The Washington Capitals are now one of the fastest growing revenue teams in the NHL. We are driving a lot of revenue growth to the league and the NHL Players’ Association. The players receive a disproportionate piece of any and all revenues as per the CBA. Any revenue growth we generate for the league is good news for the players. And the league. Simple equation: We generate more revenues; the salary cap increases; the players get more dollars.
Our hyper growth can be directly attributed to our team success and our drafting and developing and retaining in a long term deal – Alex Ovechkin. In fact, you can trace our real success to literally the day we announced that Alex Ovechkin had signed his 13 year deal. Do some research and trace the success of the team. See what I mean? Since that signing, Alex has gone on to win the League MVP twice and then Player of Year trophy three times as selected by his peers. He has led the league in scoring and in goals twice. We have one of the best records in the NHL over the last three years as well. All since we announced his new contract. We sell out every game. We have a waiting list for season tickets. We have one of the largest full season ticket holder bases in the entire NHL. The long term deal was a great hockey decision and a great business decision.
More importantly, as we own the NBA team too and have seen what happened this off season with star players leaving their franchises in their prime, signing Alex to a long term deal was of great comfort and benefit to the most important constituency we have – our fans.
And we play in a building that we own now. No tax payer dollars went into constructing our building. We generate revenues for our community. We pay taxes. The revitalization of downtown DC can be attributed to the Verizon Center and Mr. Pollin’s courageous decision. There is a reason why the Capitals were named DC Chamber of Commerce’s “Company of the Year.” Everyone is benefitting from our revenue growth. We have a long term mortgage on our building. Other than player payroll our mortgage is our biggest line item expense. It is important for us to do as much as possible to “securitize” our future success. Hence long term deals to Alex Ovechkin and to Backstrom too.
The 13 year deal signed by Alex Ovechkin was a simple deal. His salary is straight-lined across the life of his contract. There was never an issue with the structure of the contract with the NHL. It was all done in the light of day – honest and transparent. By the rules. The writer of this article knows that. He is just mad because he didn’t have access to Alex Ovechkin when he wrote his book. We don’t agree with his point of view in his book and we won’t have anything to do with him and his book now. He is on his own.
Alex’s contract was NOT a long term front-loaded contract structured to achieve artificial low contract value for the purpose of achieving certain advantages under the salary cap. Nor was Backstrom’s deal. That is why they were approved and why we played by the rules. Alex will still be young enough when his deal ends to sign another contract too! As will Backstrom. The writer knows that. Why he lumps the deal in with these other deals is just mean-spirited and inspired by other factors known only to him.
The writer can say anything he wants about me. He doesn’t scare me. 
He just can’t distort facts. We won’t let him and he is being called out on this one right here and now.
Ted,
Even in Toronto he is not well regarded. Implying Jose Bautista is taking steroids because he has had a good year.
Mr. Leonsis,
Damien Cox (the individual who wrote the piece in question) is best ignored. His columns fall under two categories- self-loathing about the Leafs (he’s been churning this column up ad nauseum for the better part of 20 years) in which he alternately blames fans (for buying tickets and supporting the team), management (too much to list here), ownership (or a combination), or speculative “agricultural product” columns (such as the one in question). The vast majority of Leafs fans (as I am) I know (a well-known Leafs blog that has had multiple issues with the MSM in Toronto linked this and their view of Cox is, to put it politely, negative) can’t stand Cox or his usual drivel of agricultural waste product.
The NHL, near as I can tell, registered Ovechkin’s contract which is pretty much the end of it. I’m willing to bet you would have heard from the league if there was an issue.
While I do agree with the statements regarding the contract being legit, your title is hilarious. Unemotional Response? The entire commentary is based on your anger towards him and is nicely reflected in statements like “He is just mad because he didn’t have access to Alex Ovechkin when he wrote his book.” You sound like a bitter 5-year old when you write something like that.
Still, writing a biography about Ovechkin at age 24, with so much hockey yet to be played, is about as wise as writing two autobiographies of a community organizer before they turn 40. Full of hubris. There will be plenty of people interested in Alex’s story when we’re beyond the introduction and initial exposition. Lots of story arcs to develop yet. Let’s see how the story goes before one worries about a biography.
If you only want to address the business side of things, then your point-of-view is well taken. if you want to address the hokcey side of things, well, Mr Ovechkin is not nearly the success story as you paint him out to be. Yes he’s won lots of individual awards but how has your team done. Mr Leonis? Never past the 2nd round and when it comes time to win games that actually mean something, Mr Ovechkin has been a bust.
