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.

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.

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.

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.

Playing Below Capacity: Carolina Hurricanes

I really don't know why I like that picture so much...

Anyways, welcome to the sixth edition of Playing Below Capacity, a series here that looks at teams (as of December) that are playing below 85% capacity to see what (if anything) is wrong. The first five editions can all be found on this page here. Today we will take a look at what is going on in Raleigh, where the 2006 Stanley Cup Champions are fighting hard for their first playoff spot since that memorable run. The Hurricanes are ranked 27th in attendance in terms of capacity, filling 82.4% of the RBC Center in Raleigh, North Carolina. To their credit, only them and the Devils average over 15,000 a night while playing below (or around, in New Jersey's case now) 85%. With all that said, let's jump in.*

*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 Hurricanes have are my opinion and are most likely not 100% accurate (but close to it, if I do say so myself). 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 Hurricanes 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 us started, some basic facts of the Carolina Hurricanes (wikipedia):

• The Canes were founded in 1972 as the New England Whalers of the WHL based in Hartford, Connecticut. They joined the NHL in the 1979 merger and became the Hartford Whalers. In 1997, owner Peter Karmanos Jr. packed up the Whalers and moved them to Raleigh, North Carolina to become the Carolina Hurricanes.
• In their 10 completed seasons in Raleigh, the Hurricanes have made the playoffs four times and have made it to the Stanley Cup Finals twice. They were the Stanley Cup Champions in 2005-2006, the franchises only Stanley Cup (since their formation in 1972).
• Upon moving to Raleigh, the Canes had to play their first two seasons ('97-'98 and '98-'99) in the Greensboro Coliseum, which was 90 minutes away from Raleigh. Once the RBC Center was finished, the Hurricanes moved to their current home for the 1999-2000 season.
• The capacity for Ice Hockey is said to be 18,680 at the RBC Center

- Arena Location/Age

The RBC Center opened in late October, 1999, which means the building is just under a decade old. It was ranked 24th in NHL venues by the sportsroadtrip guys about 8 years ago when this building was only two years old. And although that was 8 years ago, the building hasn't changed and they got a very "fieldhouse" feel to it. According to the RBC Center wikipedia page, it was intended to be just that, as the Hurricanes only other tenant is the NC State ACC Division I basketball team.

The location is generally good. It is located 5 to 7 miles west of Raleigh and is very much in the middle of the infamous Research Triangle in North Carolina. Take a look (click to enlarge):


The "A" arrow represents downtown Raleigh while the "B" arrow represents the RBC Center. To give you a better perspective as to where it is in the Research Triangle, take a look at this:


Although the team relates itself mostly to Raleigh, I'm not sure it could survive with just Raleigh and its suburbs. As much as North Carolina is college crazy sports-wise, the team must get help from the good sized surrounding areas. The arena is definitely a commute one where you have to drive to get there. This may affect attendance, but not by much as there is just a lot of open space (as you can tell by the google map above) around the area.

- High Ticket Prices/Poor Promotional Events

The Hurricanes raised their ticket prices by 10% this past off-seson. But, according to teammarekting.com, they have one of the lowest average ticket prices at $38.38, $11 less than the NHL average of $49.66. They also have the lowest average premium ticket price at $75.98; almost $40 below the NHL average of $113.44. Finally, the Canes are second to last in the Fan Cost Index, coming in at $219.52 (up 6.8% from '07-'08), about $70 below the NHL average of $288.23. 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.

High ticket prices are not the problem in Raleigh, that's for sure. The Canes also have a great list of ticket specials on their website. Although it is mostly the typical family and college night offers, they are great nonetheless. Do I think they could be doing more? Maybe, but at the same time the ticket prices really speak for themselves.

- Metro Population

The city of Raleigh comes in at just over 370,000, but the combined metro population of the Research Triangle comes in at just over 1.3 million. Statshockey.net has the metro population around Raleigh at just under a million, which would be the smallest in the NHL. There is no doubt this is a generally small market, but the fact that the Canes are growing in value is always a good sign. I honestly think that the size of this market has an affect on the attendance at games. Imagine if Phoenix was in a market this size? They'd be halfway to Hamilton by now.

