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...

Coyotes/Thrashers Go All Out With Discounts

Mirtle found the following image yesterday, showing how the Thrashers are discounting ticket prices along with stringing a deal for next season:


A great deal, for sure, but I don't think it will work very successfully. Why? Well because there in Atlanta, for starts. Atlanta is just above the 14,000 threshold for revenue sharing, but is under 80% in capacity (team has to have one or the other to qualify).

The Coyotes are cutting ticket prices as well - up to 40% off. This ploy has a greater chance of working than the Thrashers one, only because it isn't such a lump sum of money.

As for this tactic of cutting ticket prices, I don't mind it; but only to an extent. I think what the Thrashers thought up was innovative and a really good deal, while at the same time they will make a good chunk of money. On the other hand, cutting your tickets by up to 40% like the Coyotes, I do not support. Enough tickets are given away down there, and I doubt 40% off a $30, 300-level ticket is going to provide the "infusion of capital" into the Coyotes books to really help them.

Long day of travel, hopefully more later.

There is a God

I am detecting virtually no business related news today, except for this quick piece by Cassie Campbell at CBC. It takes a different look at the Coyotes and Predators situations. This will be my only post before I begin my afternoon/night of exams, and although the Devils trounced the Rangers last night; there is a god.




My Sean Avery NYR Jersey could be put to use, soon. Avery is heading to Hartford. I am filled with boyhood joy today.

Enjoy your Tuesday.

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.

Monday Afternoon Roundup

Here are the top stories this afternoon around the Business World of Hockey:

- Wings @ Pens drew a 1.1 on NBC yesterday afternoon (Puck The Media)

- Speaking of marketing partnerships, MLB TV and NHL GameCenter team up to offer you a great online viewing deal (NHL.com)

- CBC posts Gary Bettman's uncut interview on CBC's "The Hour" last Thursday. (Slap Shot - New York Times) Highlights? Right off the bat the relocation/expansion talk starts, and then around the 10 minute mark some more Phoenix discussion comes up. Its a long one, but Bettman does reveal some interesting views on how he deals with certain situations and basically what makes him tick.

- In light of the Wild freezing season ticket prices, other teams are starting to announce their plans as well. The Oilers and Bruins will both be slightly increasing their tickets for next season.

I'm going to revive a little tradition which I loved that Sean Leahy used to do weekly over at Going Five Hole to keep our touch with the game fresh. Here was this past Saturday's Coach's Corner with Ron MacLean and Don Cherry:



Hopefully more later...

NHL on NBC Schedule

Doing some light reading, I ran into the NHL on NBC spotlight for this Sunday on NHL.com, which begged the question of which rivalry is the best in hockey?

Their top three came out to be Leafs-Canadiens, Bruins-Canadiens, and Flyers-Rangers (You think the NBC would miss such an easy opportunity to promote next weeks game?). But this is not why I am typing this up.

On the sidebar came this chart which showed the possibilities for the game of the week through the end of the season (click to enlarge):


I figured I would go through and attempt to predict which games NBC will pick along with some commentary.

- 2/22/09: Pittsburgh @ Washington.

With the only other possibility being the Avs/Canes, this is really a no-brainer.

- 3/8/09: Boston @ New York Rangers.

Although I'm sure NBC wouldn't mind more Crosby-loving, I don't think they'll go with the exact same game two weeks in a row. I think a close second could be Colorado @ Chicago, because in all honesty that might be a better game.

- 3/15/09: Detroit @ Columbus.

I'm going out on a limb here. NBC won't go with Philly @ NY again, I think. The Wings are arguably the most popular team in the league nation-wide, and Columbus is fighting hard for a playoff spot. The other option is Boston @ Pittsburgh, which I wouldn't be surprised if NBC went with, but I'm sticking with my original guess. They can go with Columbus because the time difference isn't that huge in terms of an east-coast broadcast.

- 3/22/09: New Jersey @ Boston (I guess...)

This pick will easily be the hardest for NBC. If they go with Philly @ Pitt, NBC stays in the same mold as always. The next option is New Jersey @ Boston; a little different matchup but this pick won't happen if on the previous Sunday NBC goes with Boston @ Pitt. And like I said previously, I don't think they will go with Pittsburgh two weeks in a row, so that axes this matchup.

This leaves Chicago @ L.A., a very interesting possibility. NBC is shying away from west-coasters because of the time difference, but in all honest if I had to pick a game from the three to watch, it would be this one.

