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Around SBN: Lakers Should Trade Andrew Bynum So He Doesn't Go To Waste

Is Winnipeg's MTS Centre NHL ready?

Part two of this four part series looks at some of the fuzzy math that supporters of a return to Winnipeg have been passing off as fact.

The CBC recently aired this news piece about the possible NHL return to Winnipeg:

Winnipeg Revenue Crunch - Breaking Down the Numbers for NHL Return - CBC

Scott Oake estimates the attendance to be at 14.5k per game. With those numbers the team would earn $45 mil per season. The question is: wouldn't Phoenix need to sell at least the same number of seats to make the same amount of money?

Star-divide

Here's the thing, they did. See the following attendance numbers:

Scott also guessed "That's at an average of $75 per seat"; However, there are only two teams near and over that $75 range- the Habs and the Leafs. A better comparison is the two closest teams in market size, the Flames and Oilers, average ticket price are both at $59. So if you put those more reasonable numbers into the equation you come up with $35 million, not $45. An even better comparison is to base it on the markets gross domestic product - per capita. Winnipeg's estimated GDP is $32,102 just below Buffalo's GDP of $32,872. So if we use Buffalo's average ticket price of $36, we get about $21.5 million, no where near that $45 million figure.

To put this all in perspective, the Coyotes average ticket price from last year was $37, and Jobing.com Arena has 2,500 more seats than the MTS Centre. So going on the 97% occupancy guesstimated on the video, and using Jobing.com Arenas capacity at the current average price, we come out with a number just shy of $26 million. This of course is not including the estimated $19 mil having twice the number of luxury boxes could generate.



Tomorrow we will discuss the gift clause and Matt Hulsizers financial commitment to the team.

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I don’t think Winnipeg will survive long-term if they get a team but these revenue projections are clearly dreaming in technicolor. $75 a seat? Yeah, right. It works in Toronto and Montreal because of the massive fanbases and because of the corporate support.

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by PPP on Mar 17, 2011 1:42 PM MST reply actions  

Exactly. They claim we’re being insanely optimistic with our numbers and yet overstate and over inflate their numbers to make Winnipeg look better than it would actually be.

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by Travis Hair on Mar 17, 2011 1:46 PM MST up reply actions  

Excellent

Hey Mr Troll – looks like we weren’t just going to say ‘its too small’

As Featured in Sports Illustrated: http://tinyurl.com/TimmyHate
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DISCLAMER: Any and all trash talk is intended in a light hearted manner. Failure to take trash talk in this manner may result in foolish anger, looking stupid or Red Wings Fandom. Do not take TimmyHate Trashtalk if you are suffering a heart condition, have had a funectomy or support a return to Winnipeg.

by TimmyHate on Mar 17, 2011 2:03 PM MST reply actions  

Attendance

The attendance numbers are based upon tickets issued. It’s a flawed stat because if you’ve issued 15,000 tickets to a game and no one shows up, it still shows in the official attendance as 15,000 even though nobody was actually there.

Also, if you gave away 15,000 seats and sold another 10 at $100 your average ticket price would be $100 because the average is based upon tickets sold, not issued.

Teams can inflate their attendance numbers by simply giving away tickets or doing two for one deals and some teams do this. Ever wonder why a building looks empty but the “official attendance” number doesn’t match what you’re seeing in the stands?

Also, I do believe that the average ticket price is based upon gate receipts and has a weak relation to attendance.

by tcumberford on Mar 17, 2011 2:07 PM MST reply actions  

Average ticket price is based on this:

Tickets Available in Section A X Price
Tickets Available in Section B X Price
Tickets Available in Section C X Price
ETC
Divided by total tickets Avaiable.

As Featured in Sports Illustrated: http://tinyurl.com/TimmyHate
New Zealand's Number 1 Coyotes Fan - and I have the photos to prove it!
DISCLAMER: Any and all trash talk is intended in a light hearted manner. Failure to take trash talk in this manner may result in foolish anger, looking stupid or Red Wings Fandom. Do not take TimmyHate Trashtalk if you are suffering a heart condition, have had a funectomy or support a return to Winnipeg.

by TimmyHate on Mar 17, 2011 2:13 PM MST up reply actions  

Not tickets sold.

As Featured in Sports Illustrated: http://tinyurl.com/TimmyHate
New Zealand's Number 1 Coyotes Fan - and I have the photos to prove it!
DISCLAMER: Any and all trash talk is intended in a light hearted manner. Failure to take trash talk in this manner may result in foolish anger, looking stupid or Red Wings Fandom. Do not take TimmyHate Trashtalk if you are suffering a heart condition, have had a funectomy or support a return to Winnipeg.

by TimmyHate on Mar 17, 2011 2:13 PM MST up reply actions  

Fair points.

