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09-11-2012, 03:30 PM
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bozak911
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Hockey Related Revenue versus Direct Costs

Just what exactly is Hockey Related Revenue?

I think I need to have the current definition of HRR explained to me. I am not sure that I understand this term enough to have a fully educated opinion. Therefore, I pulled up the most recent version of the 2005 approved CBA.

From reading section 50.1 of the 2005 CBA, here are the (non-exhaustive) items which contribute to HRR:
  1. NHL Regular Season and Playoff Gate Receipts.
  2. Pre-season Games.
  3. Special Games. (Example of International Exhibition Games)
  4. Broadcast Revenues (non-inclusive of advertising revenue which goes to the networks in question)
  5. Revenue Generated by the NHL Networks (US/CAN) which includes ad revenue.
  6. Local Broadcasting (Channel 45 + ad revenue goes to the network)
  7. Local Over-the-air Broadcasts (Ad revenue goes to the network)
  8. Pay-Per-View Revenue
  9. Radio Broadcast Deals (ad revenue goess to station)
  10. Internet-based revenue (banner ads, click-throughs, licensing... etc)
  11. Printed Publication Revenue (Inline Pub ads)
  12. Merchandising (wonky rules around this, which makes me grumpy about the "Warehouse Sale" at the X during the scrimmages. That money not counted as HRR edit: oh, it actually is... nevermind)
  13. 54% of all concession revenue is counted as HRR (but again, only on NHL game day events)
  14. 65% of the Luxury box revenue (wonky rules again, dealing with two-tenant deals, single tenant deals, and the percentage which is kept by the league based on multi-use)
  15. Fixed In-Arena Signage (without getting into the details, there are again, wonky rules which dictate what percentage are considered part of HRR)
  16. Parking. Only parking paid to the club which applies to premium/suite owners.
  17. Other Revenues: Branded events. Disposition of game worn merchandise. Product Placement. Special Membership sales. Out of town exhibition games. Autograph sessions.

Relocation fees are, interestingly enough, NOT considered part of HRR. (Section B)

In each enumerated list, there are caveats as to what qualifies and what doesn't qualify as HRR. There are also plenty of exclusions in 50.1b which, unless exploited, wouldn't amount to much that an owner could hide "revenue" away from the calculations of HRR. Interestingly enough, insurance policy payments and suspension cash paid to the league are not qualified as part of the HRR.

Does that mean that basically, every time a player is suspended, that money seems to be "split" among the teams?

Also, curiously enough, the revenue generated by AHL games played in the arena of their parent clubs are not considered part of the League revenue source. If/when the Aeros play at the X, that mony is "split" between the AHL club ownership and the NHL club ownership.

If you are curious, the actual HRR Reporting Package begins on page 328 of the 2005 CBA.

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