Wednesday, November 10, 2010

For $65 Million, We Expect Lobster

The Calgary Flames are spending $65,013,750 million dollars on this team.

According to Puck Daddy, the average ticket price for a Flames game is $66.68

According to Wikipedia, the Saddledome's capacity is 19,289. We actually think the number is higher than this, somewhere slightly above 20,000.

Anyways, let's use the official number.

$66.68 * 19,289 = $1,286,190.52

$1,286,190.52 * 41 =  $52,733,811.32

$65,013,750.00 - $52,733,811.32 = a $12,279,938.68 shortfall.

And you wonder why they are gouging you at the box office for Heritage Classic tickets.

Look, we understand the term 'average ticket price' doesn't really mean anything. But these are the numbers we have, so these are the numbers we are going to use. Yes, we understand using a number from Puck Daddy is stupid, because Puck Daddy does shoddy research (seriously, you don't gain credibility by forgetting the Flames light off giant flame throwers when they score a goal).

But going with what we have, we have the Flames losing money to ice this current roster. Of course, this doesn't include concessions and everything, and we suspect that, despite Ken Kings protestations, the Flames are not losing money. But they might be, you never now. They kept Darryl Sutter on the payroll, so we don't really trust the business acumen of the front office.

This season could be a disaster for the club, financially, if they don't make the playoffs. Which Murray Edwards would deserve, as he kept the people in place that decided spending $3 million dollars on Ales Kotalik was a good idea.

The team already has $55,861,666 committed for next years team, as well.

Prediction: Unless this team shows something, a payroll cut is coming. Good. Maybe taking away the unlimited payroll will force whoever is the GM to make smart and efficient choices with the cash available.
...

Hey, that post was too dry. While we are talking about money and what you can buy with it, here is a dirty joke!

One night, a horny old geezer decides to get himself a hooker.

Since the man doesn't have much money, he looks for the cheapest whore in the nearest Red Light District. A short while later, he finds what he's looking for and spends $10 for oral sex and intercourse.

The next morning, the old geezer wakes up and discovers he has crabs. So, he gets dressed and heads down to where he had been the night before. He notices the same hooker on the street corner, so he marches over to her and says, "Hey, lady, you gave me crabs!"

The hooker replies, "Hey, old man, what did you expect for $10? Lobster?"

Furthermore, I think Peter Loubardias should be fired.

10 comments:

  1. I think the 20+ million from local TV and NHL central revenue might get the club through the night, just sayin'. I'd be incredibly skeptical of any pronouncement that suggested losses, since the club is currently on the make for a new building. The club's total revenue is almost certainly north of 90M a year without playoffs, so they make enough to get by.

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  2. I saw some numbers a few years ago that had the Flames basically breaking even. It was before the TV deal Bob mentions above, so that might be floating things.

    Still, I suspect you're right and the team may have issues if they don't see some playoff games. Not big trouble mind you, but...

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  3. They could be losing money. Domebeers never factored in all the money we are paying (paid?) Iron Mike, and the Phil Jackson money we are giving the current Head Coach.

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  4. This might be why the player's ass'n never trusts the NHL. The word I have is that the Flames are actually making money hand over fist which is why they love Ken King but aren't too wild about the Jolly Rancher but because they are tied at the hip . . .

    By the way DB--donations are at $7K and counting. Thanks for the pub.

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  5. RC: I thought it was 10 million, over 10 years, but I will check it again.

    Im curious as to where you got the 90 million number. Could you point out where to look?

    Also, yeah, as was written in the article, we don't really think the teams losing money. Heard King say the club was lost 2 million dollars last year, but I trust that as far as I can throw King.

    As far as the new building, someone sniffed out where we are going with this line of thinking!

    Kent: throwing it down on OT now with P Sizzle good stuff.I've heard the break even stuff too, but because I've worked with financials, I know you can get them to say a lot things, depending on your fancy. Besides, 'losses' in his hockey business might be gains for Edwards elsewhere on his tax form.

    RT: yeah, I would suspect the thing is a cash cow, especially since 04. Until I see some leaked insider documents that tell otherwise, I'd assume they are making money. Like you say, Ken King can move product, and D Sut still has a job.

    Guys though, be real. None of you are 04 newcomers. A Calgary team spending this much jack is insane. We used to spend 20 million on the team. Just for that reason alone I would suspect the team is making money.

    I wonder if they could be setting up a 'we're poor we need public moneys for stadium'...

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  6. I wonder if they could be setting up a 'we're poor we need public moneys for stadium'...

    I think they'll wait to see how the trial balloon goes in EDM. However, given their actions in Abbotsford, we know the org isn't above leveraging public monies to their benefit.

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  7. For the revenues, here's Forbes' 2009 NHL Valuations. The new ones should be out this month, but I doubt last year's numbers were much off that 95M number even with no playoffs.

    The 20M is the 10M from Sportsnet, plus about 10M from national TV and merchandising. The CBC and TSN deals are worth 5-6M a team, Versus is about 2M, and other league revenues get them to about 10M. I'd have to go into Tyler Dellow's archives for the stuff where the league revenues were delineated when the Coyotes' books were opened up, but that would have been in the summer of '09.

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  8. Thanks RC

    Looking at that, operating income -800,000. Who knows if that's real or not. Gate receipts around 50 million so we weren't that far off as far as that goes. I think I'll talk about that operating income chart in another post.

    Lolz, I actually have used this page an old post 'see this iceberg coming'. Should have remembered it.

    As for the public money, yeah exactly, we saw they are prepared to play hard ball, that's why Im curious about this situation. Team needs to make money, fans are kinda restless, lots of pressure on the players, front office. Makes for good drama.

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