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NHL luxury suites: capacity and revenue thread

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Old
01-06-2010, 01:45 AM
  #1
MAROONSRoad
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NHL luxury suites: capacity and revenue thread

I thought Id start a thread on the above topic. Please contribute any information on NHL suites sales here, including info on capacity of suites and how hockey related revenues (HRR) under the CBA are allocated for suites for hockey and non-hockey events in different markets/arenas.

On that note, I'll post some pics from my recent visit to the Pengrowth Saddledome in Calgary on the issue of capacity.

The Saddledome has about 46 suites between the lower and upper bowl. The suites average about 8 or 10 regular seats and 4 bar stools behind that. Here are some pics:







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01-06-2010, 02:04 AM
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Admittedly, I bring this topic up in the context of the debate about the MTS Centre in Winnipeg, where certain posters have claimed the MTS Centre lacks sufficient suites.

It appears, however, that the MTS Centre's suites average about 26 seats per suite (18 regular seats per suite and another 8 stool seats). See here, for example:



More later.

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01-06-2010, 12:03 PM
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How the CBA accounts HRR for Luxury Boxes and other Premium Seating.

I'll edit/write up a summary when I get a chance.

Quote:
Originally Posted by CBA Article 50.1(a)(i)(A)
(A) NHL Regular Season &Playoff Gate Receipts: All
revenues received by a Club or a Club Affiliated Entity
derived from the sale of NHL Regular Season and Playoff
tickets, including, without limitation: (1) season tickets, (2)
single game tickets, (3) group sales, and (4) the face ticket
value of luxury box seats and club/premium seats, to the
extent that the Club sells tickets to such luxury box seats
and/or club/premium seats separately from the luxury box
and/or club/premium seats themselves (all such revenues
net of admission, GST and other provincial and state or
local taxes, and any other charges imposed by government
regulation). If the Club includes tickets to the luxury box
and/or club/premium seats as part of the transaction
involving the luxury box and/or club/premium seats, then
the value of the tickets to such luxury box and/or
club/premium seats shall not be included in this
subcategory (a)(i)(A).
The value of tickets that are part of a
sponsorship and/or Barter transaction shall be included in
this paragraph, but in the case of such sponsorship or Barter
transaction, there shall be an offset to the revenue category
in which the item Bartered for the tickets occurs (provided
such offset does not exceed any applicable cost
convention);
Quote:
Originally Posted by CBA Article 50.1(a)(i)(O)
(O) Luxury Boxes/Suites.
(1) As to luxury boxes/suites in an arena that is not a
Club Affiliated Entity (an "Unaffiliated Arena"), all
revenues received by a Club or a Club Affiliated
Entity from the sale, lease, license or other
conveyance of luxury boxes/suites in that Club's
arena shall be included in HRR, without netting of
any costs.

(2) As to luxury boxes/suites in an arena that is a Club
Affiliated Entity (an "Affiliated Arena"):

(i) For luxury boxes/suites that are sold,
leased, licensed or otherwise conveyed for NHL
hockey events as well as non-NHL hockey events:
(1) sixty-five (65) percent of the revenues received
by such Club or Club Affiliated Entity derived from
the sale, lease, license or other conveyance of such
luxury boxes/suites (excluding the ticket revenue
received for the luxury box/suite seat use included
in Gate Receipts set forth in Section 50.1(a)(i)(A))
for a "Single-Team Arena" (i.e., an arena in which
an NHL team plays its home games, and no NBA
team plays its home games), or (2) thirty-two and
one-half (32.5) percent of the revenues received by
a Club or Club Affiliated Entity derived from the
sale, lease, license or other conveyance of such
luxury boxes/suites (excluding the ticket revenue
received for the luxury box/suite seat use included
in Gate Receipts set forth in Section 50.1(a)(i)(A))
for a "Two-Team Arena" (i.e., an arena in which an
NHL team plays its home games, and in which
arena an NBA team also plays its home games),
with such allocations to be done without netting of
any costs, provided, however, that to the extent an
arena enters into a separate contractual arrangement
with a third party (i.e., a non-Club Affiliated Entity)
regarding luxury boxes/suites (e.g., the RBC Center,
which is the home arena of both the Carolina
Hurricanes and North Carolina State University
basketball team, or the Staples Center which is the
home arena of the Los Angeles Kings, Los Angeles
Lakers and Los Angeles Clippers), then revenues
paid pursuant to such third-party contracts shall be
deducted prior to the application of the above-listed
percentages, provided that the NHLPA shall have
the right to object to any such separate contractual
arrangement with a third party on the basis that the
purpose of that arrangement is for the Club or Club
Affiliated Entity to avoid including revenues
derived from such separate contractual arrangement
within HRR. In the case of any objection, the
matter shall be discussed in good faith between the
NHL and the NHLPA and, failing agreement, the
issue shall be submitted to and resolved by the
System Arbitrator. By way of example, the parties
agree that if a Club or Club Affiliated Entity had an
agreement with a non-NHL team pursuant to which
the team played its home games at the Club's arena
and paid no rent and received no luxury box/suite
revenues, and, upon expiration of such agreement,
the non-NHL team entered into a successor
agreement with the Club pursuant to which the team
would play its home games at the Club's arena, but
would pay $5 million in rent and receive luxury
box/suite revenues from the arena of $5 million, the
parties agree that the $5 million in rent would be
included in HRR (assuming there are no other
extenuating circumstances or other relevant facts).

