Thread: News Article: Forbes 2012 NHL team values
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11-28-2012, 11:51 PM
  #19
surixon
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Quote:
Originally Posted by Holden Caulfield View Post
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.
Good post. The Jets may not keep pace for the next few years in revenue growth, but I think a drop in the players share of HRR and the decrease/removal of many of the start up expenses will still put them in a pretty advanageous position imo. I am however interested in how the increased revenue sharing pot will be distributed. I realise that the bottem 10 teams will take a the vast majority, but I had an idea on how to help the middle 10. I figured that the middle 10 would be given a "top up cheque" which would make up the difference between the individual teams growth and the league's average growth. i.e if the Jets grow at 3% while the league grows 5.5% the Jets would get a cheque for roughly $2.6 million to allow them to keep pace with league growth. I think a system like this would really help the reveune growth disparity that the league has seen lately probably wouldnt be much more than an average of $5 million per team in the middle bracket. It would still leave a good 170 million for the bottem third.

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