NHL Average Attendance Up; Blackhawks Up 22%

The United Center will be ready to go on Thursday against the Flames.

The 2008-2009 NHL regular season is in the books. Coming up this week; final attendance updates across the board in all the categories, so stay tuned while we all wait for Wednesday.

Chicago, Colorado, New York Islanders, and Philadelphia all wrapped up the season last night at home, as they round out their averages and the NHL final average. To the chart (click to enlarge):



The NHL bumped up almost a percent from their all-time average attendance high last season, which is great. Chicago's revival is very evident in the standings as in the seats, with a 22% increase; 40% over two seasons (NOTE: As far as I know, the Winter Classic home game for the Blackhawks counted as a sold out United Center crowd of 20,500. That is what I recorded it as). And as much as the Islanders are on the other end of the spectrum, they are up in attendance this year and if they land there man in John Tavares, the Nassau Coliseum might be rockin' a little bit more next season.



Can the NHL average climb higher next season? Possibly, I would bet right now. If teams like Colorado, Florida, Tampa Bay, and Dallas can turn around their on-ice product, they could easily benefit by gaining back some of their fair-weathered fans.

More later.

The Wednesday Memo - 2:45 PM Update (Lighthouse and Winter Classic)

News and Notes from around the Business World of Hockey.

- According to Stephen Brunt, Canada stands to benefit if the economy really "slams" the NHL going into next season (Globe and Mail). I can't say I disagree with him much.

- Within days, the Washington Capitals look to sell-out their season tickets for next season (Washington Post):

"Within days, the Capitals expect to be sold out of the nearly 12,000 tickets they've allocated for full-season plans for next season. When that happens, the sales staff will be forced to do something perhaps only majority owner Ted Leonsis envisioned when he purchased the team 10 years ago: put names on a waiting list."

- Monday nights Flames-Sharks game gave Comcast SportsNet Bay Area the highest San Jose Sharks telecast ever, with an average of 2.17 and a peak of 2.79; which equates to over 52,000 viewers (Sharks.com).

- Finally, Crosby does a Gatorade commercial:



More later.

Update: 2:45 PM EST

- The Lighthouse Project on Long Island, which is centered around the Nassau Coliseum renovations to keep the Islanders at home, received a political "No" yesterday (NYI Point Blank). All is not dead though, its just more of the Town of Hempstead (where the Coliseum is located) saying "It wont work the way its planned now."

- Flyers-Pens at Penn State seems to be in the talk of things for next seasons Winter Classic (Freep.com).

The Tuesday Memo

News and Notes from around the Business World of Hockey.

- The economy has struck down on the ECHL, causing the Dayton Bombers and the Mississippi Sea Wolves to suspend operations for next season, along with the Phoenix RoadRunners decision to cease operations altogether (ECHL.com). The Dayton and Mississippi clubs will have to report by June whether they plan to return to the league in 2010 or further suspend or cease operations.

In good news, the ECHL will return to Toldeo, Ohio next season.

- Charles Wang speaks again, saying that if the plans to renovate the Nassau Coliseum aren't approved by October, he will most likely look to move the team to another part of Long Island. Queens is making a big push (NY Daily News).

- We all know the St. Louis Blues and Detroit Red Wings will head to Stockholm, Sweden to kick off the '09-'10 NHL season on October 2nd and 3rd, but before that each team will play an exhibition game against Swedish Elite teams (NHL.com).

Also, both games in Stockholm have sold out at 26,000 for the Globe Arena in Stockholm.

- Darren Everson of the Wall Street Journal explains why you should have watched the NCAA Mens Ice Hockey Tournament over the weekend if you wanted real upsets (WSJ Sports).

- Also, on a non-business note but a personal opinion I agree with; Nate says the NHL is more physical than the NFL (SFSI).

- Finally, Ovechkin shocks the Caps physical trainer:



Check back later.

The Monday Memo

News and Notes from around the Business World of Hockey.

- Coming up this week: Check back later today for an opinion piece on Celebrity NHL fans ... Wednesday begins a new month, which means fresh monthly attendance reports either then or Thursday ... Finally, the week will wrap up/start with the usual bi-weekly Second Half Attendance Boost update. And on another note, I'm getting into crunch time here at school, so please excuse my absenteeism at some points until May 1st. After then, its all playoff hockey, summer jobs, and this site. Thanks for reading as always.

- The Dallas Stars are on the block for minority ownership (Dallas News):

"Hicks (Tom) also owns the Dallas Stars. He said he owns 95 percent of both teams (Texas Rangers) and is willing to let up to 49 percent of each club be owned by limited partners, allowing him to keep majority ownership. He anticipates owning 51 to 60 percent when the process ends."

