I Thought You Quit.... Phoenix Coyotes Links

Yeah so by know you all probably know about the Phoenix Coyotes situation with Jim Basillie. Well if you are looking for more in depth reading, Here are some quality links:

- A solid summary by James Mirtle (From The Rink).

- The NHL is apparently really pissed off about this and this will all be heading to court (Mirtle - From The Rink). A couple of things about this...

I received the email he mentioned to by their marketing team, which kind of shocked me that I was considered a "popular hockey blogger." Still, that only shows that I can't do this daily because I was so far behind on the news that by time I read my email the news was a day old.

But more importantly is the power battle that is going on between the NHL and Basillie. Basillie has a little bit of leverage here because he has offered to pay certain debts (already), and has essentially put in the hands down best offer for the club with a clause that they have to move to Southern Ontario. BUT... the NHL has the legal rights to the club when Jerry Moyes basically gave up a couple of months ago. And there is no chance the courts will turn against that. This should be fun to watch...

- A Coyotes Call to Arms at Five For Howling.

- A small timeline of all that's gone on with the Coyotes since January (Puck Report)

- The official news release that I received (Canadian Press). Still can't believe they sent it to me.

So that's that. I'm considering a comeback now (it always seems to work this way, doesn't it?) for something small, but I would have to figure out how much time I could dedicate. You'll know by Sunday.

Coyotes Living Off NHL Funds

The Phoenix Coyotes are now living under the NHL's financial roof (AZ Central):

The day after the team agreed to loan terms Feb. 24 with the NHL, it paid Glendale nearly $351,000 in overdue arena rent payments that dated to late summer 2008. The money also likely was used to meet player payroll.

The loan, for an unknown amount, gives the NHL more control over the future of the Coyotes - including the possible relocation of the team. The Coyotes have never made money since owner Jerry Moyes became an investor in 2001, and annual financial losses have exceeded $20 million during his tenure.

Good and bad. Bad obviously because the league and other successful franchises are supporting the Coyotes in this horrid economy. Good because now this gives the NHL leverage to find a new owner or (preferably) move the Yotes out of Arizona.

To get money from the league, the team pledged all of its assets, including its management agreement of Jobing.com Arena in Glendale, as collateral, according to financial records filed with Maricopa County Recorder's Office. Glendale officials had no comment.

The league's investment ultimately could give the NHL leverage to move the team, according to one sports business expert.

And exactly how deep were the Coyotes in before this loan?

Public records do not indicate how much money the NHL loaned the Coyotes. The team already had borrowed at least $57.5 million since December 2003 from affiliates of MSD Capital, records show.

My emotions as I write this consist of rolling my eyes and just having my face in my palms. The NHL needs to figure this out in the long term ASAP, and I don't think keeping the Coyotes in Phoenix is a viable option.

- Enjoy another Hockey Falls commercial, where analysts go to get ideas apparently:

Relocation Issues and a Panthers Merger?

News and Notes from around the Business world of Hockey...

- The NHL and NHLPA are butting heads over a possible second franchise in the Toronto area via Relocation (Globe and Mail):

"With a handful of Sun Belt teams struggling to sell hockey, NHLPA director of player affairs Glenn Healy believes the timing could not be better for the NHL to seriously look at transferring a second team to the Toronto area.

He also stated that, in addition to Canadian billionaire Jim Balsillie and a group that wants to bring a team to Vaughn, Ont., there are at least two other factions interested in landing another NHL team for Southwestern Ontario.

"They have been trying to fit a square peg into a round hole for a lot of years," Healy said yesterday, in reference to the failure of the Sun Belt teams in the NHL. "They have tried everything in the world to sell the game, market the game, put fans in the seats and it doesn't work for a lot of reasons."

The square peg into a round hole analysis is a perfect way to put it. I've never been a big fan of the southern movement to being with, but I'm all for sticking with the ones that have worked relatively well so far.

- Speaking of the Southern movement, the Florida Panthers are the subject of merger talks (Sports Business Journal):

"The Florida Panthers are in negotiations to merge the team, its arena management company and rights to the real estate surrounding BankAtlantic Center with Sports Properties Acquisition Corp., a public-stock company formed last year, sources said.

The potential deal values the assets at $230 million, including debt, with the plum in the talks a planned mixed-use development around the south Florida arena, the sources said. The negotiations have been taking place over the last several weeks, the sources said."

As a franchise, the Panthers have struggled from poor on-ice performance, but the BankAtlantic Center books over 200 events per year, which most likely means a nice profit in general. The merger would probably help a lot with any Panther debt that is lying around.

- That's all I got for today, but I found these commercials on YouTube the other day and I cannot believe I forgot about them. "Clement Clement, hands of Cement" haha, enjoy:

The Wednesday Memo

News and Notes from around the Business World of Hockey.

Yes, I'm still around. School is winding down (one paper, two finals to go) so I will start thinking about my little corner of the Internet here instead of school so much (who needs it, right!?). Here's some headlines...

- The Columbus Blue Jackets have generated over $2 Billion of economic impact in Columbus since their conception in 2000 (Business First of Columbus):

"Among the study’s findings are:

• More than $850 million in spending in Central Ohio has been directly attributable to the Blue Jackets, Nationwide Arena and Columbus Destroyers, the city’s You can watch up to ten companies at a time.

" width="13" height="13">Arena Football League franchise.

• An estimated $160 million in indirect spending at hotels and restaurants can be attributed to out-of-town visitors attending Blue Jackets games and other events at the arena.

• Approximately $4 million in local income tax revenue has been generated by the Jackets and Destroyers since fiscal year 2002.

And more..."

Can the Thrashers boast this? At least they have a "green" arena...

- What the Lighthouse on Long Island project and Kellogg's Nutra-Grain bars have in common (Let There Be Light (house)).

- Game 3 of Caps/Rangers was the highest New York area rated game in 12 years; watched by 2.72% of NY area homes (Puck The Media). God I feel bad for everyone that wasted their time, I wish I had my three hours back of that game.