It should also be noted though that the Coyotes have drastically cut back on giveaways, comps and free ticket promotions since last season. There were we win you win games, convenience store giveaways, giveaways connected to alcohol purchases, just random ticket giveaways etc. that happned last year that they discontinued. While I’m sure there are still some comped tickets the number is far fewer than in the past at least in Phoenix.

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by Travis Hair on Mar 17, 2011 2:15 PM MST up reply actions  

Winnipeg....

Lost it’s team because??!? come on peggers why?!? back than you had a time and z half fillin up seats, n they practically gave the tickets away, why do u think the second time around you’ll do better, IF this teams moved it needs to b to a NEW location where they can b the next 100 years, and not have this problem very where they move, and if they go to peg n 10 years if that, we’ll be back to where we started with the same problem, cause peggers only go to winning teams, so poor teams that will lose, u won’t just lose games but fans as well, cause they don’t come out n support there teams like they should, they don’t know how to be a supportive fan through thick n thin!!!! YOTES r OURS, so BACK OFF!!!!!

Quitters never win, and WINNERS never quit!!!

by doanrocks on Mar 17, 2011 2:12 PM MST reply actions  

I find it hilarious that in 15 years, we have more wins than the Jets did in 16 or 17. Have the Coyotes ever recorded a 9 win season?

Per Mare, Per Terras

by justin1985 on Mar 17, 2011 3:22 PM MST up reply actions  

The problem back then was bad ownership, bad marketing, and lack of funds to build a new arena. Today Winnipeg has good ownership, good marketing, and a new arena.

“cause peggers only go to winning teams, so poor teams that will lose, u won’t just lose games but fans as well, cause they don’t come out n support there teams like they should, they don’t know how to be a supportive fan through thick n thin!!!!” – Seriously? I wasn’t a fan who turned away when the Canucks kept losing. This season they’ve been on fire, which of course makes me very happy (and wary of the bandwagon jumpers).

by Prairie Orca on Mar 18, 2011 2:02 AM MST up reply actions  

The thing is…..Coyotes currently have NO ownership at all and are doing better than when they did. The old owner didn’t care, he didn’t know how to run a team that was losing. He sucked at marketing and put out a team that sucked. Look at them now. suddenly winning, people showing up, good mareting and so on. The Coyotes are not even giving away tickets this season, people are actually paying to go.

Fact of the matter is, Winnipeg is indeed worse than Phoenix. The players that were apart of the jets can vouch for it. The Jets were losing, fans didnt show up. Phoenix has proven fans will show up to see a winning team. Keep them winning for a while and people keep showing up. Look at the other sports teams in AZ.

The absolute fact that proves it is everything Winnipeg fans come up with to move the team are inflated and bias. The ticket prices here for example. The attendance. the “lack” of fans in AZ. Its all BS. Come up with something belivable and realistic before we do the talking.

by soldierone on Mar 18, 2011 4:56 AM MST up reply actions  

Indeed, less people were showing up in the end. That was mainly because fans were taking the team for granted, of which after the team left it was finally realized and the fans have kicked themselves for it. At the very last game it was a sold out crowd, where fans demonstrated the last true whiteout. Oh, and ever heard about the fundraiser rally? Over 35,000 people showed up and raised $250k in one day. Last I heard the biggest rally for the Coyotes was about two hundred people.

“people showing up” – The attendance is second worst in the league last I heard. Yet they’re currently in the running for the playoffs.
Oct 22/10; Feb 20/11; March 9/11

“The Coyotes are not even giving away tickets this season, people are actually paying to go.” – So this is a figment of my imagination?

by Prairie Orca on Mar 18, 2011 7:01 PM MST up reply actions  

Wow so the team had a giveaway night? Stop the fucking presses.

Guess what? EVERY TEAM DOES IT

As Featured in Sports Illustrated: http://tinyurl.com/TimmyHate
New Zealand's Number 1 Coyotes Fan - and I have the photos to prove it!
DISCLAMER: Any and all trash talk is intended in a light hearted manner. Failure to take trash talk in this manner may result in foolish anger, looking stupid or Red Wings Fandom. Do not take TimmyHate Trashtalk if you are suffering a heart condition, have had a funectomy or support a return to Winnipeg.

by TimmyHate on Mar 18, 2011 9:00 PM MST up reply actions  

Compare this year to last year....

and you’ll find roughly 20k more people have gone to Coyote home games. The reference about “paying to go” was about last year’s promo’s: We win, you win (a free ticket to a future game if the Coyotes won that game), convenient store giveaway (Buy $10 in soda & get 2 free lower level tickets) or Kids Club tickets (Pay $15 to put your kid in the club & get 2 free upper level tickets). Lots of free or severely discounted tickets.

