The Relation between New Arenas and Gate Receipts in the National Hockey League
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This study examines the relation between the attributes of National Hockey League (NHL) arenas and gate receipts generated by NHL clubs over a period spanning the 1989/1990 through 1997/1998 NHL seasons. We find that the annual gate receipts of eight established NHL clubs increased on average by 47% after they moved into new arenas during the 1990s. This increase greatly exceeds a corresponding increase of 17% for other NHL clubs over the same period. These results hold after controlling for other factors that affect gate receipts, including the quality of clubs, the population and per capita income of a club’s metropolitan area, and a time trend variable. We estimate that a new arena with the average number of luxury and club seats of other new arenas would increase the gate receipts of the Pittsburgh Penguins by approximately $6 million per season in constant 1997 dollars. In short, this study documents that new arenas have a substantial effect on the revenues of NHL clubs. Katz Graduate School of Business, University of Pittsburgh April 22, 1999 Source |
Just a matter of time
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Sports business analyst says NHL's return to Winnipeg is a 'no-brainer' With the new CBA bringing both revenue sharing and a salary cap into view, a new arena in downtown Winnipeg that can derive much more revenue than the past Winnipeg arena, Mark Chipman has crunched the numbers. While he won't guarantee anything, he also won't rule anything out, as it pertains to the NHL returning to Winnipeg. Paul Friesen, Winnipeg Sun October 05, 2005 (Link not available to source) |
A sympathetic ear
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Great One recalls Jets' past and holds out hope for NHL future Gretzky comments positively about Winnipeg as he arrives in town for the first preseason game at the MTS Centre: "When the franchise left years ago, there were a lot of reasons as to why the team left," Gretzky began. "A lot of those issues have sort of changed. By that, I mean the salary cap, obviously, revenue sharing to a certain degree, the American-Canadian dollar is stronger than it was ... and the new facility. So there's a lot more in favour of Winnipeg maybe some day getting an NHL franchise back." He added, "I know the league, the players themselves, enjoy playing here." Gretzky concluded by saying, "The visiting teams enjoy the atmosphere in this city. There's a lot better chance in this day and age that this city could get a franchise than maybe 10 years ago. Whether or not it happens is something the league has to work out, and ownerships have to work out. But obviously this city's always going to get talked about, because it's a good hockey city." Paul Friesen, Winnipeg Sun September 18, 2006 (Link not available to source) |
Bench boss is lovin' it
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Gretzky brings his passion to coaching $1 million: the approximate gate revenue from last night's exhibition game between the Coyotes and Oilers. The profits were split between the Coyotes and True North with the Coyotes receiving a slightly larger share. Writer Paul Friesen penned "That's the kind of crowd it would take, at similar prices, every game, to make a big-league team viable here." Paul Friesen, Winnipeg Sun September 18, 2006 (Link not available to source) |
Thumbs up on 'Peg's new digs
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Both players and coaches alike from the Edmonton Oilers and Phoenix Coyotes were impressed with the MTS Centre. Ken Wiebe, Winnipeg Sun September 18, 2006 (Link not available to source) |
Targeting mayor
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NHL's return up to him: group With Winnipeg heading into a mayoralty race, the first NHL preseason game was held at the new MTS Centre. Darren Ford of Jetsowner.com handed out 11,000 flyers showing seating pricing should the NHL return to Manitoba. Scott Brown, a spokesperson for the owners of the new rink, True North Sports & Entertainment Ltd, called the sheet a "pretty good pamphlet". Scott Brown said that the sellout confirms that the market will support NHL hockey at those prices for one night. He added that the next step would be to "discover if Winnipeggers and Manitobans would be committed to those costs over a long period of time, and not just one year but extended years." Ross Romaniuk, City Hall Reporter September 18, 2006 (Link not available to source) |
Complementary Tickets and Total Gate Revenues (2006-2007)
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The Globe and Mail found a leaked NHL document from the 06/07 season showing how many freebie tickets were counted in “announced” attendances across the league. It also displayed the total gate receipt dollars brought in on a per game basis for each team. Average ticket price was then calculated. Mike Faille, The Globe & Mail January 01, 2007 (Link not available to source) |
Canwest Global: Local Reaction To Gary Bettman's Support For Winnipeg
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Local reaction to the NHL Commissioner’s support for Winnipeg’s return to the NHL. CEO Edmonton Oilers, Pat LaForge, supports Winnipeg. Global also speculates on potential NHL financials. (Although much was understated or missing.) Claims that $260 million would be required before the first season starts are inflated with no mention how future revenues streams for both hockey and non-hockey events at the MTS Centre may offset a team purchase cost. Canwest Global January 26, 2007 (Link not available to source) |