- On-Ice Product

Carolina has been on a roller-coaster ride since arriving in Raleigh. One thing that I think is certain is that there are Hurricanes fans littered around the area, half of them might be dormant just remembering the memories of 2006. Take a look (click to enlarge/clarify):


As you can kinda tell, North Carolina hockey fans love a winner. Their average attendance peaked after their Stanley Cup season, and has been on a slide with no playoffs for a playoff-hungry market. Things are definitely looking up for the Canes, though, starting with this season.

They have a good mix of young talent and veteran leadership at the moment. 15 of the 23 man roster is 28 years old or below, led by star forward and assistant captain (I think) Eric Staal. I don't know if they will make the playoffs this season, but one good thing is that fans will benefit from a great playoff race down the stretch in the East. The Southeast is now dominated by the Capitals, but behind them are the Panthers and Hurricanes, separated by a point which makes the difference between a playoff spot, at the moment.

- Location/History of Franchise

The Hurricanes are sometimes plagued by there former identity as the Hartford Whalers, as the team and logo were somewhat of a hockey cult icon. But, in terms of business, North Carolina has a been a better move. On the ice, the franchise really benefited in terms of fan base and establishing themselves with the cup run in 2006. John Buccigross of ESPN.com says the team is identified by 2006 Cup-leaders Ron Francis (whose #10 is retired) and Rod Brind'Amour, along with youngster Eric Staal.

Off the ice, owner Peter Karmanos, Jr. faces an interesting market. I have already stated that I think it is somewhat small, but at the same time my gut says hockey works here. There major sport competition is NCAA basketball and NASCAR (to an extent). The best way (as shown by the chart before) to keep the RBC Center filled when the ice is down is to put a winning team on it. Although thats easier said than done, I believe it is a major key. At the same time, the organization has done a good job as of recently to keep the average attendance from really plummeting despite some poor teams the past two seasons. Bottomline: the Canes are obviously staying in Raleigh, and with a couple more real good playoff runs in the next decade, there could be an impressive die-hard fan-base, much like the one in Buffalo.

- Other

There are not many hidden surprises in the Carolina market. Like I mentioned before, the club is growing (up 8% last year), but are also operating at a loss. I think this seasons financial results will be interesting as the team is again down the middle in terms of the standings. If they can continue to grow with an average team, imagine what they could do once they get the on-ice issues sorted out.

- Conclusion

Not that there are any indications, but the Hurricanes are not leaving Raleigh anytime soon. Yes there market is somewhat small, yes there attendance sways with the standings, and yes the team is operating at a financial loss, but for some reason I don't see a whole lot of bad in this market. Maybe if the market was bigger and the RBC Center was in downtown Raleigh the Canes might see a slight attendance boost, but I do not know that for sure. Hockey has defiantly grown in the state, with at least 24 recorded rinks at arenamaps.com.

And that about wraps up this edition of Playing Below Capacity. Up next are the Columbus Blue Jackets, who are in the middle of a tight Western Conference playoff race. Please feel free to comment and point out any mistakes I made.

Also, on a self-promotion note, please do check back in about an hour or two, as I have a cool (well I think it is) piece on a topic I like to call the Second Half Attendance Boost. Everyone says it happens, but how much does it really happen? We will find out...

Late Night Menu

A couple of quick hits tonight:

- NBA Commish David Stern was on TheFan 590 this afternoon discussing the state of the NBA and the Toronto Raptors. Here's a quick summary:

NBA Commissioner David Stern joined the Game Plan to discuss the impact of the economy on the professional basketball league. In contrast to NHL Commissioner Gary Bettman (who stated that his league is doing well) Stern admitted that although the NBA would do well in financial terms this season, he was more than concerned about next season.

Interesting, considering what is coming out of our commissioners mouth.

- If you are lucky enough to have the NHL Network, Dave Hodge will have NHLPA Executive Director Paul Kelley on his new program, "The Hot Stove League" at 7 PM EST. He will most likely cover much of what Bettman covered on CBC's The Hour, which I posted earlier today, but from a players point of view. I'll be looking out for it.

- A programming note: the sixth edition of my series, Playing Below Capacity, will be delayed until Wednesday night or Thursday morning. I am traveling Wednesday during the day and I also have a ridiculously busy Tuesday, sorry!

Have a nice night.