Night Moves - Should the NHL Relocate Teams?
The National Post, (which I'm told is a joke of a Canadian publication) seems to have a constant agenda to promote the movement of certain NHL teams to Canadian cities, even if they need to resort to absurd, weak arguments to do it. Monday, they published an editorial with more nonsense trumping their cause.
The editorial starts out by admitting that television revenue is up as well as league wide attendance and ticket revenue. Regardless, they say the league should ignore those improvements and move Southern teams up North. For some unknown reason, they even give Seattle as one prime destination.
The author goes on to mention that if next year's Stanley Cup Final featured the Columbus Blue Jackets against the Phoenix Coyotes, then the ratings would be back in the tank.
It's tough to argue that point, especially since the reality of such a series is impossible.
Shouldn't a Canadian who is writing for a "major" publication and who is continually thumping his or (her) chest about how Southern hockey markets don't deserve hockey, know that both of those teams are in the same conference and could never play each other in the Finals?
And Canadians complain that Gary Bettman knows nothing about hockey?
PuckDaddy's Blog had a good response here.
This leads me back into a discussion which I started but never finished a week or so ago. I created a spreadsheet taking the average per game ticket revenue per team and then divided it by the team's average per game attendance.
Here are last season's results starting from the lowest per game ticket price, moving up.
- Team_____per game revenue_____attendance____average ticket
-
- Chicago_____$500,000___________16,814__________________$29.74
- Phoenix_____$450,000___________14,820__________________$30.36
- Florida______$500,000___________15,436__________________$32.39
- St. Louis____$600,000___________17,610__________________$34.07
- Atlanta______$550,000__________15,824___________________$34.76
- Washington__$550,000__________15,472___________________$35.55
- Buffalo______$750,000__________19,950___________________$37.59
- Los Angeles__$650,000__________16,606___________________$39.14
- Nashville_____$600,000_________14,910___________________$40.24
- NY Islanders__$550,000_________13,640___________________$40.32
- Carolina_____$700,000__________16,633___________________$42.09
- Tampa Bay___$800,000__________18,692___________________$42.80
- Pittsburgh___$800,000__________17,076___________________$46.85
- Philadelphia__$1,000,000________19,556___________________$51.14
- Boston______$800,000__________15,384___________________$52.00
- Anaheim____$900,000__________17,193___________________$52.35
- Dallas______$950,000__________18,038___________________$52.67
- Detroit_____$1,000,000_________18,912___________________$52.88
- Columbus___$800,000___________14,823___________________$53.97
- San Jose____$950,000___________17,411__________________$54.56
- New Jersey__$850,000___________15,564__________________$54.61
- Minnesota__$1,100,000__________18,568__________________$59.24
- Colorado___$1,000,000__________16,842__________________$59.38
- Ottawa_____$1,200,000__________19,821__________________$60.54
- Calgary____$1,300,000__________19,289__________________$67.40
- Edmonton__$1,200,000__________16,828__________________$71.31
- NY Rangers_$1,300,000__________18,200__________________$71.43
- Vancouver__$1,400,000__________18,630__________________$75.15
- Montreal____$1,700,000__________21,273__________________$79.91
- Toronto____$1,900,000__________19,434__________________$97.77
Okay, what does this tell us?
First of all, the numbers indicate to me that the Southern teams always in question are not much different performance-wise, than several other teams who never get mentioned in the "move the franchise to Canada" rants.
Chicago has performed poorly for years, why are they never mentioned? How about St. Louis? How can Buffalo have such a low average ticket price per game and be losing money, even though they sell out every game?
While Nashville and the NY Islanders have lower attendance, it seems like their fans are compensating for that fact by paying more for their average tickets than some of the lower revenue performers who average higher attendance.
Of course Canadian fans are paying more per ticket than US fans are, but part of that is because the value of their dollar has increased. Another reason is because corporations buy more tickets up North than they do in the South.
Let's face it, corporations are the ones paying the obnoxious average price in Toronto. Perhaps if individuals could write off the expense of purchasing tickets from their income tax returns, they might be able to afford to pay more as well?
I still believe that much of this performance information can change due to various cycles. For instance, attendance and profitablility will fluctuate depending upon how successful a team is. While Washington and Pittsburgh performed poorly concerning revenue last season, I expect that to change next year.
As PuckDaddy pointed out, when is the last time Florida has been in the playoffs? Atlanta has only made it once since their inception. As I have stated in the past, I think that it takes time and probably some success for a franchise to become profitable.