- Finally, Versus has put out some sick ads this year for the playoffs:

Come on back tomorrow, should have more than just headlines.

The Monday Memo

News and Notes from around the Business World of Hockey.

- A summary of the Game 1 Local TV Ratings (Puck The Media). NYC ratings surprisingly low.

- The Blue Jackets are still operating at a loss (Business First of Columbus):

"Q: Will making the playoffs make the team profitable this season?

A: We’ll clearly operate at a loss. I’m not in a position to get into the details, but there are a number of factors that go into it. A franchise such as ours, we have to be above average in ticket sales and above average in our corporate support compared to larger markets because we don’t benefit from the media (revenue)."

- The NHL's credit is going up to just under $200 million in an effort to help the Coyotes (Globe and Mail). It is anticipated the club will lose around $35 million this season. The credit crisis is likely to get worse, and the league is taking more of it? Ugh...

- The Subway Ad's on the Madison Square Garden glass will be back for Game 3 and 4 starting tonight (Sports Business Journal). They may be back for all of next season too.

Some Ranger fans are really upset about this. I can deal with it, because I watch for the hockey. But many make a good point that it might be a slippery slope to over-advertisement.

- Finally, an amazing Versus NHL Playoff promo:



A little NYR inspiration. Also, that is a hook Scotty.

The Friday Memo (TV Ratings Galore)

News and Notes from around the Business World of Hockey.

- Wednesday Nights TV Ratings for all the games (Puck The Media). Let's just say, we're off to a good start.

- Last night was nearly as good with Boston pulling a 9.4 rating on NESN (Puck The Media).

- Versus is also experiencing a playoff jump as well (Sports Media Watch).

- Finally, some interesting information coming out about the Sabres (Buffalo Business First):

"DiPofi said the Sabres sold 765,229 tickets this season.

Based on media information distributed by the team, however, it appears the ticket count was 741,547. The Sabres had 15 games at HSBC Arena that did not sell out, including two that drew fewer than 18,000 people to the 18,690-seat venue. In 2007-08, the Sabres said they sold out 38 of 41 home dates."

I've got the Sabres at 26 sellouts, which means the 15 non sellouts is the accurate number. I also have that the total number of fans at all regular season home games for the Sabres comes in at 759,787 spectators. This is below what the Sabres are saying they are sold, but above the articles statement. I'll keep tabs on this and I am beginning to work on a paid attendance tracking chart.

Enjoy the games tonight and I should be back Saturday or Sunday or whenever I recover from the Rangers Saturday game.

The Wednesday Memo/Merry Playoffs

I have a lot going on - tests, papers, presentations, Ranger playoff games, the norm. This is the only small post today to basically let you know that I will try to be around tomorrow with some more attendance figures, but if not I will be back on Friday when the dust settles.

- The city of Allen, Texas; a wealthy northern suburb of Dallas will be getting a Central Hockey League team for the 2009-2010 season (Dallas Business Journal). It will be interesting to see how the team does there, as the report says the team will have a close relationship with the Dallas Stars.

- The Penguins have a "tweetup" planned (Pittsburgh Business Times). Basically, get drunk and watch the Pens-Flyers at TGI Fridays with friendly Internet people.

- Hoping your team has a "tweetup" planned? Check out NHLTweetup.com - where you can find the answer to the exact question I just posed.

That's all for now, I'll be back later in the week. Let's Go Rangers.

Nashville's Attendance Up/Thursday Memo/Winter Classic Update

News and Notes from around the Business World of Hockey.

- Literally no "news" that I know of, but the Nashville Predators played their final home game Tuesday night, so we have new stats (click to enlarge):



Nashville finished up over a half a percent this season (announced attendance), where the Second Half Boost and their race for the playoffs (which looks bleak now) undoubtedly played a huge role. The Predators enjoyed almost a 1,000 person boost in second half regular season games this season, all of the heels of the recent announcement that the club will make the 14,000 average paid attendance mark required for revenue sharing this semester. Now although still down from their best season attendance wise (and possibly on the ice, too) two years ago, the franchise has grown leaps and bounds from their pre-lockout attendance figures.

- The Rangers have a big game tonight against the Flyers, win and we're in (yea, I said we). So, I present to you my favorite Bobby Granger commercial. Classic:



More (if anything happens) later.

Update, 12:00 PM EST

- Is Fenway Park the destination for the 2010 Winter Classic? (Boston Herald) Take a look:



Update, 2:00 PM EST:

- Speculating investors for the Montreal Canadiens (Globe and Mail)

Monthly Attendance Update

With March 2009 completely in the books, lets review how the month did attendance wise across the league and each of its divisions. Here is the last divisional update, and the last league-wide update. I would normally do it separately, but I've got all my stuff together so we mine as well do it all at once, no?

First, the overall good news. The monthly Average Attendance for March is up about 2% since February. Take a look (click to enlarge):



The month of March was the busiest for the NHL season, with 210 games which lead to over 3.7 million spectators and thus drives the overall NHL average for the season up to 17,423; a 0.7% increase from last season.

With some more good news, the average capacity attendance was up over 1.5% since February during March. See below (click to enlarge):



Capacity percentage was way up in March, helping drive the average cap. % for the season over 94%. I think it will be interesting to see if April can keep up with such a pace as there are few games but all of them are playoff-like for almost all teams.

Now although the league as a whole improved the numbers for the season and over February, four of the six divisions saw their average attendance drop since last month. First we will look at the Eastern Conference (click to enlarge):



Only the Southeast lost some ground here, which I was kind of surprised to see as both Carolina and Florida are benefiting from the Second Half Attendance Boost. The Northeast is at its highest point since December, and the Atlantic had its best month yet. Not much else going on here, and I think the numbers should be about the same to wrap up the season in April.

