Around The NHL 2012-13
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01-24-2013, 10:44 PM
IT'S BOSS TIME!!!
Join Date: Jan 2008
Originally Posted by
No Fun Shogun
Simple, really.... extra suites. That's the money maker for arenas nowadays, and even with the small capacity there's a big upgrade in the number of suites available at Barclays vs Nassau. That alone will make it worthwhile of an upgrade.
That being said, I'm anticipating that they'll regret the relatively limited revenue generation options they have with a small capacity arena, especially if they get good. It'll be better than Nassau, but not nearly as good as essentially any other modern hockey arena.
There was an article in the Times that said that the Isles revenue will go up $35 million just from the suites at Barclays.
Found the link.
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.
Barclays Center, which is far more geographically convenient to corporate customers than the Coliseum, has 104 luxury suites. Knopp 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.
“I’d happily ride the train for another 25 minutes to watch $35 million more in talent on the ice,” Knopp said.
Hope this helps.
They have two years to renovate the arena so they can fit more seats, maybe do something like the retractable seating the Coliseum has. But yeah, it sucks that the arena is small, but it's better seeing them move 22 miles to the west than to Quebec, or Seattle, or whever.
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