NHL revenues projected to rise

On Fri, 26 Dec 2008 22:31:31 GMT, foamy wrote:

> In article <130l6lz2ifbe5$.1z21o714s0t1$.dlg@40tude.net
>>, Gary wrote:
>
>> For the business minded in the group:
>>
>>http://www.sportsbusinessjournal.com/article/61008
>
>
> They are in for a surprise. All the money is in and spent, season tickets,
> sponsors, new jersey sales etc. When they are going to be hit upside the
> head will be come the playoffs, where families just aren't going to be able
> to lay out big bucks in advance for the whole series.
>
> Jim

So perhaps they're just putting up a brave front? Maybe.

But a question: Players' total salaries account for 57 percent of league
revenue. Is money made from the playoffs included in that total league
revenue? Or do the players get a maximum of 57 percent of what the teams
make in the regular season?


--
- Gary
 >> Stay informed about: NHL revenues projected to rise 

In article ,
Gary wrote:

> So perhaps they're just putting up a brave front? Maybe.

Their projections just don't make any sense to me, no matter how
I juggle the numbers.

Let's say the Hockey Related Revenue [ HRR ] is 100, Canada accounts
for 30%, and the dollar dropped 20%.

HRR USA Canada

100 70 30
94 70 24 [ following the drop in the dollar ]

They project at least a 2% increase over the previous HRR of 100. So
to get to 102, there'd have to be an 8.5% on the actual HRR of 94.

How to they expect an 8% increase in light of the trouble in some cities
like Phoenix ? Unless they've seen a dramatic increase in alternate
revenue streams like their web presence, subscription game streaming etc ?

> But a question: Players' total salaries account for 57 percent of
> league
>revenue. Is money made from the playoffs included in that total league
>revenue? Or do the players get a maximum of 57 percent of what the teams
>make in the regular season?

The players share is from all HRR, including pre-season, regular and playoff
games. I believe, unlike regular and playoff games, what counts towards HRR
in the pre-season, is net-revenue not gross.

The playoffs, because player contracts were all paid out, used to be a way for
teams to recoup losses or increase earnings. Ironic, but I can see some owners
hoping they don't make the playoffs. Why lose even more money and perhaps
take themselves out of the revenue sharing sweepstakes.

Jim
 >> Stay informed about: NHL revenues projected to rise 

On Sat, 27 Dec 2008 19:51:05 GMT, foamy wrote:

> In article ,
> Gary wrote:
>
>> So perhaps they're just putting up a brave front? Maybe.
>
> Their projections just don't make any sense to me, no matter how
> I juggle the numbers.
>
> Let's say the Hockey Related Revenue [ HRR ] is 100, Canada accounts
> for 30%, and the dollar dropped 20%.
>
> HRR USA Canada
>
> 100 70 30
> 94 70 24 [ following the drop in the dollar ]
>
> They project at least a 2% increase over the previous HRR of 100. So
> to get to 102, there'd have to be an 8.5% on the actual HRR of 94.
>
> How to they expect an 8% increase in light of the trouble in some cities
> like Phoenix ? Unless they've seen a dramatic increase in alternate
> revenue streams like their web presence, subscription game streaming etc ?

My guess is that the NHL owners locked in US/Canada $ futures contracts,
(whatever that means) when our dollar was at par with the American buck.
(Wish I had thought of that!)


>> But a question: Players' total salaries account for 57 percent of
>> league
>>revenue. Is money made from the playoffs included in that total league
>>revenue? Or do the players get a maximum of 57 percent of what the teams
>>make in the regular season?
>
> The players share is from all HRR, including pre-season, regular and playoff
> games. I believe, unlike regular and playoff games, what counts towards HRR
> in the pre-season, is net-revenue not gross.

Thank-you.

> The playoffs, because player contracts were all paid out, used to be a way for
> teams to recoup losses or increase earnings. Ironic, but I can see some owners
> hoping they don't make the playoffs. Why lose even more money and perhaps
> take themselves out of the revenue sharing sweepstakes.

