Markham arena not a threat to Quebec City, promoter says
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02-07-2013, 02:49 PM
Join Date: Feb 2010
Originally Posted by
I think you're seriously overestimating how much money a second team would generate in the GTA. Forbes guesstimates for the Leafs are annual revenue of $200m and operating income of $82m. There's no way a second team could be profitable with a $60m-$100m annual expense. A reasonable estimate for revenues on a second team is probably $100m-$130m annually.
Mississauga would probably be the better location for a "GTA" team as it has a bigger population base to draw from. I think profit wise, Hamilton would be the best option, but putting a team in Hamilton would kill Buffalo without question. Heck, putting any team south of Toronto could kill Buffalo, even if it is technically outside of Buffalo's range. A Markham team would likely be profit neutral, or slightly profitable. Even though Markham is in the Golden Horseshoe, the city itself is not that big. The better predictor of success is city size, not metro size.
Markham is easily better than Phoenix currently though, but Quebec City gets the team because they have the best temporary venue. Seattle simply has too much uncertainty currently, and no feasible temporary facility. If you were to pick a city in the GTA/Golden Horseshoe area to put another team, Markham is actually one of the worst selections. It would be silly for Markham to build an arena to attract an NHL team... they just became a city not even 1 full year ago.
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