what do you think is the reason the Isles lose money?
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11-02-2012, 08:28 PM
Join Date: May 2009
Location: New Orleans
Originally Posted by
I was reading the business board and some one made the point of "some franchises **** money, most break even, some lose a lot due to the league not helping them properly grow". It made me think of the Isles.
Now i know a lot of it is Wang is cheap, but is this a chicken/egg scenario? Lets say Wang splashed out and the Isles were really competitive and in the playoffs perennially. Would the Isles be any more financially well off? With the current state of the SMG lease and cable bill would you say that if the team was doing better the tram could probably have a mid team budget?
The old lease and an antiquated building means that revenue streams other teams get simply don't exist for the Islanders.
-- The Islanders have the fewest suites and fewest club seats in the league (they do get most the suite revenue under the old and modified lease).
-- They also have few concessions points of sale, and very few high end concessions. (they didn't get any of that money anyway in the old lease, get some in the modified lease).
-- They also have few advertising spots in the arena. It's small so there's not as much space on LED boards/scoreboard, etc (they didn't get any of that money under the old lease, get some in the modified lease).
When you add up "known" revenue (Local TV deal, National TV split, Revenue sharing, and gate receipts) for all the teams in the league, and subtract that from total revenue, you get a list of each team's revenues from things like suites, advertising and concessions (as well as merchandise). The Islanders would be so far last on that list it would not be funny. Like $20 million behind Phoenix, $45 behind most of hockey, and $60 million behind big clubs.
THAT'S why the Islanders lose money.
So it's really not fans/attendance at all. If the Islanders had sold every single ticket last season, at the average ticket price (and let's be honest, a lot of the unsold tickets are the cheap seats), that would have given the team $6.2 million more in revenue. STILL dead last in revenue. STILL losing money. If they sold out year after year and could raise ticket prices, then they could make a little money.
But the Islanders losses were the highest when Wang said "screw it" and bought Yashin, Peca, Hamrlick and Aucoin and made the playoffs.
They need to either A) Win with a ridiculously low payroll. Or B) Move into a new building.
After the Brooklyn announcement, one report said the Islanders can get up to $35 million MORE in revenue just from SUITES ALONE by going from NVMC to Barclays. And that's why we're freaking stoked. We're just running out the clock on being a poor team. Time to start acting like a New York franchise again.
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