- 4/5/09: Minnesota @ Detroit

Easily the most competitive option. The Wild will be fighting for a playoff spot, and Detoit will be in cruise mode. Other options are Pitt in Florida; which could be possible if the Panthers are on the brink of the playoffs, but this will also depend on which dates Pittsburgh is picked for previously. The final option is Atlanta @ Washington, which I don't think will happen.

- 4/12/09: New York Rangers @ Philadelphia

Another tough choice. The close second is Detroit in Chicago; which if NBC went with I wouldn't be shocked. They could play off the Winter Classic again but in all honesty both teams will be in cruise mode at this point before the playoffs. Meanwhile, my Rangers could be fighting for a playoff spot by now, and a game in Philly is always great because of the packed Wachovia Center. Sorry Boston @ NYI and St. Louis @ Colorado, but you won't cut it.

Conclusion: NBC will have some tough decisions.

This stretch will be tough on NBC. They have to decide if they want to broaden their horizons west, and if they do, they will have some good choices to choose from. They already backed out of a possible great game with Boston in San Jose, going with the currently playing Detroit in Pittsburgh.

But with so many good choices, even if NBC decides to keep staying east, they will still have some long nights trying to decide as so many matchups depend on previous matchups.

Hope your enjoying your Sunday.

Marketing the Game: the MLS, Video Games, and NHL GameCenter

I've had a bunch of thoughts rolling around in my head for the past week or so regarding the marketing of the game we all love. As we have seen the past two to three years, the NHL has been growing in terms of dollars, attendance, fan base, and TV ratings (since the lockout, at least). I was going to make this into some kind of series, but like I said, all I have thus far is just a bunch of random thoughts on what markets are out there that the NHL could possibly reach out to in order to extend its growth.

All of this thought began when I ran back into a report published back in October by Experian Customer research (via Yahoo), which showed that NHL fans, in general, have a higher mean household income than any of the "big five" sports leagues in North America (NFL, MLB, NBA, NHL, and MLS).

The average between the NHL (around $88,500 a year) and the NFL (just under $82,000) isn't shocking big; but it is a difference. But what really got me thinking wasn't this, it was the further research done by the report.

Average NHL fans, according to Experian, are 27% more likely to own/play video games in their spare time. Furthermore, with exception to the MLS, NHL fans are in general of a younger age than NBA, NFL, and MLB fans; respectively. The report goes on to also state that NHL fans are doing more shopping online and are more tech-savvy than any other league in North America.

Most of you might have already heard this spiel, for which I am sorry. But, as I sit here enjoying one of Canada's finest beverages (Labatt Blue, of course), I wonder if the NHL will take this information seriously enough to actually think about the possibilities. Now I don't have many suggestions, but I have thought of some. Here are three "common" "assumptions" about the NHL and their fans concerning marketing:

1. Hockey does not fare well on TV, and is much better in person.
2. Hockey is a niche sport, therefore only having die-hard regional fans that really only pay attention to their respective team.
3. With Hockey fans being so tech-savvy, many avoid paying the $169 a season for the newly launched NHL GameCenter by the NHL.

I do not disagree with any of these assumptions. Number one is somewhat true, as a game in person is 100x better than a game on TV, no argument. I would say number two has some truth to it as well, because I would say that hockey has more die-hard fans than most sport. And finally, with number three, lets just say I have my sites for when the Rangers are blacked out the nine times a season so I can continue my horrible habit of watching an offensively capable team struggle in a defensive system with an all-star goalie (sorry for the rant).

Now, with all this said, I don't think the NHL can go anywhere near mainstream like some think it can within the next 5 to 10 years (I will leave the ESPN issue to another day). I love to see the NHL growing in dollar figures and in fan bases, it only means (for now) better things for a game that I think has some of the highest levels of honesty (sans betting schemes), integrity, and culture within North America. Some around the hockey world would like to see the NHL get right back on ESPN and grow grow grow as fast as possible, but I refrain from that, as I am more of the slow and steady type. I think the game right now is fine where it is, and if it continues on the current path, I think it could be a very viable product for many for years to come. I think some NHL fans have to come to accept this and realize that we will never reach the heights of the NFL and MLB because to put it perfectly honest, Ice Hockey is not America's pastime.

So here are three areas/ideas/situations that I think the NHL could look into in order to continue growing its product off the ice.

