NHL Teams at risk from the Financial Crisis

[Festus]

The vast majority of Americans are facing very tough financial decisions, right now. Their expectations of their standard of living are going to be dramatically altered, certainly in the next year or two. They will have to prioritize their spending like never before (in their lifetimes).

Based on that assumption, which is pretty much a fact, the discretionary income they spend on professional sports tickets is going to be compromised, to put it mildly. High player salaries have driven up ticket prices in all the pro sports, the NHL being no exception. And unless a) Americans make hockey their #1 passion, and b) The NHLPA volunteers to take an across-the-board pay cut, there are franchises down south that are doomed.

One team that I would tag is the Columbus Blue Jackets. Ohio's economy has taken a beating; ask Obama and McCain who are campaigning there what Ohioans are asking them about. How can a Columbus family justify forking over for tickets?

Any others?

[MarchHare]

And unless a) Americans make hockey their #1 passion, and b) The NHLPA volunteers to take an across-the-board pay cut, there are franchises down south that are doomed.

The NHLPA doesn't have to volunteer for anything. If league revenues go down (or up), player salaries also go down (or up) by a matching percent. It's mandated by the CBA.

The only way individual teams could be in trouble would be if overall league revenues increase or remain constant but a few select markets lose support.

[missdpuck]

People like to point out Florida but there is a lot of money here. I dont know the breakdown but from what I hear the corporate sponsors would freak if the powers that be tried to take the Panthers outta here. I also heard that the deal they have with the BAC would cost an extraordinary amount of $ to break, but maybe it's less than what the franchise would otherwise lose? I kinda think this season will be the make or break here . With a revamped team , a new coach and a different attitude if we dont increase the fan base now i dont think we ever will..without a playoff berth. Cmon dont laugh...

[GreenTeaFrapp]

Originally Posted by Festus

High player salaries have driven up ticket prices in all the pro sports, the NHL being no exception.

Why do people keep making this asinine argument?

Tickets for top NCAA sports have gone up considerably in the same time frame just like they have for pro sports. What's driving up those prices?

[missdpuck]

Originally Posted by GreenTeaFrapp

Why do people keep making this asinine argument?

Tickets for top NCAA sports have gone up considerably in the same time frame just like they have for pro sports. What's driving up those prices?

Sports addiction...

[MarchHare]

Player salaries don't affect ticket prices one way or another.

The team owners are, first and foremost, businessmen. They set their ticket prices to maximize their revenues based on supply (arena capacity) and demand. Player salaries are part of the cost of doing business -- it's no different than the cost of running a beer stand or paying the zamboni drivers.

The only thing player salaries affect is whether a team can remain viable in a given market. If the cost of business becomes too high and revenues can't keep up to generate a profit, the team will be forced to either relocate or fold.

If the salary cap went back down to ~40 million, but fans in Calgary were still willing to pack the Dome with seats costing $100 or more, do you think Ken King would lower ticket prices out of the goodness of his heart, or would the Flames organization pocket the extra money as additional profits?

[Festus]

Originally Posted by GreenTeaFrapp

Why do people keep making this asinine argument?

Tickets for top NCAA sports have gone up considerably in the same time frame just like they have for pro sports. What's driving up those prices?

Okay, let's get back on topic, here. The question is, given that the operating costs of pro sports franchises are high, and that Americans will be prioritizing spending, are there specific teams that you think could be in difficulty.

[4X4]

The loonie dropped another 3 cents today. How long before Canadian teams are crying the blues again as well?

[missdpuck]

But if players' salaries are paid out of revenue then how come the disconnect? The salaries dont just come out of a vacuum. Forgive my ignorance I just dont get it. More on topic when my friendly Panthers ticket agaent calls to sell me tickets he says "and you'll be helping to pay the players salaries " which is kind of hilarious. Sure I like having a team here but it's funny that I should worry that some guy is going to make $5 mill......l