Finally, the Western Conference, which is the worse-off by far (click to enlarge):



As you can see, March was not kind to the Pacific and Northwest divisions, but with only 4 out of 10 teams in playoff contention, its not really much of a shock. Teams that come to mind are L.A. and Phoenix for the Pacific; who were in the running back in February but are out of it now. Colorado, the weakest link in the Northwest, is experiencing all-time low crowds at the Pepsi center. Meanwhile, the Central division jumps to record numbers for the Western Conference. These numbers were no doubt helped by having Chicago host 11 home games during March, but at the same time when all five Central division teams have a shot of making the playoffs, the intensity is cranked up. The numbers should be about the same in April, as well.

So that is that for the monthly updates. Next week I will come up with some plans to release a quick (not in-depth, we will save that for the off-season) report for the season, along with anything special for playoffs.

Playing Below Capacity: Colorado Avalanche

Welcome to the tenth and final edition of Playing Below Capacity. This has been a series at Puck Money where I take a look at teams (as of December) that are playing below 85% capacity. All previous editions can be found here. Now, if you noticed in that first link the Avalanche weren't playing below 85% as of December, but seeing as they have slipped below teams such as New Jersey and Los Angeles, I decided to do a bonus edition of the series featuring the Avalanche. Today its off to Denver, Colorado where the Avalanche rank 24th in average attendance with 15,762 and 23rd in average capacity attendance with 87.5%. The Avs have not benefited from the Second Half Attendance Boost either, being down just a bit in both average attendance and average capacity as of Sunday.

*Note: Any "problems" that I suggest the Thrashers have are my opinion and are most likely not 100% accurate (but close to it, if I do say so myself). Enjoy and please do comment.

Here are the ideas I came up with that could be problems with getting people to go to Avalanche games on a regular basis...

• Arena Location/Age
• High Ticket Prices/Poor Promotional Events
• Metro Population
• On Ice Product
• Location/History of Franchise
• Other

First, some basic facts about the Colorado Avalanche (wikipedia):

• The Avalanche were founded in 1972 originally as the Quebec Nordiques of the World Hockey Association. The Nordiques joined the NHL in 1979, and moved to Colorado to become the Avalanche in 1995.
• In twelve completed seasons, the Avalanche have made the playoffs an astounding eleven times. In this span, they have won the Stanley Cup twice ('96 and '01) and won a division championship eight times in a row from 1996 through 2003.
• The Avalanche first played their home games at McNichols Sports Arena in Denver from 1995 to 1999. They have since played at the Pepsi Center, which opened in 1999.
• The said capacity at the Pepsi Center is 18,007 for Ice Hockey.

- Arena Location/Age

Pepsi Center is just west of downtown Denver, but is in a great location in a great city. The sports road trip guys loved it, but did report that parking was at a very high level when they visited in 2001 at $40. Take a look (click to enlarge):



Pepsi Center is noted by the "A" arrow, and is located east across the river from Invesco Field and west of Coors Field. The inside of the Pepsi Center is laid out just as any other modern arena, but ask any fan that has been lucky enough to attend an Avalanche game and they will tell you it is a very nice venue (at least from my personal experience).

The age and location of the Pepsi Center is not an issue here. Denver was ranked 7th in The Sporting News Best Sports Cities in 2008, and although the teams in the city are collectively struggling, it makes the best of times even sweeter.

- High Ticket Prices/Poor Promotional Events

According to teammarketing.com, the Avalanche rank 26th in the Fan Cost Index. The Fan Cost Index:

"The Fan Cost Index™ comprises the prices of four (4) average-price tickets, two (2) small draft beers, four (4) small soft drinks, four (4) regular-size hot dogs, parking for one (1) car, two (2) game programs and two (2) least-expensive, adult-size adjustable caps."

They are about $10 below the NHL average ticket price of $49.66 and are about $6 above the NHL average premium ticket price of $113.44. Their ticket price is up about 3% this year, nothing really too major.

In the promotions department, the Avalanche are somewhat lacking. At the same time, the demand for Avalanche tickets are usually high, but offering little deals as the team attendance dips below 16,000 for the first time in the history of the Avalanche being in Denver doesn't exactly seem logical to me.

- Metro Population

The city of Denver has over 550,000 inhabitants which centers around a metro population of around 2.5 million (statshockey.net). The two figures are relatively low in the leagues ranks, but the city is racially made up of 75% whites, which we all know is the predominant fan demographic of the NHL.

- On-Ice Product

The Avalanche are currently last place in the Western Conference, and will miss the playoffs in their 13th season in Denver for only the second time. But, the Avs will miss the playoffs for the second time in three years, which I think has a major influence on the attendance. Lets take a look at the past couple of years (click to enlarge):



As you can tell, the attendance trend directly follows the placement in the standings. My question to Avs die-hards would be why didn't the attendance jump back a little after their two-round playoff appearance last season? Hopefully someone can answer that for me because I have no idea why it wouldn't flatten or bounce back a bit.

Unfortunately, immediate turn-around from last place in the West to conference champions doesn't look likely. The face of the franchise, Joe Sakic, will be 40 next season and has been injured for most of this one. They have a very solid core in Paul Stastny, Wojtek Wolski, and Marek Svatos. The Avs have been plagued by injuries this year, so if management can make some smooth moves over this off-season, its not unrealistic to think that next year this club could be pushing for a playoff spot. Priority number one from an outsider looking in would be goaltending, and I think many would tend to agree with me.

- Location/History of Franchise

Compared to other editions of this series, I somewhat held back in previous sections such as the population and arena location/age. I did this because Denver is simply a great hockey town. Go back 5 to 10 years and getting Avalanche tickets was just about as likely as winning the lottery if you were an outsider. To think that the Avalanche are going to average under 16,000 this season just plain baffles me. Have Avalanche fans gotten so used to winning that at the first sign of difficult times the couch seems like a better option than a seat at the Pepsi Center? I just seriously do not get it. Gary Miller of CBS 4 Denver wonders somewhat of the same thing, but brings the oh-so general word that many struggling teams are using nowadays (I think rightly so in this situation), Is it the economy, or the Avs play? I'm gonna take the safe bet and say both, as both obviously have an influence on any fan.

