Quote:
Originally Posted by Fire
They were a revenue sharing recipient last season and they are bumping up against the ceiling on how much they can charge for tickets. Look at the resale market for the Flames. It's terrible. You can't break even on most games at season ticket prices. Besides small yearly inflation increases they are pretty much maxed out on the revenue they can get out of the Saddledome. The costs outside the realm of the CBA is going up drastically (coaches, management, etc).
Eventually they will to decide if they want to remain a cap team and lose money or decrease the amount they pay out on salaries. I don't think the fans will stick around if the Flames are consistently icing a sub-optimal team.
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What makes you think that any other team can increase revenue beyond the rate of inflation. Everybody but Edmonton and Detroit don't have any new revenue sources.
Also if the resale value and revenue potential is terrible now isn't it far more risky to assume that you will increase revenues by 30%- 40% with a new building. And you need to do that just to break even on the investment.