- There has been many rumors of the AHL establishing a Western Conference due to the number of West-coast NHL teams that affliate with East-coast teams, but AHL President Dave Andrews pours some cold water on that (Masslive.com):

"Not so, says league president Dave Andrews.

"We are not pushing, nor can we," he said. "Only Edmonton can make the decision regarding when or if they want to activate the franchise. If they do make that decision, it would be up to our Board of Governors to act on it. The Oilers would need league approval regarding where they might want to place the franchise."

- NHL TV Ratings are consistent, but tiny (Sports Media Watch):

"Of the fifteen non-Winter Classic regular season telecasts on NBC in the past two seasons, only one has drawn a 1.0 rating. The majority of games have drawn a 0.8 rating, with two games this season drawing a 0.9."

- Last week was the public information session meeting for the Lighthouse Project on Long Island, and Nick says the project is now at a crossroads, in a good way (Let There Be Light(house)):

"Over 1,000 people jammed the Marriott ballroom last night to attend the Lighthouse Development Group's 180th community outreach meeting. It was billed as a public information session, and those who may not have been as informed on the project could have come away learning quite a bit. For me, it was bits of information surrounded by....a pep rally."

- Finally, Molson Canadian Beer thinks players should have more curve on their sticks:



More later.

- Update, 2:30 PM:

Scott Burnside at ESPN reports that the Coyotes are on pace to lose up to 40% of their revenue-sharing allotment this season because of failed goals for ticket sales. Along with this, the NHL supposedly condemned the club for going out of the box with its recent ticket promotion involving Smirnoff liquor. Finally, sources think there will be changes in ownership, "sometime between the start and finish of the playoffs (between mid-April and the beginning of June)"

- Note: The editorial on Celebrities in the NHL will come tomorrow, around noon. So please do come back.

The Monday Memo

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

- Philly @ Pitt draws a 1.0/2 for NBC's Game of the Week yesterday (Puck The Media).

- Are the Montreal Canadiens and the Bell Centre up for sale? (CBC)

- If the Lighthouse Project for the Islanders does not go though, Queens is opening its arms to the club (NY Daily News).

- Finally, an old Panthers commercial (head shot, Colin Campbell?):



More later.

Update, 6:30 PM EST:

- On TV, the Canucks play to an audience over over 300,000 a game. (Sportsnet.ca)

The Thursday Memo (Noon Update)

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

- Through 32 games, the Predators are averaging 13,940 paid tickets per game, a 7.6% gain since the same mark last season (Tennessean). Let's remember though, it is under the magic 14,000 revenue-sharing bar for this season.

- More news on the Lighthouse Project as a public information session has been scheduled along with a long post on possible stimulus money for the project. (Let There Be Light(house)).

- NHL GM's are worried about contracts that run into the 2010-2011 season due to the economy (NHL.com):

"We've very leery of contracts that run into the 2010-11 season. We think it's going to be very tough," said Toronto Maple Leafs general manager Brian Burke. "I think we'd be delusional to think we'd not see some impact (from the poor economy)."

- The Atlanta Thrashers introduce a new ticket plan; the Thrashers Man Plan (Thrashers.com).
You get one ticket, unlimited hot dogs, nachos, popcorn, and soft pretzels along with a chance to meet and greet with members of the blue crew; better known as the Thrashers Ice Girls.

- Finally, I'm sure you've all seen this NHL promo involving players on a road trip (very accurate, if you ask me), but seeing as this will be my only post because today is the day before my spring break starts, I found it fitting:



- Update, Noon:

- The Chicago Blackhawks have been announced that season ticket prices from this season will not increase next season (NHL.com).

The Monday Memo (2:00 PM Update)

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

Couple of things on deck for today.

- The NHL GM Meetings began today in Naples, FL. Scott Burnside of ESPN has the full rundown of all the events, meanwhile Paul Kukla posted a small but more business oriented post just a few minutes ago at KuklasKorner:

"NHL Deputy Commissioner Bill Daly spoke to Scott Laughlin on Hockey This Morning from the GM Meetings in Florida and talked about the agenda for the week. Bill also talked about the Lighthouse project on Long Island, new ownership possibilities in Phoenix, and the trade deadline deals"

Paul also provided this link where you can listen to the above interview between NHL Deputy Commish Bill Daly and Scott Laughlin of Hockey This Morning.

- Speaking of the Lighthouse Project, Newsday attempted to "shine a light" on the project on Saturday by blowing some of the problems out of proportion. From the article in Newsday:

"Fewer cars, more walking. That's the idea.

