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Of course, tickets are just one aspect of a team's
successful operation. What about all of the other variables?
After some serious study and endless number crunching
(based largely on Canadian NHL teams), I came up with
a hypothetical summary of what revenue an NHL in Winnipeg
could realistically generate, before costs (gross).
Of course numbers could fluctuate in several categories
or be non-existent altogether. On the other hand, there
could also be a potential revenue stream missing that
would be unique to Winnipeg or newly founded. In either
case, the bottom line would be pretty close to what
is seen in this chart. Figures are based off of sell-out
crowds each and every game. This is where MTSC capacity
becomes a clear advantage because it is a realistic
building to fill. Also remember none of these figures
include revenue from potential playoff games or events
that MTS Centre can generate outside of hockey. All
concerts and other arena events also generate ample
revenue that aren't counted towards hockey revenue figures.
This is the benefit of having an ownership group who
not only owns the NHL team, but also operates the arena
they play in. Non-hockey revenue could be used to off-set
any losses (if there are any) once the hockey bottom
line is figured out separately. If a profit was turned
from hockey, the non-hockey event revenue would only
sweeten the pot for those who administer it.
Notice how MTS Centre can generate over $1.1 million
CDN in ticket revenue per game plus about $175,000 CDN
in suite revenue per game ($7.7 million divided by 44
games). That equals about $1.3 million CDN or roughly
$1.1 million USD per game. I have converted to USD (@
0.85 exchange rate to be able to draw comparison to
the chart below which shows gate revenues for the entire
NHL in the 06-07 and 07-08 seasons. With a Winnipeg
team generating $950,000 without suite revenue or ($1.1
million if suite revenue is included) we would certainly
rank in or near the Top 10 in league gate revenue and
be right in the pack with our Canadian counterparts
as the NHL's revenue leaders. You see, MTS Centre can
generate ample income to sustain an NHL franchise. Tickets
are single-handedly the largest revenue stream for NHL
hockey. Outside hockey, MTS Centre hosts a multitude
of non-hockey events which put the building in North
America's Top 20 and ranks #3 in Canada for traffic.
This diverse revenue stream portfolio allows for ample
profits overall for True North and greatly supplements
the profits of any hockey franchise it controls.
source: The Globe and Mail
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