Business of Hockey: Jets Edition
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08-24-2012, 09:27 AM
It's closing time.
Join Date: Mar 2010
Originally Posted by
I am sure they have the plan in place that is needed, we can debate all day about hockey, but I honestly doubt anyone is questioning Thomson and Chipman's ability to make money and understand business
My main point in bringing this up is that I have a feeling that we will see many reports (think I saw one saying Jets revenue was under 100 million, could be wrong, I'll see if I can find it) stating the Jets revenue as not nearly as high as what is given in this thread, so I was just saying that although it may be this high or even higher, reported numbers may be much lower. And it may mean that it looks like the Jets are not doing that great, when in fact TNSE is making money hand over fist.
It is similiar to the situation in Florida in that although the team may not show up as a huge revenue source, the overall business plan is a very effective one that will be set up to maximize profits, which is why teams with a strong model like that will never be in financial trouble despite showing in the red at times. Teams like Los Angeles and Florida (that I know of off the top of my head) have reported losses in recent years, yet none are in bad shape financially since they are set up as mere parts of a huge business that makes alot of money for the owners. The Jets will be in a similiar situation to that (as in team is perhaps not the primary source of profit).
Yea I agree with your post. To begin with I do not fully trust any report that I have read yet on Winnipeg's revenue for the past 12 months. Anything I have seen is speculating or estimating similar to what we are doing here. There are some things that are easy to figure out and estimate like ticket sales but until anyone provides actual sponsorship revenues, TV deals, concession numbers, and actual merchandise sales from the Jets Gear stores, it is guess work.
I also agree when an owner has the land building, events, parking, etc etc. there are allot of ways to legally tax plan and push revenues into more tax advantageous areas. As long as TNSE keep selling out games they will be solidly in the black and a very profitable entity. The only issue other than demand dropping heavily that could side swipe TNSE would be if the Canadian currency took a huge beating and its hard to imagine that happening for a long long time.
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