2012-13 Lockout Discussion Part VIII: "The 11th Hour" Edition
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12-03-2012, 05:41 PM
Join Date: May 2007
Location: Brooklyn, NY
Originally Posted by
Regardless of the accuracy of Forbes, the simple fact is that the cap FLOOR is set at $54.2MM. If you sell 14,000 tickets to each home game (not even close to a sellout in any NHL arena) you'd need an average spend per person to be $94 (tickets and concessions) just to cover player salaries. If you have a competitive team and can sell around 17k tickets a night, the average spend drops, but is still relatively high for a night on the town at $78.
Obviously there are other sources of revenue (merchandise sales, revenue sharing $, local TV deals) but there are other sources of costs as well (arena lease, travel, scouting, etc.). I don't think it is a stretch to say that some Sunbelt teams are having trouble meeting that.
Not to mention that to get playoff revenue / build a fanbase you have to spend some more money to have a good shot at winning, and can't just operate at the floor.
The floor definitely needs to be lowered somehow but that's something the PA would never go for. They'd rather reach the same conclusion for the small market teams by increasing revenue sharing to make up for the floor being so high.
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