Puck Daddy - NHL

There's a certain mindset among some, but not all, Canadian hockey fans that the NHL universe contains six large planets and 24 moons that orbit around them. It's the kind of mindset that can literally alter unbalanced regular season schedules in order to get young superstars from the Eastern Conference shipped over to Western Canadian cities; the sort of thinking that feeds those nasty theories about how the NHL "needs Canadian team X" to succeed for the betterment of business, hockey and mankind in general. And, of course, it provides the fuel for arguments about placing more teams "nord of da border."

Well, according to ace sports business reporter Rick Westhead of The Toronto Star, it turns out some occasional egomania from Canadian hockey fans is completely warranted. Citing "a secret NHL report detailing the ticket revenues of its 30 teams," Westhead reveals that the Montreal Canadiens, Toronto Maple Leafs, Ottawa Senators, Edmonton Oilers, Calgary Flames and Vancouver Canucks account for "31 per cent of the $1.1 billion (U.S.) in league ticket revenue":

The increase in the value of the Canadian dollar may be responsible for as much as half of the league's revenue gains since the NHL went through the lockout of 2004-05, say several sources familiar with NHL finances.

"If you take out the Canadian teams, which have done so well since the lockout largely because of the Canadian dollar, the league's revenues are actually only growing at a 2 per cent clip per year," says an executive with a U.S.-based NHL team, who requested anonymity. "It's not enough. We're not really growing as a sport, and we're still invisible in the U.S."

The money quote comes from former Vancouver Canucks owner Arthur Griffiths: "This really makes the case for another team in Canada, whether it's Hamilton, Winnipeg or Quebec City." The question is whether that's going to be an expansion franchise or a relocated U.S. franchise. Westhead indentifies some teams lagging behind the Canadian franchises in ticket revenue:

In fact, eight U.S. teams - the Coyotes, the Florida Panthers, Chicago Blackhawks, New York Islanders, Atlanta Thrashers, Washington Capitals, Nashville Predators and St. Louis Blues - generated less than half the amount of ticket revenue this season of the Edmonton Oilers and Ottawa Senators. At $1.2 million in ticket revenue per game, the Oilers and Senators garnered the least amount of ticket money among Canadian clubs.

It's a great read and an important story, especially as potential NHL city Kansas City prepares to welcome hockey to its new arena this fall. Based on the numbers, can Las Vegas and Kansas City still claim their place in line ahead of cities like Winnipeg and Hamilton?

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  1. Brian Richard
    1. Posted by Brian Richard Thu Sep 03, 2009 3:13 pm EDT

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    Never happen as long as Bettman is in charge,,its time for a real change,, Scotty Bowman is the guy we need in charge,, He'll make the changes needed to get this sport back in the hands of people who know what to do.
    Clarence Campbell was the last guy to do a good job as the head of the NHL.
  2. A Yahoo! User
    2. Posted by A Yahoo! User Fri May 30, 2008 10:05 am EDT

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    I actually agree with that Scotty Bowman or even someone like Cliff Fletcher when he is done with the leafs. Somebody has got to step in and recognize that there are Canadian cities who would thrive under the new guidelines. On another note--I thought the stanley cup was given to the people of Canada not the NHL--maybe we should take it back and give it to the highest ranking Canadian team at the end of the season--( I know it is stupid, but I am making a point)
  3. Cory
    3. Posted by Cory Thu Sep 03, 2009 3:29 pm EDT

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    That's funny. A Canadian newspaper reported this. Big surprise. If the Canadian teams are doing so well, then why did they lose the Nordiques and the Jets???? Come on everyone knows that Canada should be renamed Upper Mexico.
  4. Brian Richard
    4. Posted by Brian Richard Thu Sep 03, 2009 3:13 pm EDT

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    Hey Cory what a great idea,, then we could steal what few jobs that the US has left and both upper and lower Mexican citizens could visit the newest 3rd world country the United States. Meanwhile we could relocate all US hockey teams to upper and lower Mexico where its people have money to spend and of course oil to drive our cars and health care to take care of our people and houses to go home to that are not owned by the banks.
    Ah the stuff that dreams are made of !!!!!!!
  5. blueeyes_greeneyes
    5. Posted by blueeyes_greeneyes Thu Sep 03, 2009 3:09 pm EDT

