NHL


WHY NOT CANADA? | HAMILTON | QUEBEC CITY | TORONTO | WINNIPEG

How are existing Canadian teams doing at the gate?

The NHL is a gate driven league with just less than two-thirds of team revenues on average being generated by ticket and suite sales.

During the 2008-09 season, the Canadian dollar slumped to near the 80-cent range in comparison to the U.S. dollar. But even with that factor in play, Canadian teams still had among the league's strongest gate revenues that season.

Based on conversations with hockey sources, here are approximate gate revenues for the six Canadian franchises during the 2008-09 season:



How are troubled U.S. teams doing?

The gate revenues of these four U.S. based teams in the Sunbelt pale in comparison to Canadian teams, both in terms of attendance and dollars fetched per ticket.



How do existing NHL arenas in Canada compare with potential new Canadian franchises?


* proposed arena
** under renovation plan proposed by Jim Balsillie

HOW DOES AN NHL TEAM'S BUDGET WORK?

The NHL Salary Cap will be $58.5 million during the 2010-11 season. So could smaller markets such as Quebec City and Winnipeg afford to compete at the cap, along side the NHL's other six franchises. Probably not.

There is between $35-$40 million of costs beyond payroll to operating an NHL team for a season. Meaning a well-run team at the mid-payroll range would have to raise about $85 million to break even. Making the playoffs would obviously make that easier with gates being worth as much as $1.5-$2 million depending on the round.

Here's what an NHL Revenue Sheet for Quebec City might look like (based on 95 cent Canadian dollar versus US.), based on sellouts to an 18,000 seat building, 70 suites, and an average ticket price in line with those in Edmonton, Calgary and Ottawa:

Category Revenue (Million $)
Local Broadcast Revenue $5.0
League distribution $ 8.0
Gate Revenue $46.0
Suite Revenue $8.0
Sponsorship $8.0
Concessions $3.5
Parking/Publications/merch $1.5
Other Hockey related Revenue $2.0
Non-Hockey rev's (concerts etc) $3.0
Playoffs ???
TOTAL $85 + playoff revenue

WHAT DO CANADIANS THINK ABOUT ADDITIONAL TEAMS IN THIS COUNTRY?

Back in May, the market research firm Environics Analytics discovered that 60 per cent of Canadians believe the NHL should add more teams in Canada, with only 14 opposed.

In June Harris/Decima asked Canadians which cities they thought could financially support a new NHL team. Here's what they had to say:

City Support
Winnipeg 26 per cent
Quebec City 25 per cent
Hamilton 22 per cent
Toronto 11 per cent
Halifax 6 per cent
Vancouver 4 per cent
Montreal 3 per cent
Calgary 3 per cent
Edmonton 2 per cent
Ottawa 2 per cent
Saskatoon 2 per cent
Regina 1 per cent
Kitchener 1 per cent
London 1 per cent
Victoria 1 per cent
St. John's 1 per cent
Waterloo 1 per cent
Mississauga 1 per cent


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