Thursday, October 30, 2008

NHL Revenues:Size DOES Matter

Back in May, the Toronto Star published figures which it said showed the average ticket revenue per game for NHL teams. Combining that information with the recently published Forbes list, I thought it would interesting to see which teams generated the most revenue from non-ticket sales sources (tv contracts, corporate sponsorships, marketing etc). Two conclusions: large US cities, even those with mediocre on-ice results and attendance like L.A. and Chicago, can still generate well above average non-ticket revenues, simply because of the sheer mass of advertising and corporate dollars available in those metro areas. The New York metro area generates $173 million between the three teams. A second team in Toronto would only have to generate non-ticket revenues equal to the Islanders ($40 mil)to be in the top ten in total revenues for the entire league. Conversely, the smaller Canadian cities, Calgary and Edmonton, struggle to produce non-ticket revenues. And one of the smallest US metro areas, Columbus, is in dire straits, producing more than a third less non-ticket revenues than the average franchise even before this year's anticipated drop in sponsorship income.
The list is below: if the details of revenue sharing (how much teams paid out and how much other teams received) were known the bottom of the list would surely change. Florida is an anomaly here, even if you assume they received revenue sharing funds, they still generated about as much in non-ticket revenue as Colorado or Minnesota. Again, the sheer size of the corporate market may be a factor in the Panthers' numbers.
1. Toronto $78 mil 2. NYR $75 mil 3. LA $63 mil 4. Boston $60 mil 5. NJ $58 mil 6. Det $56 mil 7. Montreal $56 mil 8. Chicago $55 mil 9. Dallas $55 mil 10. Tampa $54 mil 11. Florida $52 mil 12. Phil $51 mil 13. Anaheim $48 mil 14. Phx $48 mil 15. Wash $48 mil 16. STL $47 mil 17. Van $47 mil 18. ATL $46 mil 19. Car $45 mil 20. Buff $44 mil 21. Pitt $44 mil 22. Col $43 mil 23. Minn $43 mil 24. Nash $42 mil 25. Ott $42 mil 26. NYI $40 mil 27. CGY $37 mil 28. SJS $37 mil 29. CBJ $36 mil 30. Edm $33 mil

Friday, October 3, 2008

KHL Salaries

1. Avangard $30.8 mil 2. Ak Bars $23.7 mi 3. Atlant $20.9 mil 4. Salavat Yulajev $20.6 mil 5. SKA $19.6 mil 6 .Lokomotiv $19.6 mil 7 .Metalurg Mg. $18.9 8. Dynamo Moscow $17.8 mil 9. Serverstal $16.3 mil 10. CSKA $14.5 mil 11. Lada $13.4 mil 12. Torpedo $12.8 mil. 13. Barys $12.1 mil 14. Spartak $9.4 mil 15. Sibirj $8.2 mil 16. Metalurg Nk. $8.2 mil 17. Neftekhimik $8.0 mil 18. Vitjaz $8.0 mil 19 .Traktor $7.9 mil 20. MVD $7.3 mil 21. Amur $7.1 mil 22. Dinamo Rīga $5.8 mil 23. Dynamo Minsk $4.5 mil 24. Khimik $4.3 mil
Division leaders are in
bold. Teams in italics are in last place in their division.

Salary figures are from the KHL website (http://khl.ru/news/2008/10/3/4320.html-an earlier news release (Oct 1, 2008) did not include bonuses or salaries for key players ). Currency conversion was done on 10/04/08 at the London Interbank Rate (25.9 rubles to one US dollar).
The league median is $12,5 million per team,which is a little above the minimum
announced last June. The total league payroll is about $328 million. About all I can say about a league in which the highest payroll is more than seven times (700%) the lowest is good luck ever achieving parity.