GSC2k2*
Guest
A few months ago, on Tyler Dellow's very worthwhile blog at http://www.mc79hockey.com/ (well, worthwhile when he's not talking soccer these days ), I came across an article he cited regarding the Columbus Blue Jackets and their finances.
http://www.forwardtogethercolumbus.org/img/BuserReport-Complete.pdf
Tyler's angle was (naturally) in relation to the ongoing Oiler arena saga, but i found it interesting for other reasons.
Here is what the professor who wrote the study had to say about COL revenues and expenses (apparently he was given access to the team's audited financial statements):
Pre-lockout revenues: $57.6M (2001), $60.3M (2003), $62.3M (2004).
2006: ticket/sponsorship/broadcast revs $57.6M
Revenue sharing $3.0M
Expenses (excluding arena exp): $54.8M
2007: ticket/sponsorship/broadcast revs $55.6M
Revenue sharing $8.0M
Expenses (excluding arena exp): $47.1M
2008: ticket/sponsorship/broadcast revs $53.8M
Revenue sharing $10.0M
Expenses (excluding arena exp): $51.6M
2009: ticket/sponsorship/broadcast revs $60.3M
Revenue sharing $14.0M
Expenses (excluding arena exp): $54.6M
Now, firstly, these numbers are reported in a way quite different than the way we use them around here. The norm here is to include the revenue sharing as an additional revenue, but in this version, they are oddly enough used as a reduction in the costs side and not added to the revenues side. To convert them so as to compare apples to apples the way it is normally done for previous revenue analyses, we would add the revenue sharing number on both sides and come up with this:
2006:
ticket/sponsorship/broadcast revs $60.6M
Expenses (excluding arena exp): $57.8M
2007:
ticket/sponsorship/broadcast revs $63.6M
Expenses (excluding arena exp): $55.1M
2008:
ticket/sponsorship/broadcast revs $63.8M
Expenses (excluding arena exp): $61.6M
2009:
ticket/sponsorship/broadcast revs $74.3M
Expenses (excluding arena exp): $68.6M
The professor then makes another salient point, noting that the above costs do not account for a component of overhead expenses such as sales, marketing, G&A or rent expenses.
Rental payments to use the arena are approximately $5M per year. How would allocate that to hockey vs. non-hockey operations? I suppose number of events could be a useful measure.
The other part (SG&A) is anyone's guess, and would depend on how fat or lean the Columbus organization is. It would also depend on how one would allocate that staff between hockey operations and non-hockey operations (since Columbus also runs the non-hockey events).
A further salient point is that revenues do not include concessions/retail sales. It is also unclear whether revenues include central NHL revenue distributions (which is separate and apart from revenue sharing). It would appear that they do not, as one could not easily classify them as "ticket/sponsorship/broadcast revenues" (perhaps a portion for central "broadcasting" revenues, though).
On the non-hockey side, it breaks down as this:
2006 - $8.1M revs, $12.5M expenses ($4.4M loss)
2007 - $7.8M revs, $12.3M expenses ($4.5M loss)
2008 - $9.2M revs, $13.8M expenses ($4.6M loss)
2009 - $4.1M revs, $10.1M expenses ($6.0M loss)
http://www.forwardtogethercolumbus.org/img/BuserReport-Complete.pdf
Tyler's angle was (naturally) in relation to the ongoing Oiler arena saga, but i found it interesting for other reasons.
Here is what the professor who wrote the study had to say about COL revenues and expenses (apparently he was given access to the team's audited financial statements):
Pre-lockout revenues: $57.6M (2001), $60.3M (2003), $62.3M (2004).
2006: ticket/sponsorship/broadcast revs $57.6M
Revenue sharing $3.0M
Expenses (excluding arena exp): $54.8M
2007: ticket/sponsorship/broadcast revs $55.6M
Revenue sharing $8.0M
Expenses (excluding arena exp): $47.1M
2008: ticket/sponsorship/broadcast revs $53.8M
Revenue sharing $10.0M
Expenses (excluding arena exp): $51.6M
2009: ticket/sponsorship/broadcast revs $60.3M
Revenue sharing $14.0M
Expenses (excluding arena exp): $54.6M
Now, firstly, these numbers are reported in a way quite different than the way we use them around here. The norm here is to include the revenue sharing as an additional revenue, but in this version, they are oddly enough used as a reduction in the costs side and not added to the revenues side. To convert them so as to compare apples to apples the way it is normally done for previous revenue analyses, we would add the revenue sharing number on both sides and come up with this:
2006:
ticket/sponsorship/broadcast revs $60.6M
Expenses (excluding arena exp): $57.8M
2007:
ticket/sponsorship/broadcast revs $63.6M
Expenses (excluding arena exp): $55.1M
2008:
ticket/sponsorship/broadcast revs $63.8M
Expenses (excluding arena exp): $61.6M
2009:
ticket/sponsorship/broadcast revs $74.3M
Expenses (excluding arena exp): $68.6M
The professor then makes another salient point, noting that the above costs do not account for a component of overhead expenses such as sales, marketing, G&A or rent expenses.
Rental payments to use the arena are approximately $5M per year. How would allocate that to hockey vs. non-hockey operations? I suppose number of events could be a useful measure.
The other part (SG&A) is anyone's guess, and would depend on how fat or lean the Columbus organization is. It would also depend on how one would allocate that staff between hockey operations and non-hockey operations (since Columbus also runs the non-hockey events).
A further salient point is that revenues do not include concessions/retail sales. It is also unclear whether revenues include central NHL revenue distributions (which is separate and apart from revenue sharing). It would appear that they do not, as one could not easily classify them as "ticket/sponsorship/broadcast revenues" (perhaps a portion for central "broadcasting" revenues, though).
On the non-hockey side, it breaks down as this:
2006 - $8.1M revs, $12.5M expenses ($4.4M loss)
2007 - $7.8M revs, $12.3M expenses ($4.5M loss)
2008 - $9.2M revs, $13.8M expenses ($4.6M loss)
2009 - $4.1M revs, $10.1M expenses ($6.0M loss)