Phoenix LXXII: Send in the Clowns
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02-19-2013, 12:59 PM
Join Date: May 2007
I'm not sure what the business model looks like, but the Coyotes clearly need something in the range of another $20M in revenue. How they get that from the gate and related sales is beyond me. But, an average ticket price of $40 isn't going to do it, even with a string of sellouts. Prices need to average around $75 (like the Suns' tickets do), and I don't think that will happen any time soon.
That's one of the problems with the NHL business model which puts too much emphasis on the gate. MLB, NFL and NBA could never survive under that model, and teams would be relocating left and right if they were also gate driven leagues. Places like Phoenix could survive if the NHL had significant sources of revenue outside the gate. But given that isn't how the NHL operates, every team needs to be healthy and contribute to revenue or there will be pressure to relocate teams.
One doesn't need to look far to understand why increased revenue sharing was a non-starter for the NHL owners under the current CBA round of negotiations. Slight modifications yes...but nothing like how more healthy leagues address revenue sharing when they have 10X's the amount of TV revenue to start with.
You have to ask yourself, long-term, and even in healthy markets, will the NHL business model last and what future changes may make even currently stable organizations run into trouble.
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