The Economics of a Deep Playoff Run

Discussion in 'Fugu's Business of Hockey Forum' started by C77, Jun 4, 2011.

View Users: View Users
  1. C77

    C77 Registered User

    Joined:
    Mar 12, 2009
    Messages:
    14,439
    Likes Received:
    200
    Trophy Points:
    111
    Gender:
    Male
    Location:
    Junior's Farm
    http://www.boston.com/business/articles/2011/06/04/boston_businesses_cash_in_on_bruins_success/

    Each Cup game played here will generate about $5 million in revenue citywide, said Patrick Moscaritolo, chief executive of the Greater Boston Convention & Visitors Bureau. In addition to spending at bars and restaurants, the revenue mainly comes from hotel rooms, and the sale of sports apparel and memorabilia.

    According to Moscaritolo, 5,200 fans at each home game — about 30 percent — come from beyond a 50-mile radius of Boston.

    The National Hockey League is directly helping the local economy by booking about 400 rooms at various Boston hotels for staff and event sponsors.

    Mahlon Williams, owner of The Boston Sports Apparel Company, which supplies T-shirts and other gear to area stores, said this weekend could turn out to be his best ever.

    “We’re selling excitement, and we’re capitalizing on people’s emotions,’’ Williams said. “That translates to an incredible amount of business for us.’’

    Williams quickly realized an original batch of 1,500 Bruins T-shirts wouldn’t be enough to satisfy the demand from his customers. A second round of 1,500 also went fast, and yesterday the company distributed another 4,000.

    “I can’t fill the orders fast enough,’’ Williams said, “but it’s a good problem to have.’’
     
  2. C77

    C77 Registered User

    Joined:
    Mar 12, 2009
    Messages:
    14,439
    Likes Received:
    200
    Trophy Points:
    111
    Gender:
    Male
    Location:
    Junior's Farm
    Anyways, I posted the article to provide some hard numbers to people with regard to

    1. Attendance - 30% from 50+ miles away...interesting tidbit
    2. Citywide revenue - $5 million per game
    3. NHL's presence - 400 hotel rooms
     
  3. JuniorNelson

    JuniorNelson Registered User

    Joined:
    Jan 21, 2010
    Messages:
    8,498
    Likes Received:
    268
    Trophy Points:
    95
    Location:
    E.Vancouver
    Canadian figure is eight million (quoted on HNIC) per playoff game. This reflects mechandising and market penetration.
     
  4. jumptheshark

    jumptheshark Rebooting myself Sponsor

    Joined:
    Oct 12, 2003
    Messages:
    82,290
    Likes Received:
    2,263
    Trophy Points:
    250
    Gender:
    Male
    Occupation:
    currently creating a new identity
    Location:
    Have Backpack Will Travel

    that sounds about right

    When Sather was in Edmonton in the 80's he said that each home game made the team alone about 2mill or something like and that was back in the mid 80's

    but when you factor in off shoot economics like hotel rooms, bars and restaraunts and what not
     
  5. Law

    Law Registered User

    Joined:
    Jun 19, 2007
    Messages:
    7,213
    Likes Received:
    4
    Trophy Points:
    0
    Occupation:
    Advertising
    Location:
    Miami, FL
    Have to find the article (Forbes?), but read something recently that said each home game in the playoffs generally used to translate into $1M for the home team (the team itself, not the impact around the area), but that under the new CBA, it's now about $500k per home game. Reason being that each team now contributes to the revenue sharing and foots the bill for marketing and travel (officials).

    -----------
    Found the article:

    http://blogs.forbes.com/mikeozanian/2011/05/02/tampa-bay-lightning-to-post-huge-loss-this-year-despite-stanley-cup-run/
     
    Last edited: Jun 8, 2011
  6. saskganesh

    saskganesh Registered User

    Joined:
    Jun 19, 2006
    Messages:
    2,368
    Likes Received:
    6
    Trophy Points:
    96
    Location:
    the Annex
    I remember John Ferguson, in the midst of another sweep of the Jets by the Oilers, saying each Wpg home playoff game was worth about $750,000 in ticket sales.
     
  7. LadyStanley

    LadyStanley RIP Fugu

    Joined:
    Sep 22, 2004
    Messages:
    75,307
    Likes Received:
    3,020
    Trophy Points:
    186
    Gender:
    Female
    Location:
    Sin City
    IIRC, it's been at least since the 95 CBA that playoff teams have contributed to revenue sharing. Now, maybe there's a bigger chunk taken out of raw revenues, but it's still happening.
     

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"