- In the battle for a seventh NHL team, the judge has ordered the NHL all sides in a Phoenix bankruptcy court to provide him with information around a possible relocation fee the NHL may charge for the Coyotes franchise to be moved to Hamilton.
The current rumours have amount being set at $100M! Crazy amount? Maybe maybe not…
The Anaheim Ducks payed the LA Kings $25M back in 1992-1993 because they were moving into their fan base. In 1992 the NHLs total revenue was only $400 million. So, the Ducks paid the Kings 6.25% of league revenue to move in on their fan base. In 2008, the league has revenues around $2.2B if they keep the 6.25% rule it would mean $137M! WOW! That is a pretty crazy amount of money to be given to the Leafs and the Sabers.
But wait, revenue is just one part of the equation…distance between the areans would also have to be huge part of the equation. The Staple Centre is 31 miles from the Honda Centre. This pretty close and the Ducks had to pay $$25M.
The Sabers are 65 miles from the arean in Hamilton and the Leafs are 41miles from Hamilton. Because both are farther away, the percentage they have to be paid should be lower. So 5% of revenue might make more sense…roughly $100M…this seems to be the logical…but is it too much for Mr. RIMM?
Maybe the NHL and Mr. Suck will realize another team in Southern Ontario will be good for hockey and the NHL. Maybe the will realize the Leafs revenue has been increasing steadily, from $117M in 2003-2004 to $160M in 2007-2008. While the Buffalo Sabers reveune has increased as well but was starting from a much lower point, $51M in 2003-2004 to $76M in 2007-2008
Does it seem fair to give these teams over 50% of years revenue for Hamilton to get a team?
This could be debated but one thing I want everyone to know, the Leafs have a season ticket waiting list that is around 3000 names deep…and over the last two years no one on the list has moved. That is right, there is 100% renewal of season tickets for the Toronto Maple Leafs. The Leafs also have the highest average ticket price at $75 per seats…and even during this recession they have increased their ticket prices.
To recap, what the leafs have:
- highest ticket prices in the NHL
- highest team revenue
- 3000+ fans on the season ticket waiting list
- and a ton of scalpers who make a mint off leafs tickets
Can someone tell me why Leafs need millions of dollars if a team goes to Hamilton?
