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Fans crying foul over seat selection

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26 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 12:59 pm

Deank


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sputnik wrote:
grumpy old man wrote:
Stonekiller wrote:...rumor has it that the Jets are clearing 1.5 Million a home game. 60+ Million in profits for the season. That doesn't even include merchandising or anything else. How many hockey teams can claim that?
I think the source of your rumour is a little off...

The Jets are not clearing $1.5 million per game. Their average ticket price is $81. That translates into $1.2 million GROSS per game. What their profit is on that is anyone's guess, but the total ticket revenue is about $51 million. Their player salaries are in that neighborhood.

My GUESS is the Jets are going to break even this year (and likely most years) as long as player salaries and the Canadian dollar don't get out of hand.

IMHO, where the Jets will likely make a profit is during the playoffs...

They will do better than break even.

Television royalities are in the ballpark of about $20 million, the private boxes are another $10 million and NHL revenue sharing is anywhere between $10-15 million.

Then add on concessions, advertising, merchandise etc.

Start to add that up and you are looking at a $100 million in revenue per year.

Considering we only have a $51 million payroll, I have a feeling the Jets will do much better than break even this year.

maybe if they do so well they will be nice enough to allow us to put a full dome on the stadium

27 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 1:02 pm

grumpy old man

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The Jets may very well be paying into revenue sharing. How did you calculate the $$$?

I'd be amazed if TV revenues were anywhere near $20 million. Source? My guess is $1m~.

"We" don't have just a $51 million revenue. That is just the NHL players. "We" have admin, coaching, scouting, sales and marketing etc., farm team player salaries...

Not sure how you arrived at $10 million for private boxes, but I'd be surprised if those revenues exceeded $5 million. The tickets for private boxes are included in the 15,004 seat count.

Concessions will be quite profitable. Advertising and merchandise too. I have no idea how much that revenue translates into.

Then there are other costs: airfare; hotel and per diems; office costs; arena costs (game day and rental); MTS Iceplex costs, etcetera...

Of course there is cost to service the debt.

I'm sure TNSE would be delighted at a $60m bottom line. However, on average, it won't be anywhere near that number.


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Yes, I really am that Grumpy...

It's their, they're and there; in Canada it's colour, cheque, rumour and zed...

28 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 2:26 pm

sputnik

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grumpy old man wrote:The Jets may very well be paying into revenue sharing. How did you calculate the $$$?

I'd be amazed if TV revenues were anywhere near $20 million. Source? My guess is $1m~.

"We" don't have just a $51 million revenue. That is just the NHL players. "We" have admin, coaching, scouting, sales and marketing etc., farm team player salaries...

Not sure how you arrived at $10 million for private boxes, but I'd be surprised if those revenues exceeded $5 million. The tickets for private boxes are included in the 15,004 seat count.

Concessions will be quite profitable. Advertising and merchandise too. I have no idea how much that revenue translates into.

Then there are other costs: airfare; hotel and per diems; office costs; arena costs (game day and rental); MTS Iceplex costs, etcetera...

Of course there is cost to service the debt.

I'm sure TNSE would be delighted at a $60m bottom line. However, on average, it won't be anywhere near that number.

Scott Oake covered some of this last March before the team was announced (go to the 3:40 mark)



The $10 million comes from the fact that the luxury boxes lease for about $200,000/year.

I would also think that Scott Oake knows a bit about TV royalties.

29 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 2:54 pm

grumpy old man

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Nah, it was reported the luxury boxes range from $110-$150k each. For argument's sake 50 x $150 = $7.5 million.

More food for thought: Jets receive only licensing monies for any merchandise sold outside their own stores. That makes the margins slightly less lucrative.

Yeah, you'd think Scott would know about TV revenues. Let's do some more math: $20,000,000 / 82 games = $244k revenue per game. How many commercials per game? Who knows. 100? Okay. That means $2,440 per commercial. Now go price TV commercials for small market TSN Jets. Of course this does not include TV production costs. Oh, and profit for the broadcaster. Seems unlikely the Jets receive anywhere near $20 million.

On the plus side of the ledger figure on about $1 million revenue for radio rights.

How about revenue sharing? You still believe the Jets will be on the receiving side? If so, how did you arrive at $10 - 15 million?

What do you figure all the others costs to run such an operation would amount to annually? I understand that TNSE employs 300 people. For the sake of argument let's speculate that half work for the Jets. The cost per employee is probably a conservative $50k.

What would the annual carrying costs be on $170 million?

I think it will be very difficult for the Jets to earn much profit annually.


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Yes, I really am that Grumpy...

It's their, they're and there; in Canada it's colour, cheque, rumour and zed...

30 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 3:07 pm

Outsider

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I have heard sportswriters refer to the Jets as "Budget Team".
The NHL has a salary cap for every team in the league.
So what does "Budget Team" mean exactly?
Thanks

31 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 3:11 pm

sputnik

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grumpy old man wrote:How about revenue sharing? You still believe the Jets will be on the receiving side? If so, how did you arrive at $10 - 15 million?

NHL revenue sharing is not like equalization payments.

There aren't have and have-not teams, where "have" teams pay and "have-nots" get.

The money comes from the cash earned as a part of league wide sponsorships and deals. For instance, Molson is paying $375 million over seven years to be the official beer of the NHL.

This money in part gets divided up among the teams.

However. In the case of NHL revenue sharing. In order for the team to get their full share they must meet certain requirements. These often include average attendance counts (usually around the 14,000 mark) and a revenue growth rate the meets of exceeds league averages. If you miss these your team gets less money.

In the past the revenue sharing has fluctuated between $10-15 million. Last year it was $10 million per qualifying team.

32 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 3:11 pm

grumpy old man

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I assume it has to do with being at the bottom end of the salary cap.


_________________
Yes, I really am that Grumpy...

It's their, they're and there; in Canada it's colour, cheque, rumour and zed...

33 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 3:18 pm

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grumpy old man wrote:I assume it has to do with being at the bottom end of the salary cap.
But didn't I read somewhere the Jets are in the upper half of teams for revenue for an NHL team?
Please correct me if I am wrong.
Thanks

34 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 3:21 pm

grumpy old man

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The two are unrelated. Revenue is the dollars the team earns and salary cap is the dollars the team spends on player salaries.

It has been speculated the Jets are ranked 15th in team revenues. That is certainly possible. But TNSE is a private company. I don't know if the numbers will ever be released publicly.


_________________
Yes, I really am that Grumpy...

It's their, they're and there; in Canada it's colour, cheque, rumour and zed...

35 Re: Fans crying foul over seat selection on Thu Mar 01, 2012 3:39 pm

Outsider

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Isn't it funny how the thread started out about the Bombers and then the darn Jets started dominating the thread.
Sort of like how the Jets dominate the sport scene in the city. Smile

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