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.

Attendance: Columbus/Detroit Up 5%; Others Drop

The Columbus faithful will be rewarded with the playoffs this spring.

Eleven teams finished up their home games and seasons last night. Atlanta, Buffalo, Calgary, Columbus, Detroit, Florida, Los Angeles, Montreal, New Jersey, Phoenix, and Toronto were the teams. Lets take a look at their attendances (click to enlarge):



This group has been the most boring of all so far, with no real shocking numbers. Some thoughts (in alphabetical order):

• The Thrashers are still below their pre-lockout attendance levels.
• Buffalo has made great strides since before the lockout, but I italicized being down 7.11% this season because the reported average for them last year was 19,950. HSBC Arena holds 18,690, and that is what the club has been announcing all season. I don't think they are down that much because of this flaw.
• Calgary has been consistent the past five years, but lets not forget where they were before the lockout.
• Columbus leads the way in this group, and with the team making the playoffs for the first time in their existence, I expect a big bump next season.
• The Devils are up 10% in attendance since moving to The Prudential Center aka The Rock.
• Phoenix actually gained in average attendance this season by about 50 spectators.

That's all I have for now. More travel today and Phil Mickelson just went 6 under on the front 9 at Augusta. Insane. Check back tomorrow for the final attendance update and more.

The Monday Memo (2 PM Update)

News and Notes from around the Business World of Hockey.

- The Carolina Hurricanes clinched a playoff spot Saturday night, which means playoff tickets will go on sale Tuesday at noon to the public (Bizjournals).

- The Blue Jackets neared there all-time TV Ratings record last Tuesday, drawing a 3.9 with their win over the Predators on FS Ohio (Sports Media Watch). The Blackhawks ratings are surging as well, reaching a high of 2.1 on CSN Chicago with their win on Friday, March 27th against the Devils.

- It seems like a slow day business-wise, but two teams have finished their home-game schedules, which means fresh attendance statistics are in. For now, until the off season, I'm going to keep it simple with this table (click to enlarge):



As you can see, Dallas and Washington are the two teams that have no more home games for the remaining week of the regular season. If I had to describe Dallas' season this year in one word, it would be disappointment. They dropped almost 2% from their average attendance last year, which had risen every season since the lockout. If Dallas had played to their potential this season, they could have neared pre-lockout highs of an average of 18,532.

Washington, on the other hand, might have made the biggest improvement in the league. Up nearly 15% from last season and over 23% from two years ago, the Capitals are the face of the "New NHL" and Ted Leonsis has to be smiling ear to ear. Next season the Caps will have people on a waiting list for season tickets for the first time, so I expect this trend to continue, but just not at such a huge rate like 15% (the Verizon Center capacity is 18,277).

EDIT: All figures that do not have the differences next to them like Washington and Dallas are figures as of today. Those teams all have home games left, which is why I have not calculated the differences yet.

- Finally, don't mess with Eric Lindros' lucky jersey:



That is all for now, more later.

- Update, 2:00 PM EST:

- More TV Ratings news, as NBC's Game of the Week between the Wild and the Red Wings drew a 0.9/2 overnight (Puck The Media). The Blackhawks/Red Wings game from the same weekend drew a 0.6, so the 0.9 is actually an improvement.

- Are the Dallas Stars in serious financial trouble? (Globe and Mail):

"Even though Stars owner Tom Hicks went into default on $525-million (all currency U.S.) in loans, the NHL claims it is not worried about the future of the team. Hicks said there is no chance his sports teams — the Stars and baseball's Texas Rangers — will be taken over by creditors."

Second Half Attendance Boost: Part IV

As promised, here is the fourth installment of the Second Half Attendance Boost series. The last was two weeks ago, and you can find all three previous parts here. Without further adieu, the average attendance figures (click to enlarge):



Carolina still leads the charge with LA and Columbus just behind. Columbus is still undoubtedly benefiting from the playoff fever, as they are currently in sixth place in the West. But, what is really good to see is that LA's number have not dipped from two weeks ago when they were still in the playoff race. The Kings currently sit 13th in the West, six points out of a playoff spot. They are not out of it, but they are definitely outside looking in. Something else that is good to see is only two red blocks, along with 5 out of the 6 bottom teams having a positive two weeks.

Now lets take a look at the average capacity attendance chart (click to enlarge):



Whoa, a lot more color here. Most of the changes are minuscule, though, with figures under or around 1%. Ottawa had the biggest jump in the past two weeks, with over a 2% gain. Overall, 16 teams are benefiting from the second half attendance boost, along with the league as a whole too.

There will be two more installments of the series, one two weeks from today, and another after the season wraps up on Sunday, April 12. The end is in sight, people.