1. Major League Soccer

The MLS, whether you believe me or not, is actually growing. Now many point to this in large part due to the rapidly growing Hispanic community all across the US, and I wouldn't disagree. But, at the same time, Soccer is the biggest sport in the world and is another niche sport in the U. S.A. that attracts families of children and much of the same demographic as NHL fans. 11 out of its current 15 franchises are located in or around the same area as NHL franchises. As of next summer, that number will jump to 12 out of 16 with the arrival of a Philadelphia team.

In that same Experian report, the MLS is right behind the NHL in the Household Income, video games, and average age statistics. The MLS and NHL seemed to be poised for the future, and together I think they could really help each other out.

Now I am in no way a Marketing wiz (Hell, I'm taking my first marketing class as I type), but I like to think I know a good ploy from a bad. I don't have many suggestions for the NHL here, but one that stuck in my mind the past few days would be a year round plan. The MLS, unlike most soccer leagues around the globe, starts in the spring and plays through the summer and ends in the early days of autumn. The NHL, as you know, is on the opposite schedule. Could the two link up and offer a year-round season ticket plan? As Mythbusters would put it:


- Video Games

More specifically, NHL 09. The game won 4 best game of the year titles in 2008, and is very addictive (trust me). Many puckheads are always upset with the game not being on the same level in terms of game mode compared to EA Sports Madden NFL series, but what makes NHL so good is the game play. I enjoy nothing more than playing my football and basketball obsessed friends in NHL, and beating them on a consistent basis.

The NHL must explore this market, as there has to be something to the mass appeal to the game. The Video Game guys around the net could easily pick Madden every year, but NHL has been a hot topic the past few seasons, and NHL 2010 is already greatly anticipated.

Ideas? I don't know, do an online tournament through NHL.com where 16 randomly chosen gamers get to re-create the NHL playoffs over the summer to keep interest up. I'm not big on ideas for this section, but there has to be something.

I say this because people like playing the game of hockey via NHL 09. They realize how intense and fast the game is through their video-game console, which keeps them coming back for more. If the NHL can figure out a way to parlay that into keeping them coming back to Versus to watch a live game, they will have done their job.

- NHL GameCenter

The NHL GameCenter was launched fresh this 2008-2009 season. The idea and platform was loved and prasied by some, but also labeled as a rip-off by others. Let's debate both sides of the issue:

Pro's: The GameCenter lets you have everything at your fingertips. Since us NHL fans are so tech-savvy, this makes us giddy as information is everywhere and we can watch any game at any time. Also, a key for die-hards, it allows the die-hard fan to catch every game all year, which to some who live in markets where hockey is an afterthought in the media, this is awesome.

Con's: Being a hockey-traditionalist myself, I love the idea of sitting down at 6:30 on a Rangers game-night or a Saturday night before Hockey Night in Canada; and finishing up the program when the game(s) are over. When this idea gets accomplished, I feel complete and refreshed. I am on my computer enough as it is, I don't really want to sit and watch a game on it some times. The lazy boy calls me often.

The GameCenter is a great idea by the NHL and in no way should they abandon it. I'm sure they did well in its first season and I'm sure it will continue to grow. One thing I think they should due in light of the economy is cut the price. It should be in no way above a $100, to me, and they should offer some really flexible offers at the beginning of the season.

So that's it; all my random thoughts written down in a somewhat coherent way. If I come up with anything else or remember something, I'll either add it or save it for another post. Please let me know what you think, as this stuff really does interest me.

I have a busy Sunday planned so I'm not sure how much I will be around. If not I will be back Monday.

Wild to Freeze Season Ticket Prices

More business-related news out of the Globe and Mail, as the Minnesota Wild will apparently freeze their season ticket prices for next season with the U.S. recession in mind.

Vice president Jamie Spencer said feedback from fans indicated the organization needed to adjust to their financial situations, so the Wild made the announcement early and will provide more-flexible payment plans. Prices typically aren't finalized until the spring.

The Wild have sold out every night in their 351 game franchise history, and I expect this to continue. The waiting list for season tickets is over 7,500 people strong. The Wild's average premium ticket price is $99.38; about $15 below the NHL average. Their single game ticket prices went up just over 6% last season, so it will be interesting to see if they roll over the freeze to that end of ticket sales as well (all from teammarketing.com).

