A perfect storm of lethal conditions approaches many NHL franchises. The non-traditional markets are held in less priority position by people in those markets that do not have that close connection to the game, having never skated, much less actually played the game. 10 plus years has shown that baseball, basketball, football and even NASCAR are still firmly entrenched in the minds and wallets of these markets, with the NHL making barely a dent in media coverage. Inflated attendances count both complementary and sold tickets where no one actually is at the rink. Ticket deals have reached the absurd for both hockey fans and economists alike, while the few season ticket holders are peeved by the slight to their loyalty. The new CBA in its 3 years has balanced the financial playing surface, in reaching cost certainty, but market revenue uncertainty for some teams is the real issue. The housing market collapse has hit the southern US very hard. And now the economy may be going into the deepest recession this generation of hockey players have never seen. While the NHL has reached new records of total revenues, many teams' revenues have stayed flat or dropped in the last 5 years. Suffice to say, whether the NHL wants to admit it and suffer a loss of perceived inflated franchise values or not, there are several teams looking to relocate, before bankruptcy becomes their only option. 
A Matter Of Dollars And Sense
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The NHL owners went to Florida to party and sunbathe, but wound up trying to deal with the vexing problems that plague hockey: rising salaries, boring games, sagging attendance and the likely loss of several franchises Peter Gammons, Sports Illustrated Vault November 29, 1976 Source |
Study names best, worst cities for sports franchise
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American City Business Journals analyzed 172 markets across America to determine their economic ability to support additional professional teams in baseball, football, basketball, hockey and soccer. The study focused on markets without a team in at least one of the five major sports. LA was the most underserved with Philadelphia, Portland, Orlando and Houston also showing excess sport dollars waiting to be spent. Phoenix was the most overextended markets with Tampa-St. Petersburg, Pittsburgh, Kansas City and Denver being the cities that are shortest on total personal income fort he teams they already have. The study concludes that based on total personal income levels, a total of 26 markets have the economic capacity to support an NHL franchise that does not currently have one. The study may be a little too optimistic as it apparently justifies market sizes for 36 new NFL teams, 1 MLB team and 20 more NBA teams. But as other information on Manitoba Mythbuster website shows, the size of the market alone means little to franchise success and sustainability. However this study is a handy starting point to start the prequalifying process. G. Scott Thomas, Birmingham Business Journal November 29, 2002 Source |
The NHL In Trouble?
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One of the most detailed articles reviewing the state of the economics of pro sports and the differences in hard and soft salary caps and luxury tax systems. Although wrote before the NHL lockout season, so much of the article could have been wrote current day with the new CBA in hand. As such the article provides a great understanding of the issues, which seemingly have gone unchanged for many of the NHL's stakholders including the proverbial family of four. The article's conclusions may be stark but may become more realistic as time moves forward. Matt Witting, WashingtonHockey.com February 10, 2003 Source |
Los Angeles Kings Financial Report
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A fan of the LA Kings with a financial background goes the extra mile in trying to understand how his team can be losing millions every season and provides some suggestions to better the situation. Phil Propper July 01, 2003 (Link not available to source) |
Coyotes' strike a real deal
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ESPN's Darren Rovell details the Coyotes lease in Glendale. With all rink revenues going to the team and the far majority of arena build costs going to the city of Glendale the article makes the point that this is one of the best leases in all of the NHL. Darren Rovell, ESPN.com December 23, 2003 Source |
Doomsday on the horizon
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A terrific blog wrote back in the days of the NHL work stoppage talking about the need for revenue sharing and cost certainty and how they interrelated. What is key to the article are the quotes in it from NHL staff. How large should the revenue sharing extend? How does successful teams swallow a plan that sends million to the same weak teams every year? Most of these questions relate to where we are today. And this might be the biggest bit of evidence that the CBA as it is has not addressed the reality fully. Darren Rovell, ESPN.com April 02, 2004 Source |
CBA: Bettman and revenue sharing
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A terrific blog wrote back in the days of the NHL work stoppage talking about the need for revenue sharing and cost certainty and how they interrelated. What is key to the article are the quotes in it from NHL staff. How large should the revenue sharing extend? How does successful teams swallow a plan that sends million to the same weak teams every year? Most of these questions relate to where we are today. And this might be the biggest bit of evidence that the CBA as it is has not addressed the reality fully. Andrew's Dallas Stars Page September 26, 2004 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 team-by-team look at all 30 NHL franchises
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While some of the predictions during the lockout were overly negative, this article presents each team's payroll pre-lockout as well as their announced attendance averages. This may be helpful hindsight in understanding how bad and for how long things have been bad in certain NHL cities. TSN.ca December 15, 2005 Source |
It's not likely at this point, but what if the Penguins were moved?
