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Welcome to the Real World, Part #1?


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  #11  
Old 10-24-2008, 07:31 AM
Steve Steve is offline
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Default Welcome to the Real World, Part #1?

You are the potential owner of a team in Winnipeg.
The costs associated are after discussions with the city of Winnipeg and the Province of Manitoba for tax breaks. The MTS Centre currently holds less than 14,000 for hockey, and as such, we will be using an average ticket price of $80 USD (most expensive in the league)

Players $50,000,000.00 USD
Staff $5,000,000.00 USD
Manitoba Taxes $1,000,000.00 USD
Winnipeg Taxes $ 300,000.00 USD
Winnipeg Arena Lease $ 2,000,000.00 USD
Travel Costs $ 3,000,000.00 USD
Hydro for Winnipeg Arena $ 3,700,000.00 USD
Water for Winnipeg Arena $ 2,000,000.00 USD
Ice Making Costs $ 2,000,000.00 USD
Advertising $ 5,000,000.00 USD
Total Costs $74,000,000.00 USD
Potential Revenues
For revenues, The MTS Centre currently holds less than 14,000 for hockey, and
YOur advisors have told you the hughest ticket price the market will bear is $56 We have had discussions with several large corporations but we are unable to significantly increase corporate revenue. Television revenue is also scarce in Manitoba as well so no significant increase there.

Ticket Revenue $32,144,000.00 USD
Corporate Revenue (Total) $10,000,000.00 USD
Local Television/Radio $ 3,000,000.00 USD
CBC $ 4,5000,000.00 USD
NBC/Versus $ 2,000,000.00 USD
Revenue Sharing $4,400,000.00 USD

Total Revenues $56,044,000.00 USD

What do you do to make up the shortfall?
Sunsfan
The arena IS new

Warren,
How would you sell tickets at $80?
Zapcity
I thought the amount to make ice, water, hydro was a little high as well. Doing some further research in the past year, and Winnipeg is actually financially better suited to make ice that Dallas, Phoenix, and Denver because the cost of water and ice making is a LOT cheaper.

These are the numbers a prospective Winnipeg group came up with that wanted to purchase the Penguins in 2005 btw
Mel
If the Winnipeg owners owned the rink, it would be much easier because revenue from concerts, events would offset the hockey losses. But the city owns the arena...AND the city gets the money for the naming rights from MTS
Darren
You are looking at it correctly. All the salary cap does, is prevent the rich teams from spending every cent on players. It doesn't make the teams in Columbus, Calgary, Edmonton etc any better off. It just prevents them from being outbid for every player. (In reality, it makes the rich richer - they just can no longer spend their riches on anything other than equalization)
Notes
I believe a team can work in Winnipeg, and through the various answers there are things that would work.

As a city that is 'actively' trying to pursue an NHL team, you would have thought the new arena would have been bigger than the old arena (one of Shenkarow's arguments was that a bigger arena would have kept the team).
Bob,
People far more in the know than I am....say that the team would be doing better in Winnipeg than it is now in Phoenix
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  #12  
Old 10-24-2008, 07:31 AM
lead lead is offline
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Default Welcome to the Real World, Part #1?

Trade a high-salary player for say an early round draft pick. I know this would degrade the caliber of the remaining team's play, but this would save a bunch. They would also now be in a much better position for later on in the season when teams are usually scrabbling to sign free agents for a run at the cup. Winnipeg would have more 'cap room' (having released the high salary player) and able to pick a more expensive better free agent if they got to a play-off position.

Either that or you have to have an amazing promotional department that could sell tickets at $80. I know that Winnipeg has always been a hocky-town, so that might fly.
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  #13  
Old 10-24-2008, 07:31 AM
export export is offline
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Default Welcome to the Real World, Part #1?

5 holes jenni? thats an improvement. kids these days, they get more and more creative.
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  #14  
Old 10-24-2008, 07:31 AM
Luc Luc is offline
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Default Welcome to the Real World, Part #1?

THANK YOU!!

I doubt this will end the Winnipeg fans' campaigning, but your math speaks volumes to those who keep on insisting a team can be supported there.

Btw, $2M for water alone? Yikes.
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  #15  
Old 10-24-2008, 07:31 AM
John John is offline
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Default Welcome to the Real World, Part #1?

sell players, cut high paid staff, look for investors, try for temporary tax breaks, because you need a larger venue that you could possibly share with another entertainment entity.


you'd have to right the ship, it won't be painless.
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