Look, any team outside of Detroit would kill for the past decade or so success Colorado has enjoyed, so I do not truly understand why it seems that so many Avs fans have seem to kind of disappeared (literally at the Pepsi Center). Maybe its because I'm riding a relative high with the Rangers and Red Sox as of the past five seasons, because before that it was 10X worse. The fact of the matter is, this franchise is rich in history and tradition, and Denver is a great place to be or live if hockey is your thing.

- Other

Season Ticket Retention will be huge in Denver this off season. It will be a challenge, as season tickets to Avalanche games are pricey along with a tough on-ice product. Just take a look at the comments here from the Denver Post's All things Avs blog. Here's a line that caught my eye by commenter James Jorgon:

"Even if I had vaults full of gold bullion at my disposal I wouldn’t buy/nor renew a single season ticket for this pathetic excuse of a hockey club. The utter contempt management has shown the fans this past season by doing ABSOLUTELY NOTHING to improve the product on the ice is akin to them having spit in all of our faces."

So yes, I think Avs fans have gotten used to winning, a lot. But can you really blame them? Last in the west isn't exactly the same success as fighting for a playoff spot, which I'm sure every Avalanche fan would rather have this season. Also, a great Avalanche blog is the SB Nation site Mile High Hockey.

- Conclusion

The Avalanche are far better off than most clubs in the league at the moment. Their attendance is dwindling because of two main reasons. First, the on-ice play is not up to par with a fan-base that expects a playoff-caliber team year in and year out. Every club fans expects this, but when you've only been around for under 15 years and have been absolutely spoiled with success, the pressure is even more intense. Secondly, I have no doubt the economy is playing a factor, whether Avs fans like to admit it or not. Many of those commenter's claimed they were season ticket holders, and if that is true many also said that along with the Avs poor play, they have picked a terrible time to struggle.

The cure? Fix the on-ice issues as soon as possible, but in the mean time the Avalanche marketing department has to get going with good ticket deals and expanding the fan base. The great rivalry days with Detroit are over for now, as the two teams are on opposite ends of the spectrum and the thought of going to a Red Wings - Avalanche game in the late '90's is an opportunity any hockey fan would have killed for. The Avs can turn it around in the next three seasons, but at the same time I do not see an immediate bottom for this club.

So that is it for Playing Below Capacity this season. It was a good ride and I really learned a lot along the way. I plan on doing the same thing next season with some changes too. At the same time, I will ask again that if anyone has anything they are curious about as to attendance figures/issues or business figures please let me know somehow and I will do my best to unveil some information.

Thanks and more to come later.

The Saturday Memo

News and Notes from around the Business World of Hockey...

One big story to report today...

- The Coyotes have apparently paid their bills (Arizona Republic).

"The team suspended its payments on Jobing.com Arena last August due to contract negotiations, Coyotes and city officials said last week. Coyotes owner Jerry Moyes is in talks with investors about taking a majority stake in the NHL team...

The Coyotes pay the city a $42,708 arena lease fee each month, plus a percentage of parking fees, sales tax, security costs and repairs. In return, the city took on $180 million in debt to build the arena five years ago."

Good news. Like I've said recently, the situation seems to be calming down and will probably stay quiet through playoffs. But after playoffs the Phoenix situation will be open season for the especially interested Canadian media.

- The cup changed everything last year for the NHL, as that was there promo slogan for the 2008 playoffs. Below is one of the ads which focuses the feeling behind each shift in a game:



With the season coming to a close in about a month, I'm sure the NHL has something lined up so be on the lookout.

Hopefully more later.

NHL Nearing A Business Peak?

The 2008 All Star Game in Atlanta

The NHL is on pace for another record season in terms of overall revenue, ticket sales, average attendance, and TV ratings (the last since the lockout). The economy has reached new lows and every expert is forecasting hard times for the sports industry. How much danger is our sport in? A little, I think.

First, lets take a look at the Hockey Related Revenues of the past decade (click to enlarge. NOTE: the pre-lockout revenues are totals of team revenues, thus making them estimate/ballpark figures. Exact figures were not available to me):



Since the lockout, the NHL's revenue has grown just over 16% to about $2.6 Billion. Everyone has heard Commissioner Bettman's projections for this year, starting at definite growth to recent reports indicating flat or slight loss of revenue. In this economy, staying at a flat rate around the current $2.6 Billion would definitely be a great accomplishment. If the league comes through with a 1% growth as I have projected, it would be another added success for the league. But, until the economy recovers (which may take 3-5 years), I do not see the NHL growing more than 1-2% in terms of revenue per year. At the same time, if the NHL were to flatten or drop in revenue for the next couple of seasons, it wouldn't surprise me the least because I think the NHL is reaching a business peak either now or in the near future.

Why do I think this? As it says right on the homepage of this site, 43% of the leagues revenue in 2007-2008 came from ticket sales. The NHL is a gate-driven league, and I don't think anyone is in a position to argue against this. Take a look at the NHL average attendance over the years (click to enlarge):



The league average attendance is at an all-time high, and if the pace continues for the rest of this season, the league will set a new record along with most likely passing the NBA in average attendance. But, say the season ended yesterday and the 17,338 average stood for this season. The NHL does not have much room to move to expand in terms of attendance, as the average capacity in the NHL is 18,446 (take average of NHL Arena capacities). Thus, unless teams are selling over 100% capacity (which some do), the NHL average attendance cannot go any higher than 18,446.

So, what can the NHL do to continue/keep its growth and revenue going? There are simple and raw ideas everywhere such as relocation, contraction, expansion, and taking a cut to get back on ESPN. I have three keys that I think will keep the financial stability of the league up along with possibly fueling the league for future growth when the economy turns around.