None of these promo’s have happened this year so more people have shown up & paid more money to do it. That’s improvement in attendance while still being at 29th in the league.

by ChadInGlendale on Mar 18, 2011 10:00 PM MST up reply actions  

As for the giveaway that you linked to there – the team wasn’t giving away tickets, they were giving away cubic zirconia to women in attendance on Valentine’s Day…just a slight difference.

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(Oh, and go Philly teams as well!)

by Jordan Ellel on Mar 18, 2011 10:26 PM MST up reply actions  

know you're facts

it makes me mad when people speak without knowing what theyre talking about… we never gave away tickets. in fact almost every game in the last season of the jets was sold out…
it could ahve to do with the crap areana we had back then where every seat sucked.. where as now the mts centre there’s no bad seats.

and we don’t only going to winning teams.. i have a 9 game ticket pack and the moose have been blowing, like really bad.. they suck.. but i still like to go.. because it’s hockey and i love it, and i think thats the same for many other people as well because they’ve still have good attendance… for an ahl team…

by Lauren Shodine on Mar 18, 2011 11:18 AM MST up reply actions  

WRONG!

Attendance in the last season for the Jets was 2k lower than the season before.

As Featured in Sports Illustrated: http://tinyurl.com/TimmyHate
New Zealand's Number 1 Coyotes Fan - and I have the photos to prove it!
DISCLAMER: Any and all trash talk is intended in a light hearted manner. Failure to take trash talk in this manner may result in foolish anger, looking stupid or Red Wings Fandom. Do not take TimmyHate Trashtalk if you are suffering a heart condition, have had a funectomy or support a return to Winnipeg.

by TimmyHate on Mar 18, 2011 4:53 PM MST up reply actions  

Sorry Lauren

but know your facts

Last three years of the jets existence? 13,297, 13,013, 11,316
(Source: http://www.andrewsstarspage.com/index.php/site/comments/nhl_average_attendance_since_1989_90/118-2008-09)

As Featured in Sports Illustrated: http://tinyurl.com/TimmyHate
New Zealand's Number 1 Coyotes Fan - and I have the photos to prove it!
DISCLAMER: Any and all trash talk is intended in a light hearted manner. Failure to take trash talk in this manner may result in foolish anger, looking stupid or Red Wings Fandom. Do not take TimmyHate Trashtalk if you are suffering a heart condition, have had a funectomy or support a return to Winnipeg.

by TimmyHate on Mar 18, 2011 4:57 PM MST up reply actions  

touche

but considering the size of the areana….i would hardly say that’d giving away tickets.

by Lauren Shodine on Mar 20, 2011 5:32 PM MST up reply actions  

don't take that last number at face value

the team was sold in October, and played the entire season knowing that they were leaving. what do you think the coyotes attendance would be like right now if they had been sold to TNSE in December? frankly, the fact that 11,000 paying people showed up when the team was leaving is rather impressive.

by goem on Apr 11, 2011 8:25 AM MST up reply actions  

All this points to why the NHL virtually requires an 18,000 arena. And to fill most of those seats most of the time needs more than simply fans and giveaways. It needs raw population. The bigger the city and its immediate area, not 50 or more miles away, the better. Big sports is big business and why there’s so much talk of relocation whenever a soft team begins to lose.

Let’s also remember that unlike true expansion teams, teams like the Coyotes, Avalanche, and Hurricanes began in the old World Hockey Association (wasn’t it called?) and so were very fortunate to be absorbed into the NHL while their counterparts folded. Had places like Winnipeg, Hartford, and Quebec City tried applying for NHL teams back then they’d still be waiting to this day. It’s no coincidence that all three drifted to large, American, and well monied areas.

This is why there should be a “minor” major league like the WHA, to accommodate cities that frankly aren’t major league in stature like New York, Chicago, Philadelphia, Boston, Detroit, Dallas, and Los Angeles. To mix in cities like Winnipeg or Hartford among them is intuitively silly. And unfair because in the long run they can’t consistenttly sell sufficient tickets and themselves aren’t a draw in the big markets.

