Arizona Coyotes new home should they be exempted from hockey related revenue equation.

[Mangosteen]

Hello Amigos. Can someone with the business knowledge of hockey explain this to me

It’s just a sound bite but has me curious.

Does the small arena affect revenue sharing or something?

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[hbk]

Hello Amigos. Can someone with the business knowledge of hockey explain this to me

It’s just a sound bite but has me curious.

Does the small arena affect revenue sharing or something?

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AZ was already getting max allowed so if they make less $ they don't get any additional revenue.

The $1.7B entertainment district is a pathway to actually significantly increase revenues and ultimately reduce the reliance on revenue sharing. So if you can take the short-term pain there is long-term gain here for everyone.

 

[Mangosteen]

AZ was already getting max allowed so if they make less $ they don't get any additional revenue.

The $1.7B entertainment district is a pathway to actually significantly increase revenues and ultimately reduce the reliance on revenue sharing. So if you can take the short-term pain there is long-term gain here for everyone.

So is revenue sharing on ticket sales? We were about 5000 a year before so it shouldn’t have any impact? Also how does it effect player escrow?

Thanks for the answers can’t find easy answers online

 

[TheLegend]

The big question is with HRR.

IIRC (@mouser can step in here to correct me) the concern on the players end is what it does to escrow. The fear is escrow would go up substantially.

Plus it would/could also affect the cap over the next couple of years.

Revenue sharing isn’t an issue since Bettman has already said the Yotes get the max allowed.

 

[mouser]

The big question is with HRR.

IIRC (@mouser can step in here to correct me) the concern on the players end is what it does to escrow. The fear is escrow would go up substantially.

Plus it would/could also affect the cap over the next couple of years.

Revenue sharing isn’t an issue since Bettman has already said the Yotes get the max allowed.

Escrow won’t be increasing, it’s capped out by the 2020 MOU. Worst case is the cap would rise a little less. But we’re talking at most a league wide revenue difference of a half percent, which translates to something like $300k cap ceiling difference. It’s not a material % in my opinion.

 

[Mangosteen]

Thanks guys! So it was mainly click bait and I fell for it.

 

[Jamieh]

Hello Amigos. Can someone with the business knowledge of hockey explain this to me

It’s just a sound bite but has me curious.

Does the small arena affect revenue sharing or something?

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Gordon Miller basically suggested for the player's benefit that Hockey Related Revenue should be calculated by taking the average of all teams excluding AZ and then multiplying it by 32. He is saying that the players should not pay a price because the Owners approved AZ playing in an arena than cannot generate big league revenue. Nothing nefarious in the conversation besides that.

 

[mouser]

Gordon Miller basically suggested for the player's benefit that Hockey Related Revenue should be calculated by taking the average of all teams excluding AZ and then multiplying it by 32. He is saying that the players should not pay a price because the Owners approved AZ playing in an arena than cannot generate big league revenue. Nothing nefarious in the conversation besides that.

If only the players had negotiated into the CBA that teams can only play in arenas with a certain minimum revenue or seating capacity, but they didn’t.

So the players can be annoyed about the revenue loss, but don’t have any labor union leverage so long as the locker rooms and other CBA negotiated off-ice player amenities are provided.


Not to mention the NHL is still irritated with the players refusing to take temporary offsetting salary reductions when league revenues cratered during Covid. Leading us to our current state of a flat cap for years while the players “repay” the Covid escrow balance.

 

[hbk]

Slow sporting news day in Canada is my interpretation of this.

 

[MIGs Dog]

What revenue loss?

Xavier Gutierrez said that the team could "generate more revenue at its temporary Arizona State University arena than it did playing in Glendale"

Coyotes not expecting any revenue decreases from playing in ASU arena

Coyotes President Xavier Gutierrez said that the team could generate more revenue at its temporary Arizona State University arena than it did playing in Glendale.

www.sportsbusinessjournal.com

 

[87turbobuick]

None of the three went to college, 2 played in the OHL and probably did not finish High School. Miller at least finished High School in Edmonton. Listening to them on the business of hockey is the same as believing Matt Damon knows CRYPTO.

 

[Jamieh]

None of the three went to college, 2 played in the OHL and probably did not finish High School. Miller at least finished High School in Edmonton. Listening to them on the business of hockey is the same as believing Matt Damon knows CRYPTO.

I'd check your info. Hayes went to University in Halifax. These aren't dummies, they were just hosting a sports talk show and talking sports.

What revenue loss?

