the pandemic continued. The board and management were also concerned about managing the expenses and salaries when the event was delayed and stopped. It has severely impacted the revenue and productivity of part-time employees because the pandemic was a global event that has hit all sports activities worldwide (Carlin et al., 2021). That is why the management of NHL is concerned about the long-term retention of employees without spending too much on salaries and additional wages. If such a pandemic continues, the company might face huge employee turnover in the future. That is why employee motivation is crucial in this stage.
Revenue Loss in NHL
The National Hockey League (NHL) has cancelled all games through March 30 due to the coronavirus pandemic. It has resulted in a loss of revenue for the league, and the exact amount of revenue lost is unknown, but it is likely millions of dollars. This disruption to the NHL’s schedule will likely cause a decline in attendance and TV ratings for the remainder of the season. The league will also lose revenue from sponsorships and other marketing deals (Statista, 2022). Figure 2 shows that the pandemic hit the sports industry where all seasons across the globe are suspended, including NHL in the USA. It is expected that every team will lose on average $1.31 million in ticket sales because of cancellations due to the pandemic. The other revenue losses occurred due to losses in the food and beverage sales, team merchandise sales, sponsors and brand advertisement, and packaging fees. These factors led to the reduction in the profitability and revenue when the event closed in the midst.
Figure 2: Estimated Potential Losses for NHL Teams due to COVID-19
(Source: Statista, 2020)
Organizational Culture Contribution to Problems
The section analyzes the NHL performance during COVID-19 based on artefacts, espoused values, and basic assumptions which could have contributed to the problem:
Artefacts of NHL
The Stanley Cup, the National Hockey League championship trophy (NHL), is the most prestigious award a professional ice hockey player can receive. The NHL was founded in 1917, and the Stanley Cup has been awarded to the league’s champion ever since. The cup has been contested by teams from Canada, the United States, and other countries. The Toronto Maple Leafs have won the most cups, with 24, and the Detroit Red Wings are second with 23. Other essential items in the NHL’s possession are the Clarence S. Campbell Bowl, awarded to the playoff champion since 1966, and the Vezina Trophy, awarded annually to the best goaltender in the league (Smith & Casper, 2020). Here is the artefact of NHL which should be considered:
Ceremonies/ Rituals: The League is dependent on 32 teams, where 25 are from the USA, and seven are from Canada. COVID-19 has badly impacted the artefact because these teams play closely where distance cannot be maintained. Besides, the teams are from the USA and Canada, and border closing has stopped countries from the other side of the border from coming and playing. Hence, it postpones games due to COVID-19 (Khalid et al., 2020). The ceremonies and rituals allow people to play closely, leading to a rise in coronavirus patients.
Communication Patterns: The communication between team players and opponents works by standing and playing closely. There are no chances that these players can play isolated; hence, the government intervention has forced NHL to close all of its gaming for a certain period (Khalid et al., 2020). The communication patterns have caused the problem of closing games which led to increased costs and revenue loss.
Espoused Values in NHL
The section is analyzed by using two of the significant values of NHL, which are teamwork and brainstorming:
Company’s Values
The espoused values of the NHL organization are teamwork, discipline, respect, and accountability. These values are evident in players are expected to behave on and off the ice and how the league governs its teams. These values are also promoted in the NHL’s marketing and outreach efforts. For example, the NHL emphasizes its commitment to teamwork by showcasing the skills and athleticism of its players, and it promotes discipline and respect by enforcing rules and punishing players who break them. The NHL also seeks to be accountable by ensuring that its teams are run efficiently and financially stable (Wagstaff & Burton-Wylie, 2018). These goals help the NHL maintain a high level of quality and consistency across its different teams, which is essential given the competitive nature of the league during COVID-19.
Values during COVID-19
The NHL organization believes in promoting healthy and safe communities. They have pledged to donate $500,000 to support COVID-19 relief efforts. The NHL also encourages their fans to take precautions to avoid the virus, such as washing their hands and avoiding large crowds. The NHL also cancelled the remainder of its season to help prevent the spread of the virus. By doing this, it is putting the health and safety of its fans and employees first. It demonstrates the NHL’s commitment to its values and espouses the importance of community engagement. Overall, the NHL’s actions during Covid-19 demonstrate their dedication to promoting essential values to their organization and society. The NHL organization has also pledged $100,000 for the American Red Cross’ COVID-19 relief efforts (Smith & Casper, 2020). This donation will support emergency response and long-term recovery initiatives in areas affected by the virus. However, these activities all led to increased costs and reduced profitability because the company prioritizes employees’ and players’ health as its priority.
Basic Assumptions
National Hockey League (NHL) employees believe in the organization’s fundamental values: respect, teamwork, and integrity. They believe that the NHL’s mission is to bring the excitement of hockey to fans around the world. They are dedicated to providing the best possible experience for fans through forms of engagement and are committed to the success of the NHL and its teams. The employees of the National Hockey League have a positive perception of the COVID-19 pandemic (Morgan et al., 2020). They feel that the league is taking the necessary precautions to keep everyone safe and that the situation is being handled well. They believe that the league is proactive in its response and that the fans are being considered.
The employees feel that the league is doing all it can to ensure that the health and safety of everyone involved is a top priority. They are confident that the league will continue to be proactive in its response and that everyone will be safe during COVID-19. Overall, the National Hockey League organization employees feel confident about the COVID-19 pandemic and believe that everything is being done to ensure the safety of everyone involved (Zeimers et al., 2021). However, employees who were forced to go home during the pandemic were uncertain about their job security because it was challenging for NHL to bear the excess burden of cost and expenditures.
Leadership Contribution to Problems
The leadership contribution during COVID-19 is discussed below:
Create Vision
NHL commissioner Gary Bettman should have a clear vision of handling the challenges posed by the COVID-19 pandemic. Bettman should work with the league’s Board of Governors to develop a pla...