(ii) For luxury boxes/suites that are sold,
leased, licensed or otherwise conveyed for NHL
hockey events only, including individual game-day
sales of such luxury boxes/suites (which luxury
boxes/suites shall be excluded from calculations
done under subsection (a)(i)(O)(2)(i) above): Onehundred
(100) percent of the revenues received by
such Club or Club Affiliated Entity derived from
the sale, lease, license or other conveyance of such
luxury boxes/suites (excluding the ticket revenue
received for the luxury box/suite seat use included
in Gate Receipts set forth in Section 50.1(a)(i)(A)),
without netting of any costs;

(iii) For luxury boxes/suites that are sold,
leased, licensed or otherwise conveyed for non-
NHL hockey events only, any revenues derived
from the sale, lease, and/or licensing of such luxury
boxes/suites shall be expressly excluded from HRR.
Quote:
Originally Posted by CBA Article 50.1(a)(i)(P)
(P) Club/PremiumSeats.
(1) As to club/premium seats in an "Unaffiliated
Arena," all revenues received by a Club or a Club
Affiliated Entity from the sale, lease, license or
other conveyance of club/premium seats in that
Club's arena shall be included in HRR, all such
revenues net of Direct Costs, provided, however,
that for Clubs in Unaffiliated Arenas, such Direct
Costs shall not exceed three and three-quarters
(3.75) percent of such revenues per League Year on
a League-wide basis.

(2) As to club/premium seats in a Club's "Affiliated
Arena":
(i) For club/premium seats that are sold,
leased, licensed or otherwise conveyed for all
events (e.g., NHL hockey events, NBA basketball
events, and other events): (1) Sixty-five (65)
percent of the revenues received by such Club or
Club Affiliated Entity derived from the sale, lease,
license or other conveyance of club/premium seats
(excluding the ticket revenue received for the
club/premium seat use included in Gate Receipts set
forth in Section 50.1(a)(i)(A)) if such club/premium
seats are sold, leased, licensed or otherwise
conveyed for all events in a "Single-Team Arena"
(i.e., an arena in which an NHL team plays its home
games, and no NBA team plays its home games), or
(2) thirty-two and one-half (32.5) percent of the
revenues received by such Club or Club Affiliated
Entity derived from the sale, lease, license or other
conveyance of club/premium seats (excluding the
ticket revenue received for the club/premium seat
use included in Gate Receipts set forth in Section
50.1(a)(i)(A)) if such club/premium seats are sold,
leased, licensed or otherwise conveyed for all
events in a "Two-Team Arena" (i.e., an arena in
which an NHL team plays its home games, and in
which arena an NBA team also plays its home
games), all such revenues net of any Direct Costs,
provided, however, that for Clubs in Affiliated
Arenas, such Direct Costs shall not exceed three
and three-quarters (3.75) percent of such revenues
per League Year on a League-wide basis, and
provided, further, that, to the extent an arena enters
into a separate contractual arrangement with a third
party (i.e., a non-Club Affiliated Entity such as the
Los Angeles Clippers) regarding club/premium
seats, then revenues paid pursuant to such thirdparty
contracts shall be deducted prior to the
application of the above-listed percentages,
provided that the NHLPA shall have the right to
object to any such separate contractual arrangement
with a third party on the basis that the purpose of
that arrangement is for the Club or Club Affiliated
Entity to avoid including revenues derived from
such separate contractual arrangement within HRR.
In the case of any objection, the matter shall be
discussed in good faith between the NHL and the
NHLPA and, failing agreement, the issue shall be
submitted to and resolved by the System Arbitrator;