Xavier Gutierrez said that the team could "generate more revenue at its temporary Arizona State University arena than it did playing in Glendale"

Coyotes not expecting any revenue decreases from playing in ASU arena

Coyotes President Xavier Gutierrez said that the team could generate more revenue at its temporary Arizona State University arena than it did playing in Glendale.

www.sportsbusinessjournal.com

It was just a simple discussion. I think you are misinterpreting revenue vs potential revenue. The discussion was around not be able to generate enough revenue. Glendale did not generate revenue high enough but there were seats to sell so there was potential. I don't think there is anything there as this is not in the player's power.

 

[Jamieh]

Slow sporting news day in Canada is my interpretation of this.

3 hours to kill talking sports poop in the dead of summer.really was a nothingburger

 

[Coyotedroppings]

None of the three went to college, 2 played in the OHL and probably did not finish High School. Miller at least finished High School in Edmonton. Listening to them on the business of hockey is the same as believing Matt Damon knows CRYPTO.

Some of the dumbest pukes I've ever known went to college, always more than willing to tell you they went though.

 

[Jakey53]

Some of the dumbest pukes I've ever known went to college, always more than willing to tell you they went though.

Like my father use to tell everyone he went to college, "in one door, out the other". Nothing beats real life experiences. Try and tell that to a Millennial.

 

[MIGs Dog]

Some of the dumbest pukes I've ever known went to college, always more than willing to tell you they went though.

I went 4 times...how dumb am I?

 

[Jakey53]

I went 4 times...how dumb am I?

So, book dumb, street smarts. You are smarter than 90%.

 

[GiveAFlyingPuck]

 

[Canis Latrans]

It was just a simple discussion. I think you are misinterpreting revenue vs potential revenue. The discussion was around not be able to generate enough revenue. Glendale did not generate revenue high enough but there were seats to sell so there was potential. I don't think there is anything there as this is not in the player's power.

Yes, in theory Glendale can host more fans and therefore more revenue, however, historically we know exactly what happens in Glendale even in its best years, which we the deck is stacked against by the tank. In theory, Gutierrez has indicated they think they outdo the revenue were they do have remained in Glendale. That might not happen, but it's also already basically at rock bottom and they can't get more in sharing anyway. This way they have 3, even grant them 4, years to get into the new building which will then, most will agree, produce much more revenue. There is an argument to be made by players who have limited time in the league, but they didn't get to make the decision, owners did, and all in all, I think many would argue it's all going to be a wash anyway.

 

[The Feckless Puck]

Like my father use to tell everyone he went to college, "in one door, out the other". Nothing beats real life experiences. Try and tell that to a Millennial.

Your old-man crankiness is already behind the times by two generations, FYI. Millennials are having kids and are a quarter of the way through their careers.

And all I can gather from this thread is that a lot of people - or the second- or third-hand accounts of them - only went to college for beer and tits and not to actually learn anything.

 

[MIGs Dog]

only went to college for beer and tits

You say that as if it's a bad thing.

 

[Jakey53]

Your old-man crankiness is already behind the times by two generations, FYI. Millennials are having kids and are a quarter of the way through their careers.

And all I can gather from this thread is that a lot of people - or the second- or third-hand accounts of them - only went to college for beer and tits and not to actually learn anything.

I think most go to college for beer and tits. Like Rodney said "fantasyland". That's all these professors teach. I think my father's generation were ahead by two generations, not behind. They actually worked, and entitlement wasn't even in their vocabulary.

 

[Grimes]

I think most go to college for beer and tits. Like Rodney said "fantasyland". That's all these professors teach. I think my father's generation were ahead by two generations, not behind. They actually worked, and entitlement wasn't even in their vocabulary.

This just sounds like projection from someone who didn't have the book smarts to get into college.

 

[The Feckless Puck]

You say that as if it's a bad thing.

Not inherently, but there are way cheaper and smarter ways to go after them than at college.

They actually worked, and entitlement wasn't even in their vocabulary.

Given that all it would take would be to look at a dictionary, that's a pretty sad statement.

 

[Jakey53]

Not inherently, but there are way cheaper and smarter ways to go after them than at college.



Given that all it would take would be to look at a dictionary, that's a pretty sad statement.

Like I said, "book dumb, street smart". I bet millions of these kids that have thousands and thousands of school debt wish they would have been "street smart". They didn't have time to look at a dictionary because they were too busy working.

This just sounds like projection from someone who didn't have the book smarts to get into college.

I didn't. I was brought up "street smart".