That’s something Canadian fans fail to grasp. Who in places like New York or L.A. care about (or barely know the location of) small cities like Quebec City, Winnipeg, or even Nashville when paying $250 to take the family to a game?

Really this goes for all sports. Keep big markets among themselves and ditto for secondary markets.

by bob99 on Mar 17, 2011 5:51 PM MST reply actions  

The WHA Had the highest payed players in Hockey.

The WHA stole away alot of the NHL’s players by paying them more, First million dollar player was actually on the Winnipeg Jets. The story is that Wayne Gretzky was on a plane either to Winnipeg or Edmonton he almost played for the Jets. The Jets won the Avero Cup 3 times in the WHA. I find it weird the lack of respect you have for the team the history of it means nothing.If It’s just business then why do you guys care if you loose the team. In 1974 the city of Winnipeg banded together and raised 2.4 Million to save the team. They rallied again in 1996 but failed. Glendale just put a kid in a coyotes uniform and had him say “I wub hockey”

by b3hr on Apr 18, 2011 9:04 PM MST up reply actions  

I would not use the attendance record of the yotes as any sort of example. Just because they had one season where some showed up to free games.
Winnipegs problems wont be getting fans out to games at the high dollar tickets. That will happen for 10 years at least. Along with corp. support That part of revenue will be strong. The problem will be the rest of the equation. Being able to generate money through marketing, tv, and the likes. There needs to be a good winning product on the ice. If the team moves here and we just tread water and cant afford to sign players and run near the top of the cap then things will be a struggle. However the NHL has changed a lot in the last several years. You can have a team that is full of low end players go far in the playoffs and all you need is that to happen a few times and your off to the races. The MTS center will be full for many years and the tickets will be expensive of that you can be sure. The ticket prices to a Moose game are the same as the yotes are now so Pegers are very aware of the fact that ticket prices are going to be out of reach for many.
The fact of the matter is Winnipeg will get a team. It may not be the yotes it may be from another struggling city. And we will keep it afloat as the ownership group here is solid. The product on the ice may not be that great tho. We will need a few star players to hang our hopes on and a winning record because I give the team 10 years and if they don’t have sucess on the ice all it would take is a turn in the economy or some other outside factor and well who knows what would happen. The truth be told Winnipeg doesnt have the population to support a team. Can we do it. I am sure we can but it will be a struggle every step of the way. Even if we have a winning team it wont be easy. No one will make bags of money owning an NHL team in Winnipeg. I would venture to say that the net proffet of the current Moose team will be higher that the NHL. If it were me I would’nt open up an NHLshop here. Bad buisness move. There are other Canadian cities that have way more to offer the NHL than Winnipeg

by makemepuke on Mar 18, 2011 9:29 AM MST reply actions  

Prices...

Moose tickets start at $36 bucks for upper level & top out at over $350? I find that incredibly hard to swallow.

by ChadInGlendale on Mar 18, 2011 11:52 AM MST up reply actions  

Nevermind....

I looked on Ticketmaster for the next game of Moose vs Star & found tickets starting at $23.25 CA (with fees included ) & topping out at $43.25 CA (fees included).

Since the exchange rates are almost 1-1 right now, that’s ticket prices of $24 to $45 US.

How can you say with a straight face the ticket prices for the Moose are the same as the Coyotes now???

by ChadInGlendale on Mar 18, 2011 11:58 AM MST up reply actions  

david thomson, and chipman

Well i do see the relevance in all of you’re points. but what i think people are forgetting about is the ownership that the jets would have.
not only is david thomson the 20th richest man in the world, chipman is one of the richest men in winnipeg, if not the richest… and yet everyone is doubting their thinking in all of this..
obviously they know what they’re doing, i sincerely doubt that they would jump into this blindly without any prospect of making money… I’m sure they’re researched it enough and if they were too lose money every year then they probably wouldn’t throw their hats into this whole thing.
I’ll trust his judgement… if we get one thats fantastic… i will go to as many games as humanly possible.. if we don’t we know its because chipman weighed the amount of money that he could make/loose

someone keep commenting i need something to entertain me at work.. please and thank you and have a fantastic weekend

by Lauren Shodine on Mar 18, 2011 11:29 AM MST reply actions  

Minor correction:
This year Thomson went up a few notches – he is now 17th richest in the world.

by Prairie Orca on Mar 18, 2011 6:06 PM MST up reply actions  

Ok – I was so close to banning you, but after reading your bio, I will refrain. Keep your future comments on the up and up like Lauren and you’ll be fine…i.e., stop bashing the attendance figures and bringing up the “Save the Jets” rally…we’ve heard it all 100x before…in the last hour.

