However, his economic analysis is a little misguided, and I will tell you why. Suppose that the NHL contracts a couple of teams. What effect does this have on the demand curve. Contrary to what the author claims, this does not entail a shift of the demand schedule. Instead what happens is you have a change in the number of players supplied (i.e. you move down and to the left on the supply curve). This leads to excess demand and an increase in salaries. Think of it this way, if you go to the supermarket and find that there a fewer varieties of candy bars to choose from, does this mean your preferences (i.e. your demand) for candy bars has fallen? No. It simply means you have fewer substitutes from which to satiate your tastes for canby bars.

The real problem with the NHL is that it exercises considerable monopoly power and therefore generates high profits. It is these rents which the owners and NHLPA bicker about.

Cheers;
Darren