New Sharks Owner - You cannot make money with a hockey team!
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02-02-2013, 09:19 PM
Join Date: Jul 2006
Not only was Winnipeg Arena old, and had some terrible upper deck seating because the seats were crammed in after the fact (to expand the capacity from 9000s to 15,000 to accommodate a pro team) but, the building was owned by the city. The team did not receive any money for concessions, parking, and not even all of ticket revenue, thanks to a "bailout" arrangement with the city created by this lack of revenue streams.
Today, the Jets are part of a business model similar to that of the San Jose Sharks. Jets ownership controls the arena (money from non-hockey events), concession revenue (or concession contract) including a couple of sitdown restaurants and 2 fast food outlets accessible when events are not happening. An exhibition hall (think Bodies, Titanic) was built for those shows by converting an empty downtown building (former A&B Sound), and has since been demolished to make way for a luxury hotel (which was always ownership's plan). Ownership also built their own practice facility, which has 4 rinks and is rented by all sorts of hockey teams and leagues year round. Our ownership also holds big-ticket concerts in the city's pro football stadium, and, although it doesn't own that building, they are the group bringing these concerts in, and profiting from it. Both men also have their own other lucrative businesses: the Chipman family have dozens of car dealerships, construction firm(s), an investment firm, all in Winnipeg. Thomson has a media empire and is (one of?) the richest men in Canada.
This goes to show what (I think) the article was trying to say... Own a hockey team in someone else's building, and try to turn a profit and make your living off ticket sales, and it's not likely to happen. Having that same hockey team as part of a bigger family of business can add more stability to your plans.
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