Can KHL ever become profitable?Does the league even want to become profitable?
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02-09-2013, 10:58 AM
Join Date: Dec 2010
Originally Posted by
That would make it little different from the NHL where, I think, a big majority of the 30 clubs are not profitable either.
You're right. As in KHL, ticket prices in the NHL are relatively cheap, because high prices would just create more empty seats (a problem for a number of franchises). Merchandising is successful in Canada and hockey hotbed areas of the US, which is about half the league. Local TV and radio contract receipts for each franchise are dismally low in comparison to other sports, especially in Southern and Western US markets, where viewing and listening audiences for the NHL are too tiny for advertisers to pay much to sponsor.
The NHL makes a lot of its money from the national TV contract with NBC network, but the national contract seems to be constantly shifting from network to network. The biggest reason why the NHL is suddenly more desirable for a national TV contract in the US is because of international hockey - specifically, the Olympic Games. NBC promotes the NHL in order to boost its Olympic viewership. If the NHLPA decided not to play in Sochi, you would have seen revenues from TV plummet, and many franchises would be back in fire sale mode.
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