The reality: The developers will have to overcome a host of challenges before building the complex that would also bring a five-star hotel, restaurants and stores to the Uniondale site."

- In reaction to this, Nick at Let There Be Light(house) once again showed how the project is actually very well planned and will keep the Islanders on Long Island:

"In addition, the SEQR process, which is New York State law, requires that you address what would happen if nothing is done. In this case, no renovated Coliseum = no Islanders in Nassau Coliseum."

The renovation of Nassau Coliseum would be the first major task completed in the project and it would obviously allow the Islanders as a franchise to avoid any sort of movement or (yikes) contraction.

- Any publicity is good publicity, right? Well when Team Canada players from the World Baseball Classic (which started this weekend; USA and Canada both played at the nearby Rogers Centre) asked the Leafs if they could get tickets to Saturday's game, they were told it would be $12,000 for a Luxury Box (Toronto Sun).

"When they said the price was too high, the MLSEL people dropped the number to $7,000. And when the players indicated they would need to purchase an additional 10 tickets for their group, the price leapt to over $10,000, prompting the Team Canada players to say thanks, but no thanks.

"Do you think the Yankees would give us a box if we asked for one?" Burke said. "I don't think so. So why should we?

And if they wanted the tickets, couldn't one of the millionaires have paid for them."

- Finally, a Molson Canadian gem from the lockout season:



Part 2 of the commercial series will come tomorrow. More later.

Update; 2:00 PM EST

- Yesterday's NBC Game of the Week featured the Rangers hosting the Bruins in a 4-3 New York Win. The game reportedly drew a 1.0/3 rating (Puck The Media).

- Last week the NHL Network provided a free preview for certain cable providers across the U.S. I was not able to experience the Network unfortunately, but Puck The Media gives you 8 reasons as to why they are purchasing the Network after the free preview.

More later.

The Friday Memo

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

- Three NHL Clubs are in the Top 10 of BizJournals new complete listing of all sports teams from the four major leagues in terms of being most successful in the calendar year of 2008. Five NHL clubs are in the top twenty (BizJournals). Here's the top five:

• 4. Montreal Canadiens
• 7. Detroit Red Wings
• 10. Pittsburgh Penguins
• 12. San Jose
• 18. Philadelphia Flyers

- As much as the Lighthouse project for the Islanders has had some great momentum of late, an interesting clause was found that states the Islanders will leave if the Lighthouse does not get the OK (Newsday).

"The transformation of the Coliseum, including the sports complex and associated parking," the developers' report states, "is expected to cost hundreds of millions of dollars [and] is essential if the New York Islanders are to remain. In order to absorb the cost of this transformation, it is necessary to develop the remainder of the components of the Lighthouse. Thus, if the Lighthouse is not approved and developed in a manner that can financially support the transformation of the Coliseum, the New York Islanders will leave this venue."

Hamilton here we come!

- The Stanley Cup Playoffs broadcasting changes up a bit this year. (Puck The Media)

More later.

Update, 2:00 PM EST:

- The San Jose Sharks have called the HP Pavilion their home for 15 years, and in that time span the Sharks and the Shark Tank have reportedly contributed around $1.7 Billion of business around the arena (MSNBC).

"The facility has also provided San Jose annually with direct fiscal impacts of $5.4 million and with an ongoing economic impact of $254 million and the creation of approximately 5,000 full-time equivalent jobs"

So hockey works in California.

Saturday News and Notes

- Greg Sheehan at the Bleacher Report takes a look at what the lockout did for the NHL. Don't think the NHL is the strongest its ever been?

"Premier talent commanded ridiculous salaries, perhaps acceptable in a more marketable sport, and with no ceiling. In fallout, the contracts of medium- and lower-level talents bore higher salaries, and with no regulations on team and individual player spending, the NHL spent more money than it generated.

In the last year before the lockout, the NHL lost $221 million and there was not enough income to support 20 out of 30 NHL teams."

- More issues with the Pink, Grey, and White NHL Jerseys that are sold to target the female audience from a female perspective (Puck The Media). I think its B.S. too.

- I was directed to a new site via e-mail called On Goal Analysis. At OGA, Matt, Eric, and Mike do some serious playoff statistical analysis with some serious (87%, they claim) accuracy. Last season, the Red Wings clinched a playoff berth on March 5, 2008; not according to OGA:

"The Red Wings were indeed the first team in the NHL to clinch a playoff berth. However, they did so on October 24, 2007, not four months later."

- Finally, some NHL commercial clips to ease the eyes on a Saturday afternoon. First one I haven't seen, then a classic:





Maybe something later, but if not enjoy your Saturday.