But if the revenue from playoff games is included in the grand total that
ultimately determines players' salaries, and if a team (ie the Canucks) are
near the salary cap, if they don't make the playoffs and earn that playoff
money, aren't they screwed as well?

--
- Gary
 >> Stay informed about: NHL revenues projected to rise 

Gary wrote:
> For the business minded in the group:
>
> http://www.sportsbusinessjournal.com/article/61008
>
>


Is this Gary formerly from Chicago? If so, been a long while.

-Doug
 >> Stay informed about: NHL revenues projected to rise 

In article ,
Gary wrote:

> On Sat, 27 Dec 2008 19:51:05 GMT, foamy wrote:
>
> > In article ,
> > Gary wrote:
> >
> >> So perhaps they're just putting up a brave front? Maybe.
> >
> > Their projections just don't make any sense to me, no matter how
> > I juggle the numbers.
> >
> > Let's say the Hockey Related Revenue [ HRR ] is 100, Canada accounts
> > for 30%, and the dollar dropped 20%.
> >
> > HRR USA Canada
> >
> > 100 70 30
> > 94 70 24 [ following the drop in the dollar ]
> >
> > They project at least a 2% increase over the previous HRR of 100. So
> > to get to 102, there'd have to be an 8.5% on the actual HRR of 94.
> >
> > How to they expect an 8% increase in light of the trouble in some cities
> > like Phoenix ? Unless they've seen a dramatic increase in alternate
> > revenue streams like their web presence, subscription game streaming etc ?
>
> My guess is that the NHL owners locked in US/Canada $ futures contracts,
> (whatever that means) when our dollar was at par with the American buck.
> (Wish I had thought of that!)

The easiest way to do this is, when you have (say) a future
foreign-currency liability, is to buy the amount of currency to cover
the liability right away. That effectively hedges your exposure to
currency fluctuations.

In practice, you do this by buying really boring USD assets, probably
government bonds.

--
Ryan Cousineau http://www.wiredcola.com/
"In other newsgroups, they killfile trolls."
"In rec.bicycles.racing, we coach them."
 >> Stay informed about: NHL revenues projected to rise 

On Sun, 28 Dec 2008 06:34:46 GMT, Ryan Cousineau wrote:

> In article ,
> Gary wrote:
>
>> On Sat, 27 Dec 2008 19:51:05 GMT, foamy wrote:
>>
>>> In article ,
>>> Gary wrote:
>>>
>>>> So perhaps they're just putting up a brave front? Maybe.
>>>
>>> Their projections just don't make any sense to me, no matter how
>>> I juggle the numbers.
>>>
>>> Let's say the Hockey Related Revenue [ HRR ] is 100, Canada accounts
>>> for 30%, and the dollar dropped 20%.
>>>
>>> HRR USA Canada
>>>
>>> 100 70 30
>>> 94 70 24 [ following the drop in the dollar ]
>>>
>>> They project at least a 2% increase over the previous HRR of 100. So
>>> to get to 102, there'd have to be an 8.5% on the actual HRR of 94.
>>>
>>> How to they expect an 8% increase in light of the trouble in some cities
>>> like Phoenix ? Unless they've seen a dramatic increase in alternate
>>> revenue streams like their web presence, subscription game streaming etc ?
>>
>> My guess is that the NHL owners locked in US/Canada $ futures contracts,
>> (whatever that means) when our dollar was at par with the American buck.
>> (Wish I had thought of that!)
>
> The easiest way to do this is, when you have (say) a future
> foreign-currency liability, is to buy the amount of currency to cover
> the liability right away. That effectively hedges your exposure to
> currency fluctuations.
>
> In practice, you do this by buying really boring USD assets, probably
> government bonds.

Thanks, Ryan.

