Re: The Fate of the Sens (and other small market teams) -- Cuffs and Gloves Discussion Forum

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Subject: Re: The Fate of the Sens (and other small market teams)

Author:
Geoff

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Date Posted: 12:55:31 01/02/03 Thu
In reply to: Cuffs and Gloves Webmaster 's message, "The Fate of the Sens (and other small market teams)" on 11:42:04 01/02/03 Thu

A few thoughts have been juggled around my office regarding the Sens [financial] implosion. I think the latest paychecque fiasco is exposing some very fundamental problems with having an Ottawa-based NHL team:

*Despite the soaring cost of season tickets (banks in Buffalo now offer season ticketholder loans), the NFL set new league attendance records in 2002. MLB, NHL, and the NBA, meanwhile are on a massive downward slide. The Ottawa Citizen recently published an article saying some arenas are seeing a 10-13% decline in NHL attendance over last year. What's concernign is that the Sens aren't even among the worst attendance decliners.

*We went through the "Save the Sens" song and dance 2 years ago with the major season ticketholder drive. Back then (in the midst of the high tech boom), the Sens barely broke even, despite having consistent 18,500-man Corel Center sellouts. Having seen the Sens struggle in the BEST of times with great fan support makes one question their viability in Ottawa.

*From a spatial standpoint, the Sens are just too close to Montr�al and Toronto. There are a few closer teams in the NHL (e.g. Devils/Rangers/Islanders) but in much more populous areas. A city like Ottawa with only 750,000 people, most of whom are middle-class government bureaucrats, doesn't have a large enough population base to bring a season of continuous sellouts.

*Rod Bryden's financial proposal was questionable to me from the get-go. If I understand him correctly, he is essentially selling Class A Sens shares as a "financial instrument" (in his words) where the share would gain value (the overall value of the Sens franchise) but would continue to lose money year after year that could be applied as a yearly capital gains loss tax deduction. This concept sounds quite similar to the dot-com business model. Any takers?

The best we can hope for is that the 2004 NHL collective bargaining agreement will bring a salary cap that will make all Canadian teams both competitive and financially viable. I've been to games in Boston, Dallas, St-Louis, Montreal and Ottawa. The fans that turn out in Ottawa are among the best educated fans of the sport of hockey. However, the Sens will only be successful with a business model that can be profitable with an average attendance of 10,000-12,000 people.

Regards,
--Geoff Miller
Ottawa

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Replies:

Subject	Author	Date
Re: The Fate of the Sens (and other small market teams)	The Shadow	13:16:40 01/02/03 Thu

Re: The Fate of the Sens (and other small market teams)	A.H.	14:19:21 01/02/03 Thu