Habs raking in the profits

patg · Member

Habs raking in the profits

Nil d · Guru

I'm not privy to the figures, obviously, but that analysis seems about right. I remember a few years ago I read that every playoff game meant another $1 million to the bottom line; that figure may well be closer to $2 million today, who knows?

But I don't get your part about selling tickets to promoters.

patg · Member

My thoughts on the habs selling tickets to promoters, that this was a means to escalate the price of tickets by creating a shortage of available tickets.

I am not sure but thought that the habs my take advanatage of a promoter selling a 55$ dollar ticket for 90$. The habs would make a percentage of the profit made by the promoter and allocate that revenue under another enterprise of Mr. Gillett entertainment. It's a win-win sitaution for the Habs and the promoter. Just a thought.

MC Girl · Guru

patg wrote:

My thoughts on the habs selling tickets to promoters, that this was a means to escalate the price of tickets by creating a shortage of available tickets.

I am not sure but thought that the habs my take advanatage of a promoter selling a 55$ dollar ticket for 90$. The habs would make a percentage of the profit made by the promoter and allocate that revenue under another enterprise of Mr. Gillett entertainment. It's a win-win sitaution for the Habs and the promoter. Just a thought....

...that could have truth to it. (we've bought tickets from "promoters" for twice the price in the past... how do I know if the "promoters" are/aren't in with the team?)

Nil d · Guru

patg wrote:

My thoughts on the habs selling tickets to promoters, that this was a means to escalate the price of tickets by creating a shortage of available tickets.

I am not sure but thought that the habs my take advanatage of a promoter selling a 55$ dollar ticket for 90$. The habs would make a percentage of the profit made by the promoter and allocate that revenue under another enterprise of Mr. Gillett entertainment. It's a win-win sitaution for the Habs and the promoter. Just a thought.

I doubt very much that the Habs would engage in such an elaborate scheme. Sounds kinda illegal besides............

mperra (Admin) · Guru

Hmmm .. touchy subject.

I am privy to some of the behind the scenes of Habs tickets sales.

If you noticed I now sell habs tickets to games. And some tickets are even at face value or below face value. How is that possible????

Professional promoters do get volume discounts (like any other business). But the Canadiens also obliges the promoters into buying deadwood games (Florida, Minnesota for example) for every premiun games (such as Toronto, Pittsburgh). Also, promoters don't mind losing $5 -$10 per ticket to deadwood games, when they can make $50-$500+/ticket for premium games.

But patg is on the right track. The Canadiens don't help the situation as they create the demand.

Traveling Hab · Veteran Member

patg wrote:

How much do the Canadiens make per game. I think just on ticket sales alone it must be around 2 million. If you then add concession and merchandising (preseason games). Overall they must gross over 90 million. If you factor player's salary at about 42 million US (conversation rate of 15%) brings us to 48 Million CDN. What does Mr. Gillett do with they other 40 million. You have to pay overhead (coaches, GM's scouting etc). How much can that be no more 10 million (that's generous). Property taxes are about 10 Million. Property taxes are for the bell Centre, there are other Entertainment at the Bell Centre besides Hockey which is not counted for. Let's not forget the loan that Mr. Gillett took out, so he has to pay that back.

All in all I would say the he is making around 20 million per year. I also think that the habs tickets have been sold out, only to find them being sold by promotioners as a means for the Habs to make more money without having to declare it as part of the Montreal Canadiens ( this way salaries would escalate next year and the owners maximize there return).

Is there any financial statement on the Canadiens business and Mr. Gillett. I'd be real curios to find out

Personally I think that 10 million for Coaching, Management, Scouting, and stuff like that is a very very low estimate. I am not sure what Carbs and Gainey are getting per year, but many coaches are getting well over a million, so to say a million each is probably not excessive. Then we have assistant general managers, secretaries, president and other front office positions before we even get to the scouting. We have several professional scouts and many many amateur scouts. We have scouts for NCAA, for high school, for the CHL, for the AHL, for the European leagues. We pay them money and cover their expenses, which since they travel a lot is expensive.

We also have to run an AHL team (which does not make money, hence why Edmonton doesn't even want one) and spend millions on advertisement.

What about operating costs for the Bell centre? We have hundreds of ushers, so even at $15 000 a year, that represents millions of dollars. What about the people who sweep up? And the girls in the Molson Ex zone? Zamboni drivers and the machines themselves? Guys who run the entertainment? Technicians who make everything else work? Medical staff? Insurance? Hydro bills? Water bills?

If we were making 20 million a year the NHL would be springing up 12 new franchises in Canada by next tuesday.

5 million is probably a more accurate figure.

I have no facts or number to back up my estimations, but I can see that you missed a lot of costs in your analysis.

The reason why playoff games mean so much more profit is that the league pays the players, not the teams, so why do you guys think that it is probably now 2 million per game instead of 1 million when the most significant thing to change is player salaries? I would say it is still about 1 million per game.

habs93 · Veteran Member

The reason the club's take goes up in the playoffs is because the game tickets are increased with each series across the NHL.....

-- Edited by habs93 at 11:03, 2006-10-18

Traveling Hab · Veteran Member

habs93 wrote:

The reason the club's take goes up in the playoffs is because the game tickets are increased with each series across the NHL.....

-- Edited by habs93 at 11:03, 2006-10-18

And what do you think has a larger impact on the bottom line, a ten percent increase in ticket price (for the first round) or a 50% reduction in costs (players salaries)?

You are right, the increased profits are there, and for other teams there is also the effect of increased sales, but the fact that the league covers all playoff salaries is the big difference.

patg · Member

If we were making 20 million a year the NHL would be springing up 12 new franchises in Canada by next tuesday.

5 million is probably a more accurate figure.

All I'm saying is I would like to see the financial statement of the Canadiens. Personally I think the NHL Players in the new CBA should have negotiated the ability to have the owners finances be viewed publicly like all other company's. I cannot find out how much money they won or lost this year. As for the 20 Million, I stand by this figure I think all of the cost have been accounted for and not mention that the Habs ticket are the most expensive in the NHL. Small market cities in Canada do not have the revenue to compete in the NHL.