But it occurred to me after posting that, while these type of maneuvers
can cover the owners' known expenses (ie players' salaries), they're not
much good in protecting their revenue. The Canadian customers are paying
in Canadian dollars, and if those Canadian dollars are nosediving, the
Canadian owners are going to feel the pinch. Which gets us back to Foamy's
original point: that with the steep decline of the Canadian dollar, it
seems strange that it wouldn't have more of an effect on the NHL's total
revenue picture.

- Gary (who still wishes he had bought some of those boring USD assets when
the dollar was at par even though he doesn't understand why the currency of
the country that seems to be at the heart of the current financial crisis
is regarded as the 'safe haven' for currency speculators.)
 >> Stay informed about: NHL revenues projected to rise 

On Sat, 27 Dec 2008 23:03:15 -0800, Doug Thompson wrote:

> Gary wrote:
>> For the business minded in the group:
>>
>> http://www.sportsbusinessjournal.com/article/61008
>>
>>
>
>
> Is this Gary formerly from Chicago? If so, been a long while.
>
> -Doug

Nope.

- Gary (and not THAT Gary either!)
 >> Stay informed about: NHL revenues projected to rise 

Gary wrote:
> On Sat, 27 Dec 2008 23:03:15 -0800, Doug Thompson wrote:
>
>> Gary wrote:
>>> For the business minded in the group:
>>>
>>> http://www.sportsbusinessjournal.com/article/61008
>>>
>>>
>>
>> Is this Gary formerly from Chicago? If so, been a long while.
>>
>> -Doug
>
> Nope.
>
> - Gary (and not THAT Gary either!)


Gary Dare?
 >> Stay informed about: NHL revenues projected to rise 

On Sun, 28 Dec 2008 15:47:50 -0800, Doug Thompson wrote:

> Gary wrote:
>> On Sat, 27 Dec 2008 23:03:15 -0800, Doug Thompson wrote:
>>
>>> Gary wrote:
>>>> For the business minded in the group:
>>>>
>>>> http://www.sportsbusinessjournal.com/article/61008
>>>>
>>>>
>>>
>>> Is this Gary formerly from Chicago? If so, been a long while.
>>>
>>> -Doug
>>
>> Nope.
>>
>> - Gary (and not THAT Gary either!)
>
>
> Gary Dare?

Nope. But was he a hockey player? The name rings a bell for some reason.
--
- Gary
 >> Stay informed about: NHL revenues projected to rise 

In article ,
Doug Thompson wrote:

>>> Is this Gary formerly from Chicago? If so, been a long while.
>>>
>>> -Doug
>>
>> Nope.
>>
>> - Gary (and not THAT Gary either!)

>Gary Dare?

I haven't seen anything from good old Gary Dare in a loooong time.
Surprising cause the cap, finance, the Phoenix situation would be
right up his alley.

Jim
 >> Stay informed about: NHL revenues projected to rise 

Gary wrote:

>> Gary Dare?
>
> Nope. But was he a hockey player? The name rings a bell for some reason.

Danny Gare?

Scott
 >> Stay informed about: NHL revenues projected to rise 

On 2008-12-29, Gary wrote:
>
> Nope. But was he a hockey player? The name rings a bell for some reason.

I don't know if he played pro or not, but he was a long-time poster to
rec.sport.hockey, and occasionally posted to the team newsgroups as
well, both back when they were originally formed (yes, I'm old enough to
remember their creation!) and as of a year or two ago. But I haven't
seen him in quite a while.

--keith

--
kkeller-usenet.RemoveThis@wombat.san-francisco.ca.us
(try just my userid to email me)
AOLSFAQ=http://www.therockgarden.ca/aolsfaq.txt
see X- headers for PGP signature information
 >> Stay informed about: NHL revenues projected to rise 

On Sun, 28 Dec 2008 19:52:41 -0800, Scotty wrote:

> Gary wrote:
>
>>> Gary Dare?
>>
>> Nope. But was he a hockey player? The name rings a bell for some reason.
>
> Danny Gare?
>
> Scott

Bingo. Thanks. : )
--
- Gary
 >> Stay informed about: NHL revenues projected to rise