Thanks for reading as always and I will be back posting regularly starting tomorrow afternoon after a bit of travel in the morning back to school.

The Wednesday Memo (3 PM Update)

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

- The St. Louis Blues come out with a season ticket offer that if you renew by April 10th by putting as little as 10% down the season ticket prices will remain the same (Blues.com). If not, all season ticket prices go up by 10% for next season. And with the Blues only three points out of a playoff spot as of this morning, management is offering a "pay as we play" program if the Blues make the playoffs.

Up 10%? That sounds like a big jump to me.

- Tampa Bay Lightning Players, Coaches, Broadcasters, Owners, and Management visited homes and business throughout the Tampa Bay area on Monday to push their season ticket renewal packages along with delivering gift bags to season ticket holders (Lightning.com).

"The reclassification of 1,300 seats in the upper-portion of the terrace level creates a decline of up to 80 percent to only $239 for the season or just $5.69 plus tax, per game. Some of these seats cost season-ticket holders up to $1,199 for the 2008-09 season. When combined with those that were available at that price in 2008-09, almost 4,000 (about 20 percent) of the Times Forum seats will be available for $239. Half-season packages will be just $149 in the same area.

The remainder of the terrace-level seating will decrease by 20 percent. Many of the lower plaza and club-level seats will decrease 6-12 percent for the season and fans can sit in the plaza level for as low as $35.69 per game plus tax, per seat."

Good deals and great marketing getting out of the "office" and into the public. If you click on the article, a couple of the business apparently had a lot of memorabilia around their offices (naturally for the story, right?).

- In serious government Visa immigration rules that affect business, visa's for pro sports players have changed a bit (The Calgary Sun). Take a read:

"Foreign athletes participate in pro sports such as baseball, basketball, hockey and golf. They can come to the U.S. and play under what’s known as a P-1 visa, which is for internationally recognized athletes or members of internationally recognized entertainment groups.

Under the old regulations, recipients could get five years on the visa and extend it once for another five years, not to exceed a total of 10 years.

The new policy will require foreign athletes, at the end of 10 years, to leave the country before applying for a new visa. That’s not expected to be much of a burden for the athletes, many of whom return to their home country in the off-season."

The difference this could make is that at the end of their visa the player could be inclined to not return to the U.S. in favor for playing in their home country.

- The Blue Jackets "Nationwide Night" on Friday February 13th was apparently a huge success. The club partnered for the night with NASCAR to put on a cross promotional event (Partnership Activation).

- The Scotiabank Fan Fav award gives fans an opportunity to have an immediate personal connection with the league (Sponsorship Insight Group).

- Finally, this was arguably last years best NHL promo commercial; I think it was the best too:

- NHL to ESPN next season? Not so much, says Bob McKenzie (Puck The Media).

- The NHL has always, oh whats the word, struggled with creative fan merchandise. So as they put out their annual St. Patrick's Day gear, Greg Wyshynski asks, "wheres a beer mug?" (Puck Daddy).

"But missing from the T-shirts and sweatshirts and the jerseys is, perhaps, the most popular aspect of the holiday in North America: the consumption of alcohol. No beer mugs, no pubs, not even a single reference to booze on the clothing.

Can the NHL make St. Patrick's Day an unofficial hockey holiday without also embracing its inebriated spirit?...

...Haskins said the NHL has produced this line of green gear at the request of its teams

The Wednesday Memo

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

Very slow day thus far, as I'm not surprised.

- Your media guide to Trade Deadline Day (Puck The Media)

- According to a source who is a Pittsburgh Penguins season ticket holder, next seasons full-season ticket plan is going up 8%. Bold move by the Penguins.

- On the same note, another source who is a Columbus Blue Jackets season ticket holder says his full-season ticket plan price did not change in his invoice for next season. Smart move Jackets.

So you can add the Pens to the raising category:


- Finally, the Nike hockey goalies are still at it with Fedorov:



That's all for now, more later.

- Update, 3:30 PM:

I'm done for the day as Hockey Christmas is just settling in. Rangers pick up Morris and Antropov, interesting. Check back tomorrow as always.

Playing Below Capacity: Columbus Blue Jackets

Welcome to the seventh edition of Playing Below Capacity, a series here at Puck Money where I take a look at teams playing below (as of December) 85% capacity. The previous six editions can be found on this page here. Today we visit Columbus, Ohio; where the Blue Jackets are fighting hard for their first playoff appearance since their inception in the NHL expansion of 2000. The Jackets are currently 27th in attendance ranked by capacity, coming in at 83%. However, they are averaging just over 15,000 a game, and are seeing over a 15% increase in second half attendance thus far.

*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 Blue Jackets 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 Jackets games on a regular basis...

