The Malik Report
by George Malik on 01/21/13 at 06:39 PM ET
Crain's Detroit Business's Bill Shea broke down both the costs and benefits of the third owners' lockout upon the Detroit Red Wings, and as you might expect, the organization took a financial hit during the lockout, but they also saved money over the short-term by not holding games...and will win out over the long haul thanks to taking in an increased percentage of hockey-related revenues over the course of the new CBA.
While Shea says that the Wings sacrified $8.8 million in operating income for missing 17 home games, they also saved a significant amount of money in terms of operating expenses--and they've come out with nary a loss in the season ticket-holding or suite-renting departments:
Another cost off the books is the pay for about 1,000 part-time game-day staffers. If each part-timer was paid the federal minimum wage of $7.25 an hour for a five-hour shift, that would translate into just over $616,000 for 17 lost home games.
The Red Wings, thanks to making the playoffs for the past 22 seasons, are largely shielded from the worst of the lockout's financial aftershocks because a loyal fan base and corporate sponsorship roster protect the bottom line.
"Those teams and team owners that are in good markets and operated them well will have the least adverse impact from the lockout. They've built up good will over decades," Ganis said.
The Red Wings are believed to have 14,000 season ticket holders, some of which are seats split among different ticket holders who have partial season packages. Almost all of those fans renewed their season tickets for 2013, and no suite holders were lost, a source familiar with the situation said.
Continued at significant length, and She's article is worth your time...
And it should also be noted that Michigan Radio's Joseph Lichterman reports that Detroit-area businesses lost $2 million in fan spending per game.
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The Malik Report is a destination for all things Red Wings-related. I offer biased, perhaps unprofessional-at-times and verbose coverage of my favorite team, their prospects and developmental affiliates. I've joined the Kukla's Korner family with five years of blogging under my belt, and I hope you'll find almost everything you need to follow your Red Wings at a place where all opinions are created equal and we're all friends, talking about hockey and the team we love to follow.