How the Islanders leave Nassau early
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01-15-2013, 10:20 AM
Join Date: Nov 2008
Originally Posted by
Just where is the 35M coming from?
Season ticket base may go up a smidge but that is offset by the current season holders that are not going to travel to brooklyn. So thats a wash. Not to mention those that stay away just because of the higher ticket prices that will surely follow the move.
Corporate sponsorship? Maybe a smidge of a tick up, but if the team sucks that is short lived.
Luxuary suites? Again tied to team performance. no one wants to go watch a losing team.
National exposure? Again if they suck they don't make it to Nat'l TV.
So again I ask where is the 35M coming from?
No matter how you slice it, revenue is dirctly related to on ice performance.
The 35 million is reported in a NY Times article.
"An expert contacted by the Times estimated that those suites would generate about $21 million for the Islanders, while premium seating would generate an additional $33 million. That comes to $54 million from suites and premium seats — $35 million more per year than what the Islanders generate at the Coliseum."
"Q. Why would the Islanders move from the Coliseum, where they are tenants, to Barclays, where they will still be tenants?"
"A. The short answer: $35 million in extra revenue per year. That goes a long way toward wiping out the club's current operating deficit, estimated at $8 million per year.
The main benefit in this move "is not in the increased revenue the Isles will get from the average fan; it's in the huge increase they'll get from selling luxury suites and premium club seats,"
said Tony Knopp, chief executive officer of Spotlight TMS, a company that manages corporate tickets at Barclays Center and other sites around the country."
"The Coliseum, built in 1972 and barely renovated since, has 31 luxury suites and a relatively small number of high-priced premium seats. Knopp estimates that the suites generate about $3 million a year and the premium seats about $16 million."
Corporate support, especially in a financial capital such as NYC, is pretty much a constant. Yes those luxury boxes and club seats you see at Citifield and Yankee Stadium may look empty on a game by game basis but they are all bought and paid for by entities that view these items as the cost of doing business. Winning and losing have little to no impact on corporate sales. And as the article states the lions share of this uptick will come from corporate dollars not the guy wearing the Islander jersey sitting in the 300 section.
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