Sorry but I'm with Dogbert on this one. I think pro sports and especially hockey are in for a bit of a reckoning in terms of the business model. Here's why and sorry for the derail a bit:
- Ticket prices are not sustainable for the entertainment value relative to access to television. The next TV contract is not going to be as lucrative either.
- NHL is a gate driven league. Given the rise of TV as a very quality substitute, fans in future will be less willing to spend crazy amounts.
- Player salaries have risen but there will be an eventual ceiling to the market fans will pay. Salaries and profits have outgrown people's ability or willingness to spend (my prediction based on US / Canadian economies- particularly- the NHL relies on a strong Canadian economy which is being propped up artificially by real estate which will eventually pop in Toronto / Vancouver). Seriously, real estate is the number one industry in Canada. How can that be? The money has to come from an industry of actual wealth generation like technology, raw resources or manufacturing. It's not sustainable for Canada, and Canada is the butter for the NHL's bread, transferring money to prop up less profitable teams through profit sharing.
Anyway, who the hell would want to watch the Senators?
They're boring as hell. They're far away from people. Tickets are still somewhat expensive. They don't have the rabid base of fan support. But most importantly, they're boring as hell. Want fans to come? Don't be boring.
|