Teams' % take of concessions, parking, etc

Discussion in 'The Business of Hockey' started by the rabbi, Nov 12, 2006.

  1. the rabbi

    the rabbi Registered User

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    I'm doing research for a project, and need to figure out approx. what % teams get from parking, food, merchandise, etc. sold in the arena.

    If anyone has info. on this, I would be very appreciative.
     
  2. USF Shark

    USF Shark Zôion politikòn

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    Take a look at the book "May the Best Team Win" by Andrew Zimbalist (spelling?)

    It's about baseball's economics but it also related to hockey, basketball, football, etc...it's probably a good starting point though.
     
  3. OpAck

    OpAck Registered User

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    The Islanders are a very unique case in terms of where their revenue comes from. I believe, and someone correct me if I'm wrong, but I think the Islanders only make money off of a large percentage of ticket sales and merchandise. Concessions, parking, and other non-ticket revenue goes to the Coliseum management company, SMG. And while that deal looks horrid for the franchise, which it is...they have one of the most lucrative TV contracts in history. The cable deal with Cablevision pays the team over $15 million per season and it increases in value through the year 2030.

    A good place to check it out is here...http://www.forbes.com/lists/2006/31/biz_06nhl_NHL-Team-Valuations_land.html
     
  4. kdb209

    kdb209 Registered User

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    Yes, the Isles lease does suck.

    But back to the original question - it really is a team-by-team lease issue. The Isles and the Pens (thanks to Howard Baldwin selling out future revenue streams for some upfront cash) get virtually none. Others who own (or control the master lease on) their arena get virtually all the revenues (as well as the expenses) generated by not only their NHL games but also from other events in the building. The middle ground is teams who do not own/control their own building but still have a good lease - they get the bulk of arena revenues for their games, but not for ancilliary events.

    And just to contribute one more data point - SVSE (Silicon Valley Sports Entertainment), the group that owns the Sharks, also controls the San Jose Arena (HP Pavilion) and gets revenues from all events at the venue.
     
  5. Schitzo

    Schitzo Registered User

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    It really has to be looked at on a case-by-case basis. For example, the Oilers pay (I believe), $1/year lease to Northlands Entertainment to use Rexall Place, but in return, its Rexall that collects concession and parking money, not the Oilers. Oilers fans, please correct me if I'm wrong.
     
  6. SlapnutsV1

    SlapnutsV1 Registered User

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    I don't think the Penguins make a cent off of any of that.
     
  7. OpAck

    OpAck Registered User

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    And I believe the Pens and Isles are working with the same arena management company, Spectacor Management Group. Both deals drain the two franchises. I'm not sure about the Pens, but the Isles have been trying to break this long term lease.
     
  8. Big McLargehuge

    Big McLargehuge Registered User

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    Baldwin, in one of his moves to cripple the Penguins into bankruptcy, put the Pens into probably the worst lease deal imaginable in sports.


    I don't think the Penguins make any money at Mellon Arena outside of ticket sales.
     
  9. BigEyedPhish

    BigEyedPhish Registered User

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    Im pretty sure a team starts out with a low % for concessions like 20% but once the total revenue hits a certian mark it goes up by say maybe 5% so then its 25% then if it hits another mark it goes up again to like say 30% and it just keeps going up and resets once the year is over. I think this is how most sports concessions work.
     
  10. Changeiscoming

    Changeiscoming Rebooting myself Sponsor

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    In some arena it is 100% in other arenas the owners have leased out the rights for a flate fee of gurenteed money.

    Also depends on how many events go on in the arena that are none hockey related
     

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