The Wild are the first club to announce this, but I wouldn't be surprised at all if this became a regular event among teams; especially with season ticket holders in an effort to keep them from bailing on their seats.

Also, I'm officially calling it that if the Rangers manage to re-unite with Sean Avery, good things will happen (not to mention my freshly bought Avery jersey from Christmas 2007 will be revived). Hey, Mirtle doesn't see a problem with it!

That's all for now.

Report: Bettman 0 for 3 for Phoenix

Gary Bettman is 0 for 3 according to the Globe and Mail in attempts to lure owners to buy the struggling Phoenix Coyotes franchise.

The sources say the NHL commissioner was turned down by Chicago White Sox owner Jerry Reinsdorf, by Phoenix Suns majority owner Robert Sarver and by Ken Kendrick, the managing general partner of the Arizona Diamondbacks, on separate occasions. All three were said to have backed out after looking at the books of the Coyotes, who are expected to lose as much as $45-million (all currency U.S.) this season.

Yikes. Obviously, this just adds fuel to the fire down in the desert and may stir the interest of the NHL Board of Governors, who have obviously been keeping a close eye on the situation.

We will see what kind of response this news gets tomorrow.

Good night.

Happy Birthday Don Cherry

Happy Birthday to a man that I listen to week in and week out, and I always for some reason agree with. Don Cherry is 75 today, and although its an afternoon post, I'm sure Don isn't napping. The Globe and Mail's Tim Wharnsby has a nice piece on Don and some candid comments, which always leads to some Cherry logic:

"A doctor told me that he can tell if an old guy walks into his office wearing a new suit, that means he's feeling good because he is expecting to live a long time," Cherry said. "I just bought six new suits a couple months ago, and I have another six coming."

Brilliant.

Seems like a slow day on the business side, again. I tried running some revenue-sharing projection numbers earlier, but I think I'm missing something as my original projections came out saying no team qualified for revenue sharing last season. I'll try to figure that out next week, as I will be on break from school starting Wednesday. Speaking of which, a heads up for the next couple of days: I will not be around that often. I have a paper due tommorow and a full slate of work this weekend as Clarkson Hockey has three Womens games and a Mens game planned over two days. Tack on two tests Tuesday before I hop on home and I will be plenty busy. If I have a minute and there are some pieces of news, I will throw them up for your viewing pleasure. But if not, refer to your other sources for a couple of days.

So with that, I will thank the few of you that read consistently, and here is a clip showing Don Cherry's best side:



Have a nice weekend.

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.

Predators Predicting Profit

News out of Tennessee this morning, as the Nashville Predators are predicting a profit just under $150,000 this season. This number may seem minute in the sports world, but it is a significant step up for the Predators, who reportedly lost around $70 million under former owner Craig Leipold.

Considering the current economic conditions along with the fact that player salaries for the Predators jumped $10 million this season (from ~$34 million to ~$44 million), this should be considered a success. Last season the Predators had their best economic season as a franchise, turning a profit just under $1.9 million. The Predators are in 14th out of 15 in the Western Conference as of today, but are only six points out of a playoff spot. They will most likely not make the playoffs, which will make turning a profit during the season seem like an even bigger success.

Good for them, I say. David Freeman (majority owner) and company did a great job saving the team from Jim Basillie along with keeping it in town, and I'm happy to see that they are getting a return so far (almost $2 million in two seasons).

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.

Happy NFL Offseason

One of my favorite days of the year is today. It is not a holiday marked on the calendar, and I am usually the only one to note of it amongst my family and friends. But today and every day after the Super Bowl I am always in a good mood. The NFL Season is done; thank god.

Now its not like the NHL gets propelled into the limelight. As we all know they will spend a week talking about the game, and then jump right into Mel Kiper telling you five times daily who will go 23rd in the first round of the NFL Draft, and that this player will automatically be a steal.

But, either way, the NBA and the NHL are now the only two of the big four currently in season. This means ESPN switches from NFL to NBA mode, but that also means that some closet football fans may start watching hockey as well.

All in all, Happy NFL Offseason...

Some quick end-of-the-week stats:

22 Sellouts last week, up to 383 for the season. Smallest number since the new year. Smart move by the NHL staying away on Super-Bowl Sunday, with only 3 games yesterday; all sold out nonetheless (Montreal, Washington, and Edmonton hosted games). San Jose now leads the league with 25 sellouts.

That's all for now, look out for a revenue sharing post this afternoon.