• Be Very Cautious with the Salary Cap
  

Since being implemented in 2005, the NHL Salary Cap has jumped nearly $20 Million from the original $39 Million in '05-'06 to this seasons $56.7 Million. Raising the cap at $5-6 Million a year is something I never understood. What is the big rush? It seems as though the league has forced some giant contracts with such rapid inflation of the cap. Next seasons salary cap will suffer because of these jumps, as the cap will either stay flat or drop.

Just google something about bad or worst sports contracts and you will get millions of opinions on the worst ones ever signed or how huge deals are killing sports. As a Ranger fan, I cringed when I heard the amount Wade Redden got this summer. The economy slow down which is no doubt having an influence on the cap might be the best thing for it, as a couple of seasons of the cap staying flat or dipping probably wouldn't be the worst thing to happen to the league. At the same time, don't get me wrong, a top NHL player making $7 Million a year compared to Manny Ramirez making over $20 Million a year isn't fair. But you have to consider the economies at scale.

• Get Creative with Television

As the late Jack Fallah would agree with me, Hockey and Television was not a good mix from the start. It has gotten better, much better, but at the same time Hockey and Television has never really taken off, with the exception of the mid-'90s on FOX. What do I mean by creativity? How about splitting networks, adding networks, or just getting back on FOX or ESPN? At the same time, I think the broadcasting of hockey could benefit from new technology. Mr. Fallah never liked how the camera would zoom too far in on the puck, not allowing him to see players away from the puck, which is where an important part of Hockey is played, and I would have to agree.

Look, the NHL on TV is like a marriage for business purposes. Of course it helps and the relationship is OK, but everything is not there. I do not have any magic answers, I just wish the NHL would get creative and serious in exploring their options for broadcasting the league.

• The Obvious, Fix Two Franchises A.S.A.P.

I saved the most obvious for last. To me, some money the NHL earns falls between the cracks because of how much the league has to support struggling franchises in certain markets. Every league has gone through situations like this, and some successful franchises this season were once in trouble no less than 5 to 10 years ago. But, with the economy struggling to early 1990's levels, stopping the bleeding would greatly benefit the league on the bottom line. There could be many ways to do this, and I'm not sure what would be the best and most efficient, but something has to be done.

In general, I think the league is looking up and is in good position to deal with the economic struggles. I see no real reason as to why playoff ticket sales will struggle (besides the markets being in the toilet), as many fans save up for this certain time of year. Bettman and company are saying the playoff tickets will be an indicator for next season. I somewhat agree with this, but retaining current season ticket holders will be an even bigger indicator. If many teams do not reach a flat level of retention, the NHL could experience its first drop in average attendance in three years.

Sources:

Attendance: Andrew's Stars Page
Revenues: Andrew's, Daniel Tolensky
TV Ratings: Andrew's

Playing Below Capacity: Atlanta Thrashers

Welcome to the ninth edition of Playing Below Capacity, a series where I take a look at teams (as of December) that are playing below 85% capacity attendance. All previous editions can be found here. Today its off to Atlanta, Georgia where the Thrashers rank 29th in average attendance at 14,501 and rank 30th in capacity attendance coming in at 78.2%. Atlanta has not benefited from the second half attendance boost either, as attendance is down 1% from the end of the first half of the season. So lets get going.

*Note: Any "problems" that I suggest the Thrashers have are my opinion and are most likely not 100% accurate (but close to it, if I do say so myself). Enjoy and please do comment.

Here are the ideas I came up with that could be problems with getting people to go to Thrashers games on a regular basis...

• Arena Location/Age
• High Ticket Prices/Poor Promotional Events
• Metro Population
• On Ice Product
• Location/History of Franchise
• Other

First, some basic facts about the Atlanta Thrashers (Wikipedia):

• Atlanta was awarded an NHL franchise in the summer of 1997, but with an insufficient arena, the plan was to begin play in the 1999-2000 season with the opening of the new Phillips Arena.
• In eight completed seasons, the Thrashers have made the postseason once, winning their only division championship but losing in the first round in 2006-2007. In 2005-2006, the team was poised to make the playoffs but failed to in the second half.
• The Thrashers home is Phillips Arena, which opened in 1999 and is also home to the NBA's Atlanta Hawks. It was built on the exact site as the previous arena to the former Atlanta Flames (now in Calgary, Alberta), the Omni Coliseum.
• The capacity for Ice Hockey at Phillips Arena is said to be 18,545.

- Arena Location/Age

Phillips Arena is a very nice new arena based in on the eastern side of downtown Atlanta. The sports road trip guys liked it a lot, as they say it is easy to get to and the buzz around the arena is great because of its busy downtown setting. Take a look from the satellite (click to enlarge):



Phillips Arena is noted by the arrow "C" and the big white dome next to it is the Georgia Dome. Phillips Arena is not the problem in Atlanta. It is a very nice and new facility. Take a look inside:
The way Phillips Arena was laid out is great to me, as all luxury boxes were placed on one side vertically, as shown. On the opposite side, there are only two levels of seating, which I highly promote as well (no steep and very high third bowl). I have been told though that the traffic in Atlanta is brutal, and actually has prompted discussions on when to start games (either 7 or 7:30 PM). But in general, Phillips Arena isn't the problem.

- High Ticket Prices/Poor Promotional Events

According to teammarketing.com, the Thrashers rank 22nd in the Fan Cost Index. The Fan Cost Index:

"The Fan Cost Index™ comprises the prices of four (4) average-price tickets, two (2) small draft beers, four (4) small soft drinks, four (4) regular-size hot dogs, parking for one (1) car, two (2) game programs and two (2) least-expensive, adult-size adjustable caps."

Atlanta's FCI comes in a $262.48, up about 4% from last season. The Thrashers are about a dollar below the NHL average ticket price, at $48.51, which was up about 5% from last season. Finally, the Thrashers are about six dollars below the NHL average premium ticket price at $107.75. So it is a good thing that the Thrashers are below the average all around, otherwise their attendance situation might look worse.

