Discussion in 'Fugu's Business of Hockey Forum' started by FlyerFan, Dec 12, 2006.
Thank you Captain Obvious. That's one thing I never understood. I watch CI, and some of the teams with poor records and poor attendance still ask for an arm & a leg for tickets. That's just counter-productive in my book. Getting people in the building should be priority #1. Oh, and a 45% increase is ridiculous.
Honestly, all this griping (and wailing and gnashing of teeth) over attendance is so premature, mostly due to this little fact:
If attendance is still down at the end of the season, then maybe there'd be a cause for concern.
One thing that Milner fails to do, along with most of the media who choose to analyze the business side of things, is to ask whether or not the cost of doing business has gone up for some of these teams. Yes, as a whole the league is spending less and teams do have cost certainty. Cost certainty should not be confused with Cheaper Costs across the board.
As many of the business section posters know, there are a couple of groups of teams left after we take out the biggest markets (big in terms of revenues generated). The lowest of the lower group will get revenue sharing that makes up somewhat for the higher cost of doing business now due to the salary cap floor. The second group (e.g., Islanders, Ducks) aren't as lucky. I know ticket prices should be set at what the market will bear, but for some of these teams, they don't seem to have too many options if they see their payrolls increase by 30-50% or more.
The revenue sharing recipients certainly are better off relative to the non-recipients, but almost all of this group nevertheless is operating with a higher payroll now than pre-lockout. The escrow distribution potentially can take the edge of this somewhat... IF there is a surplus in the owners' favor and the revenue sharing plan is adequately stocked.
What 45% increase in Carolina? I don't know of a single price level that went up that much -- or even near it. I think my sth UL seats went from $29 to $34? That's less than 20% - and the Canes offered an early bird discount that pretty much offset much of the increase. I'm sure gate prices went up too, but still no way it's 45%...no way.
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