Carolina Hurricanes- Partners with the Community
Have you ever stopped to think about what the value of an NHL team is to a community? It might be much more than you realize. About a month ago, Bomani Jones from "850 The Buzz" offered an opportunity for folk to call in and speak about this subject on his afternoon show. Due to some possible controversy he canceled the event, but we don't need Bo to have this discussion. We can do it right here and right now.
Let's begin with the obvious. No one needs to be told that there is a lot of money changing hands at the RBC Center. The players are among the highest paid "employees" in the community. If you use the 8% state income tax rate and apply that to the approximate 50 million in player salaries this year, the result is an extra 4 million to be added to the Department of Revenue's payroll tax base. That number doesn't include the earnings of Jim Rutherford, Peter Laviolette, Ron Francis, Jason Karmanos, and the rest of management.
Let's estimate that the total state payroll tax paid by Hurricanes related personnel is about 5 million per year.
Of course there are a lot of normal, ordinary jobs associated with the team as well. From accountants and ticket agents to part-time maintenance workers and ushers, hundreds of people rely on the Hurricanes for regular paychecks.
All of these employees spend money in the local economy. The people on the higher end of the payscale will spend a lot of it. They buy expensive homes, automobiles, furnishings, and other necessities as well as luxuries. Associated with these expenses are the accompanying taxes that are added on top. Substantial real estate, personal property, school, and sales taxes accumulate. The economic impact and benefit of all this is easily in the millions.
The Hurricanes ownership group provided assistance in securing the construction of the RBC Center. Gale Force Holdings manages the property and has been a good partner with NC State, as well as with the community. While hotel taxes help to pay some expenses, events at the RBC help to increase the hotel traffic. The sharing of that tax revenue seems like a fair idea. It's extremely difficult to estimate how much tangible affect the Hurricanes have regarding the RBC other than their initial investment of 28M, but there is a huge benefit to having them as long term tenants.
Visiting teams and fans will come to the area 40 plus times a year, spending money at hotels, restaurants, and retail outlets. The team itself utilizes the services of various professionals in the community such as lawyers, physicians, physical therapists, and dentists. Everyday of the year, Hurricanes related transactions are strengthening the local economy.
But not only do the Hurricanes help the economy by performing their normal, day to day operations, they can also give it a huge boost with special events. When the NHL Draft was held in Raleigh, thousands of visitors came to the area spending millions in the immediate vicinity, just during one long weekend. The impact of an NHL All-Star game would be tremendous, and also in the millions. When the Hurricanes make it to the playoffs, similar spikes in revenue will occur.
Since the Hurricanes moved here, skating rinks have more than quadrupled in the area. Youth hockey has exploded. Adult leagues have multiplied. The very existence of the Canes has created several brand new businesses.
The economic benefits add up very quickly. Over the ten year period the Canes have been in North Carolina, one could conservatively estimate that the total financial impact to the community has been worth well over 100 million dollars.
But there are other things in life besides money.
The Hurricanes are among the highest contributors to local charities of all employers in the area. They have a specific organization set up by the team, the Kids 'N Community Foundation. The privately run organization has contributed more than 6 million to local charities since it's inception in 1997. Over 50 local charities have recently benefited from the foundation's donations.
Players and employees volunteer without pay to make the foundation a success. Special events are held, like "Casino Night" and "Skate with the Canes". Memorabilia is auctioned off with proceeds going toward the cause. The Hurricanes also help to organize sponsors efforts for charity as well.
Players also get involved on a personal level. For instance Cam Ward started a program with the local Special Olympics called "Cam's Champs". The goalie donates $4 per save that he makes each season which has totaled up to thousands of dollars so far. Several players are also heavily involved with their churches and other causes. Carolina's strength and conditioning coach, Pete Friesen holds an annual 5K run that benefits the Leukemia and Lymphoma Society. One could go on and on listing the multitude of recipients that the Hurricanes and their employees have helped out or contributued to.