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    I really hope Vegas doesn't get a hockey team....
  6. Martin P
    6. Posted by Martin P Thu Sep 03, 2009 7:09 pm EDT

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    Brian Richard, I love your rebuttal to Cory H's comments! Americans are nothing but brainwashed monkeys... but for some reason, Bettman is not succesfull in programming these monkey's to like hockey. I bet if we switched the puck for a ball, americans would come out to the games more! LOL
  7. brent
    7. Posted by brent Thu Sep 03, 2009 4:20 pm EDT

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    @ Cory - Numbers don't lie, man. The economies were completely different when Winnipeg and Quebec City lost their teams in the world and in the NHL itself. And please remember that cities like Kansas City, Atlanta, Minneapolis, and Colorado all had teams previously in the NHL, lost them and all either already have teams back or are getting them back (KC). So why is there a double standard in regards to Canadian teams? Cities like Winnipeg, Hamilton and QC could easily support a hockey team. So could Hartford for that matter. The game doesn't even need to be "grown" in those ares like it would in southern or western US states. Its an easy sell, but bettman is a myopic jacka$$ who can't ever admit that the southern growth was a bad idea.
  8. brent
    8. Posted by brent Thu Sep 03, 2009 4:20 pm EDT

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    Hey Martin....go f yourself. I'm an american, a hockey fan, and a bettman hater. Please don't lump us all in together, it makes you look like a bigger moron than you obviously are.
  9. Pension Plan Puppets
    9. Posted by Pension Plan Puppets Thu Sep 03, 2009 8:06 pm EDT

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    Wow, Cory H is an idiot.
    Want to know why Winnipeg and Quebec lost their teams? Because the Canadian dollar was artificially held down to about $0.65USD.
  10. KW
    10. Posted by KW Thu Sep 03, 2009 4:49 pm EDT

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    US vs. Canada bashing aside. In reality, hockey places a *distant* 4th or possibly even 6th in the US sports midset. NFL, NBA, Baseball, are all far bigger. Even College Football and College Basketball may also be more prominent in the American sports psyche. It would not surprise me to see professional soccer displace hockey in the not too distant future.
    Aside from the original teams and teams located in the northern US, hockey is an after thought.
  11. The World Famous Butt Pirate
    11. Posted by The World Famous Butt Pirate Thu Sep 03, 2009 10:03 pm EDT

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    A problem is that playing youth hockey in the US is orders of magnitude more expensive than playing basketball, baseball, soccer, etc. and is even more pricey than football. This leads to general apathy about the sport, which was not at all missed during the lockout by most Americans.
  12. Rich T
    12. Posted by Rich T Thu Sep 03, 2009 3:03 pm EDT

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    Wow Puck Daddy. Self-important Canadian fans. The owner of the self-important Montreal Canadiens, your fellow countryman George Gillet Jr. wants more Canadian teams. Personally, he's sick of propping up large US markets on the back of his franchise. Ask the other large revenue generating franchises in the US what they think of giving away their profits to failing teams.
    When one of Bettman's expansion teams moves back to Canada that will be the ultimate indictment of Bettman's failed regime.
    Personally the league should reduce by six teams.
    That would solve a lot of the problems.
  13. Cory
    13. Posted by Cory Thu Sep 03, 2009 3:29 pm EDT

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    I love all of the conspiracy theories that there are against Canada. Deal with it Canada is an afterthought to the entire world. Everything about Canada is inferior to so many countries that it is unbelievable. Maybe except the strip clubs.
    I find it funny that you automatically thought I was an American.
  14. cj_begins
    14. Posted by cj_begins Thu Sep 03, 2009 3:26 pm EDT

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    Self-important Canadian fans? Way to slap an entire country Greg. Classy.
    By the way, the numbers don't lie.
  15. Rock Chalk Jayhawk
    15. Posted by Rock Chalk Jayhawk Thu Sep 03, 2009 10:53 pm EDT

