The Business of...Ottawa

[danishh]

sens season ending numbers are (roughly) out.

http://www.ottawacitizen.com/sports...e+losing+season+ranks+12th/4622368/story.html


-attendance up 109 people per game.
-4 more sellouts than last year.

-highest STH renewal rate (at this point) in history.

-Corporate advertising up 8%
-tv viewers up 18% (helped by the fact that all 82 games were available for the first time ever)
- molson-coors sponsorship renewed for 5 years.

considering how things went on the ice, pretty good news for a small market team like ottawa.

Click to read more...

 

[tarheelhockey]

Not bad, not bad at all. Interesting that they sold more tickets for a worse team. Any insight on that?

 

[danishh]

hope sells?

though it could just be performance related to consequent season STH sales.
06-07: Tickets great (over capacity). Stanley cup finals.
07-08: Tickets great (over capacity). 1st round sweep by pittsburgh.
08-09: Tickets strong. fist missed playoffs in 11 years.
09-10: Tickets sales drop, makes the playoffs (6 games by pittsburgh 1st round)
10-11: Ticket sales better, worst season in 15 years.

maybe the market reacts next year with weak ticket sales again. Though, the STH sales metrics are promising (9% ahead of where they were last year at this time).

 

[Thrillingbroom]

When are they going to start investing the money in the team? New scoreboard? Spruce up SBP and hide all that concrete. Don't know how you can hold an All-star game with a scoreboard from the 90s.

 

[Alex The Loyal]

Given that thus entire season was one giant kick in the testicles, this is nice to see

 

[MatthewT]

I wonder how big of an influence the ASG is having on season ticket renewals

 

[TaketheCannoli]

hope sells?

though it could just be performance related to consequent season STH sales.
06-07: Tickets great (over capacity). Stanley cup finals.
07-08: Tickets great (over capacity). 1st round sweep by pittsburgh.
08-09: Tickets strong. fist missed playoffs in 11 years.
09-10: Tickets sales drop, makes the playoffs (6 games by pittsburgh 1st round)
10-11: Ticket sales better, worst season in 15 years.

maybe the market reacts next year with weak ticket sales again. Though, the STH sales metrics are promising (9% ahead of where they were last year at this time).

JMHO but the increase in attendance and sellouts is likely a trailing number that resulted from the good showing a year ago. I suspect that sold some season tickets and renewals.

I honestly have no answer for the improved renewal rate. Could it be that people didn't like Cory Clouston and now that he's gone...

 

[kdb209]

JMHO but the increase in attendance and sellouts is likely a trailing number that resulted from the good showing a year ago. I suspect that sold some season tickets and renewals.

Yes - attendance (where there is a significant STH base) is definitely a lagging indicator. Season Ticket sales (in the offseason) are generally driven by the previous years results and the expectations for the coming season.

Case in point - the Sharks. Their one relatively down attendance year was in '03-'04, a year they won the Pacific, had there best record in team history up to that point, and went on to the WCFs. It was also the year after the debacle of '02-'03 - where they came in dead last in the Pacific, missed the playoffs for the first time in 6 years, fired their coach, fired their GM, and traded their captain (and face of the franchise).

I would not be surprised by a significant drop off in the Sen's numbers next season.

 

[LeftCoast]

Not bad, not bad at all. Interesting that they sold more tickets for a worse team. Any insight on that?

Following the Leafs business model?

No, seriously, probably the improving economy. Are the STH renewal numbers for 2010-11 or 2011-12?

 

[wjhl2009fan]

Yes - attendance (where there is a significant STH base) is definitely a lagging indicator. Season Ticket sales (in the offseason) are generally driven by the previous years results and the expectations for the coming season.

Case in point - the Sharks. Their one relatively down attendance year was in '03-'04, a year they won the Pacific, had there best record in team history up to that point, and went on to the WCFs. It was also the year after the debacle of '02-'03 - where they came in dead last in the Pacific, missed the playoffs for the first time in 6 years, fired their coach, fired their GM, and traded their captain (and face of the franchise).

I would not be surprised by a significant drop off in the Sen's numbers next season.

I don't think they will be a significant drop off there is a fair amount of excitment about next year about the young players and the top 10 pick plus with rundblad likely comming over there is alot of excitement.Take this year the first half of the years fans were down not much hope attedance was around 17.000 they made moves made it clear they were going to rebuild and attendance did increase.

 

[Pitlick*]

I'm not sure if this makes a good topic if we're talking about present day. It's kind of boring: wealthy owner, likes to spend, bought arena for a song, lots of concerts, etc.

But the history is interesting, from the original group (Firestone, etc.) who didn't have much money, but owned land in Kanata, through Bryden and his house of cards financing, including massive debt payments on the arena.

Bankrupcy, and the transfer to Melnyk saved the team. Now it's healthy and stable.

The brunt of the cost of The Palladium / Corel Centre / Scotiabank Place was borne by Ogden Corporation of New Jersey, who financed the building of the Palladium. When the team went bankrupt, Melnyk made the only offer to buy the arena for $30 million, I think. So Ogden didn't get what they were owed (probably around $150-200 million). Ogden was an energy company, and also went bankrupt around the time the Sens did. A whole lot of crippling debt disappeared, poof, into thin air. About $150-200 million

Anyone have a link to the Firestone article where he describes the history? It's a great article.



SCOREBOARD UPDATE: Trust me on this, there will be a new scoreboard next year.

 

[danishh]

i believe this is the one you're talking about. I'm pretty sure i've read another one from him somewhere describing the whole bankruptcy thing and the sale (circa 2004?), but i cant find it anywhere so maybe i'm just imagining it.

and here is one talking about the bankruptcy from CBC. In short, while they had debt (mostly arena), the main reason the sens went bankrupt is because their creditors went bankrupt.