Taking everything into consideration mentioned here, you would think that the Hurricanes would be the darlings of the local media, but nothing could be further from the truth. There is one beat writer who focuses on them for the local paper. There are a couple of sports radio stations who give them some love. But for the most part, you don't seem to hear much about the value of the franchise to the community.
Several publications have consistently listed the Triangle as one of the best places to live in America. I can't help but think that the Hurricanes help contribute to that.
And we wonder why some outsiders want NHL hockey to fail here and move back up north?
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There is perception outside of the Triangle and inside the triangle, and there is perception outside the hockey world and in. It is true of other sports as well – I for one do not give one rats @ss about NCAA basketball, or any basketball for that matter. (Give each team 100 points & 5 minutes to play). But it is so entrenched here, because of its history and success. In NY & Buffalo, for example, NCAA basketball isn’t even really followed, unless you like D3 teams or go to ST. Johns. The history (what there is) is negative – no real success and a point shaving scandal. Besides, there are all of those OTHER pro sports teams in NYC & Buffalo. If there is a scandal, yeah College basketball would get the press, but nothing else until they accomplish something REALLY big, like ST. John’s making it to the Final Four.
I have been lucky enough to have followed the Whalers to Carolina from Hartford, and have seen it grow immeasurably in its importance to this community. “Outsiders” are exactly that – outsiders. It takes them longer to appreciate what a team means to a community. Look at the history of the NY Mets for example.
People like this guy from Illegal Curve have no clue what the Hurricanes have done for this community. I have first hand, and have the reference points to see it. It takes history and success, which is why on several issues I do agree with & appreciate fans like Paladin, even though he tends to take a more negative look at what the ’Canes do. It was really awesome to see ’Canes fans take Drew to task for his “article.” It shows what kind of mark this club has made on the community. By the way, Bubba, were you getting as many comments last year at this time?
by marc on Aug 14, 2008 12:10 PM EDT reply actions
Hell yea!!
Bubba and Marc, both great comments.
I am a glass half empty, guilty as charged.
I too have watched this area go from having squat to offer to having a real live NHL team. To the greatest thing possible. When I first moved here, there was no thought or inkling of having an NHL team. I remember watching the goalie of the Ice Caps puke every game and thinking that was the best it was going to be.
And then they came.
I am hard because I care. I come from a city steeped in hockey. They have all the pro sports(in name anyway), but hockey was the bomb. The Miracle on Ice solidified my affair with hockey in general, my home team of the Carolina Hurricanes gets my money and support and the Wings will always be a part of me.
I think this franchise is sitting in the middle of a gold mine and they are leaning on there shovel and are worried about the dirt. How many schools would let the players come speak? How many have had them come? How many venues like the DAP would let a ’Cane come and hock tickets and sign autographs? Hockey Halloween parties at the RBC, massive show at the fair, scrimage with some of the leagues, vistit some of the clinics. There are at least 8 ice sheets in a small drive and everyone has kids skating on it. Why is there only Cool Bars? Every watering hole in the state should be aware of the ’Canes and offered a Jersey or something so the team is known far and wide. Next to hockey fans, the most rabid fans I have come across are the Nascar crew. We live in Nascar central, maybe sponsor a ride, do some cross promotion, Nascar is the most and fastest increasing sport.
I home for lunch and have a pile of marketing and promoting at the tip of my tongue. I spent part of yesterday wondering if it really is sad or not about an abandoned table at the dap.
I just think this team is a Raleigh team at the moment, theres alot more pie to be had in this state, I think the team deserves it, the last 7-8 yrs the team has really done well. I was a bit bitter at the Keith Primadona deal, but they came out a better team and look what happened to him.
I’ve met a few of the players and every one has been down to earth easy going and very polite.
In some markets a player would get mobbed, around here they go almost unrecognized, I probably wouldn’t recognize the whole roster.