And not just with the Caps but with his Russian teams too. He is fantastic talent with showmanship oozing out of him, but he has demonstrated that he is not a team player. Or more importantly, the the teams he has led have not succeeded. Until he can learn to play all facets of the game and not just from the offensive blueline inward than he is bound to be criticized.
Mr Cox was dead-on in his critical assessment of Mr Ovechkin and the worth of his contract. He has not delivered on it. Maybe in time he will — and I wsih him and the Caps much success — but to outright declare that his enormous contract is worth it to the Caps and to the NHL is more than premature. At least until he wins something.
Nice job calling out Damien Cox; the man is a no-talent hack who routinely uses controversy to generate interest in his column.
Teddy, This guy is just another self serving person whose trying to make a buck anyway he can. Facts mean nothing to him. I am glad you put him in his place! Lets Rock the Red because October is coming!
So what about Tyler’s (#13) points? I don’t know whether the Washington Capitals are taking “vast amounts of revenue sharing dollars” but it seems he believes he has made a good argument.
1) Is the Cap’s organization taking in “vast amounts of revenue sharing dollars”?
2) If so from where?
3) Are they taking more than any other team or less?
4) Is it possible other owners (say Toronto for this argument) have a beef with the Caps getting more or less than other teams?
5) If so why might they have a problem?
6) Has any part of the NHL (players/owners) as we know it made a legitimate argument that Ovi’s contract was anything less than kosher?
7) Seems to me, an admitted Cap’s fan, that the deal was a great deal for the Capitals and DC. If anything, Ovi might be arguably underpaid towards the end of the deal. And isn’t the player the one people should be worried about?
The contract Ovie signed was about the MOST honest contract i have seen for big name players. I was just commenting to people a month ago that at least Ted did not try that same bs that the Devils are trying. Same with Backstrom as well. I dont know this guy’s issue, but of all the things he could complain about, this AINT ONE OF THEM!! How does a guy get away with writing an article that makes no clear rational sense at all?? tell him to go look at the cap hit for each year and the salary. Who would read a book of someone who doesnt even have his own facts straight.
It’s obvious that the writer doesn’t understand the double bottom line. He should buy Ted’s book and maybe he would smarten-up a bit.
Ever think of running for office, Ted?
I’m 100% behind you, sir!
How and where does Damien Cox get his information that the ‘caps “now drink deeply and gratefully from the revenue-sharing trough.” As I understand the revenue-sharing rules teams need to average less than 80% attendance and be under the league Salary Budget Average to receive money from escrow fund. I could be reading it wrong and you may need to average more than 80% attendance but that doesn’t really make much sense too me. Why give teams that average higher than 80% attendance more money? If the ‘caps sell-out every game and spend to the cap limit or close too it, how are they eligable to receive revenue-sharing? It seems like Cox is being a contrarion once again, and if that is the case hes deserving of being ignored once again, hopefully forever.
Don’t let this talentless hack rent space in your head. We fans can handle his ad hoc ergo proctor hoc arguments, false syllogisms, and deliberate fact-obfuscating omissions. Nobody who cares about Hockey (let alone The Capitals) gives a moment’s credence to such a fool. Ted, frankly you’ve got bigger issues to tackle than the opinions of “The Writer”, like figuring out if you should re-arrange your sock drawer.
Mr Cox makes a very valid point and for you to think it’s a personal vendetta is utterly juvenile on your part.
Note to Tyler: Every team in the NHL receives revenue sharing. Receiving your share of dollars from National television contracts = revenue sharing. Receiving your cut of merchandizing contracts = revenue sharing. Every single team in the NHL receives revenue sharing, it’s impossible not to.
I agree with your statements, good for the Caps in helping out the city and giving access to bloggers. On another note, the writer in question is definitely not a Leaf fan.
I’m a huge caps fan since 97′ and been receiving the toronto star every day since i was born. Damian Cox clearly doesn’t get out much, and has never written anything that i’ve actually been intrigued reading. Touche ted.
I’m not a Caps fan, but I always enjoy reading Ted’s blog. Way to go, Ted. Cox is a hack, and it’s nice to see someone with some true media and hockey influence calling him on his garbage articles. Keep up the good work, Ted. Sorry about my boys beating you in ’98, good luck chasing that Cup.