- Update: 2:30 PM EST

Part 2 of the issues surrounding the Lighthouse Project on Long Island is up. (Let There Be Light(house)). Part 1 here, highlights of part 2:

"As per the Lighthouse, these are the current proposed benefits for the site:

• 60,000 construction and construction-related jobs
• 20,000 permanent jobs
• $20-70 million in yearly tax revenue

It's worth noting, as I've mentioned before, that these are the current proposed benefits. Until the final scope is settled, this is pure speculation, and maybe it should be seen as a "best case" scenario...

In addition, I'm sticking closer to my original prediction. Construction for the new Coliseum will begin next year after hockey season ends, and we must remain vigilant and positive to ensure this date is fulfilled."

Remember, the Lighthouse Project is key for the Islanders to stick around on Long Island and become much more financially sound. Keep an eye on Nick's site if you want to keep updated.

Friday Morning News and Notes

Plenty of news today.

- According to Paul Kelley, the NHLPA Executive Director, the Salary Cap will remain the same or drop next season (Slam):

"He figures the salary cap will be between $54 million and $57 million next season, but he can't say what will happen in 2010-11."

- The Dallas Stars released some ticket pricing information (Dallas Business Journal). Highlights:

• The reduction of the price of 1,303 lower-bowl seats at American Airlines Center, dropping 519 seats in the lower bowl from $55 to $40 and the remaining 784 seats from $73 to $55.

• All of the other season ticket prices are frozen for fans who renew by March 18.

• Fans will get up to $250 credit for food, beverage and merchandise.

• Season seat holders will not pay for this year’s playoff games until the Stars’ 2009 playoffs are over.

• Those renewing season tickets will be eligible for rewards such as double season tickets, tickets to the NHL All-Star Game or Winter Classic, delivery of tickets by a Stars player, and even road trips to an away game on the team plane.

Good deals. One thing that puzzles me is if a season ticket holder does not renew by March 18, does that mean there prices could be going up? Also, its risky, but I really like the credited playoff games. The Stars had a 92% season ticket renewal rate from last season to this season, along with cutting upper bowl tickets by almost 40%, so we will have to see if this plan works out down in Big D.

- The Lightning hack at season ticket prices (Tampa Bay Online):

"The Tampa Bay Lightning are slashing season-ticket prices by an average of 10 percent for next season, with almost 4,000 seats available at the St. Pete Times Forum for only $239...

Almost 1,300 upper-level seats have been reclassified to be included in the $239 season-ticket package that averages out to $5.69, plus tax, per game. Nearly 20 percent of the arena's seats will feature that $239 designation and half-season packages in the same area will cost $149.

The remainder of season-ticket prices in the terrace level will decrease by 20 percent and some season tickets in the plaza level will average as low as $35.69 per game, plus tax."

Those are really low. Along with this, the club is offering an 8 month payment plan and a 3% rebate (in Forum dollars, money you can use at the St. Pete Times Forum) for season ticket holders who renew by March 27.

- Apparently, the Islanders could get off Long Island if they really wanted to, as there supposedly is a release clause that centers around the Nassau Coliseum renovations (KansasCity.com)

"Once the county executive submits a lease for the 150 acres of county-owned property, the legislature has 120 days to approve it. If it doesn’t, the team can leave...

Nassau County loses between $1 million and $2 million a year on the upkeep of the Coliseum, and Wang loses about $20 million a year operating the Islanders."

Charles Wang also had a candid comment before the Town of Hempstead meeting this week:

“Ultimately, if you don’t want to go to an (Islanders) game because the arena is a dump, I lose, the county loses, everybody loses,” Wang said. “I want this thing to proceed. We can talk and talk, but we’ve got to get off our butts. Let’s get it done.

“It’s a Long Island team. They belong where they are.”

All sorts of news swirling on the Island.

- Finally, Nick at Let There Be Light(house) has a fantastic post on some of the issues that surround the Lighthouse Project. Today he dealt with financing, the delay up to now, transportation, and the Islanders situation with Kansas City. If you want to understand Charles Wang and the Islanders situation and all, take a look at the article.

More later.

Wednesday Afternoon News and Notes

Relatively slow day after a big one yesterday...

- The NHL Network is providing a free preview for six days starting March 2nd through March 7th (Puck The Media).

"The NHL Network will offer a free preview to more than 34 million subscribers of multiple distributors in the United States, such as DIRECTV, DISH Network®, AT&T U-verse, Verizon, Cox Communications, Grande Communications and TVMAX, beginning Monday, March 2 through Saturday, March 7."