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    I live 2.5 hrs from KC and hope neither KC nor LV (or any other US city) are awarded teams. Canada deserves any expansion or relocated teams far more than ANY US city. Their passion and love for the game trumps any glitz that Bettman may covet in LV. Can you just see a LV team in the Cup finals when it's 100+ degrees (F) outside? Hamilton or Winnepeg may not sound as exciting as LV but I will bet the atmosphere inside the arena would be. I guarantee you wouldn't hear "what's offsides again?" Hockey belongs in Canada, the northern tier of US states, and the top 10-15 other US cities, period. There is nothing wrong with it being a regional sport; trying to force it into a national pastime is obviously not working.
  16. Brian Richard
    16. Posted by Brian Richard Thu Sep 03, 2009 3:13 pm EDT

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    Sorry Cory,
    I didn't assume you were American I assumed you were not Canadian.
    Mentioning Strip clubs Makes me think I'm still right.
    Parti Québécois????????
  17. Webby
    17. Posted by Webby Thu Sep 03, 2009 3:15 pm EDT

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    First of all, everyone here is missing the point. It has absolutely nothing to do with the size of the local ticket base for NHL (or other professional sports teams) for that matter.
    It's the size of the TV market. Advertising dollars and TV rights revenue is what drives where franchises are located. So in a city the size of Greater Atlanta, let's say 5 million, you only need 16% of the population (i know even that is a stretch, but just using the numbers) watching a hockey game to get the same market as if every single person in the Greater Quebec City market, with a population of 800,000, watched a game. It's just demographics and advertising dollars.
    Professional sports teams do not make their real money from ticket revenue. The most successful teams take in about $1.5 million per game in gate sales - that's only about $61 million for 41 home games - and that's revenue NOT profit. Although it's a whole different universe, I have heard the NY Jets would make a profit just from their TV contract alone, even if not one fan paid to go to a single home game all year. Interesting.
    So really it's the size of the surrounding Metro area, and the population the advertisers can reach (and of course the ratings) which is the most important aspect. It's NOT who previously had a team or which city can SUPPORT a team. Owners just like you to think that becuase they know you are a fan.
  18. Austock
    18. Posted by Austock Thu Sep 03, 2009 4:34 pm EDT

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    hockey is an expensive sport to play, but ol' gary has done his best to detroy the game here in the us. he's had 2 major work stopages since he's been commisioner and taken the sport off the biggest sports network and put it on a network that very few people have, and the only way to get it is to get the most expensive packages from the satellite and cable providers. let's also not forget that the hockey hotbed of nashville was going to be moved until goofy gary said that the owner can't move the predators to a city that actually might attend the games. being from missouri, i don't think kc needs a hockey team. how about we just move a team from a city that doesn't attend games, let's say, like tampa or phoenix, and move them instead of dilluting the league even more. i say we should start a movement as hockey fans and call it the triple g movement, or get gary gone movement.
  19. Webby
    19. Posted by Webby Thu Sep 03, 2009 3:15 pm EDT

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    Gary Bettman had nothing to do with NBC dropping their extra NHL games. The ratings were atrocious. Worst they had been in decades in the US. If you are going to blame anyone, you have to blame US viewers for not watching those games.
    A good question to pose, and I don't really know the regulations or restrictions behind it, but why doesn't NBC or Versus just pick up the CBC HNIC feed for games? Global TV in Canada picks up Fox feeds for the NFL Sunday games. CBC does a wayyy better job showing NHL games with better play by play and better camera angles.
    I have many American friends near the border that can get CBC and they refuse to watch NHL on any of their regional Fox networks or the national NBC games. Maybe we could get a few more fans south of the border if they could watch the games on a quality broadcast that we (Canadians) can on CBC?
    Comments?
  20. Webby
    20. Posted by Webby Thu Sep 03, 2009 3:15 pm EDT