NHL Plans European Vacation Again

During HNIC's Hotstove segment last night, CBC's Scott Morrison reported the NHL is planning 3 games in Europe for the '09-'10 NHL Premier. The NHL's European tour will come back to Czech Republic in Prague, along with again visiting Sweden in Stockholm. The third and new city to host the two weekend games as of right now is Helsinki, Finland.

The tentative plan right now is to send Calgary and San Jose to Helsinki, Detroit and St. Louis to Stockholm, and finally Chicago and Florida in Prague. Morrison noted that these are all preliminary plans though, because the teams (especially Detroit, according to him) still have to satisfy their ticket sales needs.

As I've stated before around here, I'm for the NHL kicking off the season in Europe. Yes, there are some downfalls such as less home games for the loving fanbases over here and some tough logistics for the teams that travel; but I thought the NHL handled the scheduling well with this seasons premier. I'm for all of this because the Premier allows the league and the game to shine on an international level, which will always help the league.

That might be all for today, as I have some serious school-work. So if not enjoy your Sunday.

Sens put Fans First, more NHL v. NBA Attendance

Busy day for me today as I work the Hockey games up here starting at 3 PM, so this will be my only post today.

The Senators announced yesterday that they are starting a program called Sens Fans First; where 10,000 Value-Priced tickets will be available to children over the rest of this season and will continue into the '09-'10 season. On a smaller note, the final five Saturday home game practices will be open to the public under the Esso Gameday Experience.

There are 13 home regular-season games left for the Sens, which means 500-1,000 tickets will be available for the plan for each game for $20 Canadian, this includes a hot dog and drink in what is being called the Future Fans pack which is focused on the kids. Parents who will be bringing the kids to the game under this deal also get a cut as well, with their tickets being priced at $29 Canadian.

Finally, the Sens have more plans, this time for their season-ticket holders. The rest of the Sens Fans First campaign will be announced next week.

What to take of all this? Well, the Sens are the first Canadian team to really make a public showing of cutting ticket prices and providing deals in this economy. I like the idea, as the Senators have struggled all season and this will ensure that their attendance average and capacity don't suffer too hard. Plus, what I really like about this, is the focus on offering affordable tickets to children. I've always been a proponent of the NHL focusing their marketing on kids, as they are the future fans of the sport. Plus, if a kid has a great time at a game, they will always want to go back, and mom and dad will break out the wallet eventually.

Moving on...

Via my Team Marketing Report Weekly email, a nice story was put together by Dan Bulla, which focuses on the immense success thus far at the gate for the Chicago Blackhawks, and continues to compare some NHL and NBA attendance figures. We all know the Hawks are doing great, and are actually outdrawing the Bulls, but what really interested me in the story was this paragraph:

But the success even goes beyond the Capitals and Blackhawks. Looking across the league, the NHL’s numbers this year have been particularly strong, especially when seen alongside the NBA. There are 10 venues that host both NBA and NHL teams in North America—and since the Staples Center holds the Lakers, Clippers, and Kings, there are 11 solid NBA/NHL comparisons. If we look at the average percentage of capacity filled per game in each of those 11 instances during the 2008-09 season, the NHL is outdrawing the NBA in 7 of the 11.

With this information stated, I went on the research offensive. Below is an expansion of what Bulla states, that the NHL is outdrawing the NBA in 7 out of 11 shared venues between the leagues in attendance capacity. All figures from the respective NHL and NBA attendance charts from ESPN.


As you can see, the NHL is directly winning in 5 out of 8 markets as noted by the highlighter. The Kings are outdrawing the Clippers, but not the infamous Lakers, so that moves our count up to 6. In Denver, although the Nuggets are technically winning by a slight margin, I call for a tie because of the major number of 87 % being the majority. So, the NHL is outdrawing the NBA in 6 out of 10 markets where NHL and NBA teams share an Arena. Not bad at all.

Bulla raises one final question at the end of his article. He mentions that the NHL was in a similar position back in the mid-'90s where they were challenging the NBA for the #3 spot in the big four ranking (Above is the cover from a spring of '94 issue of Sports Illustrated; any NHL diehard remembers it). He doesn't give his prediction, but he says that it is closer than many NBA fans, and ESPN, would like to think.

That's all for today, I'll see if I can get one in tomorrow before I hit up another day of work, but if not check back Sunday afternoon. Thanks for reading, as always.

Slow Day...