I am in absolute agrrement they do alot for the community and the state. I would like to see them leverage some of that and promote themselves. Theres alot of money around here to be spent, people starved for a good safe time.
What better than a hockey game?
I rant, once again, sorry.
I think this is a great thread.
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by Paladin6 on Aug 14, 2008 12:37 PM EDT reply actions
Well said all around Bubba. I think the Canes are making an effort to be more infused in the community every year. I just went to Marbles with my kids Tuesday and the little “ice” rink they have in their Olympics section is really great. Canes helmets and jerseys for the kids to wear, Ward and Staal locker stalls and a Staal video to watch. Very cool, and I see more and more of this stuff popping up every day.
by Cory on Aug 14, 2008 12:51 PM EDT reply actions
This thread is certainly more boring than yesterdays. It’s hard to be sarcastic and try to use a dry wit when you post something like this. :-)
Marc-
To answer your question, comments are way up from last year at this time. It will be interesting to see if things pick up even more after the season starts.
by Bubba on Aug 14, 2008 3:16 PM EDT reply actions
I find your statement that having the Canes in town quadrupled the number of skating rinks in the area a tad humurous. Seeing as there were maybe 2 to begin with, quadrupling isn’t such a stretch. I for one think there are not enough. Consider Dallas………when the Minnesota NorthStars moved to Dallas, the area had few ice rinks. The Dallas Stars mgmt made a concerted effort of time and money to build ice rinks. Within 10 years they had greater than 15 rinks (per XM radio reports, going on their broadcast data). Granted Dallas is about a zillion times larger than Raleigh, but the fundamental concept of growing a market and fan base WHERE THERE WAS NONE is still the same. The Hurricanes marketing strategy of throwing tickets away to Harris Teeter shoppers is a far cry, and far cheaper, than building rinks and promoting youth hockey EARLY. They did not do this, and it’s a shame.
by Ivy on Aug 14, 2008 9:32 PM EDT reply actions
Hi Ivy-
Yep, the number in my head that I was trying to convey was 2 sheets of ice moving to about 8. (quadruple). That’s a pretty significant jump.
I agree that there should be more rinks. When the local Canes have to book ice at 6AM in the offseason because that is the only time available for them to skate, that indicates to me that another rink or two is needed.
As a matter of fact, if I owned the Canes I would have my own practice rink near the RBC. I think they could do much better than the RZ. (easy for me to say).
I also agree that they were slow to get deeply into youth hockey here, although they are doing a fine job in that aspect right now. It did take them awhile though.
The marketing is somewhat lacking as well and even Peter Karmanos has admitted such. I believe I used the terms “easy, dumb, and cheap” when describing the 2 for 1 voucher strategy in a previous post. But this article wasn’t really about the marketing, or lack there of. I didn’t get into that.
Good to see you posting again!
by Bubba on Aug 15, 2008 1:31 AM EDT reply actions
Last I heard there was plans for a multiple rink complex in the works.
Maybe just a rumor, source was good.
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by Paladin6 on Aug 15, 2008 7:13 AM EDT reply actions
Reczone has been planning on adding a second sheet. The number of kids that I have seen playing since I have moved her over 10 years ago has increased dramatically. I have also seen the leagues grow from about 5 teams in my division, to seeing my division split into 3 with 8 teams in each one. I have also noticed the biggest influx of new kids and adult players was most dramatic in 2002. I have seen this in 3 different rinks in the area. If the other rinks are seeing the same increase, the number of people playing in the area has increased exponentially. I don’t know how involved the ’Canes are in youth hockey, as the last time I coached was in NYC. However, if that increase is JUST from the ’Canes moving here, imagine what it would be like if the organization jumped in with 2 feet and REALLY participated. I do know that players have participated in the past, as I would see Wesley behind a bench at kids practice at Rec Zone.
by marc on Aug 15, 2008 8:15 AM EDT reply actions






