On another note, I think the Thrashers could be doing more in terms of ticket offers. A look at the Thrashers ticket page on their site reveals a couple of pack deals along with a couple of promotions, but nothing that seems to target specific audiences such as college students or young couples, for instance. Does the ownership care?

- Metro Population

The city of Atlanta has just over 500,000 inhabitants, but over 5.1 million people are scattered around the area (US Census). This ranks the city 19th in the NHL in terms of population, but Atlanta's metro would be towards the top of the list (statshockey.net). And in our sport where race is the difference between many fans, Atlanta is the first city in this series where the racial makeup of a city is predominantly black rather than white. Atlanta is about 55% black, while only 37% white. On a note that Gary Bettman will most likely bring up in any Atlanta relocation/contraction talk, it was noted in 2000 by CNN that metropolitan Atlanta is the fastest growing metro area in the nation. This is obviously good, as much of the Thrasher fans come from the Atlanta suburbs.

- On Ice Product

The Thrashers will fail to make the playoffs this season once again, being mathematically eliminated in late February. Their second half average attendance will most likely drop from their first half mark as the team is playing for its pride and their paychecks. Lets take a look at the past couple of years (click to enlarge):



Looking at this a couple of things got me thinking. First, what prompted the boost in the 2003-2004 season? Well, in the summer of 2003 the team was bought by the Atlanta Spirit, LLC; from Time/Warner. The next boost was provided by two good on-ice seasons, bringing in some bandwagon fans. Since then, the attendance has slipped, and will undoubtedly fall to pre-lockout levels this season.

The future for the on-ice success of the club is uncertain, to make matters worse. According to Hockey's Future, the Thrashers have the 10th best group of prospects in the league, which is a start. They have some promising young players in Zach Bogosian, Bryan Little, and Tobias Enstrom; and are still led by great Russian talents Ilya Kovalchuk (only 25 years old) and Victor Kozlov (36, on the other hand). The situation with Kovalchuk takes a different turn it seems every month, and with tomorrow being this seasons trade deadline, he may be on another team very soon. At the same time, this club may be good in 3-5 seasons, but immediate success does not look promising.

- Location/History of Franchise

Basic knowledge tells us that Ice Hockey in Atlanta will always be a tough sell. If the Thrashers could ever consistently average over 16,000, that would be considered to me a great success and one to validate staying in Atlanta. But unfortunately, the fan base for the Thrashers don't exactly make up the biggest following in the league, and I would imagine are made up of many fair-weathered fans. A quick search for rinks in Georgia returns only 10 results, so I think it safe to say that the Thrashers presence hasn't exactly brought a hockey boom in the state.

The Atlanta Flames eventually moved to Calgary because of their Owners personal financial difficulties but in their eight seasons provided the fans with six playoff appearances, but winning none of the series. Still, is the second coming of the NHL headed for the same fate? The on-ice product has been worse but at the same time the Atlanta Flames and the NHL had to compete with a rival league, the World Hockey Association.

- Other

If you didn't notice by know, I haven't spoken much at all about the Atlanta Ownership situation, which is a major issue with Thrasher fans. First, some links to summarize the situation as easy as possible:

1. Why the Atlanta Spirit, LCC shoulnd't even own the Thrashers and Hawks (Gracisouly from reader Jen, Atlanta Journal Constitution)
2. The fight between the majority owners (Again from reader Jen, AJC)
3. More on the fight between owners (The Falconer at Bird Watchers Anonymous)
4. Updated value of the Thrashers/Hawks/Phillips Arena package (Again, The Falconer)

From what I have read and comprehended, the ownerships level of passion about the two teams is dismal. Maybe all of that plays a role in the personnel decisions from management of the clubs to the below-average ticket offers to fans, because I certainly tend to think so.

Either way, it is a mess. The current ownership will not replace GM Don Waddell, (who has been out of favor with Thrashers fans for a while, I believe) and frankly I think a change in ownership would do both the Thrashers and Hawks good. Phillips Arena isn't going anywhere as it is a great place, so don't expect Bettman to favor pulling the plug in Atlanta anytime soon. On a final note, The Falconer at Bird Watchers Anonymous most likely knows 10 times more than me on this situation, so visit his site and if you have any questions I'm sure he could answer them with ease.

- Conclusion

Behind the Coyotes, I view the Atlanta Thrashers as the second biggest franchise mess in the NHL. They are the 27th most valuable club in the league at $158 million, and while they have been operating in negative numbers the past three seasons, the teams revenue has also risen about $3 million every year. The team is growing as well, with a 19% annual value change and a 6% one year change.

I have stated before that if I had my way, Phoenix and Atlanta would be gone quicker than you could name the nine partners (soon to be eight?) of the Atlanta Spirit group. At the same time, I'm going to pull a Rush Limbaugh and say I in no way wish the franchise suffers financially or on the ice. I wish the club could find new owners that care about the city and the sport and would put loads of efforts in to grow the game and create some tradition in Atlanta. Do I see it happening? Not anytime soon. I think once the Coyotes situation settles down (if it ever does in the next six months), the eyes will collectively shift to the Southeast division of the league and Atlanta may be a topic of discussion in the coming months.

That's about that here for this edition of Playing Below Capacity. I do have a bit of news though. As I lead off every edition of this series, nine teams were playing below 85% back in December when I decided to do this. Let's take a look at the same area now:



Nowadays, only four teams are below my 85% bar. Seeing that New Jersey was my first edition of this series and that L.A. and N.J. have passed Colorado, I'm announcing a bonus edition of Playing Below Capacity to be published next week at this time with the topic being none other than the Colorado Avalanche. I will not cover the St. Louis Blues though, as I already did a little piece on them in January (plus, they average over 18,000, they aren't hurting).

Check back later for a division average attendance by month update.

The Monday Memo

News and Notes from around the Business World of Hockey...

