The NHLscrapped its signature event -- the 'Winter Classic' -- that was scheduled to be held on Jan. 1, 2013. NHL is not ready to yield to the players' unions demands. There is bitter disagreement between both the parties regarding hockey related revenue sharing.

The Associated Press quoted NHL Deputy Commissioner Bill Daly as saying: "The logistical demands for staging events of this magnitude made today's decision unavoidable. We simply are out of time.

"We are extremely disappointed, for our fans and for all those affected, to have to cancel the Winter Classic and Hockeytown Winter Festival events."

The 2013 Winter Classic scheduled was to be played between the Detroit Red Wings and Toronto Maple Leafs at the Michigan Stadium.

Niklas Kronwall, Red Wings defenseman, was quite frustrated with the announcement.

Kronwall told The Associated Press: "It's obviously very sad. The Winter Classic is one of the highlights of the year, and this is something everyone has been looking to because playing at the Big House would've been something very special."

The players' union executive director Don Fehr described it as "unnecessary and unfortunate, as was the owners' implementation of the lockout itself."

"The fact that the season has not started is a result of a unilateral decision by the owners; the players have always been ready to play while continuing to negotiate in good faith," Fehr said. "We look forward to the league's return to the bargaining table, so that the parties can find a way to end the lockout at the earliest possible date, and get the game back on the ice for the fans."

About 4,00,000 fans were expected to arrive in the area for the New Year's celebrations. Many hotels and restaurants had been booked in advance.

Michael Harman, general manager of the Campus Inn in Ann Arbor, said: "We have been holding reservations for a lot of fans that were expecting to come. So far, we have not received very many cancellations, but we do anticipate them."

As many as 326 games have already been cancelled in the wake of the lockout which began on Sept. 16. However, the biggest blow to the fans and the players is the cancellation of the sixth annual outdoor extravaganza.

In an email to the Associated Press, Daly wrote: "I don't foresee any further cancellation announcements in the near term."

He said it was ''impossible'' for him to assure if there would be a match between Detroit and Toronto on Jan 1 at the Joe Louis Arena in Detroit if a labor deal was reached in the near future.

The league had already made it clear that a full season would not be possible. As for the Winter Classic, it's very unlikely that it would be moved to a new venue or new date this season.

Hockeytown Winter Festival and the NHL Alumni Showdown were scheduled at Comerica Park, the home ground of the Detroit Tigers. Even those events had to be cancelled due to the lockout.

The NHL was to pay about $3 million to rent the Michigan stadium. Cancelling the game cost the league a $100,000 deposit, which was paid to the University of Michigan.

Michigan athletic director Dave Brandon told AP: "Clearly, as long as the lockout was in place, we couldn't go very far with any of the planning or execution of the event. We held several meetings to talk about what we wanted to do and to coordinate activities, but we never got to a point where any out-of-pocket money was spent.

"We're still going to host the event, it's just not going to be on the date originally planned, and we're excited about that."