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    Rich T:
    There is no profit sharing among NHL clubs or at least nothing like other leagues. The only semblance of profit sharing had to do with "currency equalization" payments a few years ago when the Canadian dollar was sitting about about $0.80.
    So Gillette Jr. is not propping up any US franchises.
    Lately there is more concern about the crippling municipal and federal tax structure for Canadian teams as they compete with, not only a more beneficial tax structure for US teams, but even tax CREDITS for some US teams. Ex. The Vancouver Canucks paid more in taxes as an organization last year than all US teams combined.
  21. Bob
    21. Posted by Bob Thu Sep 03, 2009 4:16 pm EDT

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    Reality check - there are only two truely exciting sports that are worth watching on tv: NFL and NHL. The others are as boring as watching paint dry. So if Americans can't figure out hockey, relocate another franchise or two in Canada where they are going to prosper and be appreciated. Unfortunately, Bettman has his own priorities and interests which don't seem to be in line with the common good of hockey.
    As for the ignoramuses out there who are quick to slam Canada, guess where America gets most of its commodities (such as oil, natural gas, lumber, etc.). Yes, Canada. Sorry, you need us more than we need you.
  22. robert c
    22. Posted by robert c Thu Sep 03, 2009 8:45 pm EDT

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    Buttmen spent too many hours watching Field of Dreams and believes that if you build it they will come ... sorry, not going to happen. If you look at Canadian sports, we have no NFL teams, we have one NBA team and two baseball teams ... but six NHL teams! And despite the fact
    that hockey and basketball originated in Canada, we have no connection to them ...
    We are hockey fans!
    And the best things that could happen to hockey include 1. Buttman gone; 2. drop bottom six teams; 3. relocate next 6 to Canada; 4. drop 10 games from the regular season; 5. have all teams play all teams at least once; 6. and work with what you have rather than what you
    want.
    Hockey will never displace the big 3 in the US, but that doesn't mean there can't be a decent market for broadcasters ... hell, they put curling, darts, cricket, rugby, soccer, and golf on the sports channel and sell beer, they can do the same with hockey.
    Buttman's only 'plan' has been expansion for the expansion fee ... but meanwhile he has let
    salaries that should match football teams jump up to match those of basketball teams ... without the revenue! Hockey salaries are going to need another overhaul, but what else is new?
    The good thing about dropping the bottom six is that whatever little 'talent' exists on those
    teams would be spread around again ... there are only so many good hockey players and
    putting the farm team on the ice isn't what people expect.
    Repatriate Hockey!
  23. saucehead09
    23. Posted by saucehead09 Thu Sep 03, 2009 9:06 pm EDT

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    I would love to know why Canadiens find themselves so superior over Americans. Canada would not exist without the US. Your game would not exist without the US and your healthcare would not exist without the US either. Maybe one day the Cup will make it's way back to Canada and you can stop whinning. I'd rather kick myself in the balls then cross the border north.
  24. Webby
    24. Posted by Webby Thu Sep 03, 2009 3:15 pm EDT

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    Robert C:
    All fine to say, but doesn't work with the economics of it. Owners don't move teams to Canada just to placate Canadian feelings.
    Can you give me the names of the 6 additional Canadian cities you think could support an NHL team and have an ownership group able to handle the $250 million or so to purchase one?
    Did you know that any owner that moves a team within two hours driving distance of another team has to pay a massive predatory fee? As an owner would you want to do that?
    If Bettman was doing it just for expansion fees - who do you think benefitted from those fees?
    It gets annoying just to have some emtional "hockey is Canada" conversation. There are cold hard economic reasons why the NHL is the way it is today. Let's address some of that.
  25. Webby
    25. Posted by Webby Thu Sep 03, 2009 3:15 pm EDT

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    Saucerhead09:
    Citizens of Canada are Canadians with an "A". Canadiens with an "E" are a hockey team and also a French speaking ethnic group that originated in the 1800s of which the team is named after. Arguments and insults lose a little credibility when knowledge is lacking.
    I really don't feel like getting into which country would exist without the other. But it is interesting your rationale for having Americans responsible for our healthcare. I'd be curious on that one!

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