Can you say perfect timing with all-day coverage on Wednesday, March 4th; AKA this seasons Trade Deadline? Damn I wish I was home for that...

- After yesterdays step forward for the Lighthouse Project on Long Island, Tom Suozzi, the Nassau County Executive, wrote Nick at Let There Be Light(house) saying;

"...I would like you to know that I am fully committed to the Lighthouse Project and in keeping the Islanders in Nassau County..."

Always a good sign when the top guns support the cause.

- Finally, another NHL Promo, this one featuring Brad Richards and Vinny Lecavalier playing some NHL video games:



I must say, that is how some of my brothers' and mine NHL games finish up...

More later.

Big Day for Lighthouse Project

Today was a big day for the Lighthouse Project, as the Town of Hempstead in Nassau County, New York (where the Lighthouse would be built), discussed and "passed" the Environmental Impact Statement for the project. I say "passed" because there wasn't any vote on it, it was discussed and no major problems arose. Although this is a much smaller part of the process that the project has to go through to be approved and to break ground, it is nonetheless a step in the right direction as the project continues its momentum from the previous news just five days ago.

Below is the upcoming steps that the project will have to complete in order to put shovels into the ground, according to Nick at Let There Be Light(house), who was at the town meeting and actually spoke:

• Environmental Impact Statement (EIS) Submitted (Lighthouse/Town of Hempstead) - DONE as of this afternoon
  
• Review period and public comments (Town of Hempstead)
• Final Environmental Impact Statement and Scope (Town of Hempstead)
• Approval of Property Divisions (Nassau County Planning Commission)
• Re-zoning Hearing (Town of Hempstead)
• Lease Negotiations (Nassau County)
• Building Permits Hearing (Town of Hempstead)
• Shovels in the Ground

No word on when the next step is to be finished by, but my guess is that it won't be for a month or so at least. From the article, Nick states that 19 out of 20 people that spoke are in favor of the lighthouse, with the one opposed calling for more affordable housing. He thinks that the groundbreaking will happen next year (which isn't the current plan), but there is still a chance, albeit under 50% according to Nick and his media contacts.

So some really good news, possibly more later.

- Update: 7:00 PM EST

Everyone has told me to get one, I still don't get it though. So if you're a Twitter user and you for some reason read this blog consistently, you're in luck. My Twitter profile is here, and if you scroll a little the last box on the right hand side you can "follow me on Twitter"

Yee haw.

Islanders Lighthouse Project Gaining Momentum?

Chris Botta of Point Blank is claiming that "The Lighthouse project has a healthy pulse." Botta would definitely be one to know, as he was the former Vice President of Media Relations for the Islanders.

Over the last 24 hours, Point Blank received more than a half-dozen anonymous tips in our Inbox that business was being conducted over the plans to transform the Nassau Veterans Memorial Coliseum and surrounding property. When we finally connected with real sources on the side of the developers and politicians, the information was confirmed.

Botta says that the key to keeping this going would be any sort of "news" in the next ten days or so. Because if nothing positive happens by mid-march, there is a real possibility the project may be more dead than it was considered before today.

There have been rumbles that the Islanders might move to Queens, and U.S. Rep Anthony Weinger, who will be running for New York City Mayor in 2010, said:

“I’m looking for the Islanders moving to Brooklyn...”

Well OK then, it is good to hear some positive news on the Lighthouse, as it could really help out the situation on Long Island.

Might be all for tonight; big club hockey playoff game.

Busy Day

Busy Day for me today as I got called into work, so this will be my only post. So with that, I will leave you with some Wednesday Afternoon reading from around the Hockey Business World:

- Puck The Media takes a look at the problems behind NBC's decisions on which game to incorporate into their flex scheduling, and some options on how to improve it.

- Eric Lindros stepped down as the NHLPA obudsman yesterday. This was a newly created position for him when he accepted it, and his job was to basically overview all of new Executive Director Paul Kelley's moves, which was a tough job with sometimes strained relations between the two.

- Not business related, but nonetheless always entertaining. A fresh John Buccigross column on ESPN.

- Commissioner Bettman spoke at The Business Lecture Series in Toronto last night. Once again, he hammered home that the NHL will continue to grow this season. The main but general quote:

"This will be our fourth consecutive year of record revenue growth and, because our attendance historically increases month by month, 2008-09 also likely will be our fourth consecutive season of record attendance," Bettman said. "That said, we are, of course, faced with challenges and I focus on them every moment of every day. I see the challenges and I am extremely confident they can be overcome through hard work, through the commitment of my office and the Board of Governors to every one of our franchises in every one of our markets and through the strength of the economic system that governs the League’s relationship with the players."

