Quote:
Originally Posted by Bingo
So what are you challenging then?
If you're going to call it over simplified then where? What part?
17380 average attendance (From ESPN, easy to look up and confirm)
31 teams (Shouldn't get an argument on that one)
45 games (41 league games + 1 preseason + 3 playoff games on average)
That's 24.2M tickets sold (top three numbers multiplied together)
36% of $5B is $1.8B (Your 36%, and the well reported $5B in total revenue)
$1.8B/24.2M is $74 but that has to include concessions etc. (Math is math)
Unless you've had a problem with anything above now it's down to $74. You're happy thinking the average NHL fan pays $74 for a ticket, and concessions?
We all know that's impossible. Maybe let it go?
|
Of course Hockey Related revenue is net of Direct Costs required to create that revenue as per section 50.1(a) of the CBA so that number that is required to get to 1.8 Billion is higher than 74 dollars spent per patron.
Direct costs are any costs that are required to generate the revenue. 100 percent of concession workers for instance would have their wages netted against the revenue generated. As would ticket reps. Any contract workers who partially work on revenue generating activities can have the portion of time that they work on revenue generating activities netted out against the revenue as well.
One has to assume that the wages of individuals on 31 teams, working 45 games a year is significantly higher than 0 dollars. At the start of COVID, the Flames said that they had 250 part time workers affected and 1500 full time workers affected. If one assumes that half of those workers (800 for the sake of argument) work in revenue generating jobs and they make on average 20 bucks an hour and worked 5 hours on game nights that would be 3.6 million that the Flames could deduct from their HRR over 45 games. For 31 teams that would be rounded up 112 million dollars. Obviously the number would be higher because the ticket reps and other salaried individuals would make more than 4,500 dollars a year. I would suspect the number is closer to 500 million dollars that the NHL nets off their ticket revenue, which would mean the average amount spent would have to be significantly higher than 74 dollars to create 1.8 Billion in revenue.
Direct costs also include all the costs for the food, beverages, material for clothing items, any cost that leads to a revenue generating activity is written off from the HRR. Hard to calculate how much that would be, but there would be a cost to that as well.