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TBJ Report - Hurricanes Revenue Drops $4 Million in 2009-10

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The Triangle Business Journal recently published a report indicating that the Carolina Hurricanes lost over $4 million in revenue from 2008-09 to 2009-10.  The biggest revenue hit came from a drop off in attendance, which cost the team about $2.3 million.  

We ran an article earlier this off season showing that attendance had dropped from an average of 16,572 fans per game in 2008-09 to an average of 15,240 last season.  That's a total reduction of 54,612, a large enough number to hit the bottom line hard.

But the team also had reductions in league revenue sharing, merchandising, suite sales, concessions, and Ticketmaster fees.  In all, revenue dropped from $69 million to $65 million.

The report also showed that the Canes received a total of $23 million in NHL revenue sharing last season, down from $25.3 million the previous year.  

Have you ever wondered how much the team makes on jersey sales and other team related products?  The Canes made $821,000 on merchandising in 2008-09, but only made $667,000 last season.  With the All Star Classic coming to Raleigh in January, that number should certainly go up for next season.  Proceeds from All Star related merchandise sold locally go to the Canes up until a month before the event.   

The franchise has plenty of room for revenue growth and may need to capitalize on that growth in order to keep young stars like Brandon Sutter with the club in the future. 

While some would like to place the blame on the team's low budget this season solely on the fact that owner Peter Karmanos is attempting to sell a portion of the franchise, it would only seem logical that if the club could come close to selling out every game, (18,680), that would bring in enough extra revenue for the team to increase the budget and it would also make the team much more attractive to potential local investors.