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Patrick Johnston talks private equity in sports, a raising NHL salary cap, and more: Canucks Conversation
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Photo credit: © Bob Frid-Imagn Images
Clarke Corsan
Mar 28, 2026, 09:00 EDTUpdated: Mar 27, 2026, 21:03 EDT
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On today’s episode of Canucks Conversation, Quads and Harm were joined by PostMedia’s Patrick Johnston to discuss the growing influence of private equity in sports, what a rising NHL salary cap could mean for team-building, and how it may impact the Canucks moving forward.
The conversation began with Quads pointing to a trend seen in other leagues – particularly Major League Baseball – where ownership groups tied to private equity have shifted their priorities toward profitability over competitiveness.
“In baseball, with private equity coming in as owners of sports groups, these organizations have figured out that not spending major money is more profitable in the long term,” Quads said. “They’re not paying to field great teams but paying to have okay teams to put people in seats.”
With the NHL salary cap expected to rise significantly in the coming years due to increased league revenues, Quads wondered if a similar dynamic could begin to emerge in hockey.
“With the salary cap skyrocketing in the NHL, is there any chance we start to see teams operating that way? Do you worry about the effect a rising salary cap might have on the NHL?”
Johnston didn’t hesitate to acknowledge the possibility.
“I think there’s a great chance of that,” PJ said. “As the cap goes up – a reflection of revenue going up – but along the way, revenue sharing doesn’t scale up the same way.”
That imbalance could create a widening financial gap between teams, particularly those in smaller markets.
“That means you’re going to end up with teams that are sort of just plugging along,” PJ explained. “When it comes to how the NHL pays for itself, the vast majority of the funds come from Canada. Teams in small markets, the Winnipeg Jets are tied into this, are drawing revenue not from their own efforts.”
Instead, those teams rely heavily on league-wide revenue driven by bigger markets.
“It’s Toronto, Montreal, New York, Edmonton – once upon a time, Vancouver – so there’s a baseline that’s delivered to teams that are below the threshold.”
The concern is that rising costs, paired with imperfect revenue sharing, could discourage some teams from spending to the cap.
“There’s a huge risk here. Revenue sharing can only equalize so much. Some teams are easily going to get to the cap; low-revenue teams are going to lose a lot if they spend to the cap. There’s a big risk of this turning into haves and have-nots,” PJ said. “Winning does matter – everyone will pay a premium to go to a playoff game – so teams still have that lever to pull to make more money. But there’s always going to be that temptation of, ‘what’s the least we can do and how much can we make?’”
That tension between maximizing profit and investing in winning is at the core of many private equity-backed models in sports, where steady returns can sometimes take priority over aggressive spending.
The conversation then shifted toward how a rising cap environment could change team-building strategies more broadly, including in Vancouver.
“The way we’ve been thinking about the cap for the last five years is really going to change,” PJ said. “The way it’s going to basically create more money in the environment means you don’t have to be as careful, though you still should. The Canucks know what they need: an elite centre, an elite defenceman, wingers. There’s a lot of needs there. At the same time, they’re seeing what most of us see, which is that free agency isn’t going to be much of a source for player acquisition.”
Instead, teams will need to rely on more controlled avenues to build their core.
“Teams are going to be locking guys in, so the way to get players will be trades and the draft. Assuming this management group carries on, I expect they’ll be looking to lock in players they believe to be involved long term.”
As the NHL enters a new financial phase, the balance between spending, development, and sustainability becomes more important than ever.
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