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12-03-2012, 06:18 PM
  #162
DutchShamrock
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Join Date: Nov 2005
Location: New Jersey
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Quote:
Originally Posted by HatTrick Swayze View Post
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.
And it has been addressed with the 50% concession and a new calculation for the floor (a PA idea).

The contract issues can be solved with a variance cap. The refusal to stop squeezing is insanity. The league wants everything still.


The numbers issue: Its based on league reported numbers. 8 years ago the rangers didn't report concession revenue going into the negotiation. The isles hide their TV money. The hawks hide luxury box sales. Other teams transferred satellite company loses to their books. The "legitimacy" of those numbers was confirmed with a league hired accountant who was only given access to filtered ledgers. It was not an open book. Forgive me if I take NHL accounting with a grain of salt.

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