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06-15-2013, 08:59 PM
  #25
Fugu
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Got my laugh for the day.


Quote:
Originally Posted by cbcwpg View Post
http://www.chicagobusiness.com/artic...e-losing-money



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.


If you assume Chicago makes a paltry $1 MM/game on gate, that's $45 MM + $25 MM (before playoff revenues which add another $10-20 MM), so player costs are taken care of right there. Furthermore, if the Hawks are paying into revenue sharing, they are in the top ten of NHL HRR ranking, which ostensibly puts them well into the $100+ MM club.

Quote:
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.
Which would have mean $60 avg ticket price, with 22,000 capacity, x 45 home dates = $60 MM from gate alone.


Quote:
Originally Posted by danishh View Post
what threw me is the : nearly $20M in staff, coaches, and revenue sharing.

staff+coaches shouldnt cost more than 5M-8M (lets say 3-4M for the coach and GM)

that means the hawks are giving significant amounts of revenue sharing money, which means their HRR is considerably higher than this article leads us to believe.

My suspicion is that HRR like parking for games, concessions, arena naming rights (50% with bulls), luxury boxes (50% with bulls), etc are being considered in this article as "United Center" revenues, which for accounting purposes may make sense, but the NHL really treats them as HRR internally.
There is a formula they use for shared NBA arenas. You're right however. This seriously underestimates their actual revenues, and even HRR. My quick/dirty up there with just the average ticket price shows they're well ahead of most NHL cities (in the US).


Quote:
Originally Posted by Ismellofhockey View Post
So they're raising ticket prices 16% and the team is claiming to be in financial difficulty. Now if only I could find a link between the two, some kind of connection where one would explain, or somehow attempt to justify the other.... what could it be? That's a tough one.
Yes, exactly.


And as they keep raising prices and growing revenue at a faster rate than the league average, guess what happens to the cap?

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