CBC Article

[hockeyaddict]

www.cbc.ca/canada/new-brunswick/story/2008/01/25/sea-dogs.html

[bjindaho]

Or go far in the playoffs. But that part seems to have been left out...

[Judas In My Mind]

The Sea Dogs organization might want to start looking not only at ways to generate more attendance, but more revenues through sponsorship deals and other methods. Why do I say this? Because if we need 4,000 people just to break even, and 4,200 to make a go of it, something is wrong. Maybe they need an internal audit of sorts to cut some expenses too. They're in a league where only two teams have more than 4,200 in attendance. Thus requiring 4,200 every year just to be profitable and have it be worthwhile to run the team is a bit of an unrealistic expectation.

[bjindaho]

I think some of the extra expense might have gone to the prospects game this year, and still more might go next year

[Jack Bauer]

I call bullshit on the 4000 to survive.

CB/PEI/Bat have either never averaged 4000 or have rinks that can't hold 4000 and they've survived.

Unless they're paying off ALL their startup costs in that 4000 they need, there is no way that figure is accurate.

[bjindaho]

i think it is startup plus mayer and anthony

[ontariohockeyfan]

TO the fans of this team take this story seriously as what they are saying is true.Do you the fans know what bills have to be paid
in a year (Rental,travel,team personel (Coaches,trainers)etc.This is not a cheap sport to run.If you think 3000 fans in a 6000seat arena will cut hit give your head a shake it will not. Myself for the last couple of weeks have been telling people to support this team or the thing that happened to St.Johns will happen here also.Hope not but when a story comes out on CBC take it serious.
As for going far in the playoffs great bonus to the books as teams look to go far as this is where the clubs make money or help to pay lots of bills.As for the team look for hopefully a long playoff run.This will help a lot. Again get out and support your team.

[Judas In My Mind]

They probably are counting the startup cost, although even that seems odd as the private boxes came with a ten year committment at $30K per year ($300,000 total for one box) and since there are 10 boxes...does that not equate the startup fee? Who knows? Granted the startup fee was paid up front in full, and the boxes is $3 million over ten years, factor in interest on the $3 million...would be a messed up formula to figire it all out.

And OntarioHockeyFan like I said. Only 2 teams in this whole league have over 4,200 average home attendance. That means 16 teams are suddenly in danger of going under, if you just use your typical costs versus attendance revenues for an equation. There are other revenue streams like corporate sponsors, merchandise, concessions, etc etc., and if they are saying they need 4,200 fans per game to make a go of it, they either aren't maximizing those revenue streams, or are carrying too much in the expenses department.

There is no way this team should need 4,200 fans per game to make it worthwhile. Sorry.

The answer to making more money and profits is not always to get more people in the building.

I'll bet we average 4,200+ next year though, but to expect that every year? Not going to happen. Next time this team goes into a big rebuilding mode and finishes at or near the bottom of the standings there is no way in hell we draw that figure.

[bjindaho]

This sounds more like greed than anything. What better time to try and convince people to make them more money...

[Jack Bauer]

jrsuperstar said:

They probably are counting the startup cost, although even that seems odd as the private boxes came with a ten year committment at $30K per year ($300,000 total for one box) and since there are 10 boxes...does that not equate the startup fee? Who knows? Granted the startup fee was paid up front in full, and the boxes is $3 million over ten years, factor in interest on the $3 million...would be a messed up formula to figire it all out.

And OntarioHockeyFan like I said. Only 2 teams in this whole league have over 4,200 average home attendance. That means 16 teams are suddenly in danger of going under, if you just use your typical costs versus attendance revenues for an equation. There are other revenue streams like corporate sponsors, merchandise, concessions, etc etc., and if they are saying they need 4,200 fans per game to make a go of it, they either aren't maximizing those revenue streams, or are carrying too much in the expenses department.

There is no way this team should need 4,200 fans per game to make it worthwhile. Sorry.

The answer to making more money and profits is not always to get more people in the building.

I'll bet we average 4,200+ next year though, but to expect that every year? Not going to happen. Next time this team goes into a big rebuilding mode and finishes at or near the bottom of the standings there is no way in hell we draw that figure.

Good post. I don't know the inner workings of a Q franchise but having followed it for nearly 10 years and seen only 2 or 3 franchises average above 4000(Halifax, Moncton, Quebec) then I think it's safe to say the 4000 number is bullshit.

As you said, if that's the break even point that 2/3 of the league will be gone within 3 years. If a team in Quebec can survive off barely 2000 fans per night and a team like CB can survive off 2800-3000 then there is absolutely NO WAY the Sea Dogs need 4000 just to break even.