Happy reading...

One quick edit: As I was updating the spreadsheet last night, we have a new low for a single game attendance; which occured last night.

The Islanders 3-1 over the Lightning last night at Nassau Veterans Memoral Coliseum was attended by only a reported 9,808 spectators:

Wow. After looking at some more photos, it did look like some more filed in, but still, that's just plain brutal. In defense, there was a snowstorm in the area last night. For more on the Islanders attendance woes, see my article from yesterday.

Now I'm late, gotta run.

Playing Below Capacity: New York Islanders

Welcome to the fifth edition of Playing Below Capacity; a weekly series here at Puck Money where I take a look at the teams who (as of December, when I started this) are playing below 85% capacity to see what the teams are doing right and wrong in terms of attendance. The first edition was the Devils, followed by the Kings, then by the Predators and Coyotes (both featured on Yahoo!'s Puck Daddy Headlines). Today, I visit Uniondale, New York; where the New York Islanders have been a hot topic as of late in revenue sharing (yesterday, as you can see). The Isles are ranked 26th in attendance by capacity thus far through 24 home games, coming in at 83.9%. So let's go.*

*Warning: Please remember that I'm a young college kid who thinks he knows what he's talking about. Any "problems" that I suggest the Islanders have are my opinion and are most likely easily arguable. Any information I used can easily be found on the Internet as well. With that said, enjoy.

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

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

To get started, some basic facts about the New York Islanders (wikipedia):

• The Islanders were founded in 1972 when Ray Boe was awarded a franchise by the NHL in response to the WHA looking to place a team on the Island in Nassau County as well. The Islanders began play in 1972-1973.
• In 36 completed seasons, the Islanders have made the playoffs 21 times. They have been to the Stanley Cup Finals five times, all consecutive, winning the first four in a row from 1980 through 1983. They made the playoffs 13 consecutive times from 1975 through 1988. They last made the playoffs in '06-'07, and they last won a playoff series in '92-'93.
• They have played all 37 seasons at the Nassau Veterans Memorial Coliseum.
• The capacity for Ice Hockey at the Coliseum is said to be 16,234.

Lets start the fun:

- Arena Location/Age

The Coliseum is considered one of the worse arenas currently in the NHL. It has the smallest capacity and is the third oldest arena behind Madison Square Garden and Mellon Arena. The arena is located in Uniondale, around 20 miles from New York City. It is surrounded by homes what seems like more of a suburban setting. Take a look for yourself (click to enlarge):


The location in terms from New York City for the Islanders isn't great. Some have suggested that they move out of Nassau and attempt to get closer to the city, but I'm not sure that will make a difference. Everyone knows about Islanders Owner Charles Wang plan to renovate the Coliseum with his Lighthouse plan, which would create thousands of jobs by bringing in two luxury housing complexes, a five star hotel, a good sized mall, and much more.

The Islanders arena location and age definitely affects the teams attendance. Wang has ran into trouble getting his Lighthouse plan approved and moving, but if he does achieve this, it will most likely save the Islanders from moving out.

- High Ticket Prices/Poor Promotional Events

The Islanders rank 13th in teammarketing.com's Fan Cost Index, coming in at $287.86. As we recall, 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 within a dollar in both average ticket price and the FCI compared to the NHL, with the Islanders average ticket price being $48.84 to the NHL's $49.66. The club did not raise their ticket prices this season, which is a great selling point. The Islanders average premium ticket price comes in at $89.64, almost $25 lower than the NHL average of $113.44. This shows that they are taking care of whatever season-ticket fan base they have, which is always good.

Are these ticket prices "high" ? I would say yes and no. They are relatively high compared to the rest of the league, but one thing you have to remember is that we are dealing with New York City and its surrounding suburbs; and in this case the more financially secure Long Island suburbs. I would be willing to bet that most hockey fans on Long Island could afford to go to a couple games a year, at least.

The Islanders marketing department is doing its job, though. They have plenty of Events at the games over the season, along with one or two giveaways per month. They also have plenty of partners to sponsor the games as well (all from Islanders site). A date that caught my eye when looking at this was Saturday February 21st, with the Devils visiting the Island at 7:00 PM. They have an event, a giveaway, and it is the Lighthouse and Long Island newsday. I will have to see if this creates a positive buzz and gives the Lighthouse project a bump.

The club also offers great family fun packs, and really focuses on the children with their NYI Kids Season Pass. The Season pass for $230 gives them 23 home games which include usually sold-out rivlary games against the Flyers, Devils, and Rangers. What a great deal, in my opinion, as I am a huge proponent at marketing hockey towards kids (who usually have a greater attention span to sports than some adults).

