Why the Blackhawks are losing (money)
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06-15-2013, 05:21 PM
Join Date: Mar 2012
Originally Posted by
Despite making a second Stanley Cup Final appearance in four seasons and obliterating television ratings records, the Chicago Blackhawks will need at least two more years before turning a profit, owner Rocky Wirtz says.
Even with higher ticket and sponsorship revenues this season, Crain's estimates the Blackhawks annually spend between $10 million and $20 million more than they take in
The team generates $20 million to $25 million annually from sponsorships, television rights fees, including those from Comcast SportsNet Chicago (of which Mr. Wirtz is a part owner) and assorted income such as merchandise sales. That doesn't cover a third of the $68 million cost of player salaries. The Blackhawks spend nearly $20 million on staff, coaches and payments to subsidize the league's 10 lowest revenue-generating franchises as required under the NHL's newly minted collective bargaining agreement. Thus the reliance on ticket revenue.
Before the Stanley Cup playoffs began, the team said it would raise prices on next year's season tickets, which account for about 75 percent of all tickets sold, by an average of 16 percent, translating to an overall average ticket price of more than $70.
If a team like the Hawks can't make a profit, what hope is there for the bottom teams?
Decent hope, actually. If they spend to the salary floor, for starters, rather than the ceiling, then have a great season and some sort of playoff run, and have revenue sent their way from teams like the Blackhawks, then there's no reason why bottom-feeder teams can't turn a profit...unless you're the Phoenix Coyotes, of course.
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