Buy a minor league team

frank wrote:

> Hello,
>
> How much would it cost to buy a minor league hockey team? Also, what
> are the average operating expenses and revenues for such a team?

In Greensboro, we are fortunate in that this year as the result of
well-intentioned mis-management early on in the franchise that the City
of Greensboro is operating our ECHL Franchise this year. The local
newspaper has detailed much of those expenses.

By cutting most expenses, which includes promotional advertising and
radio broadcasts - Greensboro is running an ECHL franchise for
approximately $1.2 Million Dollars. Unfortunately, this has resulted in
an operating loss of almost $300,000.

Greensboro is NOT a good example; because of bad publicity and poor
relationships with the coliseum facility.

Franchise Costs - you can pick up a dormant ECHL franchise for $100K. A
New Franchise could cost as much as $1 Million. (There are at least 3
dormant ECHL franchises). Other leagues have similar start-up costs.
You want to participate in a franchise that keeps your travel costs LOW.
Don't forget many of your fans will ROAD-TRIP. So don't join a
franchise that has your closest rival 8 hours away.

Player Costs - The ECHL has a UNION salary cap of $10,500. Other minor
league franchises are in the same range. AHL is MUCH higher.

REVENUE - this is a sticky issue because there are several revenue sources:
- Ticket Sales
- Advertising (Dasher Boards/Programs/Announcements)
- Radio Advertising (if you do radio)
- Concession Revenue

Depending on your facilities contract - you may not see any revenue.

It's important to control the facility. Profit sharing is great when
you are ON TOP; but to have others reaching in your pocket is not the
way to run a successful franchise.

FYI - Greensboro several years ago was making over $2 Million a year in
the ECHL. The difference was PRICES. The prices when the franchise was
profitable were 25% lower almost across the board (tickets, parking,
concessions).