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

Some basic facts of the Columbus Blue Jackets (wikipedia):

• The Blue Jackets were founded in 2000 as apart of the NHL Expansion. The original owner, John H. McConnell, died on April 25th, 2008. The team was handed over to his son, John P. McConnell, which went smoothly.
• In seven completed seasons, the Jackets have yet to make the Stanley Cup Playoffs. Last season, they came in 4th in the Central Division, with their highest point total as a franchise thus far, at 80 points. The Jackets are currently 8th in the Western Conference, but are subsequently tied for 6th at the same time.
• The Blue Jackets have played all seven series at Nationwide Arena, which opened in 2000 and was a key component of Columbus receiving a franchise.
• The capacity at Nationwide Arena for Ice Hockey is said to be either 18,136 to 18,144.

- Arena Location/Age

Nationwide Arena is one of the NHL's nicest arenas according to the Sports Road Trip Guys and ESPN. Being only nine years old this year, I doubt a great stadium experience is driving away fans from Nationwide. Let's take a look at the location (click to enlarge):

The arena is located between the green arrow and the red "A" arrow. I wanted to zoom out so much to be able to show you how much housing area there is around Columbus. To me, it seems like a giant suburb. Nationwide Arena is right in downtown Columbus though, so the location and the arena itself is most likely a definite help in attracting fans, not a detriment.

- High Ticket Prices/Poor Promotional Events

Blue Jackets tickets went up almost 5% this season, but are still a couple of dollars below the NHL average of $49.66, according to teammarketing.com. The average premium ticket is just under a $100, at $99.84; which is almost $15 dollars below the NHL average of $113.44. The Blue Jackets rank 16th in the Fan Cost Index, which:

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.

A "typical" night at Nationwide Arena with the Jackets will cost a family $278.66, about $10 below the NHL average. This figure is up just over 11% from last season, which is the sixth highest jump in the NHL from last season. I think the ticket prices might have something to do with relatively low attendance in Columbus due to the economic recession, but the Jackets are still below the average; which is all you can ask for. To me, if it is possible, it would be smart for the Jackets to institute a price freeze heading into next season as their on-ice product picks up.

The Blue Jackets are definitely not lacking in the promotional department, as they have plenty of great and enticing deals to visit Nationwide Arena. My favorites? The Huntington Green Seats deal, where up to 250 seats are available in the upper level for just $10. My others would be Rush CBJ, a student promotion and the Jackets Night Out Pack, where you can get two tickets, two beers, and two pizzas for $60. Tip of the hat to the Jackets marketing group.

- Metro Population

According to statshockey.net and the Columbus wikipedia page, the population in Columbus is just under 750,000, with the metro around 1.75 million. This is a relatively small metro population for an NHL city, but sports are ingrained in Columbus' genes. As I contemplated with the Carolina Hurricanes, I really think Columbus could benefit from a higher city and metro population.

- On-Ice Product

As stated, the Jackets have not made the playoffs in any of the seven seasons they have played. They are currently in the thick of a tight Western Conference rank, and the Jackets attendance numbers are reaping the benefits. Take a look at what is a great fan base being rewarded with poor on-ice play (click to enlarge):


An expansion market in the top 10, let alone 15, of attendance in its early years?! That's almost unheard of. Columbus is a great market that supports American sports such as football and baseball but also has a fond place for "foreign" sports such as Soccer (MLS' Columbus Crew) and Hockey. The Jackets front office needs to get their stuff in line and put a competitive team for the great fan base in Ohio.

Columbus is really looking good for the future, though. 22 of the 28 spots on the roster are men 29 years old or younger; while 15 of the 28 are 26 years old or younger. They have found the key to a great team in a goaltender named Steve Mason, only 20 years old. Their weakness is defense, but their good mix of young speedy forwards and veteran leadership up front combines to make a great offensive attack which defines a "new NHL" team. The Jackets should have some solid years ahead of them, but the front office will have to be smart on how they spend their money and who to keep when the youngsters come looking for new contracts.

- Location/History of Franchise

Ohio is a great state for sports. Cleveland has the market on Basketball and Baseball, but Columbus currently runs the market with Football (Ohio State), Hockey, and Soccer. Why the people of Ohio love all sports is really beyond me, but Columbus should be a key focus for the NHL in terms of "growing the game," as Bettman loves to hear. There is no immediate NBA threat in Columbus, and with Soccer and Hockey two sports that incorporate much of the same fans, Columbus is a potentially huge market for the league.

Columbus is enjoying huge TV Ratings gains this season, as well. A search at arenamaps.com in the state of Ohio returns 59 records of rinks, which shows the game is somewhat rooted into communities around the state. Also, the Miami University at Ohio and the Ohio State division 1 hockey programs are strong and growing, and have made trips recently to the NCAA Ice Hockey Tournament. The location of the franchise is great, and the struggled on-ice history clearly hurts the attendance.

