Thread: News Article: Forbes 2012 NHL team values
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11-29-2012, 10:20 AM
  #20
Gm0ney
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Quote:
Originally Posted by surixon View Post
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.
Yes, whatever kind of plan the NHL comes up with, it should ensure that a team like Winnipeg with a large base of hockey fans and a fairly modern, sold-out arena can make money. Sure, the MTSC is small, but it has a reasonable number of luxury boxes, and a $92 average ticket price for a sold-out 14,000 seat arena is equivalent to a $68 average ticket price and a 19,000 seat sold-out arena.

I did like that revenue sharing plan that was posted here a couple of months back in the early days of labour strife where every team pays 50% of its own HRR. So Toronto pays $100 million, Columbus pays $42.5 million, Islanders pay $33 million, etc.

Aside: Actually, just looking at the Forbes revenue numbers, under that plan, 13 teams would contribute more than the cap midpoint ($56.23 million) - totalling $173.51 million. Over 75% ($130.6 million) of that would come from the Top 4 revenue teams (Toronto, NYR, Montreal and Vancouver). Toronto and NYR by themselves contribute 25% each.

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