Sunday, May 20, 2007
EIG ----------> Richie Rich
That document was obtained by some media figures in Toronto. It was leaked.
Ticket prices? 5th highest in the league. You want to know where the 21.8% increase in ticket prices is coming from? (61.14-50.20)/50.20. Simple mathematics.
Team 2006-07 2005-06
Toronto Maple Leafs 80.33 78.98
Colorado Avalanche 71.04 65.55
New York Rangers 63.53 54.19
Dallas Stars 61.43 58.37
Edmonton Oilers 61.14 50.20
Montreal Canadiens 60.82 58.74
Boston Bruins 59.71 56.61
Vancouver Canucks 58.74 56.24
Detroit Red Wings 56.95 56.72
Columbus Blue Jackets 56.07 53.77
Philadelphia Flyers 54.59 51.94
Minnesota Wild 54.54 51.18
Anaheim Ducks 52.25 49.79
San Jose Sharks 50.95 49.05
Calgary Flames 50.70 46.97
Ottawa Senators 50.38 45.30
New Jersey Devils 49.91 48.97
Los Angeles Kings 46.75 44.17
New York Islanders 45.04 46.30
Carolina Hurricanes 44.91 38.81
Tampa Bay Lightning 44.50 42.38
Phoenix Coyotes 43.60 45.66
Chicago Blackhawks 40.79 39.74
Nashville Predators 40.33 34.74
Florida Panthers 39.75 44.59
Washington Capitals 39.57 36.16
St. Louis Blues 39.50 35.23
Pittsburgh Penguins 38.62 38.05
Atlanta Thrashers 37.27 32.70
Buffalo Sabres 36.67 36.37
League average 52.13 49.31
The gate receipts info is also shown in the link
The Oilers average $1,020,499 in gate receipts (US$) per game. 8th in the league, just a little hair behind Minnesota and Colorado
Some questions to ponder
1) Do gate receipts include luxury boxes?
2) Where do the Oilers rank in terms of overall revenue?
The NHL relies heavily on gate receipts - but for other revenue, I'd imagine the Oilers at the top of the pack. TV revenue? Check - 4th highest audience in Canada behind the big 3 (TO, MTL, VAN). Based on the business boards I've been reading, only a few teams in the U.S. draw comparable numbers to the Oilers (157,000 per game). Factor in HNIC (which will provide more money next year with their new contract). Sponsorship is very likely among the leader of the pack as well.
3) The dollar is breaking records. I recall Laforge mentioning the team engages in the derivatives market to hedge the dollar. Is there a possibility the EIG will purchase longer term futures contracts? Lowers the risk - but you lose out on potential favourable exchange rate fluctuations...
Spector leaked that each playoff game earns the Oilers $2.5M before concessions and parking. I guess that is the motivation behind the said mentioned revamped budget. The EIG learned the hard way - bottom third payrolls with few overperforming contracts won't get you far. Of course talk is cheap. As far as promises go, we'd all be millionaires. Lets hope the EIG are committed towards keeping their word this year.
...and before anyone says anything, yes, the EIG should be making a profit. They've followed a good business model. But....now, circumstances have changed - there is more flexiblity. This team is no longer the poor sisters of the NHL, and the payroll should be proportionate to their revenues. It's an insult to Edmontonians at large, that the EIG went out publicaly on CHED this year and cried poor that the cap is rising -- especially when you consider the Oilers are one of the biggest contributors towards an increasing cap. It's also an insult that Patrick Laforge (in January) mentioned in the Globe and Mail that ''the team will lose money unless it makes the playoffs'' and that ''a lower cap would mean the world to us''
It sure would Patrick. It sure would.
..and to the Team 1260 members reading this thread - here's your chance to throw a few hardballs at Nichols/Laforge next time they are in studio. CHED - I'm not even going to bother with you. When Edmonton's biggest homer, Graham Hicks, goes against you in his column - it shows how low you've sunk
Posted by PunjabiOil at 2:18 AM