So are the tickets kind of high? Yes, but the club offers up some great deals and really won me over in terms of marketing with such a focus on family and children ticket offers.

- Metro Population

Uniondale, New York, is the smallest "city" to have an NHL team, at just above 23,000 in population. Statshockey.net puts the metro population for the Islanders at around 7.5 million. In reality, they do have access to the city as well, which would put them more around 15 to 18 million.

In all honesty, the population isn't an issue. They obviously have always had a unique challenge than any other team, sharing such a close territory with an original six team in the New York Rangers. If the Lighthouse Project doesn't get off the ground, those looking for relocation of the franchise will point to the population which might be the dagger that sees the Islanders move off of Long Island.

- On-Ice Product

The Islanders on-ice troubles started over a decade ago in the mid-90's with poor front office management. This has troubled their recent attendance, as you can see with the chart (click to enlarge):


The Islanders haven't broken the top 20 in attendance in almost a decade, as you can see. Even their solid season in 2001-2002 didn't really produce a bump that one would quite expect. The same went for their return to the playoffs in 2006-2007.

The Islanders do have a solid group of youngsters, though. Led by Kyle Okposo (20) and Blake Comeau (22) up front with Chris Campoli (24) and Mark Striet (31, ok he's not "young," but he's good) on defense, the Islanders have a core needed to put together a solid team just as any other NHL club. With the right role-players, the Islanders could be a threat even next year. But for the rest of this season, things do not look good on Long Island, with a league-low 35 points in the standings.

The on-ice product has no doubt had an affect with the Islanders attendance. If they can turn the team around in the next couple of years, they could attract a great new fan base with a solid team and a new (hopefully) arena.

- Location/History of Franchise

Any general NHL fan knows the great history of the New York Islanders in the 1980's. Most franchises would kill for the great and rapid history of the Islanders, making the playoffs in over 58% of their seasons. Unfortunately, the franchise has struggled in the past decade or so, and in the new global world of sports where the attitude is more along the lines of "what have you done for me lately?" the Islanders are just plain out of luck.

Everyone knows about their location issues. They are in a great location in general, but at the same time they face different challenges than any other team (except the Devils, kind of) in the league. But when it comes down to it, New York in general is very-much a hockey city and state. Through my experiences with USA hockey, Long Island has some great youth hockey along with some solid junior programs. Lets put it this way; if I had to pick a place to put an NHL franchise and it came down between Long Island and Phoenix, I would easily go with Long Island.

- Other

Another challenge the club faces is its inability under the current CBA to obtain revenue sharing funds. Now although these funds would go more towards covering the lost costs in failed ticket sales, it would nonetheless help the franchise operate. According to Forbes, the Islanders are the 29th most valuable team in the league at $154 million, but are last in revenue at $64 million; which includes the lucrative television contract in which MSG pays the Islanders $20 million a season to broadcast the games, a fee that lasts through the 2030-2031 season and eventually increases and caps at $36 million.

Still, the Islanders have an operating revenue of -$8.8 million, which revenue sharing would cover if the Isles weren't automatically disqualified because of their location in a top TV market.

- Conclusion

The Islanders have a boatload (pun intended) of issues to work out. The club has been in a great yet tough location since their first season, so although it has always been an issue, can it keep being blamed over and over? Also, the key to a Islanders franchise turn-around will be to develop a good on-ice product along with getting the Lighthouse project going so that on-ice product can thrive in a brand new arena. They are also apart of the clubs that easily fib their attendance night in and night out; which is a necessary thing to do, but it never looks good.

Personally, I don't think the Islanders are going anywhere. I still believe that any team that has won a cup will have a big problem trying to move out, and with the Islanders having such a great history, that will be extremely tough. But, at the same time, the recent failures and poor management have drove away many of the older fans that witnessed the four consecutive cup runs; and have thus left a particularly weak fan base.

On the upside though is the hope for the future. If the Lighthouse project can get approved it will no doubt save the Islanders from any more relocation murmurs. Also, with the great marketing job done with family and children, I believe that will pay dividends for years to come.

Do I have the answers for this club? Absolutely not; and I'm not sure many do. But with just this short time taking a look at the club I get the feeling that not all is as bad as some make it out to be. They do sell-out games, with 4 this year. And they do benefit from having two great natural rivals in the Devils and Rangers.

What will be really interesting is if the Lighthouse plans goes south and Charles Wang eventually wants out. Then, my friends, the fun will really begin.

So that's about it for this edition of Playing Below Capacity. Coming up next week is the Carolina Hurricanes, which should be an interesting edition of the series as well. Please feel free to comment and let me know if I've made a mistake.