Slow day in terms of business news and basically stuff I can write about. I'm still waiting for some clarification on some revenue-sharing related CBA questions before I can move ahead with those plans. So far now, this is what I've got:

NHL Senior Executive Vice President of Hockey Operations Colin Campbell and NHL Senior Vice President of Hockey Operations Mike Murphy (Yes, they are different roles, apparently) will join Commissioner Bettman on his weekly hour-long talk show; NHL Hour (nhl.com).

The show encourages fans to submit questions via phone and e-mail. To submit questions to NHL Hour call 1-877-645-6696 or e-mail nhlhour@nhl.com.

Commissioner Gary Bettman will return next week to host with Bill Clement live from the NHL Powered By Reebok store in New York City.

So if you're lucky enough to have Sirius, tune into Channel 204 or 208 at 4 PM for some hockey talk. I'm sure they'll cover some business along with the hot-button issue, fighting. I'll look for the podcast later.

Other than that, I have nothing. So I decided to update you on some small stats from the spreadsheet I use to track attendance (updated recently, in the top right corner of the homepage here). First, the number of sellouts, followed by which team:

• 26 Sellouts: Calgary
• 24: Vancouver, NYR, Minnesota
• 23: Chicago, Montreal, San Jose
• 22: Pittsburgh
• 20: Edmonton
• 17: St. Louis
• 13: Boston, Buffalo
• 12: Philadelphia, Detroit
• 11: Washington
• 10: Ottawa, Anaheim
• 8: Los Angeles, Dallas
• 6: Colorado
• 4: NYI
• 3: Nashville, New Jersey
  
• 2: Carolina, Tampa Bay
• 1: Atlanta, Columbus, Florida
  
• 0: Phoenix

Riveting. A couple more fun facts:

Largest Crowd: 22,712 in Chicago. Friday, December 26th, against the Flyers. Hawks win 5-1.

Smallest Crowd: 10,183 in Uniondale for the Islanders. Thursday, October 23rd, against the Stars. Dallas wins 5-3.

That's all for now, check back later, but I'm not promising anything.

Minnesota and Revenue Sharing

Messing around with the Attendance tracker at ESPN today, I sorted the "Road" attendance by average. The team in dead last didn't shock me, but it did get me thinking.

The Minnesota Wild are in last place in visiting team attendance, as the chart shows. What does this mean? Well, nothing really. The list is a rough correlation of which teams are most popular in the NHL, because casual fans might circle the date when the top teams on that list come to town for their team. But other than that, what could it be?

To be honest, I racked my brain all day. All I could come up with is the fact of how the Wild play their game, which is their infamous trap style. Still. a quick look at the standings shows that the Wild are not last in Goals For, in fact they would rank around 25th if I drew up a chart. As for Goals Against, they are tied for the second lowest, but I don't think this affects the fans decision.

They do have the 2nd lowest shots on goal, per 60 minutes. Any way I put it, they are a trap team. What got me thinking about this was that I wonder if their reputation really matters to fans when they see the Wild are coming into town. And if so, how much does it matter? Does it mean the difference between going to a game and not? Does it mean the difference between not watching a game? I'm going to keep an eye on this and see if I can think up of any ways to look into it.

Some plans for the future...

A comment last week from the Nashville Predators Playing Below Capacity article suggested that I look into NHL Revenue sharing, as Nashville should figure into that mold. Well after a couple days of poking around and actually reading the CBA, I have something.

I do plan on taking a deep look into NHL Revenue Sharing, and I hope to be able to forecast it in the months to come. But the following are just some raw facts that we all need to know going forward, as they are key in understanding on how I will compute the numbers for Revenue Sharing:

• NHL Salary Cap (2008-2009): $56.7 Million
• NHL Salary Floor (minimum): $40.7 M
• Salary Midpoint - $48.7 M
• Minimum Team Player Compensation: $29.9 M
• Targeted Team Player Payroll: $48.7 M
• Pro Rata Benefits Portion: ???

Understanding the Salary Cap and Floor aren't too difficult. The Salary midpoint is just the difference in the cap and floor ($16 M) divided by two which is added to the floor. This represents what each team should target for a payroll in order to maximize revenue. The Toronto Maple Leafs are the closest to this figure this season, at $48.6 Million, and only 8 teams including the Leafs are below this figure.