(ii) For club/premium seats that are sold,
leased, licensed or otherwise conveyed for NHL
hockey events only (which club/premium seats shall
be excluded from calculations done under
subsection (a)(i)(P)(2)(i) above): One-hundred
(100) percent of the revenues received by such Club
or Club Affiliated Entity derived from the sale,
lease, license or other conveyance of such
club/premium seats (excluding the ticket revenue
received for the club/premium seat use included in
Gate Receipts set forth in Section 50.1(a)(i)(A)), all
such revenues net of any Direct Costs, provided,
however, that for Clubs in Affiliated Arenas, such
Direct Costs shall not exceed three and threequarters
(3.75) percent of such revenues per League
Year on a League-wide basis;

(iii) For club/premium seats that are sold,
leased, licensed or otherwise conveyed for NHL
hockey events and NBA basketball events only
(which club/premium seats shall be excluded from
calculations done under subsection (a)(i)(P)(2)(i)
above): Fifty (50) percent of the revenues received
by such Club or Club Affiliated Entity derived from
the sale, lease, license or other conveyance of
club/premium seats (excluding the ticket revenue
received for the club/premium seat use included in
Gate Receipts set forth in Section 50.1(a)(i)(A)), all
such revenues net of any Direct Costs, provided,
however, that for Clubs in Affiliated Arenas, such
Direct Costs shall not exceed three and threequarters
(3.75) percent of such revenues per League
Year on a League-wide basis;

(iv) For club/premium seats that are sold,
leased, licensed or otherwise conveyed for non-
NHL hockey events only, any revenues derived
from the sale, lease, and/or licensing of such
club/premium seats shall be expressly excluded
from HRR;

(v) For any Club or Club Affiliated
Entity selling permanent or personal seat licenses
("PSLs") or other similar rights at such Club's home
arena, the revenues received by such Club or Club
Affiliated Entity on account of such permanent or
personal seat licenses or other similar rights shall be
amortized over the term of the PSL (but not to
exceed thirty (30) years), and, after amortizing,
shall be treated in the same manner as revenues
received from club/premium seats for purposes of
calculating HRR.

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Old
01-06-2010, 12:19 PM
  #4
kdb209
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HP Pavilion Luxury Suite Info

The HP Pavilion has 65 Suites on two levels:

http://www.hppsj.com/executive_suites/info.asp

Quote:
Executive Suite Information

HP Pavilion at San Jose has 65 Executive Suites on 2 separate levels. On our Main Concourse level we offer 21 Concourse Suites ranging from 10 to 16 seats including their own private bathroom, food service, and private suite staff to take care of any requests. On the Penthouse level there are 44 Penthouse Suites ranging from 12 to 20 seats, these Suites are located on their own private level, which include private elevators, bathrooms, food service, and private suite staff to take care of any questions or special requests you may have.

View Suites

Each Suite is fully furnished and includes:

* 2 Flat Screen HD Televisions
* Ice machine
* Refrigerator
* Telephone
* Liquor cabinet
* Personal cabinet
* Closet
* Granite counter/Wet bar

Suiteholder benefits and amenities include:

* 10-20 seats for every San Jose Sharks games and all other public events held at the Pavilion.
* The ability to purchase standing room only tickets for your suite for any event.
* Relocation tickets for Theatre Style events in HPP
* 3-5 parking passes per suite (1 for every 4 seats).
* Full service Suites Catering
* Full service housekeeping staff
* Full service Suite Concierge & Hospitality staff during events
* 2 private suite entrances
* Suite Holder Will Call window during Sharks games & high profile concerts/events
* Exclusive Sharks Holiday gifts
* Suite Administrators Luncheon
* Suite Owner VIP Reception at the Teal & White Game
* Suite Owner family skate (with Sharks players)
* Sharks playoff tickets at no additional cost
* Waive room rental fees in HPP
* First access to Annual Sharks Equipment Sale
* Ticket forwarding through Ticketmaster
* Trip to a Sharks game on the road (annually for renewal clients only)
* Access to concerts at Shoreline Ampitheatre (Decision Makers only) and the LiveNation VIP network
* Preferred rates for Sponsorship & Advertising and with SVS&E Merchandise and Publishing Companies