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If the Penguins can’t find a new rink in Pittsburg, three cities are ready to take them, Winnipeg, Hamilton and Kansas City. Since Winnipeg and Hamilton are natural hockey markets with suitable arenas, they have an edge over Kansas City. Pierre Lebrun, Canadian Press October 05, 2006 Source |
NHL On The Rebound
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The writers make the case that franchises bought just previous to the work stoppage are now worth much more than in the past based on sounded financials via the new CBA. They explain that the NHL's middle teams can count on a revenue sharing system to help them out which has caused a further increase in club values. The big markets are happy since they no longer put extra cash into players salaries making themselves handsome profits even after paying their share into revenue sharing. However, the US TV deals need to be addressed as they net each club only $2 million per season, compared to over $30 million per NBA and MLB clubs. Guaranteed long term contracts need to be addressed as well as inequalities with the revenue sharing system requirements such as not taking into full account the rink leases and government subsidies each team may collect. Michael K. Ozanian and Kurt Badenhausen, Forbes.com November 09, 2006 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) |
Just Say NO to NHL Expansion.
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Lyle Richardson, aka Spector, Foxsports.com January 14, 2007 Source |
The Fan 590: PrimeTime Sports with David Asper
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David Asper, Executive Vice President, CanWest Global, speaks with Prime Time Sports about Winnipeg and NHL expansion. David Asper has indicated his interest in being part of an ownership group and is comfortable with the MTS Centre as host. He further indicated that beyond Winnipeg being a rabid hockey market that there is a will to have a team in Winnipeg. The Fan 590 January 23, 2007 (Link not available to source) |
CBC: Ron MacLean and Gary Bettman, All Star Game, Part 1
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Gary Bettman responds to Ron MacLean’s questions at the 2007 All Star Game in Dallas, Texas. The NHL Commissioner does think that Winnipeg can support the NHL again with the new CBA. CBC, Hockey Night in Canada January 26, 2007 (Link not available to source) |
CKY News: Nashville Up For Sale
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CKY News Winnipeg: Local Winnipeg news broadcast regarding the possible relocation of the Nashville Predators. The story includes some of the key financials of the team. CTV Winnipeg 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) |
CJOB 680 AM: Gary Bettman's comments at the 2006-07 NHL All-Star Game
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Local media reaction to Gary Bettman's comments at the 2006-07 NHL All-Star Game about Winnipeg's return to the NHL. Paraphrasing Bettman: "Under the current CBA, Winnipeg could probably support the NHL." Both David Asper and Mark Chipman attended the game and festivities in Dallas, Texas. CJOB 680 AM Radio January 28, 2007 (Link not available to source) |
Why Not Winnipeg?