The Minimum Team Player Compensation represents what each team should have available at the start of the season to spend on players in regards to league revenue. It is calculated by dividing 20 Million by 1.74 Billion, and the multiplying that figure by the leagues revenue (which at the end of last season was 2.606 Billion). As you can tell, the floor is nearly 10 Million higher than this, but this gives the league a sense of the bare minimum of at which it can operate.

Finally, the Pro Rata Benefits portion. The Pro Rata is a small figure but it nonetheless figures into the final available funds for revenue sharing. It takes the total benefits paid by the NHL during its season and divides it by the number of clubs in the league (30) in order to determine the amount. I'm a bit confused on this, as the benefits cover a broad range of topics. If anyone has any information on how much the NHL spends in this area, please let me know.

That's all I feel like explaining at the moment, as the Rangers take on the Penguins. Tomorrow I will explain how clubs can qualify for revenue sharing to the best of my abilities. Please feel free to comment if you think I mis-spoke on anything or have something to add.

Updated Escrow Projections

As I mentioned last night, I said I would take the format that Daniel Tolensky provided Saturday in his article over at HockeyBuzz and update it in light of new updates of the Escrow percentage and revenue growth via TheFan 590 and Paul Kelley, the Executive Director of the NHLPA.

As a quick reminder, Kelley said yesterday on TheFan 590 in Toronto that the NHL expects revenue growth at the end of this season, ranging from 1 to 2 %; but more and more its looking like 1%. Along with this, Kelley stated that the second half escrow percentage, which is the amount of player salaries that are held back from them in order to cover any shortfalls of the league and its clubs, will rise to 22.5% from the first half percentage of 13.5. Kelley then confirmed that this would give an average of 18% for the season, which is the number I used in my projections.

As I stated last night, the players will lose money this season due to escrow, it just depends on the bottom-line revenues at the end of the year which will determine how much. So, non-playoff team players, root for 7-game series all around. Without further adieu, here's what I came up with (click to enlarge if necessary):


A couple of quirks I ran into while running these numbers:

- In his +2 Revenue Scenario, Tolensky had an overpayment/shortfall % of 12.9 %. But when I ran his numbers again, I figured it to be 11.43%. Triple-checked and I'm not sure how he came to his number.
- In that same scenario (basis for this report), he has the interest at Escrow at 0.10%. Of a million, this would equal $100,000. Since I doubt the league would be paying 100K per player in interest, I changed this to .01%, or 1%, which equals 10,000. I'm not sure where Tolensky got his figure, but for now, this works.

What to take away from all of this. Focus on the Shortfall dollar and percentage figure. This is the amount of money the players are going to have to foot to bring the leagues clubs out of the red ink. If the league grows by 1%, this figure should be between 205 and 215 million, depending on how the revenue shakes out. This means that players will be handing over anywhere from 10 to 13% of their salaries. For the player making the league minimum of $450K, this means that close to $59,000 will be taken from them. Granted, I think they'll be alright with their bills, but that is still a significant amount.

Please comment if you think anything is wrong, or would like me to explain anything.

More later.

Late-Night Escrow Fun

Catching up on my reading, James Mirtle once again provides a great piece of news. NHLPA Executive Director Paul Kelly said on TheFan 590 in Toronto that the Escrow percentage would rise to 22.5% this half of the season, from 13.5%. Many rumors have been swirling about this, with the most notable figures starting at 19.25% and then ranging to 25%.

This means that at the end of the season, 18% (adding the first half escrow of 13.5 to the now 22.5, and dividing by two) of players salaries this year will be held back in Escrow. Although this seems like a great amount (18,000 out of a million dollar salary), the players will most likely lose money this season on their contracts due to rapid contract inflation the past two seasons.

A great article over at HockeyBuzz by Daniel Tolensky takes the revenue projections of the NHL (2% growth, according to Bettman at the All-Star Game), and uses them to calculate the Escrow returns for three scenarios this season, along with how it has looked the last three seasons. His article was posted on Saturday, so he used the rumored figure of 19.25% for escrow.

I think I'm going to try and update and make my own projection chart once I get a few things clarified by some people on this issue. But at any rate, it looks like the players will not be receiving their full salaries this year because of some crazy salaries. As a Ranger fan, I feel bad for others that will lose money when Wade Redden will be making home improvements this summer due to his deal.

Check back tomorrow for more fun, as always.

Playoff Teams With Opposite Attendance

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

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

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

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

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

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

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

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

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

Moving on...

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

That's all for now.