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05-14-2013, 02:28 AM
Where's the Hart?
Join Date: Oct 2007
Originally Posted by
Behind Enemy Lines
Recommend you read the following:
The Edmonton Oilers are a good example of how a small Canadian market with a high level of interest in hockey can be a better location for a team than a large American city whose residents have only a middling level of interest in the game. All else being equal, a team located in a big American market such as Phoe- nix, Miami or Atlanta should have nothing but ad- vantages when compared to a small-market Canadian team. But all else is not equal. A Canadian city of just over one million has far more hockey fans than a Sun Belt city of more than four million. (See Table 4)
Our analysis controls for the border and we come to a different conclusion: a team’s ability to generate revenues correlates strongly with the population of its home market—so long as you control for the presence of the Canada-US border.
Toronto is a more profitable market than Ottawa and New York is a more profitable market than Buffalo. But a small Canadian city the size of Edmonton is a more profitable market than a big Sun Belt city the size of Atlanta. Levitt, in effect, concluded that because Edmonton is a more profitable market than Atlanta there is no correlation between the size of a city and its profitability; instead he should have concluded that being a Canadian city—even a small one—makes a team much more likely to be profitable.
• Canada’s six NHL teams are only one-fifth of the NHL’s 30 fran- chises—yet Canada generates nearly a third of the league’s rev- enues.
• Edmonton, Calgary and Ottawa are three of the smallest markets in the NHL, yet these franchises enjoy arena gate revenues that exceed almost every American franchise.
• The rights to broadcast NHL hockey are the most important deals in the Canadian television market. In the US, the NHL does not even have a proper national network TV deal.
Oh ya, and the rinks in Montreal, Toronto, Ottawa, and Vancouver were built by private investment.
Don't be so naive to think this is as simple as a 'progress v no progress' issue. Scary when uninformed people buy into simple, manipulative P.R. Without the benefit of looking deeper into the heart and reality of the issue.
Scary when you realize that all the owners that built rinks were forced to sell and declare bankruptcy. Yea, that's a model I want to see the Oiler's owner taking. And what about a big city with hockey interested fans? I can almost guarantee a team goes to Seattle if they build a new arena.
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