Thread: News Article: Forbes 2012 NHL team values
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11-28-2012, 11:18 PM
Holden Caulfield
The Eternal Skeptic
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Originally Posted by surixon View Post
I don't neccessarily buy the notion that last year was the high point revenuewise. I think it is importanat to note that the bulk of NHL merchandise is pooled into one big pot and than split 30 ways. The Jets may see some decrease in merchandise from their own team run stores, but I really doubt that those sales factered largely into team revenues. The Jets also raised ticket prices by 3% and I hear that concessions may have gone up slightly as well. Those will more than offset any decrease in team source merchandise sales and as PS241 stated a potential very lucrative Canadian TV deal is around the corner. I also think that every team gets a cut of that NBC deal as well which is worth $200 million a year or roughly $7 million a team. I don't see their revenue streams doing anything but increasing.
I think they are talking relative to the rest of the league. 3% is barely ahead of general inflation, and behind the revenue growth the NHL has experienced in any of the previous 7 seasons. Most projections have NHL continuing to grow at 4-7%. Unlikely concessions grow by much more if any more than the 4-7%.

Every team does get a cut from the NBC deal but it was in effect last year so there will be no gain there in the next decade. The CDN deal may increase, hard to say, it is up for renegotiation very soon.

I think many of you would be surprised at what the Jets stores took in last year. It was insane the amount of money they were pulling in. The Jets made everything a normal store might make (ie mark up) on everything sold in the Jets store. Think about how a River City Sports is such a profitable business on it's own, and the Jets store was likely far far ahead of RCS last year. Obviously there will still be PLENTY of revenue coming through the Jets store, it will be down by a fair bit in upcoming years.

So in the end, while the revenue WILL increase, it will likely fall relative to other teams as our revenue was pretty much at the high end of what we will be possible of in the next 2-4 years at least, barring any playoff revenue. In all likelihood, with the forced small increases in the ST price, we will not match NHL wide revenue gains over the next few years.

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