NHL markets (MOD: define small, medium, large)
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12-04-2012, 02:06 PM
The Eternal Skeptic
Join Date: Feb 2006
Originally Posted by
Lets not forget one major thing. NHL Revenue is mainly from the gates (tickets) and Jets have one of the smallest arenas in the league. So, to get to top10 in revenue while being able to sell only 15003 tickets per game, that's something to consider. Add 2 or 3k more seats, at an average of 100$ a ticket, that's 300k per game, more than $12M more cash per year. That's something that you gotta consider, specificly in Winnipeg's case because with a 8000 wait-list, you know that you could have a 20k arena and is still would be a sellout and you still would have at least 3000 people on a wait-list for ST.
That's all theoretical. Two factors come into play here. a) You are talking about adding 2/3k seats at above the already high average ticket price. That's not going to happen. The extra seat you would add would be at the top of the arena, the "nosebleed" tickets, the ones worth the least. MTS centre right now has no bad seats, no "nosebleeds" tickets (which is one of the reasons for WPG's high ticket price) due to the small arena. b)Having those extra tickets would drive the average ticket price down. Not only would those extra tickets drive the average down by being worth the least, the Jets would probably not be able to charge as much for the current seats (at least long-term) since the demand for seats would be greatly lessened.
The 15000 seat rink is a product of the market, not a limiting factor, IMO. It maximizes the revenue from the small pool available, at least long term.
Now remember, I am a Winnipeg fan. We have a great great dedicated fanbase. But it's merely a numbers game. We NEED to be truly dedicated market attracting a far far FAR greater percentage of the population into being dedicated fans just to get to mid market status we currently enjoy. Whether it's sustainable longterm to stay in the mid market range depends on how rabid the fanbase can stay and how much other small markets develop. Again though, it's not there's anything wrong with being a small market, it's just the reality of playing in a league where every other city in the league has at least pretty much double your population. Winnipeg will never be bleeding money or threatening to move, but there's always going to be big, mid and small markets, and despite the Winnipeg's dedication giving them a huge boost to overcome their population (based on population we should be last each and every year), it will likely mean Winnipeg is going to be a 15-25 revenue/market team in an average year long term.
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