Even after the Growlers having won the Kelly Cup and having been #1 in merchandise sales, failed to make a profit. This is primarily due to the stadium leasing arrangement with the City of St. John's. There was a 1 year Memorandum of Understanding for the Growlers and St. John's Edge (Basketball) to take over operations of the stadium, but that fell through because the Growlers and Edge did not have adequate information to offer a thorough proposal because the city refused to disclose key information like food and drink sales (the teams are now considering legal action to force the city to release those figures). The whole thing sounds like typical City government incompetence. Instead of giving successful businessmen the ability to operate the facility for all types of entertainment, the city will continue to operate Mile One at a loss, requiring tax subsidies. So the Growlers and Edge are being forced to renew their lease agreements.
The ECHL would never have come to St. John's if Toronto had not offered to take over the entire hockey operations, including coaching, medical and training staff, and sent down a pile of players from the Marlies. These operational savings offset the travel costs and travel compensation the Growlers have to give visiting teams, as per their ECHL condition of admission. In one interview Glenn Stanford laughed that the Growlers operations are significantly more expensive than even were the Alaska Aces in their day. I'm sure the Canadian dollar exchange factors in here too (staff and team costs are largely in USD, revenue is in CAD).
Because the Growlers started their inaugural seasons ticket drive so late last year, and because the ECHL was completely new to St. John's, the Growlers operating at a loss probably should not come as a complete surprise. The AHL in St. John's used to sell-out religiously, so we may see the same with the Growlers soon. They certainly hit it out of the park last year, from the Championship, to the logo, to the local representation, and the affiliation with Toronto - especially considering Newfoundland is predominantly a Leaf fan base. Going forward, the Leafs are holding a week of Training Camp and an exhibition game in St. John's annually.
I read that the Florida Everblades were promised more support from Nashville than they received from Carolina's affiliation - as ironic as this might sound considering they are owned by the same entity. Perhaps more ECHL franchises can negotiate better arrangements with their NHL affiliates given that there are more NHL franchises than there are ECHL franchises. Maybe the ECHL is better-off with fewer teams if it means that the big clubs are more invested?