An opinion I had at the beginning of January and posted on another forum but is probably more valid now than three months ago!! This was in response to an ongoing discussion as to how Sheffield had managed to save itself over Christmas and Newcastle & Edinburgh had basically gone bust and into survival mode...... Note, Hull was fortunate in that it was saved at the start of the season & Braehead has had Neil Black money ploughed into it all summer. So in reality that's 50% of the EIHL teams not on an independant financial and sustainable footing. Hope that the EIHL's due diligence of participating teams for 11/12 is a bit better......
Oh I think it ended last summer when the wage-cap was openly abandoned and the import numbers dramatically increased. The situation was not helped by Sheffield spending way beyond their ‘budget’ knowing fine they would be ‘saved’ when push came to shove. Moral Hazard must be Sheffield’s mission statement.
ps Meaning of moral hazard:-
(economics) the lack of any incentive to guard against a risk when you are protected against it (as by insurance)
