NHL lost estimated $3.6B due to limited attendance

MNNumbers

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Nov 17, 2011
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This is pretty brutal considering HRR that would have been expected for this season absent COVID would be $4.8-5.2B.

This is going to add something like $1.2B to the player escrow balance. Which probably already has $200-500m carrying over from 2019-20.

We could be looking at a flat cap for a half dozen season through 2026-27.

And, many of us have been wondering about that all year, for exactly the reasons stated. Most of NHL revenue is connected to fans in the building. Media contract was close to 1B (245 for the particular year from NBC, 533 from Canada, and then however much is made locally). Almost everything else would have been lost.
 

King K Rool

Big Bad
Mar 5, 2020
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Lost out as in the difference what they made up to the same number of games last year before the Covid shutdown?
Which isn’t a shocker. Down $3.6 bill over 31 teams is around $117 mill per team.

I wonder what those numbers would be broken down by franchise
because you would have to think a large chunk of that gate revenue comes mostly from the Canadian franchises (TOR/MTL/VAN/EDM for sure anyway) and markets like New York and Los Angeles (Rangers and Kings)
 

mouser

Business of Hockey
Jul 13, 2006
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And, many of us have been wondering about that all year, for exactly the reasons stated. Most of NHL revenue is connected to fans in the building. Media contract was close to 1B (245 for the particular year from NBC, 533 from Canada, and then however much is made locally). Almost everything else would have been lost.

Even some part of those media contracts may have been lost since they didn't run a full 82 game season.
 
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IU Hawks fan

They call me IU
Dec 30, 2008
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Is the $3.6 billion lost revenue or operating loss? There's a big difference
Neither? It's missed out on revenue. They didn't technically "lose" money, they never had it.

This has been a discussion I've had on a couple other boards, relating to White Sox owner Jerry Reinsdorf's claim that the team "lost" 9 figures. No, they didn't, they failed to earn the 9 figures they were projecting but they didn't actually "lose" it.
 

The Macho King

Back* to Back** World Champion
Jun 22, 2011
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Other question - is this factoring in the additional revenue streams they tapped this year (increased ads, etc.)? Probably not going to make a huge dent, but should at least shave the decimal number a bit.

Also if it's lost revenue it's probably somewhat mitigated by relatively fewer expenditures.
 

StreetHawk

Registered User
Sep 30, 2017
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Neither? It's missed out on revenue. They didn't technically "lose" money, they never had it.

This has been a discussion I've had on a couple other boards, relating to White Sox owner Jerry Reinsdorf's claim that the team "lost" 9 figures. No, they didn't, they failed to earn the 9 figures they were projecting but they didn't actually "lose" it.
I'm sure the NHL is making this $3.6 billion "loss" as large as they can.

It is likely comparing it to the 18-19 season, the last time there was a full 82 game season played rather than "missed out revenue over 56 games".
 

IU Hawks fan

They call me IU
Dec 30, 2008
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Other question - is this factoring in the additional revenue streams they tapped this year (increased ads, etc.)? Probably not going to make a huge dent, but should at least shave the decimal number a bit.

Also if it's lost revenue it's probably somewhat mitigated by relatively fewer expenditures.

The increased ads were all 'make goods'. These weren't additional revenue streams, rather, these were done to prevent having to give money back to the sponsors that they had already agreed to pay.
 

vorky

@vorkywh24
Jan 23, 2010
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I can not read the OP article because it is paid one. So, anybody with the attendance figures for 2020-21 NHL season? I mean, total attendance of the regular season, average attendance by clubs? Number of regular-season games?

Just to compare with Europe.

2020-21 regular season (total):
KHL - 1.38 million fans, 690 games
Finland (Liiga) - 295k fans, 424 games
Switzerland (NL) - 149k fans, 304 games
Czech Rep (TELH) - 41k fans, 364 games
Sweden (SHL) - 5k fans, 364 games
Germany (DEL) - 0 fans

And 2021 playoffs (total):
KHL - 407k fans, 79 games
Finland (Liiga) - 0 fans, 32 games
Switzerland (NL) - 1000 fans, 32 games
Czech Rep (TELH) - 2k fans, 50 games
Sweden (SHL) - 136 fans, 39 games
Germany (DEL) - 0 fans, 20 games

During pre-COVID times, the KHL had around 4.8-5 million fans in regular season & 600k-696k fans in playoffs.
 

tarheelhockey

Offside Review Specialist
Feb 12, 2010
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I'm sure the NHL is making this $3.6 billion "loss" as large as they can.

It is likely comparing it to the 18-19 season, the last time there was a full 82 game season played rather than "missed out revenue over 56 games".

I mean, that's fair isn't it? Cancelling a third of the schedule is a pretty big blow to attendance.
 

TheMoreYouKnow

Registered User
May 3, 2007
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Yeah I'm not sure why anyone would want to minimize that. Missing out on "expected revenue" is essentially losing money because you're paying staff on the basis of expected revenue. Business basics.
 
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LadyStanley

Registered User
Sep 22, 2004
105,522
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Sin City
WRT attendance -- some (paid) attendance figures from the game stats.

But with North Division having 0 attendance, it's a major story.

(FTR, VGK at 50% capacity for opening round. Looking like Nevada will get to 70% capacity next month)
 

blueandgoldguy

Registered User
Oct 8, 2010
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I wonder how much expenses for each team were reduced? With arena operations, teams would not need ushers, food and concessionaires, security, other employees (ticket scanners, people working merch stands/stores).
 

Golden_Jet

Registered User
Sep 21, 2005
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I wonder how much expenses for each team were reduced? With arena operations, teams would not need ushers, food and concessionaires, security, other employees (ticket scanners, people working merch stands/stores).

That’s likely pocket change compared to other expensives, those people don’t make much.
 
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Ernie

Registered User
Aug 3, 2004
12,754
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$200m new TV money.
About $150m additional revenue with the Canadian dollar at its current level.

That's about $350m in new revenue to help offset the losses.
 
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