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With many teams showing dwindling interest in both attending NHL games or watching them on television, the writers conclude that Winnipeg is ripe for the NHL. Current Buffalo Sabre and former Winnipeg Jet, Teppo Numminen is quoted in endorsing Winnipeg’s fanbase. Darren Ford of Jetsowner.com provides a perspective on population size and arena size in detemining a market’s ability to support the NHL. Andrew Kulyk & Peter Farrell, Puck Stop March 14, 2007 Source |
Team struggles for support
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Robert Tychkowski argues that "if it's such a struggle for the NHL to make a go of it in Nashville, and the league knew going in that people in Tennessee don't know hockey, don't care about hockey, and might never accept the game, why are they there in the first place?" He further wonders, "why swim upstream in the deep south? Why not go where hockey is desperately wanted, rather than setting up shop in a market where survival depends on converting NCAA and NASCAR fans?" His article includes a chart showing the points the team received in the standings and the average season attendance. Attendance has dropped steadily by roughly 4,100 fans (or 685 fans per season) in the first 6 seasons before the lockout. Two season after the lockout the average attendance did creep up back to 15,100, however the team once again back under the 14,000 thresold for revenue sharing. The writer notes that possibly 1,500 or more tickets are freebies per game, so even these troubled numbers may be inflated. The good news is that the team on ice has gotten progressively better, reaching 106 points in 2005-06, but that removes any excuse the fanbase may have had. Robert Tychkowski, Toronto Sun March 25, 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 |
Ford thinks NHL's return to 'Peg is near
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Mark Chipman cautiously yet positively responds to Gary Bettman’s assessment about Winnipeg. Darren Ford brings up the topic of hockey market size and supply and demand effects for creating ticket scarcity with the proper sized arena. Avi Saper, WinnipegFirst.ca April 03, 2007 Source |
CJOB 680 AM Radio: Richard Cloutier with John Glennon and Mark Chipman
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CJOB Radio: Richard Cloutier interviews John Glennon from "The Tennessean" as well as True North and the Manitoba Moose's own Mark Chipman regarding the imminent sale of the Nashville Predators to James Balsillie and the continuing efforts to bring the NHL back to Winnipeg. Mark Chipman states clearly his interest in bringing an NHL hockey team back to Winnipeg. He further points out that the CBA hasn't worked for all teams and has indicated that he has contacted the NHL with his interest. CJOB 680 AM May 24, 2007 (Link not available to source) |
The party's over in Nashville, but it's just starting at Cup finals
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Light the Red Lamp John Buccigross of ESPN.com reviews the situation in Nashville. He summaries how Craig Leipold got $70 million wealthier, while the team's attendance shows that relocation is only a matter of time. Buccigross speculates that Jim Balissilie may in fact end up with the team and that Winnipeg with its new rink will be in the mix to become a relocation target. John Buccigross, ESPN.com May 30, 2007 Source |
Fuzzy NHL Winnipeg picture could clear
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You had to wade through the customary allotment of bafflegab and doublespeak, but when Gary Bettman invoked the name of Winnipeg during his state-of-the-union address earlier this week, it appears he did so for one of two reasons. The Vancouver Province's Ed Willes speculates on why Gary Bettman would bring up Winnipeg at his State of the Union news conference. "Mark Chipman, the Moose's owner, has maintained a dialogue with the NHL, studied the books of both Ottawa and Edmonton and he believes he could operate an NHL team on a break-even basis in his town." Willis adds, "Ten years ago, the NHL thought it had outgrown Winnipeg. It appears they've had time to reconsider." Canwest News Service June 01, 2007 Source |
Relocation, not Expansion
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Lyle Richardson, aka Spector, Foxsports.com June 08, 2007 Source |
Movie mogul wants an NHL team
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Jerry Bruckheimer is looking to bring hockey to Vegas and the league is more than willing, if he's got the cash to pay for it Steve Milton reports that Bill Daly has confirmed that the NHL is considering Las Vegas as an expansion club with a hefty expansion price tag of $250+ million. Jerry Bruckheimer of TV show CSI has supposely whispered this figure to the NHL. With Balsillie driving up the value of all franchises by offering more than $200 million for the Predators he is also driving up the cost of all expansion teams too. Kansas City more by virtue of an empty brand new rink is also said to be selling its case to the NHL. Based on Hamilton, the writer suggests that should those two cities be set aside for expansion, then less relocation options remain for the trouble clubs, which leads to better prospects for another team in Canada. Milton also points out that Winnipeg would be the NHL's choice over Hamilton due to several complications including territorial concerns with Toronto. Steve Milton, The Hamilton Spectator June 13, 2007 Source |
Gretzky approves of potential Predators move
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Tim Wharnsby and Allan Maki, Globe & Mail June 20, 2007 Source |
Winnipeg, NHL silent partners?