Let's go back to Chicago. As I mentioned earlier, they have been at or near the bottom of the league regarding attendance and revenue generation for years. But, due to recent savvy drafting and new a fresh outlook because of a change in their ownership, that is a franchise which everyone agrees is now on the rise.
What if it was moved or shut down due to poor performance a few years ago?
If some Canadians think franchises should be closed down or moved if they are not profitable, why didn't they shut the doors on the Ottawa Senators a few years ago when ownership was near bankruptcy and they couldn't even make payroll?
If the team wasn't bailed out by the league at the time, the Sens would be in Kansas City right now.
If Tom Golisano didn't save the Sabres, where would they be right now?
Last time I checked, neither of those teams were in the God-forbidden, South yet they have had more financial difficulties than any of the Southern teams in question.
Bottom line, the owners of each NHL franchise are in business to make money. Sure, most of them love hockey and own teams for other reasons, but they also want to make money. If any of them seriously thought that they could do better up in Winnipeg or Hamilton, they would move their teams to one of those locations, wouldn't they?
Gary Bettman doesn't have a personal vendetta against Canada or Jim Balsillie. He is just as money hungry as any of the owners. The only reason for his existence is to make money for said owners and if he wasn't doing his job, the majority of those owners would vote to get rid of him.
If it was truly believed by the head honchos in the NHL that moving a team to a city in Canada would make them more money, they would do it in a heartbeat, (and they just might do it in the near future.)
But it's a bit more complicated than just looking at average revenue or attendance and then blaming it all on the teams in the South. Reasonable people would understand that.
Bob Seger
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I think it’s obvious that an original 6 team will never be moved…that’s why you don’t see Chicago being mentioned.
The Islanders won’t be moved bc their owner has more money than God and doesn’t care how much he loses.
I would disagree with your statement that NHL franchise owners are in business to make money. On the face of things, yes, no one wants to take a huge loss – but people don’t buy into a sport that doesn’t have a huge fan base because they want to make $$, it’s because they want to own an NHL team. I doubt Karmanos regards the Canes as an investment, for example.
Your last line says it all. It is a lot more complicated than looking at average revenue or attendance, which is why your examples of Chicago, St. Louis and the Isles don’t help your point.
It is hard to argue that a hockey team in Phoenix is a good idea. It is hard to argue that 2 teams in Florida is a good idea. It is hard to argue with the thought of moving Atlanta, even though I like the team, because their ownership situation is bad news, and because this is the SECOND time they have had an NHL franchise and it hasn’t really worked out. It is also hard to argue that putting a team back in Quebec City is a good idea, as it is very small town and it needs a completely new arena.
How much of a spike has the Anaheim cup win given the team? The same with the Canes. These are all really important factors in establishing a franchise in their region, and nationally as well.
by Benjamin repenttokyo on Jun 10, 2008 2:03 PM EDT reply actions
Ben-
As always, thanks for your comments. Your perspective is much different from mine on this particular topic, and while I can understand some of your points, I disagree with some as well.
I’m not so sure that I agree with the idea that they will never move an original 6 team. While it would be a sad day for many traditionalists, if a new owner, (or son of an owner) was continually losing money hand over fist and wanted to move one of those franchises, I don’t think the league would stand in their way if they had a feasible plan. Hopefully it never comes to that.
I don’t understand why the Islanders get a free pass because “their owner has more money than God”. What does that have to do with low attendance and sagging revenues?
If the criteria for moving teams is the perception that hockey won’t sell down south because of low attendance and revenue, then look at all the raw numbers and move all the lowest performing teams, regardless of their location. The Islanders would have to be in the equation then, regardless of how much money the owner has. If they can’t sell tickets, they aren’t doing any better than Southern teams.
If the criteria in deciding whether or not to move teams is based upon how much money an owner has, then perhaps we should look at Ottawa’s troubles in the past and move them.
Besides, how do you know how much money the Florida ownership group has? As I stated in my article, none of the Southern teams ownership groups have had serious money problems.
Are they losing money? Yes, but are the owners going broke? Of course not. Again, if that was the criteria, then it’s time to move Buffalo. They are maxing out their attendance. If they can’t make money now, they never will be able to.
I still believe that owners are owners because they eventually want to make money. If not, then why charge people to watch hockey? Why raise ticket prices? Why negotiate with the players? Everything they do is about making money in that league.
While Karmanos has supposedly lost money 9 out of 10 years in Carolina, his franchise has gained value over the years. He purchased the Whalers for a reported 47.5 million and now according to Forbes the franchise is worth over 200 million. That sounds like a good investment to me.