Thanks, and maybe more later.

Revenue Sharing 101

With all the talk this afternoon involving the Islanders and Revenue Sharing (note: tomorrow the fifth edition of my series, "Playing Below Capacity," will be published around noon. Fittingly, I will take a look at the Islanders), I figured I would outline what it takes to become eligible for revenue sharing in the NHL. I still plan on attempting to project these figures in the near future, I just haven't found time just yet. For some explanation of figures I will be using to do this, check out my post from last week here.

After reading up on revenue sharing last week in the CBA, there are four requirements in order to qualify for revenue sharing to begin with. There are further sub-requirements that designate how much that revenue sharing check will get you. First, the four requirements:

1. The club must not be in a market that reaches over 2.5 million television sets for the season. That list can be found here.
2. The club is within the top 15 clubs in terms of revenue.
   
3. The clubs revenue growth rate (%) from the previous season ('07-'08) to the season just ended (currently; '08-'09) must be equal or higher than the NHL average growth rate (%).
4. The clubs paid attendance average must be over 14,000 (for '08-'09) or the average attendance capacity percentage must be over 80 %.

If a club meets all these requirements, then they are entitled to a full maximum share of the revenue sharing funds. The first requirement knocks out 7 teams immediate, all of which are American. The Rangers, Devils, Islanders, Kings, Ducks, Blackhawks, and the Flyers are all ineligible under the current CBA to receive Revenue Sharing Funds. Like I said, I have not ran the numbers on this yet, but if I had to guess I would say no share to any team goes over $20 million. Furthermore:

• A club that meets the requirements but has been apart of the program before (but not as of last season) will receive 75% of a full share of the funds.
• A club will receive a 60% share if it is the clubs second year in a row in which they qualify for the program.
• A club will receive a 50% share if it is the clubs third year in a row in which they qualify for the program.

The idea behind the program is not to keep franchises afloat using league-created revenue and player escrow funds; but to rather support a club shortfalls along with letting the club know to get their act together in the near future. As the links show above, their is a current debate going on about how fair the TV market rule is. I see it as fair. For a long time now (business-wise), the Islanders have been bottom feeders on and off the ice. They are in a solid market with a great TV deal, and although they face challenges few other teams do with two other teams in their direct market, the Islanders can be successful.

That's all for now, maybe more later, but if not check back tomorrow for the fifth edition of Playing Below Capacity.

Some News and Future Plans...

First, the news of today...

TSN's Darren Dreger reports that the New York Islanders will be playing an Exhibition game next September at Kansas City's Sprint Center, a beautiful 18,500 seat arena in the heart of KC, against the Los Angeles Kings.

What does this mean? Well, a little bit of nothing. Dreger rightly speculates that this is supposed to be somewhat of a scare tactic by the NHL to Charles Wang, who refuses to threaten to move the franchise in order to accelerate his Lighthouse Plan. The plan is to ultimately renovate the Nassau Veterans Memorial Coliseum, and to develop the 100 acres around it with plenty of consumer attractions.

Other than that, the Islanders are no where near moving. I'm sure this game will be close if not a complete sellout as the Kansas City area doesn't get to see much hockey. But only time will tell on that.

As promised from yesterday, the Western Conference Attendance update from Sports Business Daily.

The notable gainers are the Blackhawks, who are up 49%, and the Blues, who despite being in last place (as I took a look at previously here), are up 8.1%. The Red Wings are also up by 6.6%, who are joined by none other than the Phoenix Coyotes, who are acutally up 4.7% this season from last. The only teams to really decline are the Avalanche (down only 4%) and the Kings (only down 2.4%.

The verdict? Great stuff. I would venture a bet to say that, in general, the Eastern Conference typically outdraws the Western Conference, seeing as Hockey is just generally more popular in the northeast (I think I'm going to look into this somehow). Why is this great stuff though? Well as I showed yesterday, 12 out of 15 teams in the East are either breaking even or declining in attendance thus far. As for the West, only 8 out of 15 teams are breaking even or declining this season. And as a whole, the Western Conference is up 3.5% this season, averaging 17,387 this season as opposed to under 17K last season at this point. So props to the West.

Finally, just some house-keeping on what I plan to do while at school here, where I don't have as much time to post than as if I'm on break when I started this.

I plan on doing something original (Playing Below Capacity series, or something else) probably once a week. I will try to report news like this as much as possible, but I understand I'm not breaking the news, so its not as interesting. I am spending my class time trying to think of interesting things to write about, I can promise you that.

So thats all I have for now, have a good day. I wouldn't expect much until Sunday.