Part 6: True North Sports & Entertainment's efforts to acquire an NHL team (Winnipeg)

[bcrt2000]

well, 60M seems like "great expense" to me, and to be honest, considering the fact that those seats would be the cheap seats, i'd assume it would take decades to make that investment back.

so, yeah, i agree that the extra 2.5k seats sounds like baloney.

If the average price for those tickets is 50 bucks (not unreasonable considering Ottawa's prices for example-- at least before the recent cuts)...

$50 a seat * 2500 seats = $125000 a night
$125000 a night * 41 home games = $5125000 a season
$60000000 cost / $5125000 a season = 11.7 years to make the money back.

Assuming the 60M includes interest its not that bad. And then for the next 25 years thats pure gravy and could really help the franchise long term.

 

[metalfoot]

Ottawa's 90+% in the seats with an underperforming team in a city where the largest employer is *forbidden* from buying corporate seats is pretty good. Nothing to brag about, but not dire, by any means. Like TNSE, the Senators have set up their situation so that they make money even at 90% (due to alternate revenue streams). But yeah. GO WINNIPEG!

Should the team return, I'll be buying tix (even Standing Room Only) for the Sens vs 'Jets'.... worth the trip up from the southlands here...

 

[PernellKarl76]

If the average price for those tickets is 50 bucks (not unreasonable considering Ottawa's prices for example-- at least before the recent cuts)...

$50 a seat * 2500 seats = $125000 a night
$125000 a night * 41 home games = $5125000 a season
$60000000 cost / $5125000 a season = 11.7 years to make the money back.

Assuming the 60M includes interest its not that bad. And then for the next 25 years thats pure gravy and could really help the franchise long term.

Youre also assuming that Winnipeg will sell out $50 seats every home game for 12 seasons.... not to mention the overhead costs to run an NHL team are huge.

 

[Insomniac99]

If they sell out, do you think there will be scalpers for the non-existent team?

 

[King Woodballs]

it was at the request of the BoG
they want to make sure it wont flop
I dont blame them to be honest
however I dont think it would be a problem selling season tickets here

 

[Jet]

If the average price for those tickets is 50 bucks (not unreasonable considering Ottawa's prices for example-- at least before the recent cuts)...

$50 a seat * 2500 seats = $125000 a night
$125000 a night * 41 home games = $5125000 a season
$60000000 cost / $5125000 a season = 11.7 years to make the money back.

Assuming the 60M includes interest its not that bad. And then for the next 25 years thats pure gravy and could really help the franchise long term.

Those seats won't be $50 a pop.

 

[gifted88]

are they sold out yet?

 

[Buck Aki Berg]

I know this is probably going to get punted but a friend of mine is an electrician and two weeks ago he told me his company was contracted to renovate the upper bowl of the MTS Centre to add 2,500 seats. I wasn't sure what to think, but hearing it from THN is great.

Long since punted, there's nothing to suggest MTSC is being expanded, other than the odd person who knows a guy who knows a guy who heard something about it

 

[tarheelhockey]

If they sell out, do you think there will be scalpers for the non-existent team?

This is genius.

1) Buy tickets for non-existent team.

2) Re-sell tickets for more than their face value.

3) Team never actually comes into being. You have now made money selling a non-existent commodity.

Only in Ameri... I mean, only in Canada!

 

[pirate94]

well, 60M seems like "great expense" to me, and to be honest, considering the fact that those seats would be the cheap seats, i'd assume it would take decades to make that investment back.

so, yeah, i agree that the extra 2.5k seats sounds like baloney.

Why would it take decades to pay that back? that building is debt free off an AHL team's profits (and concerts).

Maybe that was a ballpark estimate. Maybe it was an architectual estimate.
depending on what they do to renovate, but $60m for 2.5k seats is a bit much on it's own.
What that might include is things we aren't seeing or they aren't saying.

 

[jessebelanger]

3 years is a huge. Using Ford's projected numbers, we're talking about committing to between 8500$-30,000$ for a pair of season tickets.

If TNSE can sell these - all doubt about the CURRENT viability of the market should be removed (and I have been one of the doubters).

 

[Benny27]

Why would it take decades to pay that back? that building is debt free off an AHL team's profits (and concerts).

Maybe that was a ballpark estimate. Maybe it was an architectual estimate.
depending on what they do to renovate, but $60m for 2.5k seats is a bit much on it's own.
What that might include is things we aren't seeing or they aren't saying.

I can't remember who it was yesterday (a caller) on Hustler and Lawless or it could have been Lawless that said the building was not paid off yet...

 

[Joe Hallenback]

2500 extra people means 2500 extra people per night buying stuff. Not only that it also means more space for concerts etc.. at the MTS center. They will make there money back alot sooner.