CBC: HNIC Hotstove
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A week following Mr. Bettman’s supportive comments about Winnipeg, the group of reporters speak about some NHL governors support for it, a potential local ownership group has already reviewed two NHL teams books and concluded that the NHL would work in Winnipeg with the current MTS Centre at 15,003 seating capacity. CBC, Hockey Night in Canada: Hotstove January 28, 2007 (Link not available to source) |
NHL fans have left the building
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Gate receipts paint real picture of a false economy Mark Spector of the National Post examines the NHL’s gate receipts by game and by team and finds that without the spin doctoring, the numbers for some teams are very bleak. Canadian teams proved to be among the most financially sound. These numbers allow Manitoba Mythbusters to compare how a potential Winnipeg team’s ticket prices at the MTS Centre and gate revenues would show against the existing 30 teams. Mark Spector, National Post February 10, 2007 Source |
Troubling signs abound for Thrashers
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David Shoalts of the Globe and Mail dives into the numbers from the 06/07 season showing how many freebie tickets were counted in “announced” attendances across the league. The situations seem dire for some current NHL teams, especially Atlanta, with complimentary tickets and gate receipts telling the tale. David Shoalts, Globe and Mail March 29, 2007 Source |
The Day the Jets Died, Part 1: Sudden, Painful Death
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The good old hockey game is the best game you can name' -- Stompin' Tom Connors One of the best summaries of the events surrounding the Jets demise. For some this read will be a painful reminder of not only what was lost but of the politics and egos that became as much a roadblock to securing the Jets' future as anything else. It explains the sometimes public struggle it was to gain the commitment to build a new arena and practically at the same time, to sell the team to another local group. Much of this content was not public during those days. Included at the end of the story is a dateline of critical events. There is simply no better summary of these chain of events in existence, wrote by the Winnipeg Free Press' own Randy Turner. Randy Turner, Winnipeg Free Press March 31, 2007 Source |
The Day the Jets Died, Part 2: Big-league dreams, small-town fears
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PEOPLE SAY HOCKEY IS A RELIGION. IT'S BIGGER THAN THAT.' --Sports psychologist Cal Botterill One of the best summaries of the events surrounding the Jets possible return. For some this read will be a painful reminder of not only what was lost but of the politics and egos that became as much a roadblock to securing the Jets' future as anything else. It explains the sometimes public struggle it was to gain the commitment to build a new arena and practically at the same time, to sell the team to another local group. Much of this content was not public during those days. Alot of the sentiment shared by some of Manitoba's business community may shed light in the future as to their motives and future involvement. There is simply no better summary of these chain of events in existence, wrote by the Winnipeg Free Press' own Randy Turner. Randy Turner, Winnipeg Free Press April 01, 2007 Source |
MTS Centre is small, but 'just right': Chipman
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Mark Chipman explains why a bottom third seat capacity arena in Winnipeg offers better than bottom third revenues for a potential team in the Manitoba capital. Capacity scarcity offers value to season ticket holders in a rink that also has premium revenue streams in both club seats and luxury suites. Chipman also suggested that his ownership group has already run the numbers to suggest a ticket price face value average of $60 works. ($70 when fees and taxes are applied). Tim Campbell, Winnipeg Free Press June 30, 2007 Source |
No Jets No! No Jets No! Hit the road Jets
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Jacques Marcoux makes a lot of points in his article. He frames the question correctly that the "debate should not be a question of should the Jets return, but rather can the Jets return and survive. The answer: Winnipeg cannot sustain an NHL team". The failure of the article is the lack of details to support his claim. Not a single number is presented to explain how this conclusion is reached. Even securing a quote or two from a business school expert right on his own campus would have helped. Mr. Marcoux's assertion that any involvement David Asper might have with the Bombers precludes his involvement in NHL ownership is simply untrue. In fact, David Asper said exactly the opposite on live local radio. Listen to the question and answer here. Jacques Marcoux, Volunteer staff, The Manitoban Online September 12, 2007 Source |
2007 NHL Exhibition Game at the MTS Centre, between the Toronto Maple Leafs and Phoenix Coyotes; starting lineups
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MTS Centre, Manitoba Moose September 19, 2007 Source |
By the numbers: MLSE
