I am a marketing student going for my MBA and we were given an assignment to break down the balance sheet of the Vancouver Canucks (as an estimate).
So far I have the following research and numbers confirmed:
Home Games : 41 (average ticket price $125) (average attendance 17,125)
Home Game Revenue Expected: 41 x 17,125 x $125= $87,765,625
TV/Radio Revenue (Canucks Share): $11,000,000
Canucks Merchandise Sales: $9,000,000
Arena Food/Drinks team share: $14,000,000
Team Promotions/Extra Revenue: $7,000,000
Total Revenue: $128, 765, 625
Now for the expenses:
Team Payroll: $81, 500,000
Arena Maintenance:
Arena Workers Salaries:
Flights:
Hotels:
Food:
Medical/Insurance:
Team Office Salaries:
Canucks Marketing Materials/Ads:
Cost of Food/Cost of Goods:
I am very confused how owners find extra income to pay millions to their coaches, like Bab in Toronto. It was much better for the owners to pay $1 mill or less for coaches, there is no reason why coaches salaries are going up. The coaches salary is a direct hit on the owners wallet, it is dumb to accept $6 million throwing away for a coach when you are getting nothing back for it.
And this is just the start of the expense of a hockey team, what about the first class air travel, premium hotels etc? Can this be reduced to regular air travel, reduction on hotels, food vouchers etc?
I plan to be a hockey team owner my self one day, at 35 though I am struggling to understand how to afford all of the expenses above without significantly cutting costs along the way as a potential future owner.
Thoughts are welcomed.