Support Coyotes Hockey - Five For Howling
(Oh, and go Philly teams as well!)

by Jordan Ellel on Mar 18, 2011 10:25 PM MST up reply actions  

hahahaha

man even i’d ban him after reading the bio…. really? really? really?

by Lauren Shodine on Mar 20, 2011 5:35 PM MST up reply actions  

Concessions

What people tend to forget is that They own the facility and they make money on all aspects of it. So the fee’s and concessions that other teams miss out on they have control of. And they know you get someone in a seat at the mts center you’re going to double or triple the ticket price in beer. It’s how the gold eyes make money, how the moose make money, and will be how an NHL team in winnipeg will make money

by b3hr on Apr 18, 2011 9:09 PM MST up reply actions  

Critics of the NHL’s return to Winnipeg need to understand a few things about economics, the city of Winnipeg, and the motivations of the company that would own an NHL team.

First, economics. In 1996, the final Jets season, the Canadian Dollar was worth 73 cents USD. Now it is worth $1.04. This nearly 30% jump in the Canadian dollar makes a considerable difference in a business’s operating costs, because while paying and salaries and league costs happens in USD, all income for ticket sales, concessions, etc and TV (at the time it was almost all CBC here in Canada) were in USD, and that loss that isn’t there anymore wouldn’t be weighing down a team in Winnipeg. Then there’s the salary cap. It didn’t exist in 1996. Any team that could afford to, could literally buy every player they wanted because money wasn’t an issue with them. This competitive advantage has been nullified.

Next, the City. As stated above, Winnipeg is most comparable to Buffalo when it comes to GDP and an average ticket price of $36 would certainly be affordable enough here to fill MTS up every night.

Finally, True North Sports and Entertainment. Whether you believe it or not, these folks aren’t here to make money in Winnipeg. Nor will an NHL team in Winnipeg be the tax write-off of a zillionaire in a city on the other side of the country. The Chipmans are passionate about Hockey, and they have been blessed enough with moneymaking knowhow to be able to afford making an NHL team in Winnipeg a HOBBY.

Ever wonder about the “Entertainment” in the company’s name?

We all know that True North owns the MTS Centre. Not only does this mean that the owner of the NHL team in Winnipeg would get all the proceeds from concessions, etc, but also from EVERY TICKET to EVERY EVENT held their. Period. So when Keith Urban, Black Eyed Peas, or Metallica play there, the team is earning money. When monster trucks are doing jumps there, the team is earning money. When any other sporting event, such as IIHF World Junior Hockey Championships, Harlem Globetrotters games, major curling events, anything. Any time butts are in the seats and it cost money, the team is making money.

Very few teams have the luxury of drawing revenue from non-hockey-related sources. But when the Chipmans started working at this thing, they set out to make it sustainable and made as many safety nets as they could think of.

The final result? Even though Winnipeg isn’t a large market, preparation has been done to ensure that what it lacks in population can be covered by impeccable organization and planning.

I’m not saying the Coyotes are going to leave you all and come back to Winnipeg. I have a huge amount of sympathy for you if that happens, as one of the kids who smashed his piggy bank at the corner of Portage and Main to give every penny I had to the team I love, I know what that’s like and I wouldn’t wish that on anyone. All I’m saying is, some team will come here eventually, and saying we can’t do it is patently false.

So I hope you are all informed now, and I hope that out of your own fear or pain at the prospect of losing your team, you will stop shooting US down.

by Jetboy on Apr 29, 2011 7:22 PM MST reply actions  

Your team is safe, but some of the estimates here were pretty off the mark.

I’m not here to bash anyone, but I find it interesting to see how things are playing out here in Winnipeg this week. $36/ticket? Not even close! Third priciest seats in the league, and they’re going to sell out the building for 3-5 years tomorrow in less than an hour. 97%? There will not be an empty seat for years to come.

Of course, even with that…the new Jets (whatever they’re going to be called) won’t be one of the wealthier teams in the league. The building isn’t a cash cow like some arenas, but it’s going to do the trick. The fans are in a frenzy here and most of them aren’t even considering the cost/length of term/whatever…they are just going to pay whatever it costs.

Now that Winnipeg has successfully gotten an NHL team, I would guess that the Coyotes are not in any real danger of moving next season…there’s not a lot of Winnipegs out there with the facilities and the instant support to make it work. Quebec is still years away from having it’s arena.

by brunosan on Jun 3, 2011 8:16 PM MST reply actions  

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