Friday, July 10, 2009

Money Down a Coyote's Den:: More Interest in Keeping Hockey in the Southwest Desert

So, the CBC reports another group of investors is interested in trying to keep the dream alive of hockey in the desert. In the spring, I thought a Jim Balsillie bid to move the team to Hamilton made sense. In that blogue, I cite an NHL study on ticket revenues. In 2008-2009, the Coyotes were dead last at $450,000 per game. The Sporting News quoted a financial analyst, Ted Rechtschaffen, last month who also agreed that the Coyotes weren't viable. In his analysis, he mentioned a hockey market fundamental::

"In hockey, gate revenue is key, especially in market where hockey isn't as core...If you have hockey fans that are willing and interested in going to the games and are willing to spend a lot of money going to the games, that tends to be the heartbeat of a city's long-term viability."

Sports are often a two-staged market, where ticket sales from fans drive television and corporate sponsorships, with the latter being a mixed bag for the everyday fan. Rechtschaffen explains his experience as season ticket holder and their function in the gramatically incorrect Leaf's market in Toronto::
"We have Leafs season tickets. Why? We have them because even though they're very expensive, we know if we have an opportunity to take a client to a game, they're very excited...It means a lot to them. If there wasn't a lot of excitement, we wouldn't spend the money."
Daryl Jones, an Albertan now living in Connecticut told the Toronto Star::
"Our plan and idea is to keep it in Phoenix...We have a lot of work to do before we're ready to make the bid, or before we can make any recommendation in that regard...We do like the long-term potential and viability of having a team in Phoenix, the demographic of the area and things like that."
There are two bids currently. Jerry Reinsdorf, owner of the Chicago Bulls and White Sox, has put$148M US on the table to buy the franchise out of Chapter 11 bankruptcy, but keeping the team in Phoenix/Glendale. Unpopular to the NHL {and not likely a hit with the Buffalo Sabres}, Balsillie's bid is the highest at $212.5M US, but it involves moving the team to Hamilton and actually earning revenues.

Twitterversion:: New bidding group investigating making silk purse out of a Coyote's ears,intent keeping team in desert. #NHL #Rhizomicomm @Prof_K

Song/Video:: Hockey- "Learn to Lose" {Alternative Version}

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