In my opinion, they are all in the business to eventually make money. The fact that they love hockey is gravy.
Look at Leopold. He sold Nashville and bought Minnesota. What’s the difference between them besides one makes more money than the other?
I’m not going to argue about whether or not hockey belongs in Phoenix or southern Florida. All I can say that if Tampa Bay can sell out every game, why can’t Florida? If Dallas can be a viable, successful franchise, why can’t Phoenix?
My main point is that people shouldn’t just characterize an entire region and say “hockey will never work there”, because that’s an incorrect assumption.
I also think that it’s only fair that if people continually bash some Southern teams because of revenue and attendance issues, than they should bash the Northern teams with similar problems.
If Florida or Phoenix ownership wanted to move, I could certainly understand. But if ownership wants to stay there and continue to give it a go, then that is their decision and I think Canadians should respect what those owners want to do and accept it.
by Bubba on Jun 10, 2008 5:57 PM EDT reply actions
Questions like “If tampa can sell out every game, why can’t Florida” demonstrate the problem very well. 2 franchises in one hockey market, one does well at the expense of the other. Why? Maybe it’s because one has won a cup, and the other hasn’t. Maybe it’s because they chose a poor location for the Florida Panthers to be based in. But you can’t say because hockey works in one place in florida, it will work in 2 places in florida. There’s no logic there.
Regarding the isles – i don’t know how familiar you are with Charles Wang. He is not a normal business man. As long as he is in control of the Isles, it’s not going to matter how well they do financially. He has a very interesting past, I recommend checking it out.
I agree with you that Karmanos has reaped well in terms of the value of the franchise going up. However, we would need to see how much money he has lost exactly over the same period of the team’s appreciation in order to make a call over how good an investment it was. Investing close to 50 million dollars over a 10 year period should get you a very good return in many areas. Is hockey they best way to do it? doubtful.
I have no argument with moving Buffalo. However, i think we have a fundamental disconnect about the original 6 teams. it’s not a question of traditionalists being upset, these are the pillars of the league in terms of league history. If someone bought the red sox in the 80’s, say warren buffet, and wanted to move them, do you think MLB would have allowed that? no.
Another point I want to make: 2 of the last 3 franchises that were moved were Canadian – not American. So a newspaper writes a story about the southern teams…it’s still nowhere near as sad as the day that winnipeg and quebec city lost their teams. Or the day I lost my Whalers. There hasn’t been a single southern team that has lost their francise in the last 20 years. I pray you never have to go through that…and this is going to sound mean, but you don’t know what it’s like…I understand that these articles have you upset, but it’s just a paper tiger. don’t think that somehow Canadians hate southern hockey teams because of what you read in the media.
that being said, your site is great, and i love reading your posts.
by Benjamin repenttokyo on Jun 10, 2008 9:04 PM EDT reply actions
While you say that having two teams in Florida hurt each other, I could say that putting a team in Hamilton might adversely affect Toronto and/or Buffalo. Perhaps Toronto ownership is the main reason that Balsillie is meeting so much resistance from the NHL home office?
I agree that it is sad when any team has to move. The two fans that I chatted with from Winnipeg were quite bitter about teams being located in Florida and Phoenix, and I couldn’t fault them. But they seemed surprised and impressed that a fan from Carolina would travel just as far as they did to watch the World Cup of Hockey.
You make some legitimate points Ben and it’s always a pleasure to discuss with you. Cheers!
by Bubba on Jun 11, 2008 2:53 AM EDT reply actions
I wouldn’t want to see a team in Hamilton either – I don’t agree with the rosy forecasts of the team being able to draw attendance from surrounding towns – I think it’s a lot of wish fulfillment there.
Toronto ownership is definitely a primary source of resistance. The Leafs havea license to print money, and they will protect that monopoly to the grave. Apparently, they even made a huge stink about the Sens getting their franchise – and the city is 4 hours away!
by Benjamin repenttokyo on Jun 11, 2008 9:08 AM EDT reply actions
Hold up – did the article really say it would be a CUP FINAL between Columbus and Phoenix? Now, school might be out for the summer, but aren’t those two teams in the West? Now I might have missed something, but isn’t the Stanley Cup final supposed to be East v. West?
by mojo944 on Jun 11, 2008 3:30 PM EDT reply actions
no, they changed it, now it’s between the teams with the lowest overall attendance.
by Benjamin repenttokyo on Jun 11, 2008 6:53 PM EDT reply actions




