- Other

The Blue Jackets are the 28th most valuable team in the NHL at $157 million. The team grew last year at an annual rate of 6%, and also brought in a revenue of $71 million, but they are still operating at a loss of $7.1 million as of last season. I think with the revival of the on-ice product this season, that loss should not be as big after this season, as I expect the ticket sales to go up along with the brand of the Blue Jackets to reap some benefits.

- Conclusion

Simply put, Columbus management has the ultimate control to steer the team into financial success. Much of the problem is on-ice, as the market in Columbus and Ohio in general is great for hockey. Sure, the franchise would clearly benefit if the metro population around Columbus swelled by another 500 or 750K, but that is wishful thinking. If I was John P. McConnell, I would sharpen up my hockey knowledge as soon as possible, and then put some pressure on General Manager Scott Howson to turn the Jackets into a consistent winner. This should fill the seats night in and night out for years to come.

That about does it here for the seventh edition of Playing Below Capacity. Next week, its down to Sunrise, Florida to visit the Florida Panthers who have been making plenty of noise in the Eastern Conference playoff race. I would personally love to see hockey fever get back into Florida as it did when John Vanbiesbrouck & Co. led the Panthers to the Stanley Cup Finals in the spring of '96.

Come on back in a bit for some more news.

Playoff Teams With Opposite Attendance

After a loss in intramural volleyball last night, I was checking out the standings going into the second half, and one thing caught me.

In the East, four teams will be fighting for the bottom two spots. The Sabres, Hurricanes, Panthers, and Penguins. In terms of attendance, the Sabres and Penguins do just fine. However, the Hurricanes and Panthers have not played in front of playoff like crowds much yet this year.

Carolina is 23rd in attendance ranked by average, averaging 15,357 a night, which is about 82% capacity at the RBC Center. They only have two sellouts this season, the first two games of the year. The attendance then plunged, going over 15,000 only twice in a span of 13 games. That dip ended with the 17th home game of the season, two days after Christmas when the Bruins visited Raleigh. Including the Bruins game, the attendance has only dipped below 16,000 twice; and the Canes even broke 18,000 for the first time since their second home game when the Leafs visited right before the All-Star Break.

So will the Canes attendance keep climbing as the team fights for their playoff spot since their Cup run in 05-06? I think so. There is a little tradition in Raleigh already with the Cup run, so the "Redneck Hockey" fans might come out of the woodwork again. Only time will tell and I will be watching.

Meanwhile, in sunny Florida, the BankAtlantic Center could definitely use some Panthers Playoff Fever. The Panthers haven't made the playoffs since 1999-2000 and have been, as usual, struggling at the gate. They are 25th in attendance ranked by average, with just under 15,000 a night (remember, its called "paid" attendance). This puts them with the next-to-last capacity rating of 77.8%. Yikes. They have only "sold out" one game this season, when the Canadiens visited at the end of December.

So will the Panthers attendance see a rise due to some playoff fever? Maybe, but I doubt it. The team has too many fair-weather fans. If they make it into playoffs, it wouldn't shock me to see some sellouts, but even that might be a stretch. We will see though.

Onto the West, where it will be a complete crap shoot; something that will be really fun to watch as the season dwindles. Virtually everyone is still in it, as the last place Blues (42 points) trail the 5th place Coyotes by only 11 points, and the 8th place Ducks by 9 points. Although the Blues would have to play very well, it is definitely not impossible. But, to be realistic, I think the Kings, Preds, and Blues may be out of it with the strength of the West. So I think the Coyotes and Blue Jackets can really benefit from a little playoff fever.

Without going crazy on the Coyotes (take a look at my Playing Below Capacity series, Phoenix edition, for more info), they are obviously in a mess off the ice. Everyone loves a winner though, and I really think they could benefit from the hockey fans in the desert getting a taste of the playoffs.

I think the same goes for Columbus, as they have had a solid year on the TV front, as Puck The Media showed. They have not had such as luck at the gate, but have slowly been rising in the past games of the first half. They have only sold out one game, a 3-0 win two days after Christmas (a Saturday) when a solid Flyers club rolled into town. With a hot rookie goalie and with the team only two points out of a playoff spot, the Blue Jackets could be the newest and hottest mid-market team. I think a playoff run, their first of the Jackets existence, would create some die-hard fans and would help the bottom line immensely in Columbus.

Moving on...

Sports Media Watch had a cool post last night, comparing the TV Ratings of NBA and NHL teams in the same markets. Not surprisingly, most of the NBA teams are out-drawing the NHL on the tube, but some are close than you would think. Its worth a quick look.

That's all for now.