Forbes Ranks Carolina Profitability Last in NHL
by Bob Wage on Oct 30, 2008 2:00 AM EDT
8 comments
Forbes Magazine just published their annual review of NHL finances and the results are not all peachy for the Carolina Hurricanes.
[caption id="attachment_2133" align="alignright" width="150" caption="*from Forbes"]
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While the magazine stated that the franchise's overall value increased 8% last year, putting the team at 22nd in the league in total value, (168 million), they ranked the team's income last year as worst in the entire league. It's no wonder that owner Peter Karmanos wants to take a more active role in team marketing and management.
According to Forbes, the club took in revenues of over 75 million, had player expenses of 52 million, and apparently had other expenses totaling over 34 million, which left a loss of 11 million dollars for the year.
The 75 million in revenue that the Canes took in was ranked at 22nd, but the team had higher player and miscellaneous expenses than any other team earning less revenue.
[caption id="attachment_2135" align="alignleft" width="150" caption="*from Forbes"]
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Strangely enough according to the report, Carolina took in more revenue in 2008 than they did in 2006, the year the team won the Cup and had four rounds of playoff money coming in. That doesn't make much sense unless the difference is made up in revenue sharing.
But supposedly, the team did not maximize revenue sharing last year, but did earn some the first year after the lockout.
It's also hard to believe that Carolina lost money in 2002 when player expenses were only 37 million, but they took in revenue of 67 million. Apparently, they had "other expenses" of over 35 million six years ago as well.
It would be interesting to know what comprises the "other" expenses that are not related to the players.
[caption id="attachment_2136" align="alignright" width="150" caption="*from Forbes"]
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The Hurricanes earned more revenue last year than any other team in the Southeast. Next closest was Washington at 73 million, but Washington's expenses were lower and they only lost 6.9 million, which placed them 23rd in the league in that category.
The New York Islanders brought in the lowest revenues in the league, only 64 million. They ended up losing 8.8 million, again less than the Canes because of lower expenses.
I'm going to try to get more information about this and will post about it later.
((UPDATE))
I contacted a team official and they do not affirm these numbers, nor do they participate in the Forbes survey. The financial results are pure conjecture by Forbes.
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Sounds a bit like “fuzzy math” to me…maybe other expenses is all the doctor bills.
by Swenk on Oct 30, 2008 7:08 AM EDT reply actions
scary numbers I hope PK stays strong with us. I would hate to see him get the jitters and sell to someone like Balsillie. Say hello to the Hamilton Hurricanes.
by wylde4canes on Oct 30, 2008 9:08 AM EDT reply actions
If they were 22nd in the league in revenue and lowest in profit margin, that would be the fault of the organizations management team, I wonder how much the fact that they rent the arena factors in.
by Mark on Oct 30, 2008 9:15 AM EDT reply actions
I wouldn’t panic too much. There was an article right before this season started in the Triangle Business Journal where Karmanos stated that there is a chance that the team will turn a profit this season even if they don’t make the playoffs, which would be a remarkable step forward considering that in the past the only way to accomplish that was to make a playoff run.
That said, if you are an NHL owner you are in it for the franchise value (and that $12.5 million increase offsets the $11 million loss you might say).
by Jonathan on Oct 30, 2008 9:25 AM EDT reply actions
with a lease through 2024, I highly doubt the canes will move any time soon..
http://triangle.bizjournals.com/triangle/stories/2008/06/09/daily36.html?jst=b_ln_hl
I agree that the forbes numbers are BS especially when you look at gate revenue estimates. compare the canes to the florida panthers which we know is always a sea of green with empty seats.. only $1M difference..
by canesice on Oct 30, 2008 1:13 PM EDT reply actions
FWIW, I know Toronto shrugs off this article every year.
Very cool info that I didn’t get anywhere else this a.m. Nice work Bubba!
by Cory on Oct 30, 2008 3:08 PM EDT reply actions
I think those “other costs” = healthcare seeing how everyone was injured or had the flu :)
by Parker on Oct 30, 2008 7:40 PM EDT reply actions
Well, well……looks like that was a real smart move from Hartford….LOL….I can’t wait to see Karmanos split town again. Its time to start worrying about hockey in Raleigh and Nashville and Atlanta and Phoenix and Florda. Anyone seeing a pattern here.
Just maybe they’ll put hockey back where it belongs such as Winnipeg, Quebec and Hartford.
I’m sure this will upset the 12,000 or so hockey fans in the state of North Carolina
by FW on Nov 2, 2008 3:04 PM EST reply actions
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