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Economist Says Detroit Would Lose $84.4M If NHL Season Is Lost

from David Muller of Mlive,

How big of an economic impact could the NHL lockout have on Hockeytown? 

With the stalemate between the league and players now 10 days old, MLive Detroit has reached out to veteran economist David Littman, who has studied the economic impact of sports teams and major entertainment events on cities, to gauge the economic impact the Red Wings would add (or take away) from the city this year.

Littman's conclusion: If the Detroit Red Wings do not play a single home game this season, Detroit will be out $84.4 million.

Littman reached this number by estimating that the Red Wings would play about 45 home games at the Joe Louis Arena, with that number including a handful of playoff games.

continued

Filed in: NHL Teams, Detroit Red Wings, | KK Hockey | Permalink
 

Comments

J.J. from Kansas's avatar

Littman reached this number by estimating that the Red Wings would play about 45 home games at the Joe Louis Arena, with that number including a handful of playoff games.

So… 4 playoff games, 5 if he’s counting the Winter Classic as a game away from Detroit (which it is).

 

Posted by J.J. from Kansas on 09/25/12 at 11:36 AM ET

LivinLaVidaLockout's avatar

don’t forget the preseason games:
2 preseason
40 regular season
1 winter classic:
43 non-playoff games
This economist is predicting we’d get swept with home ice or lose in 4 or 5 in an away series - I can’t take any of his other claims seriously.

Posted by LivinLaVidaLockout on 09/25/12 at 11:42 AM ET

Primis's avatar

That’s assuming not a single cent of those dollars aren’t spent into something else locally instead though, which is a bit ignorant.

Posted by Primis on 09/25/12 at 01:40 PM ET

Avatar

Posted by Primis on 09/25/12 at 02:40 PM ET

You’d make more money that Sidney Crosby if you could turn deliberately missing the point into a job.

Posted by Garth on 09/25/12 at 03:22 PM ET

Avatar

You’d make more money that Sidney Crosby if you could turn deliberately missing the point into a job.

I think you’ve missed the point of their point.  Primis appears to be suggesting that while there are going to be losses of some degree, it’s unlikely that they are as dire as suggested in the article above because in order to reach that 84.4 number the author is presuming that money which would otherwise be spent on sundry Wings-related activities in Detroit would either a) not be spent at all or b) not be spent in Detroit.

IMO both of those assumptions are somewhat shaky.

So yes, obviously there will be less revenue going into the city in the immediate term because there aren’t going to be Wings games.  No, it’s not going to be anywhere near 84.4 million dollars.

I mean, seriously, way over half of that number is ticket revenue… and it’s not like that revenue is returned into the local economy, right?  It goes into Illtch’s pockets.  If you wanted to get a real number you’d look at lost tax revenue and lost peripheral revenues that aren’t directed into the Illtch’s coffers.

Posted by HockeyinHD on 09/25/12 at 07:15 PM ET

HockeytownOverhaul's avatar

You’re like an ornery android.  Everytime I read your post I hear JP from Grandma’s Boy narrating.

Posted by HockeytownOverhaul on 09/25/12 at 10:14 PM ET

NIVO's avatar

im gonna get some real NFL refs to do some drive by at the NHL offices and boo him

Posted by NIVO from underpants gnome village on 09/25/12 at 11:51 PM ET

redxblack's avatar

I’m one of the towns of thousands who drives in for games a few times a season. I spend $ on dinner at local restaurants, occasionally shop area stores for things I can’t find at home, and of course attend games. We also occasionally visit area museums while in the area. If there’s no game, there’s no reason to go to Detroit (for me).

Posted by redxblack from Akron Ohio on 09/26/12 at 07:21 AM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

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