Lay Your Hands On Me - Next Season Karmanos to be More Involved
In a recent report written by beat writer Luke DeCock, the sometimes "absentee" owner of the Carolina Hurricanes, Mr. Peter Karmanos has promised to be more active in the running of his NHL franchise this coming year. Karmanos is reportedly taking a lesser role at Compuware, his number one business interest and will have more time to devote to managing the Canes.
"I plan to come in and actually help work on both those areas myself two or three days a week starting in July,'' Karmanos said this week in a telephone interview from his Detroit office. ( he was referring to sales and advertising).
Also from the report....
The Hurricanes could lose as much as $10 million this season because of the absence of playoff revenue, a larger-than-budgeted payroll, reduced NHL revenue-sharing payments and decreased attendance.
As the NHL's salary cap increases - from $50.3 million this season to an expected $56.3 million in 2008-09 - the Hurricanes need to bring in more money to keep pace.
Beset by injuries last season, they ended up spending about $49 million on salaries - 11th among the NHL's 30 teams and at least $5 million more than expected.
"We need to put more people in the building,'' Karmanos said. ''We need to do a better job of selling advertising. It's not so much a cap that we put on (general manager) Jimmy (Rutherford). Its the cap we put on ourselves. We're just not maximizing our revenue streams.''
Because of his Compuware commitments, Karmanos has been somewhat removed from the day-to-day operations of the Hurricanes during their decade in North Carolina. He has often voiced his preference to become more involved and now thinks he has that chance.
It comes at a critical time for the franchise. Because of the fall-off in revenue from the post-Stanley Cup honeymoon season in 2006-07 to last season, the Hurricanes lost a quarter of their NHL revenue-sharing money when they failed to meet the league's growth benchmarks.
''We quite frankly need to sell more tickets regardless of the CBA or not. I want our building full because I think it adds to the atmosphere and it's great entertainment. We're going to work really hard on trying to increase our revenue.''
I agree with Karmanos on all fronts. It must sting like the dickens to be the owner of a team who just barely missed the playoffs, and the millions that would have come with it. But not only does he take that hit, he loses out on 25% of the revenue sharing money because attendance dropped off? Either Jim Rutherford or someone else dropped the ball on this one.
Don't they realize that all they had to do was to offer some type of package deal like the old Harris Teeter 4 packs, and they probably would have met their goals? Even if they had to discount their tickets, they still would have made up for the loss by taking in the extra revenue sharing. That quite frankly, is not very smart business. No wonder the owner wants to get more involved.
If this blogger could offer some humble suggestions....
- Start your own blog Mr. Karmanos, and submit articles daily. Let your fans know what you are thinking about regarding the team, regarding advertising, and regarding the fanbase, or anything else that comes to mind. Ask for and respond to feedback. This would generate interest as well as let the fans know that you care about what they think.
- Enlist the aide of your blogging empire. There are already a couple of teams in the NHL who recognize the value of having well-informed, popular bloggers spreading the word about the team. You could be number 3, or you could even take it to another level.
- Bring back the old "family packs" and other popular ticket specials. So what if you give away a couple of free hotdogs, you will make that money back 100-fold because of the lost revenue sharing.
- Get the faces of the team out in the public more often. They are your best advertisement.
I'm sure that other folk have more ideas of their own, and probably better ones. What do you think, does anyone have anything to share?
Personally, I think it's great that the owner of the franchise cares enough to get more involved. I have wondered myself if the Hurricanes could ever get to the point when they would sell out every home game and what that might be like. Shouldn't that be the goal? With hard work and creativity, it could be done.
Bon Jovi
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Comments
1) As long as Karmanos’ ‘involvement’ is strictly in the business side of the ledger and not into hockey matters then its a good thing to have his involvement. One has to only look at the Islanders to see how detrimental a ‘hands on’ owner can be.
by fauxrumors on Apr 30, 2008 7:36 AM EDT reply actions
The solution is simple….
Some of us love the game, and we go to every one of them because we can.
Some of us love the game and the team, and we go to everyone that we can.
But a large part of the Hurricanes Nation, are quite honestly, fairweather fans. No knock on that. When you go to a sporting event, you want to see a winner. But start winning, and fair weather fans will fill the seats not claimed by the rest of us. And they can cheer just as loud! It takes all kinds, but you take your family to a game, the money starts leaving your wallet the minute you park, and it never ends until the game is over. Decent seats, kids gizmos, food, and parking can reach well over 150.00. I can think of better things to do with that money than watch a shaky team, that lately, played because it had to, and not because it wanted to.
Karmanos can be a great injection of business smarts. But put a reliable team out there first, the rest will come easy. I have high hopes for the boys this coming year, but if they do the same again, it will be tough to keep us die hards hanging around the graveyard too.
Sean
by CaniacSean on Apr 30, 2008 11:29 AM EDT reply actions
I, for one, started buying my tickets on Craig’s List. I got a pair to the Lexus club for $200 last year. This was the first year that I have not had some kind of season tickets. The reason I did not renew, and I told Karen Prince this, is that I am better off financially cherry picking tickets that buying a season pack and get a $5 discount per seat.
I would echo Bubba’s sentiment by offering more ticket specials and better deals for season ticket holders. Allow the 24 game holders to go to the season holder ticket party.
Give out more good free stuff – the figurine nights were tough to get this year because of great giveaways.
And, good idea to get more face time in the local area for the players. Wesley had a truck commercial for awhile and Brind’Amour was on Time Warner commercial but what about everyone else?
We need more corporate support.
by Fred on Apr 30, 2008 12:57 PM EDT reply actions
I agree with the above. Karmanos is obviously a business guru. As long as he sticks to that end of it, (sales and marketing), things should be okay, or could even improve.
I also agree with Fred. Fans love free stuff. They should have more give-away nights and that would help to sell more tickets.
Sean-
I see what you are saying, but that is true for almost every team and every fanbase. An exciting and winning team trumps everything else. It is certainly much harder to sell tickets to watch a loser.
by Bubba on Apr 30, 2008 1:41 PM EDT reply actions
And a loser is what Karmanos has inherited.
One additinal idea that I like last year, was the “bring something, get a ticket” nights. Yeah, they lose money on the ticket, but attendance is not based on sales, just butts in the seats, right? Help Peter, help the Canes, and help a local charity. Its a win win for everyone. All those free ticket holders will spend money once inside, and that helps the wallet for Peter as well. How about doing that once a month, maybe twice towards the holidays?
Sean
by CaniacSean on Apr 30, 2008 4:37 PM EDT reply actions
I don’t know why nobody else does this, but on a recent trip to an L.A. Dodgers game, I got seats in the outfield, and unlimited food (hot dogs, popcorn, peanuts, drinks) until they ran out. The whole section was packed, and I’m sure it is every night.
by mojo944 on Apr 30, 2008 6:08 PM EDT reply actions
Hockey Night in Canada was reporting last night during the Habs/Flyers game that Lavi was staying as Coach of the Canes … IA
by Ian Angus on May 4, 2008 8:12 AM EDT reply actions
It may sound trivial, but they need to fix the parking. 40 minutes to get in or out of the parking
lot is not acceptable when you are talking about
a building that holds 19,000.
by John S on May 4, 2008 3:58 PM EDT reply actions




















