According to figures distributed to owners this summer, the record losses posted by the NHL teams was an increase of 35 percent from the $218m in operating losses incurred by the league last year.
The losses are blamed on soaring player salaries and the lack of a salary cap, without which the NHL spent 76 percent of $1.93billion in revenue on players salaries and benefits.
Commented Bill Daly, the NHL's chief legal officer: "This is a level at which no business can survive. The league will lose teams and players will lose jobs if we can't fix this."
Much of the future financial security of the league will hinge on the negotiations surrounding the new collective bargaining agreement with the players' association.
The current deal expires in September 2004 and there are fears that a deadlock in negotiations could result in a players' strike.
