There has been a lot of buzz around the ice hockey SM league for weeks. For example, one has wondered about the price of a league share, was appalled by the rant from the SM league’s big clubs, and wondered if the SM league system is legal at all.
Last week, it was surprising when the SM League announced that the application of Tuto from Turku, who applied for a place in the main league, has been rejected. Then Tuto said that the application has not been rejected, but that it has 14 days to respond to additional clarifications.
Chairman of the Licensing Committee Jaakko Luumi on the other hand, told Urheilu that Tuto’s application has still been rejected and there are several grounds for rejection. However, Luumi admitted that the license committee made a clear mistake when it did not inform that Tuto had the opportunity for further clarifications.
– The situation is reasonably absurd, sighs Tuto Hockey’s CEO Kimmo Hollmé.
Additional questions for the league management, which does not answer
Tuto has been asked for additions to the text section of the application, such as a risk analysis related to the three-year cash flow forecast.
– And then an explanation about the purchase of the share has been requested. There have been questions about the financiers’ commitments to get through the first three league seasons. Of course, it can be found in our cash flow statement, but we are at a standstill because the license committee has directed some of our supplementary questions to the league management.
One of the hottest questions has been the price of league stock. The figure has been reported in the public as 3.6–3.8 million euros. The jokers already stated that they do not seek to rise under the current conditions. Chairman of the Jokers Mikko Saarni stated that it would not have occurred to him that the share price had doubled. Previous risers Jukurit, Sport and KooKoo paid 1.8 million euros for the share.
Tuto’s deadline for completing his application is December 12. According to Hollmén, Tuto has still not received an explanation of what the share price is made up of. Licensing committee chairman Luumi has directed the questions to the management of the SM league.
– We were promised to produce material by email to support our design work, but we haven’t heard back. SM league chairman Heikki Hiltunen promised on 17.11. that he would have a meeting with us. Then he has been reminded three times and asked when the meeting would be, but we have not received an answer, says Hollmén.
According to Hollmén, Tuto will receive additional clarifications on all other matters, such as financial statements, hall matters and cooperation with the junior side. The league stock remains a problem.
– The only written answer we have about the price of the league share is Jaakko Luum’s answer that 3.6 million will be used as the amount, because Hiltunen has announced so in the media. It’s really difficult to sell it to interested investors when we can only tell you that it is the amount announced in the media. No one gives us a blank check.
Hollmén also criticized Luum’s role. He wonders why the financial management expert cannot tell more about the league stock. Luumi is the financial director of the Ice Hockey League.
This is how Luumi commented
Tuto Hockey has still not received the basis for the formation of the league share price. Chairman of the Licensing Committee Jaakko Luumi, how do you comment on Tuto’s annoyance?
– The license committee does not take a position on the league share or the formation of its price, but it is a matter that needs to be reviewed with the League. On the other hand, I have also commented that, in principle, financing the share is a partially separate matter from the license application. The idea is hardly that the share will be paid with operating income, but that it should be financed through something else.
After all, it may sound contradictory that the license application nevertheless asks about financing the share. Why so, if it is separate from applying for a SM league license?
– In the contract between the league and the Jääkieksoliitto, it is said that the share must be redeemed. In that sense, it is important whether they have such resources. As the Licensing Committee, we have stated that we do not deal with that matter, but of course we have tried to find out about it. But the formation of the share price and the payment schedule are matters between the League and the emerging club, which are not directly part of this licensing process.
Is the value of the league share too big?
Another Mestis club, Kiekko-Espoo, has also applied for a league place. The status of Espoo’s or 15 current league clubs’ applications has not been announced.
Hollmén questions whether all 17 applicants are treated equally.
– There are strange details that make one wonder if the intention is to play one quickly in the yard in order to publish an announcement that 16 more licenses have been granted.
Hollmén sees that the SM league’s poor communication has been the maintainer of the turmoil of recent times, but the reasons are deeper.
– Dissatisfaction with the current situation has become so big. It has opened up a discussion about the fairness of the current situation and all the reflective effects.
The reflective effects are especially related to the discussion of whether the license system of the SM league and the stock should be separated. Research manager of the Finnish Competition and Consumer Authority Hannu Raatikainen said that criteria should not be set in sports that are, for example, too strict, in which case they practically prevent promotion.
– Mesti is also played by fulfilling the license conditions. Why is the top level played by fulfilling license conditions and buying shares, Hollmén wonders.
The Tuto boss emphasizes that the SM league is reflected, among other things, in the SM series for under-20s, where the junk teams of the league clubs are protected and cannot be relegated. At the moment, the league stock protects more than things related to the SM league.
Again, it can have an impact on, for example, the selection of a sports high school or the Sports School of the Defense Forces, if the player is no longer a SM-level athlete.
– We should definitely get rid of those connections. The reflective effects can be severe, and league hockey shouldn’t affect junk hockey to such a large extent, Hollmén downloads.