- Really fun Player/League escrow amount news! Sports Business Journal (from Paul Kukla) reports that the NHL will retain $120 million in player salaries to cover shortfalls. This equates to about $ 4 million per team. From SBJ:

"Sources familiar with league revenue projections said that 'significantly' more than $120 million in escrow money will be retained by the league."

I point this out because back in late January I produced a ballpark escrow figure on how much each player would lose and how much shortfall the league will have this season. I came up with a shortfall of just under $210 million, which means each player would lose just under $123,000 per million in their contracts (18% of their deals).

- Ticket pricing news, as according to Team Marketing Report the Predators and Bridgestone Tires have teamed up to offer a 3-game pack for the renaming of the season:

"Fans who purchase any three games on the remaining Predators regular season home schedule will receive a $250 discount card, redeemable on anything from an oil change to a free tire (when you buy three)...

Although the pack was still available through the end of February, Predators Senior Vice President of Corporate Development Chris Parker said the team sold “several hundred packages” with more than a week left"

Apparently, this has been going on for at least a couple weeks is the feeling I get from reading the article. I couldn't find anything on the Predators website, though. Either way, good deal.

- Sportsnet.ca will stream its day-long trade deadline show in the US (Puck The Media). It's official, I really won't be doing anything come Wednesday.

- Finally, as the playoff approaches, one of many former NHL Ads that will be shown here:



More later.

NHL v. NBA Attendance Update; More Coyotes News

Seeing that a report recently caused some traffic to one of my NHL v. NBA attendance charts, I figured I would update it tonight. The previous chart showed that the NHL was outdrawing the NBA in terms of capacity attendance in five out of the ten markets the NHL and NBA directly (meaning they share the same building) share. This is still as of today, but in Denver the Nuggets of the NBA have recently taken an edge on the Avalanche; as they were previously virtually tied in capacity. Take a look:



As for the Los Angeles situation, I call it a moot point. The Lakers are obviously more popular than the Kings, but the Kings are at least even with or more popular than the Clippers. When I get some time this weekend, I'm going to take a look at comparing these teams averages, as NBA teams typically have more seats to fill in an arena due to the fact that an ice hockey rink is larger than a basketball court.

In other news; Glendale, Arizona is going to be giving the Phoenix Coyotes a break in the form of $15 million a year towards the new lease deal in order to keep the financially struggling club in town (Sportsnet.ca). Along with this, the report states that the Coyotes have received one formal offer to buy the club, and they hope to have a new owner by the 2009 Draft in Montreal:

"Sources also say principle owner Jerry Moyes has had three separate out of state groups show interest with one already making a formal offer. A league source tells Sportsnet they hope to have a new ownership group finalized by the 2009 NHL entry draft in Montreal."

After weeks and weeks of bad news after more bad news for the Coyotes, there is a glimmer of hope in the Desert.

- Update: 8:45 PM EST

According to Red Wings GM Ken Holland, tickets for the Blues and Wings in Stockholhm, Sweden for the NHL 2009 Premier sold out in less than an hour today (Freep)

Well, that was quick.

That's all for tonight, more tomorrow.

Playing Below Capacity: Florida Panthers

Welcome to the eighth edition of Playing Below Capacity, a series here at Puck Money where I've been taking a look at teams (as of December) playing below 85% capacity in their arenas. The previous seven editions can be found here. Today its off to Sunrise, Florida where the Panthers are fighting for their first playoff appearance since the spring of 2000 and are currently ranked 29th in attendance by capacity coming in at 79.1%. However, the Panthers are enjoying a 1.5% gain from their first half average attendance, including a 10.5% jump in the last two weeks as they just wrapped up a six game homestand at the BankAtlantic Center.

*Note: Please remember that I'm a young college kid who thinks he knows what he's talking about. Any "problems" that I suggest the Panthers have are my opinion and are most likely not 100% accurate (but close to it, if I do say so myself). Enjoy and please do comment.

Here are the ideas I came up with that could be problems with getting people to go to Panthers games on a regular basis...

• Arena Location/Age
• High Ticket Prices/Poor Promotional Events
• Metro Population
• On Ice Product
• Location/History of Franchise
• Other

First, some basics about the Florida Panthers (wikipedia):

• The Florida Panthers began play in 1993 when in 1992 Blockbuster mogul H. Wayne Huizenga was awarded an NHL Franchise. The Panthers entered the league in '93 with the
  (now) Anaheim Ducks. The team is now owned by Alan Cohen and other wealthy Florida-based businessmen.
  
• In 14 completed seasons in the sunshine state, the Panthers have made the playoffs three times, twice not advancing past the first round. Their 1995-1996 season was one to remember as the Panthers made their only Stanley Cup appearance.
• For their first five seasons, the Panthers played at Miami Arena in Miami, FL. In the fall of 1998, the Cats moved to the now-named BankAtlantic Center in Sunrise, FL, about 35 miles north of Miami and about 15 miles west of Fort Lauderdale, FL.
  
• The capacity for Ice Hockey at the BankAtlantic Center is said to be 19,150 or 19,250 with standing room.

- Arena Location/Age:

The BankAtlantic Center opened in 1998, so being a decade old is not a problem. The Sports Road Trip Guys say the arena is gorgeous, but the location was a poor choice. Lets take a look from the satellite (click to enlarge both):



The BankAtlantic Center is noted by the "A" arrow. The "city" of Sunrise is very much a residential area, or to put it frankly, a giant retirement village. The arena is placed between a swamp and the nations fourth largest outlet shopping mall. With Sunrise only having just over 90,000 inhabitants, lets take a look at where most other Panther fans have to come from to get to Sunrise:


The green "A" arrow represents Miami Arena, the Panthers former home. The "B" arrow represents the BankAtlantic Center in Sunrise, and the "C" arrow represents the center of Fort Lauderdale, Florida. From Miami to Sunrise is 35 miles according to google maps, or about 45 minutes by car. From Fort Lauderdale to Sunrise is about 15 miles, or 20 to 25 minutes by car. Although I've never been to Sunrise, I have almost no doubt this has an affect on the game by game attendance. The club had five years starting in 1993 to find a new home in East Florida, and by placing the arena in Sunrise, the choice seems rushed. I could not find any articles about the placement choice, but placing the Arena in Fort Lauderdale would have been a much more logical choice. I understand this is easier said than done, but in a downtown setting this arena would have looked great and the Panthers would enjoy at least ~500 more spectators per game.

