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02-20-2009, 03:12 PM
Join Date: Feb 2008
Location: Ottawa, Ontario
Originally Posted by
I don;t think that many teams outside of Toronto can run through the season with a 56 million payroll and not have a lot of sell outs if they expect to amke good margins. I know the beers are $10, but the Snes are running tons of events in the building and pushing really hard on sales of all kinds. I am suggesting that they need to provide high quality entertainment to make their planned season ticket sales numbers and to make decent margins this year.
I have a couple of buddies in the league and they tell me that lots of clubs pay the bills in the regular season and earn their gravy in the post season. Ottawa has bought up US cash and done other things (events) to keep pace, but sales are always critical.
I think the Sens management will feel pressured to ensure we have a winning or entertaining team, for revenue purposes as much as long term performance. It's not a matter of selling out on one to salvage the other. It's just a business imperative to try and balance both.
They need a (relatively) full building to stay ahead, especially with all the price slashing they are doing.
I disagree. The Sens don't have high costs other than payroll. Melnyk owns both the team and the arena, so there aren't leases to pay or other subsidiary costs. Melnyk, Mlakar, and Murray also know that Sens fans aren't stupid and the fans realize that making the playoffs is not very realistic. It doesn't matter what the quality of the product is in the bigger scheme of things as people want results - i.e., victories and playoffs, the latter which likely won't happen.
Making any type of move that is considered to be a panic transaction could also have the opposite effect on fans. They'll see a team desperate to do something despite the odds. Fortunately, Murray realizes this and has stated that he won't mortgage the team's future. If he was going to take this approach, he would have done this a long time ago.
The more prudent short- and long-term business approach is to cut costs now (i.e., trade players, namely pending UFAs), increase the team's assets (i.e., draft picks and prospects), and create cap space for the off-season. Demonstrate to the fans that there is a plan to get the team back on track, make good choices at the draft, and then make some shrewd moves in the off-season. If the fans see a plan, they'll attend Sens games. Heck, this city has shown that it will support the team in any situation, and I believe the fans will continue to support the team in all situations. Well, maybe not through all situations as the current economic situation is affecting everyone.
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