Analysis - Jets Home Game Revenues - Playoff $

[Deedog99]

Sorry, but this just isn't true. The most contentious part of the last CBA negotiations was tying league revenues to player salaries. As a whole league, it is virtually impossible for them to lose money as a result. While there are certainly some teams that runs deficits and others that are on the cusp, the Jets are certainly not one of them, nor are most of the Canadian teams, despite the exchange rate exposure.

Someone was very correct to point out that that, to some extent, the salary cap is an aspirational number. Most years, clubs simply do not pay out the total value of the contracts that are signed. It may be 88%, or 93%, or 96%, but it is never 100% and that is how the league (and the Jets) will survive going forward. If you are filling your building and at average or above for merchandise sales, the revenue sharing and HRR-Salaries relationship means you are in the black.

Having said that the only guarantee to make profit is to make playoffs. Jets grossed 20 million from their run this year. Well enough to sustain a couple bad years.

 

[Gm0ney]

How much money did the Jets make during their run in the playoffs. I'm assuming it was significant, especially for the Vegas series.

Running the numbers from the actual STH prices for Rounds 1, 2 and 3, using @jimsabo21 's seat chart, suite prices, and concession estimates, and minus the NHL's 35% cut, the Jets took in revenues of approximately $18.2M over this playoff run. They probably made another $1M on the street party and road game whiteout parties in the arena (concessions alone).

Round 1: $4,608,547 in ticket sales, plus $682,380 in concessions = $5,290.927
Round 2: $5,376,258 in ticket sales, plus $682,380 in concessions = $6,058,638
Round 3: $6,143,869 in ticket sales, plus $682,380 in concessions = $6,826,249
Total for 9 home games = $18,175,814

This assumes every seat in the arena is sold at STH prices - and they obviously sold some at face value, so this estimate is probably low.

Ballpark $20M for the whole thing including street party and road games at the arena.

Plus merchandise at the Jets Gear stores (they were doing some brisk business whenever I stopped in at Polo Park or the arena). Another $1M in sales? That's just a wild guess.

 

[DowntownBooster]

Having said that the only guarantee to make profit is to make playoffs. Jets grossed 20 million from their run this year. Well enough to sustain a couple bad years.

Good to see the team making a profit. That is something that eluded Jets 1.0 unfortunately.

 

[ps241]

Running the numbers from the actual STH prices for Rounds 1, 2 and 3, using @jimsabo21 's seat chart, suite prices, and concession estimates, and minus the NHL's 35% cut, the Jets took in revenues of approximately $18.2M over this playoff run. They probably made another $1M on the street party and road game whiteout parties in the arena (concessions alone).

Round 1: $4,608,547 in ticket sales, plus $682,380 in concessions = $5,290.927
Round 2: $5,376,258 in ticket sales, plus $682,380 in concessions = $6,058,638
Round 3: $6,143,869 in ticket sales, plus $682,380 in concessions = $6,826,249
Total for 9 home games = $18,175,814

This assumes every seat in the arena is sold at STH prices - and they obviously sold some at face value, so this estimate is probably low.

Ballpark $20M for the whole thing including street party and road games at the arena.

Plus merchandise at the Jets Gear stores (they were doing some brisk business whenever I stopped in at Polo Park or the arena). Another $1M in sales? That's just a wild guess.

Pretty sure that the way the arena deal works with Centreplate is they get 60% of the split on the concession revenue and TNSE take 40%. Keep in mind Centerplate absorbs all the associated costs with the food and beverage service.

 

[Gm0ney]

Pretty sure that the way the arena deal works with Centreplate is they get 60% of the split on the concession revenue and TNSE take 40%. Keep in mind Centerplate absorbs all the associated costs with the food and beverage service.

So Centerplate handles the supplies and labour and TNSE just takes 40% of sales? Seems like a bum deal for TNSE.

 

[ps241]

So Centerplate handles the supplies and labour and TNSE just takes 40% of sales? Seems like a bum deal for TNSE.

That is actually a pretty solid deal for TNSE. Most Franchise models take 5 or 6 % of sales do really well, TNSE take 40% of sales with no cost associated. That also doesn’t account for the cheque I am sure Centreplate would have cut to TNSE for the 10 year contract.

 

[Gm0ney]

That is actually a pretty solid deal for TNSE. Most Franchise models take 5 or 6 % of sales do really well, TNSE take 40% of sales with no cost associated. That also doesn’t account for the cheque I am sure Centreplate would have cut to TNSE for the 10 year contract.

The concession prices are so high though. It wouldn't be like selling Big Macs for $3.95...it would be like selling Big Macs for $12. But I guess TNSE doesn't have to worry about a million little things, so there's a price for that convenience.

 

[ps241]

The concession prices are so high though. It wouldn't be like selling Big Macs for $3.95...it would be like selling Big Macs for $12. But I guess TNSE doesn't have to worry about a million little things, so there's a price for that convenience.

Yea it’s all about outsourcing the headaches and getting more profit than the operator. Same reason why lotteries wanted nothing to do with the bar and beverage business in the Shark club. Lotteries will tell you that pretty much all the hassles and none of the profit comes out of their F&B division.