Quote:
Originally Posted by valo403
Doesn't it? I don't have their financials, I don't know where their losses fall. My comment was mostly due to the cheap shot tactic that seems to be so popular when markets have cheap tickets. Guess what, Calgary has been there before too.
|
Low ticket revenue has to be a concern in any market. When Calgary had problems selling tickets, they were in big trouble too.
http://theviewfrom111.blogspot.ca/20...odel-work.html
Gate revenues are the single biggest driver of the profitability of a franchise, and the disparity of ticket prices among the teams points out the inequality in demand for the League's product in various markets. The high demand for tickets in Toronto skews the median price of a ticket for the NHL. Teams that have consistently struggled on the ice lack leverage to raise ticket prices to meet rising costs as they often play to less than sold out arenas. The dilemma for many franchises is that although League revenues are rising, and therefore the salary cap, the revenue for a particular franchise may not be keeping pace.
Rising League revenues are problematic for franchises that are in smaller markets or are unable or unwilling to raise ticket prices because even though these franchises can choose not to spend to the salary cap, the salary floor is also rising, causing the smaller market franchises to have to spend more money on payroll.