Viability of Winnipeg NHL team hinges on three questions

Forbes magazine has published online some basic statistics about the value and profitability of the NHL’s 30 teams as of 2008. Combining them with attendance numbers available elsewhere and crunching the numbers yields some interesting insights into what it will take for Winnipeg to support a profitable NHL team.

The viability of an NHL team in Winnipeg appears to hinge on three questions:

  • Can a Winnipeg NHL team pull in at least $86 million U.S. ($95 million Cdn.) in total revenues per year? That was, on average, the minimum that a team needed in 2008 to break even.
  • Can a Winnipeg NHL team pull in at least $35 million U.S. ($39 million Cdn.) in gate receipts per year? That was the approximate dividing line between the profitable and unprofitable teams in 2008.
  • Can a Winnipeg NHL team fill an average of 93 percent of the seats in the MTS Centre for every home game, at an average price of $68.12 (Cdn.) per person? Ninety-three percent capacity crowds were generally the minimum required for a profitable team in 2008, provided that they weren’t giving out too many deep-discount tickets to merely put bums in seats.

Note that those are the minimums needed to break even. A profitable team would have to exceed those minimums.

Advertisements

About theviewfromseven
A lone wolf and a bit of a contrarian who sometimes has something to share.

2 Responses to Viability of Winnipeg NHL team hinges on three questions

  1. Fat Arse says:

    Could a new NHL team based in Winnipeg possibly satisfy any of these three keys to profitability? In a word: NO!

  2. Reed solomon says:

    anythings possible, dude.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: