[Article: NHL Revenue/Cap] Behind the #'s: Pro Sports Merits of Being Big & Connected

[Boreal]

Interesting article that summarizes a lot of what is known regarding NHL revenue growth & the salary cap. With another CBA looming will the salary cap drop in response to changes in player/owner percentage of Hockey Related Revenue (HRR)? How will it change? How will escrow change, be defined, organized, & managed with respect to the cap?

With no TV contacts looming & NHL revenues stagnating, what will potential grow revenue to increase the cap with the next decade? A resurgent franchise in Toronto? International growth in Asia & Europe? What else?

I'm all for a stagnating cap or whatever will handcuff the Oiler and their ineptitude.

https://dupress.deloitte.com/dup-us-...echnology.html

WHERE DOES THE MONEY COME FROM?
Professional spectator sports have four main revenue streams: television broadcast, corporate sponsorship, merchandise, and ticketing. While television broadcast and corporate sponsorship are usually governed by long-term deals, merchandise and ticketing are more closely dependent on disposable income and fan loyalty.

In terms of value per dollar of revenue generated, the NFL is currently only marginally above its 2008 level, though it is by far the most valuable on an absolute dollar basis. However, the MLB, NBA, and NHL have all experienced big increases in value per dollar of revenue over their 2008 levels with most of the increase happening after 2011.

[Par]

Originally Posted by nobles_point

Interesting article that summarizes a lot of what is known regarding NHL revenue growth & the salary cap. With another CBA looming will the salary cap drop in response to changes in player/owner percentage of Hockey Related Revenue (HRR)? How will it change? How will escrow change, be defined, organized, & managed with respect to the cap?

With no TV contacts looming & NHL revenues stagnating, what will potential grow revenue to increase the cap with the next decade? A resurgent franchise in Toronto? International growth in Asia & Europe? What else?

I'm all for a stagnating cap or whatever will handcuff the Oiler and their ineptitude.

https://dupress.deloitte.com/dup-us-...echnology.html

The NHL is betting the resurgent of Canadian teams and having Canadian teams going deep into the playoffs. I think the the US is almost tapped out in terms of money.

[PeteMoss]

Originally Posted by Par

The NHL is betting the resurgent of Canadian teams and having Canadian teams going deep into the playoffs. I think the the US is almost tapped out in terms of money.

Even if they do - where's the money in that? Most of them play in front of nearly full arenas, the TV deals are locked in and merchandise sales aren't going to move the needle.

[Boreal]

All pro sports have benefited from the shift in home entertainment away from live TV towards PVRing & streaming services that minimize commercials. Advertisers have noticed, & noticed & the only thing that anyone still watches live with regularity is sports.

But the bump in revenue has already happened. I don't see how lightning strikes twice. Maybe intercontinental play?

With the potential of VIrtual Reality esque streaming games like Molson Canadian pumped this past season for a few games, I think might hurt revenue as much as it would help. Watching a VR game live from the players bench on a headset at home would certainly compete with nosebleed seats or over priced lower bowl tickets.

http://www.sportsnet.ca/hockey/nhl/s...six-nhl-games/

[GGG]

Originally Posted by PeteMoss

Even if they do - where's the money in that? Most of them play in front of nearly full arenas, the TV deals are locked in and merchandise sales aren't going to move the needle.

Each Canadian playoff ticket is worth at least $50 more than an American one. so 20k x 50 = 1 million extra per playoff game played in Canada. That might be worth 30 million in a good year.

[Erick Estrada]

Originally Posted by GGG

Each Canadian playoff ticket is worth at least $50 more than an American one. so 20k x 50 = 1 million extra per playoff game played in Canada. That might be worth 30 million in a good year.

$30 million in extra ticket sales after operating costs is probably a few hundred thousand a team at best and that's not going to move the salary cap needle all that much. I mentioned earlier this week that with cable TV on the downturn we may be witnessing the golden age of the salary cap as there's just not a lot of venues available to increase revenue. They can only charge so much for ticket prices and I'm willing to bet the next Canadian deal isn't as lucrative as the current one and a US television deal will never be a windfall for the league.

[Boreal]

Originally Posted by Erick Estrada

$30 million in extra ticket sales after operating costs is probably a few hundred thousand a team at best and that's not going to move the salary cap needle all that much. I mentioned earlier this week that with cable TV on the downturn we may be witnessing the golden age of the salary cap as there's just not a lot of venues available to increase revenue. They can only charge so much for ticket prices and I'm willing to bet the next Canadian deal isn't as lucrative as the current one and a US television deal will never be a windfall for the league.

With the Oilers addiction to long term deals.... If this happens it will be epic.

Even in the current cap scenario it will be difficult, if not impossible, for McDavid to out perform the price of his contract. Draisatl has me starting to make popcorn. Imagine the cap going down.