Question for you Ted. When the Leafs come to DC, do you deny Damian Cox a press credential? He’s crossed the line from being an objective journalist covering the game to being a tabloid hack trying to cause drama and trouble. He is participating in “Yellow Journalism” to use the term, and that means he should not have access to the VC unless he buys a ticket…
BTW, I live in Toronto and listen to Cox consistently. He is a pro-Canadian hockey fan. He is bias towards Crosby and therefore negative towards Ovechkin. He is releasing his book because he knows a negative view on Ovechkin will sell in Canada just like a positive view on Crosby will. For Canadians that lived during the Canada vs USSR years, guys like Cox have reinvented the rivalry by leveraging Crosby vs Ovechkin. What is great is how many Canadian kids (for example my 10-year old son and a bunch of his friends) love Ovechkin because of how exciting he is.
Great response, Ted. Maybe the reporter/author will resound by saying, “Don’t confuse me with the facts.”
Great view on the importance of the Ovechkin deal. One interesting negative about this deal that supports the fact that the contract did not circumvent the rules is that it expires when he is 36. If you wanted to circumvent the rules then you could have made it a 17-20 year deal OR made is for 11 so that you can sign another long term deal prior to 35. You did not do either.
Don’t take anything said by Damian Cox seriously. He defines the word idiot.
I have great respect for you Mr. Leonsis, and the things I’ve seen as an outsider (currently living in Toronto). ANYONE who stands up against the windbag that is Damien Cox deserves a good pat on the back. It’s gotten to he point now where when he makes stupid comments simply to drive up traffic or settle personal vendettas, and I STILL won’t visit his blog to read them and give him traffic. The man somehow receieved one of the most powerful positions as the lead Leaf writer for the city’s biggest newspaper and somehow thinks that he gained his audience from his “talent” rather than inheriting it. If he were to be fired and his success was based totally on the quality of content created (i.e. a standalone blog, not related to the Toronto Star), he would be without an audience whatsoever.
What a fantastic response. So thorough and complete- in it’s simplicity. There are several writers and broadcasters who operate on their own agenda’s. Why that is, in my view, is they have become so jaded in this field of work that they have lost their ability to professionally do their job. Obviously, lumping the Ovechkin contract in with the several that have drawn the league interest is assine. I applaud your response Mr. Leonsis.
Liam Maguire
Great response Ted. Damian Cox has a personal vendetta against the Caps and Ovechkin. His book is probably not selling well so he has now attempted to lump OV’s contract with all the other cap circumventing contracts to move books. Please ban this idiot from entering Verizon and Kettler as he is a tabloid reporter that manipulates the facts for his own financial gain.
None of that is a denial that Washington is taking in vast amounts of revenue sharing dollars. If the Caps get revenue Shari g when they have a 115 point team or so, as well as the most exciting player in the NHL on their team, what does that say about Washington as an NHL market?
Nicely put, Ted. I can’t believe Cox even _read_ Ovi’s contract, other than the length and the total, before making his comment; comparing 6@9+7@10 with the Devils’ first contract with Kovy is completely ridiculous. -JW
Well said Ted. Proves ESPN is out of touch with the hockey fan and while many choose not to watch that program or visit their website for ANY hockey news.
Very Nice response to a classless reporter trying to sell books
Well done Ted. Only people who want to believe the lies, will. Those who are intelligent and honest, know that what you say is not opinion, but fact. Sadly, journalistic ethics do not seem to apply outside the fourth estate – so we are left with people grinding axes and passing it off as fact. To hell with him. Who needs him.
Mr. Cox’s bitterness over not being handed rights to write an authorized biography on hockey’s biggest star is totally bizarre.
Thank you, Ted, for standing behind the team the way you do and calling that piece of dryer fluff out. Well done, sir!
Way to go Ted! Caps Nation is behind you 100%!!!
Good call Ted. Alex’s contract is legit
Sweet. Good smackdown. I was not impressed
with the two excerpts posted on Japers’s Rink but that
was more because he assumed Ovi’s thoughts and feelings about events with no substantiation. Now he deliberately
misrepresents contractual details, which makes him a bad reporter. He had a perfect audience with Caps fans. Who does he expect to buy his book–Pens fans?
You tell him, Ted!
Ted: He’s written hack jobs before. Pay him no mind.
The writer is most likely a frustrated Maple Leaf fan. I heard there was book coming about Ovechkin that was not flattering. I for one will not be reading it. Looking forward to October. Go Caps.