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02-15-2013, 11:51 AM
  #319
powerstuck
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Quote:
Originally Posted by nwpensfan View Post
Excuse if this has been explained before but could someone explain the expansion $$ and why Canadian cites would provide larger $$$ than Seattle. Serious question.
Simply because of potential revenue.

If your potential revenue is $100M in USCity#1 but it's $200M in CanCity#1 the guy buying the team for the Canadian city will be willing to pay more because he wants to increase it's chances of actually buying the team.

Now, among many other sources, ticket prices and sales are a reason of better potential revenues. When you take all 23 US teams, take their ticket prices and do an average and if you do the same for 7 CAN teams, their average will be higher.

Now, the same would be true if you would isolate the Northeastern US market (NYC, Bos, Phi, Pitts, Buff).

Add to the fact that some teams (once again, N-East) have lower expenses (travel being the biggest one) which also help toward potential higher revenue.

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