Please contact the Suite Hospitality department at 408-999-5900 or [email protected] for information on leasing a Suite now.
The only pricing info I found is for the smallest (12 seat) Penthouse Suite - the least expensive Luxury Suite in the building. That may be all that is currently available:

The current rate for the 12 person suite investment
• $135,000 for a three year contract
• $145,000 for a one year contract

IIRC, in the past I have seen references to ~$200K-$250K/yr for the Concourse Suites.

http://sharks.nhl.com/club/page.htm?id=46465

Quote:
The HP Pavilion and San Jose Sharks suite ownership event season runs from September 1st through August 31st and the standard penthouse level suite is a 12 person suite. The applicable information for the hospitality investment is detailed below:

Features and Benefits
• Average of 125 public events per event season for full suite ownership
• HP Pavilion ranks in the top 10 busiest arenas in the US by PollStar magazine – the industry standard
• Tickets for all public HP Pavilion events
• Sharks Playoff Tickets at no additional cost
• Additional SRO tickets available for purchase in your suite (SRO detail below)
• Executive Suite Parking Passes included for each event
• Opportunity to purchase tickets for events, prior to the general public on-sale
• 15% off Sharks Store Merchandise
• Full Service Catering
• Full Service Housekeeping Staff
• Dedicated Suite Hospitality Staff
• Priority Access to the Annual San Jose Sharks Equipment Sale
• Annual Holiday Gift for Suite Owners
• Annual Suite Holder Family Skate Event with Sharks Players
• Access to Sharks Morning Skates and “Private Practice”
• Golf Outings and Luncheons with Sharks Celebrities
• LiveNation VIP Network Access
• Preferred Rates for additional hospitality, SVS&E corporate partnership, and SVS&E Merchandise Departments

Suite Investment includes tickets and parking for public events
• San Jose Sharks (plus Stanley Cup Playoffs)
• Concerts
• SAP Open Men’s ATP Tennis Tournament Tennis
• American Metal & Iron Fight Night Professional Boxing
• StrikeForce Mixed Martial Arts Fighting
• Family Shows-Disney on Ice (twice annually) and Ringling Bros. Barnum & Bailey Circus
• Click here for a list of current events happening at HP Pavilion
• Past Concerts & Events have included: NCAA Men’s Basketball “March Madness”, Justin Timberlake, Bruce Springsteen, Bon Jovi, Van Halen, Coldplay, Spice Girls, Kanye West, The Eagles, Hannah Montana/Miley Cyrus, Maroon 5, George Michael, Andrea Bocelli, Keith Urban/Carrie Underwood, AC/DC, Green Day, Walking with Dinosaurs, Barry Manilow, Rascal Flatts, The Cure, Tina Turner, Billy Joel & Elton John, Britney Spears, Celine Dion, Barbra Streisand

Suite Occupancy and Investment
SRO (Standing Room Only) tickets can be purchased for half the number of suite seats (a 12 person suite can add an additional 6 tickets for a maximum occupancy of 18 guests). SRO ticket pricing varies by event.

The current rate for the 12 person suite investment
• $135,000 for a three year contract
• $145,000 for a one year contract

Notes
• Customized packages of sporting events are available
• Click here for the link to the virtual suite tour. Click on the tab marked "Penthouse Suites", then place cursor over Penthouse Suite Level and left-click a suite number. Left-click again on the flashing green dots to access the view from the balcony and lounge
• Food & Beverage from suite catering is at the discretion of the suite owner, and is not included as part of the suite investment
• Fractional Ownership is available and generally based on alternating events
• Click here for updated Tax Codes regarding client entertaining at sporting events

For further information, please contact Suite Hospitality at 408.999.5900 or [email protected]


Last edited by kdb209: 01-06-2010 at 12:38 PM.
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Old
01-06-2010, 12:39 PM
  #5
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Pepsi Center has some capacity/price info on their Suites page:

http://www.pepsicenter.com/suiterentals/multiyear.asp

Quote:
Seating:

Most suites include 12 ticketed seats with the option to buy additional barstool seats.

Annual Fees:

Range from $125,000 to $265,000

Lease Options:

A variety of terms are available to fit your needs. Please speak to a Premium Sales and Service Manager to discuss which term is right for you.

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