I work for a large company in Winnipeg and I know they will be ponying up alot of money for season tickets then selling them to the employees for a discount. I already heard they plan on buying at least a 1000 season tickets. We already own a private box as well

 

[King Woodballs]

I can't remember who it was yesterday (a caller) on Hustler and Lawless or it could have been Lawless that said the building was not paid off yet...

caller said it was paid off and lawless said the mortgage isnt paid off yet

 

[Mungman]

I can't remember who it was yesterday (a caller) on Hustler and Lawless or it could have been Lawless that said the building was not paid off yet...

Yeah, this meme about the building being debt free needs to disappear. I think the confusion comes from the government loans being paid back early (I couldn't find confirmation of this but I seem to remember this) which morphed into the building being totally paid off.

The building is PUBLIC debt free ahead of schedule (again by my recollection), but continues to service its private debt (which is frankly no ones business except TNSE since it is a privately held building unlike many buildings in the NHL which are municipality owned and privately managed only).

As an aside I doubt in the future it would be easy to talk anyone into publicly owning a replacement arena in WPG after the unmitigated disaster WEC was in driving the Jets out of town and the Bombers to the virtual brink.

 

[pirate94]

I can't remember who it was yesterday (a caller) on Hustler and Lawless or it could have been Lawless that said the building was not paid off yet...

Lawless should get in on the action, can't find the link but it's been mentioned in the Sun 2 times minimum that the MTS Center is debt free.

Unless Lawless has a quote from TNSE, i have to go with what i read. If i can find a quote i'll link it. 2 -3 people on here have already confirmed they read that article as well.

 

[Shanny]

Can they really add an extra 2500 seats to the MTSC and have it ready in time for preseason in september?.....seems like quite the monumental task

 

[Joe Hallenback]

Perhaps they would pay a penalty paying the mortgage off early?

 

[Mr. Canucklehead]

Perhaps they would pay a penalty paying the mortgage off early?

More than likely. Depending on the amount owing and the time left on the term, that penalty could be fairly pricey as well.

 

[Furkmyster]

Can they really add an extra 2500 seats to the MTSC and have it ready in time for preseason in september?.....seems like quite the monumental task

MTSC is NOT being expanded. Bob Irving was on Power97 this morning at 7:35 and said it is not happening. The Hockey News article is flat out wrong on the building expansion. If anything, seating will be going down to provide camera locations. Less seating will create more of a demand for tickets and force us Manitobans to act quickly to get tickets, not wait. The Montreal Alouettes are a perfect example to follow.

 

[kdb209]

Youre also assuming that Winnipeg will sell out $50 seats every home game for 12 seasons.... not to mention the overhead costs to run an NHL team are huge.

And the fact that the Players would get 54-57% - or whatever %-age is negotiated in the next CBA(s) - of that revenue.

And until definitively stated otherwise by official sources, I'll stick with believing the Horses Mouth (Chipman).

 

[pirate94]

MTSC is NOT being expanded. Bob Irving was on Power97 this morning at 7:35 and said it is not happening. The Hockey News article is flat out wrong on the building expansion. If anything, seating will be going down to provide camera locations. Less seating will create more of a demand for tickets and force us Manitobans to act quickly to get tickets, not wait. The Montreal Alouettes are a perfect example to follow.

As much as i respect Bob Irving as a journalist, i think scooping news and stories is more his thing. I heard what was said on Power97 this morning, and i gotta say Irving aside, those people are morons.
To say they won't expand seating is premature and silly, especially since the 2 buffoons on the morning show seem to act like idiots every time something doesn't agree with their line of thinking and flame it on air.

Expanding seating doesn't have to come at the expense of lifting the roof or making smaller seats. I believe the MTS center is set up for camera locations, after all they've held plenty of major televised hockey events.

 

[OthmarAmmann]

Interesting poll: "Are you ready to pony up for NHL season tickets?"

35% Yes, 41% No, 29% unsure

http://www.winnipegfreepress.com/po...L-season-tickets-119877449.html?viewResults=y

 

[Ogopogo*]

Interesting poll: "Are you ready to pony up for NHL season tickets?"

35% Yes, 41% No, 29% unsure

http://www.winnipegfreepress.com/po...L-season-tickets-119877449.html?viewResults=y

In a city of 750,000 all they need is 2% to say yes and all is good.

 

[Fidel Astro]

Expanding seating doesn't have to come at the expense of lifting the roof or making smaller seats. I believe the MTS center is set up for camera locations, after all they've held plenty of major televised hockey events.

It's hard to take the expanded-seats thing seriously, though, based on Chipman's own comments (which were on TSN, I believe, many months ago) indicating that the MTS Centre would not be expanding, and that TNSE would not want to expand even if it was possible.

Things definitely could have changed, but so far no one has heard any confirmation of an expansion from anyone at TNSE... not that we're likely to hear anything from TNSE until the relocation is confirmed.

Although it's all a guessing game right now, I'm of the "expansion to the arena ain't happening" opinion, and I'm basing that entirely on Chipman's previous comments on the issue.