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By the numbers: Maple Leaf Sports and Entertainment grows in value, though the hockey team last made the playoffs in 2004. Carrie Coc kburn, The Globe & Mail January 01, 2008 (Link not available to source) |
Sun Belt teams still struggling to cash in
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There's been success on the ice, but not at box office John Manasso explains how the new CBA has lead the NHLPA to conclude that franchise relocations maybe the biggest way to grow the financial pie from which the players receive a percentage. The numbers show that Canadian teams are doing very well while Sunbelt teams aren’t. John Manasso, NBC Sports January 26, 2008 Source |
Mike Beauregard reports; Peter Mansbridge with Mark Chipman
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Mike Beauregard reports from Winnipeg focusing on the state of pro hockey, past, present and future. Following Mike’s report is a live, candid discussion between CBC television newsanchor Peter Mansbridge and Mark Chipman, governor of the Manitoba Moose hockey club, regarding the various aspects of the return of the NHL to Winnipeg. CBC Newsworld February 06, 2008 (Link not available to source) |
Global News Winnipeg: Don Cherry in Winnipeg
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Don Cherry arrives in Winnipeg en route to Winkler, Manitoba for CBC's "Hockey Day In Canada." He is greeted by fans at the airport, and is presented with the question of whether or not he believes the NHL will return to Winnipeg. Don is so supportive of the idea that he even suggests he'd be an investor in the team. Canwest Global February 08, 2008 (Link not available to source) |
31% of NHL ticket revenue from Canadian teams
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The Canadian Press examines the NHL’s gate receipts by game and by team and finds that Canadian teams proved to be among the most financially sound. These numbers allow Manitoba Mythbusters to compare how a potential Winnipeg team’s ticket prices at the MTS Centre and related gate revenues would show against the existing 30 teams. NHLPA Executive Director Paul Kelly cites the document and says that this highlights the need for more teams in Canada instead of the U.S. The Canadian Press May 30, 2008 Source |
Canadian NHL teams mean money
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Canada's six clubs are responsible for bringing in almost one-third of NHL's entire ticket revenue Rick Westhead at the Toronto Star breaks a story from a leaked NHL attendance and gate revenue report. Former Vancouver Canucks owner Arthur Griffiths said that the report makes the case for another Canadian team “whether it's Hamilton, Winnipeg or Quebec City”. Paul Kelly, head of the NHLPA, said "I think it would be a huge error not to relocate one of the existing franchises to Hamilton or Winnipeg." The numbers show that 8 US clubs brought in less than half that of Edmonton or Ottawa. Rick Westhead, Sports Business Columnist, TheStar.com May 30, 2008 Source |
Total Gate Revenues (2007-2008)
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The leaked NHL attendance and gate revenue report as reported by the Toronto Star. The numbers show that 8 US clubs brought in less than half that of Edmonton or Ottawa. Six of the top 7 clubs by gate revenue were Canadian with only the New York Rangers coming in at fifth position. NHL Source, Toronto Star May 30, 2008 (Link not available to source) |
Report: NHL wants to be in Europe in 10 years
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Carolina Hurricanes general manager Jim Rutherford openly supported Winnipeg and another Ontario based location as his priority over having teams in Europe. At the same time, he questioned Europe’s ability to pay NHL prices for tickets 42 times a year. TSN.ca Staff with Globe and Mail files September 12, 2008 Source |
CJOB 680 AM Radio: Bob Irving
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Daily Sports Commentary with Bob Irving, with comments regarding NHL expansion to Europe, his reaction to Wayne Gretzky's and Jim Rutherford's recent comments, and how he believes Manitoba Premier Gary Doer and Mark Chipman will come up with the "deal of the century" in the next decade to bring the NHL back to Winnipeg. Bob Irving, CJOB 680 AM Radio September 15, 2008 (Link not available to source) |
Calculations Supporting Manitoba Mythbusters Fact Sheets
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These 4 pages show how the Manitoba Mythbusters calculated the values that appear on the home page flyer. Each set of ticket price ranges were proven out in a similar fashion using the row-by-row and seat-by-seat values for the MTS Centre. The flyer then compares a potential Winnipeg team’s gate revenues to those of the 30 teams found here. Manitoba Mythbusters September 19, 2008 (Link not available to source) |
Maki: Jets' return still on radar
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Allan Maki blogged about the Manitoba Mythbuster flyer and Winnipeg’s continued to desire to return to the NHL. Allan Maki, WBhockeyblog September 23, 2008 Source |
Real-Time Journal: Winnipeg remains a viable option
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David Pagnotta openly questions why the NHL would consider unproven hockey markets over places like Winnipeg. Using our flyer as first hand evidence, we disagree with the writer that our rink “needs at least 2,000 more seats”. However, the real-time journal was very supportive of Winnipeg’s return overall. David Pagnotta, TheFourthPeriod.com September 23, 2008 Source |