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City's slow, steady, quiet approach best way to land team Both True North chairman Mark Chipman and CEO Jim Ludlow were invited this past January to make a presentation to the NHL's executive committee in a meeting which operators of the MTS Centre preferred to keep hush-hush. "Because we've expressed interest in knowing more about their plans in the past and a desire to be considered in whatever plans they might have, we were invited with some other cities to go and... explain to the executive committee how our market might fit into whatever plans they're contemplating," Chipman said. "I think the (NHL is) just beginning to contemplate the possibility of expansion and I think they want to know what's out there." Chipman added, "we described our existing organization. We described the building that we play in. We described what we judged to be the market capacity. And if they were considering either expansion or relocation we felt we were capable of going to the next step." Chipman was not aware if the NHL had established any pecking order of potential markets. Ludlow said the message of the presentation was to inform the league's executive committee on the overall success of the MTS Centre, in terms of Moose attendance and the strong entertainment component of the new arena. Chipman explained, "I think we were treated very fairly and very respectfully, and I think the comments you've seen have been a reflection of that presentation and the ongoing dialogue after that." In regards to the CBA and an ever-evolving salary cap, Chipman said, ""We want to understand it in the event an opportunity does come forward because we want to be ready for it." Randy Turner, Winnipeg Free Press July 07, 2007 Source |
Peg as good fit for NHL? Well, duh!
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Randy Turner brings to light a quote from Edmonton Oiler CEO Patrick LaForge. "As it relates to Winnipeg, it's one of the great hockey markets in North America," LaForge insisted. "The next proposal -- if there ever is one -- for expansion, it has to be a great hockey market. And Winnipeg passes the great-hockey-market test." Turner explains that not only has the NHL's feelings towards Winnipeg changed for the better over the last few years, but over those same years, positive comments made by NHL brass about Winnipeg have went from headlines to practically unreported as it is no longer newsworthy. The refreshing part as Turner explains is that "the understanding at the highest level of the NHL that ... modest stability may be more financially attractive than sinking another drill into unfamiliar territory." Randy Turner, Winnipeg Free Press September 20, 2007 Source |
Kansas City Hockey: Can They Do It?
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Mike Rucki, onfrozenblog.com October 31, 2007 Source |
Sens owner, Paddock tout Winnipeg for team
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Senators owner Eugene Melnyk says that talk about arena size in Winnipeg misses the point. Both he and former Jets GM and coach and current Senators coach John Paddock support Winnipeg’s return. Winnipeg Free Press, from the news services November 07, 2007 Source |
Lucky loonie has its downside
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Allan Maki and Eric Duhatschek, Globe & Mail November 07, 2007 Source |
Strength of Canadian Dollar Could Hurt U.S. NHL Teams
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Street & Smith's Sports Business Daily November 07, 2007 Source |
The Fan 590: 10 Minutes with Gary Bettman
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The Fan 590: 10 Minutes with Gary Bettman, discussing the Predator's situation, the league's economics, additional teams in Canada, scoring, fighting, as well as Eugene Melnyk's recent claim, reported in the Globe and Mail, that 40% of the NHL's total revenue is earned in Canada. The Fan 590 November 08, 2007 (Link not available to source) |
The Big Small Markets
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James Mirtle discusses of how the concept of small and big markets has changed in the last decade. Quoting NHL player agent Ian Pulver, “ ‘small market’ oftentimes acts as a stand in for ‘big market, indifferent to hockey.’” Mirtle agrees and sees the label not appropriate anymore when it comes down to raw population or potential markets. James Mirtle November 08, 2007 Source |
Monday Musings: Hunting the Predators
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James Gordon questions the logic behind keeping the Predators in Nashville as more money will be lost. Gordon also shows frustration over the way the NHL blocked soundly the Predators move to Canada yet the NHL was seemingly "warming up the moving trucks" in the case of Quebec City and Winnipeg. James Gordon, Ottawa Citizen.com November 12, 2007 Source |
