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The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

Red Wings launch digital catalog but fans can't order online [good reason, too]

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11-14-2013, 04:45 PM
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Fugu
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Red Wings launch digital catalog but fans can't order online [good reason, too]

http://www.crainsdetroit.com/article...t-order-online


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The Detroit Red Wings have launched a digital 40-page retail catalog, but there's a catch: Fans cannot order the merchandise online.

Instead, they must call or fax an order to the team, which fulfills the invoice from on-site stock at Joe Louis Arena or the team's Hockeytown Authentics shop in Troy.

That's because of how the National Hockey League governs merchandise sales.

The retail link at DetroitRedWings.com takes users to the NHL's official merchandise shop, and under the league's revenue-sharing arrangement, revenue from retail sales on the site is split equally among the 30 teams.

That means Detroit gets 1/30 of the profit from a $214.95 Red Wings Winter Classic jersey sold at shop.nhl.com.

But in-person – at Joe Louis Arena and Hockeytown Authentics – and phone or faxed sales from the new catalog, are unshared Red Wings revenue.

The article mentions that NFL teams are allowed to designate third party contractors to sell their merchandise for them, thus circumventing the sharing of that revenue.

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11-14-2013, 05:49 PM
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I know the Sharks have a link on their site to the Sharks Store.

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11-14-2013, 06:46 PM
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Already getting banner ads on my phone for this thing here.

The Hawks allow phone orders from Blackhawks Store. Probably a good idea market it better and put out a similar calendar.

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11-14-2013, 08:31 PM
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Interesting. An end-run around the NHL's central site, merchandising sales & control. Messy case with the Rangers a few years ago over that very issue. The NHL at one time actually threatening to revoke the Rangers franchise & expel the principals, grab the team & sell it for Relocation unless they complied with centralization, all 30 teams websites under the same umbrella, all on-line merchandising sales funneled through shop.nhl and no exceptions. Wonder how Bettman & the legal beagles are going to handle this one...

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11-18-2013, 12:32 AM
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Would this not get included in the HRR anyways? Personally, I know of at least a few teams where it's better to buy merchandise from the teams store because they have better quality and more authentic jerseys. Why pay hundreds of dollars for a jersey with the name plates and numbers being the wrong styling used by the team when you can spend the same and get a legit one?

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11-18-2013, 12:36 AM
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Quote:
Originally Posted by Krishna View Post
Would this not get included in the HRR anyways? Personally, I know of at least a few teams where it's better to buy merchandise from the teams store because they have better quality and more authentic jerseys. Why pay hundreds of dollars for a jersey with the name plates and numbers being the wrong styling used by the team when you can spend the same and get a legit one?

All revenue, whether it's the NHL taking the orders or the team is ultimately counted as HRR for cap purposes.

However, the team gets to keep all the money from their own outlets and affiliates. Had they sold the jerseys online, the money gets divided up 30 ways.

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11-18-2013, 08:00 AM
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Quote:
Originally Posted by Krishna View Post
Would this not get included in the HRR anyways? Personally, I know of at least a few teams where it's better to buy merchandise from the teams store because they have better quality and more authentic jerseys. Why pay hundreds of dollars for a jersey with the name plates and numbers being the wrong styling used by the team when you can spend the same and get a legit one?
My understanding is that it is HRR, all teams still get their 1/30 of the licencing monies. BUT by doing an end around like this the retail profit goes 100% to the team rather than being split 30 ways if the sale went through shop.nhl.com (or 100% to a third party retailer in the case of retail outlets not owned by the team).

Here in the Peg the Jets currently have three retail locations, one in the arena on Portage Ave, another in a large subruban mall, and a third at the Iceplex (4 pad rink complex owned and operated by True North) to scoop up as much of the local retail sales as they can.

It will be very interesting to see how this scheme pans out, could be somewhat lucrative for the teams that have higher than average merchandise sales.

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