Winnipeggers still dream Jets will fly home
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George Johnson was in Winnipeg in September 2008 for the Flames pre-season tilt against the Phoenix Coyotes at the MTS Centre. George covered local reaction including the Manitoba Mythbusters to Gretzky’s inflammatory comments he made just a few days before arriving in Winnipeg. Former Jets coach Tom Watt supports Winnipeg’s return. George Johnson, Canwest News Service September 24, 2008 Source |
CJOB 680 AM Radio: Richard Cloutier with Mark Chipman
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CJOB Radio: Richard Cloutier talks corporate support in Winnipeg with Mark Chipman. Mark calls Gretzky's comments about Winnipeg not having that corporate base "folklore" and that Gretzky "very well may be" wrong. Mark also says how much stronger the corporate community has become since 1996 and that a team would not come here without proper validation on a high degree of certainty. The committments for season tickets and corporate-base revenues streams would need to be demonstrated before an ownership group could move ahead and purchase a team. Those committments could not be for just for 1 or 2 years. Mark Chipman believes that with his group owning the arena and all its revenue streams, that they would love to become owners of an NHL team in almost any way conceivable. As an illustration of the robust economy, Mark Chipman says that currently, there is a waiting list of over 50 companies for the MTS Centre. Mark also presents the Manitoban economy as one of the most stable that can be pointed to. Richard Cloutier with Mark Chipman, CJOB 680 AM Radio September 24, 2008 (Link not available to source) |
The Fan 960: Sportsline with Rob Kerr, Darren Ford
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Rob Kerr at Calgary’s Fan 960 interviews Darren Ford of Jetsowner.com on exhibition game day between the Flames playing the Coyotes. Darren indicates an ownership group led by True North Sports and Entertainment is ready, with several prominent yet quiet local money people in touch with the NHL. Darren also explains why the MTS Centre size of 15,000 is not a roadblock to anyone including the ownership group. Darren indicated corporate support in Winnipeg is in place for Mark Chipman to even consider a venture like this. Darren confirms that David Asper’s involvement with a new stadium may not hold him back from being part of the NHL ownership group. Darren then also contrasted the Jim Balsille approach to the NHL to that of the Chipman group. The Fan 960 September 24, 2008 (Link not available to source) |
Daren Millard and Mike Brophy with Chris Mackie
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HockeyCentral at Noon on the Fan590 had Manitoba Mythbusters’ Chair Chris Mackie as guest. Both Darren and Mike seemed emotionally supportive yet financially skeptical at the start of the conversation. But as the flyer’s numbers showed over the course of the chat, the brain wins out over the heart and still supports Winnipeg’s return. The Fan 590 September 24, 2008 (Link not available to source) |
Gretzky says Jets return unlikely
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With a backdrop to the 2008 pre-seaon game in Winnipeg, Host Phoenix Coyote head coach Wayne Gretzky doesn't believe Winnipeg has the necessary corporate backing to sustain an NHL team. Although supportive of Winnipeg's return to the NHL, he explains that the fans are terrific in Winnipeg but that they aren't the issue as he sees it. CTV Winnipeg September 25, 2008 Source |
Manitoba makes its case, again...
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Hockey Nation, on a backdrop of another highly financially successful exhibition game in Winnipeg, questions why the NHL isn’t more receptive to Winnipeg and a few others while disposable icome in the U.S. is about to dry up. “Winnipeg where hockey would be king and the reception warm as opposed to ice cold might make for a handy parachute...” hockeynation.blogspot.com September 26, 2008 Source |
Kelley: Balance sheet
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Speculating on the values of NHL clubs doesn’t make much sense, but it can provide some insight into league economics. Jim Kelly, Sportsnet.ca October 30, 2008 Source |
Recession Warning: NHL on thin economic ice
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The Toronto Star's Kevin McGran reports that many leading economists and financiers in the sports community say that "the NHL will likely find itself on financial thin ice if the recession deepens." McGran states those experts opine that "with no substantial American television contract, teams in questionable, non-traditional markets and a falling Canadian dollar, the National Hockey League will suffer more than North America's other major sports leagues in a prolonged economic downturn." McGran reports that "the upside for Canadian fans is that those economic woes could mean another team north of the border as owners look to the game's hotbeds as an economic salve. Kevin McGran, Toronto Star December 02, 2008 Source |
Time to address those ticket prices
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Terry Frei, ESPN January 29, 2009 Source |