Update: After being directed to a thread on HF Boards which discusses the location of the BankAtlantic Center or "BAC," many season ticket holders and consistent fans enjoy the arena location because of how easy it is to get to with highways and parking. Although I still think downtown Ft. Lauderdale might draw more crowds, some/most/half of Panther fans do not mind the location of the BAC.

- High Ticket Prices/Poor Promotional Events

One would think the Panthers would attempt to keep ticket prices low to attract more consistent fans, but a Panthers game for the family can cost Mom and Dad a couple of bucks. According to teammarketing.com, The Panthers are 11th in the Fan Cost Index for the NHL at $309.44. The Fan Cost Index:

comprises the prices of four (4) average-price tickets, two (2) small draft beers, four (4) small soft drinks, four (4) regular-size hot dogs, parking for one (1) car, two (2) game programs and two (2) least-expensive, adult-size adjustable caps.

Florida's FCI is up 14.1% from last season, along with their average ticket price being up just under 3%, which raises that cost to $52.61 and in turn is just above the NHL average. The Panthers average ticket price is $111.34, which is just under the NHL average. Could these prices affect incoming fans? Sure, but the Panthers are right around the NHL average, which is really all you can ask for.

Although the tickets might be a little high-priced, the Panthers marketing department does a great job of offering great deals to bring in new fans and keep old ones. The most recent is the Panthers Promise Plan; a four game ticket plan where if the Panthers make the playoffs you get priority access to playoff tickets. If the Cats fail to make the playoffs, you get four tickets to the '09-'10 season for free. I'm sorry for the cheesiness, but what a great deal! Along with this, the Panthers have plenty of theme nights, and they have another marketing favorite of mine; the Panthers First Timer Program. The program allows anyone with a Florida Drivers License to apply for two tickets for free to one game. It has drawn some slight criticism as the Panthers are constantly in the rumor mill for giving away a hefty amount of tickets, but I still like the deal as it has the great possibility of creating new fans.

- Metro Population

The "city" of Sunrise has just over 90,000 people. The metro population of the Miami-Ft. Lauderdale area is key though, coming in at just under 5.5 million people (statshockey.net). The city of Sunrise has the second lowest population in the NHL, defeating only the tiny Uniondale. The metro population is a solid one, but seeing that Ice Hockey is a predominately white and non-Hispanic demographic, the Panthers most likely suffer that only about 40% of the population is just that in the South Florida Metropolitan Area.

- On-Ice Product

As I mentioned, the Panthers are looking to make the playoffs for the first time in seven seasons. With the Panthers currently 7th in a tight Eastern Conference playoff race, the Panthers attendance should no doubt benefit from the Cats on-ice play for their remaining 11 home games. Lets take a look at the Panthers attendance compared to their on-ice play (click to enlarge):



The average attendance of just over 16,000 in 2001-2002 was the franchises highest average since its creation in 1993. The fact of the matter is, Southern Florida is a tough market to sell hockey in. An average over 15,500 should be considered a success, and an average over 16,000 is pretty well done. Of course there is always room for growth, but the plan for the Florida heads running the show should be to get back to that 2002 level and stay there for a couple of seasons.

The Panthers are an exciting team on the ice, with young forwards like Michael Frolik, David Booth, and Nathan Horton leading the way. Arguably the teams best player, 25 year old Defenseman Jay Bouwmeester, has been thrown around in more trade rumors this season than anyone I can remember. The club has found a successful tandem of goaltenders in Tomas Vokoun and Craig Anderson, both of which should be back for the 2009-2010 season.

- Location/History of Franchise

As stated and with kind of basic knowledge, hockey is somewhat of a tough sell in Florida. Do not get me wrong, the sport does great for its location and history with the area. It definitely has a pulse as the Statewide Amateur Hockey of Florida in in association with USA Hockey along with Florida Scholastic Hockey League, a high school hockey league setup about 11 to 12 years ago. Hockey has come a long way in the state, thanks to the help of the Panthers and Tampa Bay Lightning.

- Other

The Panthers are the 24th most valuable team in the NHL at $163 million dollars; which is up 8% from last year. Their value and revenue have risen every year since the lockout, but unfortunately so has the negative operating income, which last season came in a $-9 million. They also have a considerable amount of debt compared to their value, at about 50%. Still, you do not hear much about financial trouble out of the Panthers. Huge losses like the Coyotes are experiencing (that are being reported) are either not prevalent or not being reported. This is good, as it allows fans and players alike to concentrate on the hockey at hand, especially in a such a playoff drought.

- Conclusion

Making the playoffs this season would be a huge help for the Panthers attendance and overall bottom line on the balance sheet. The Panthers do a great job of selling hockey in a non-traditional market, and this should be noted. Still, will the Panthers still be in Florida in five to ten years? I'm not exactly sure. I do not think the Lightning will be relocated because they have won a cup and generally experience better attendance on the west side of Florida. The Panthers attendance is in OK shape, but needs to improve and hopefully will with more of a winning team on the ice as of recent. A good meter for hockey in the Panthers area will be if they make the playoffs, as they should look to pack the BankAtlantic center with Panthers and possibly Lightning fans as well.

Well that about does it for this edition of Playing Below Capacity. Next week we will cover the Thrashers of Atlanta, who are going through a major ownership battle and have struggled on the ice for years now. Please feel free to comment on anything.

Should be more later.